Data indicate that the world’s underground is full of geothermal energy. This thermal energy from the earth can be developed and used for cooking, bathing, heating rooms, generating electricity and so on.
The data also indicate that there is a large amount of geothermal resources underground than the world needs. However, there are also challenges to use this energy especially for electricity generation.
It has been a long time since Ethiopia started exploration for geothermal resources. Thus, various studies have been conducted since the 1960s/70s through the Geological Survey of Ethiopia. As the studies indicated so far, 27 geothermal areas have been identified as capable of generating electricity. It has been confirmed that more than ten thousand megawatts of electricity can be generated from the sector in the country.
As a result of work done in the geothermal sector so far, the first geothermal power station was built in the 2020s in Aluto-Langano and it was possible to generate 7.3 megawatts. This plant is currently under maintenance. Since the year 2008, the government has recognized that developing the geothermal resources by its own capacity requires a lot of capital. Thus, it has been working on formulating strategies, policies, decrees, regulations and guidelines. According to the data obtained from the Ministry of Mines, local and foreign private investors have been green lighted and favorable conditions are created to develop the geothermal resources.
As per the Geothermal Resource Proclamation, there are two types of geothermal resources. Level-1 Geothermal resources means that it is possible to generate high temperature geothermal steam by converting it into electrical energy; Level-2 Geothermal resource is the direct use of heat energy from geothermal for agriculture, industry, fishing, mining, recreation, medicine, bathing and other uses.
According to State Minister of Mines, Million Matthews, so far, 27 high-temperature geothermal areas have been identified as capable of generating electricity in Ethiopia. According to the geothermal master plan study prepared based on previous studies in the geothermal sector, it is known that there is a potential to generate more than ten thousand megawatts from the sector in Ethiopia.
Six foreign investors and one government institution are engaged in the geothermal sector at the level of companies and another 11 are engaged in exploration and development license issuance.
In general, many foreign and domestic companies are issued license and engaged in the mining sector for the exploration and development of ornamental, industrial, construction and other minerals. Currently, there are 208 companies working in the mining sector. Of these, 134 are engaged in exploration work, and 74 are in production and pre-production work.
The State Minister said that geothermal energy development is resource intensive. Most of the works being carried out in the sector are under exploration. Two foreign companies, however, have signed power purchase and implementation agreements with the government. He pointed out that each company is preparing and drilling for generating 150 megawatts in two phases. One company has drilled seven deep test wells with a total depth of 15,000 meters. Next, he announced that they are preparing to conduct a borehole inspection to determine the available steam power.
He explained that ten deep exploration wells are being drilled by the government company and the total depth more than 27 thousand meters has been drilled. Two more wells are being dug and he said that eight of these wells have been well tested.
As of his explanation, there was a situation where some of the companies engaged in the mining sector stopped working due to security problems in some areas (in Oromia, Benishangul, Tigray and Amhara regions). At present, however, most of the companies that have been issued license and engaged in relatively peaceful areas are being monitored and supported and are being made to start working.
The State Minister further said that it is possible to generate at least 25 megawatts of electricity from wells dug in Ethiopia, and he indicated that the preparation to start the generation work with the technology of “five megawatt well head plant” is being completed.
Exploration and deep drilling work is carried out in the mining and geothermal sector, so it is a sector where large investments are made. As a result, it is made possible to bring in a large amount of foreign currency from the investment for the work. The development of minerals, especially geothermal resources, requires a large amount of capital, technology and manpower. From this point of view, the government is working with various bodies to facilitate short and long-term trainings in the country and abroad to increase the capacity of the workforce, he added.
He mentioned that all companies are obliged to hire local experts as long as there are local experts with sufficient knowledge as the sector involves experts in various fields. If there are no enough local experts in the field, it is expected to get experience by coordinating with foreign experts.
In order to make them perform various tasks, competing indigenous organizations is underway. For example, he pointed out that they are being made to engage in infrastructure (roads, camps and water drilling) so that they can create a lot of job opportunities and this allowed the experts in the field to gain a lot of knowledge.
As explained by the State Minister, in the geothermal sector, there are currently 300 permanent and temporary jobs created by the companies. By directly using the geothermal resources in the regions, job opportunities have been created for many young people and investors.
According to Million, permanent and temporary job opportunities have been created in the past nine months in various activities of the companies. He explained that many people are engaged in the production of salt, potash, bromine, silica, carbon dioxide gas and so on.
In terms of entertainment and tourism, the trip to Dalol in the Afar region is one of the geothermal attractions. Many people are benefiting from preparing hot water or steam baths in modern and traditional ways in various areas. For this, Hot Springs like Sodere and Wondo Genet can be mentioned as examples, he noted.
He stated that many people are using the steam as a steam bath and shower in the medical field, and in addition to fulfilling social responsibility, a lot of work has been done to ensure the benefit of the local community. For example, the provision of educational materials and community-based activities are among the community’s benefits.
As to the State Minister, many works have been done in the mining sector in the last nine months. Good deed has been carried out to establish and implement new procedures by identifying some unclear procedures that are not suitable for monitoring and inspection. Licenses are issued to manufacturers who want to produce value-added products via processing the raw materials for the industries and construction sector to substitute imported goods.
At the same time, mentioning that issuance of license for minerals that contribute significantly to increasing foreign exchange earnings has been underway. He added that a lot of works to strengthen and ensure institutional efficiency in the nine months have been committed.
According to the report obtained through inspection, the companies that have taken a license for mineral production and exploration are informed in written format the results of the inspection along with the license agreement. The second round of International Mining and Technology Expo was held from 24 to 28 November, 2024 in order to attract potential and experienced investors to participate in the mining sector, promote mineral resources and increase market linkages.
The State Minister further announced that the manufacturing companies that have entered and are preparing to enter the production of cement, coal, gold and other minerals have been put to work with their full capacity.
Based on thorough evaluation of the institutional arrangement at work and identifying the problems, new organizational activities are being carried out. In addition, they have done thorough evaluation of the performance of the licenses granted so far and that they have done the work that will bring about the results of the next licensing and management. The work of revising the mining and oil policies and decrees in view of the current national and international conditions is being completed, he pointed out.
BY BACHA ZEWDIE
THE ETHIOPIAN HERALD FRIDAY 31 MAY 2024
