Aluto Geothermal Sector Development Project (GSDP)

The Aluto geothermal project is located in Oromia Regional State. The project site is about 200 km southeast of Addis Ababa and is conveniently located between Lake Ziway and Lake Langano. Upon completion, the Aluto Geothermal project is expected to generate capacity of 72 megawatts.

The project intends to develop geothermal resources in Ethiopia to generate electricity in two phases. In the first phase, the project will confirm the geothermal resources and support the government in establishing its institutional framework for geothermal development. In the second phase, the project will exploit the identified resources for generating electricity. The project design can be considered as international best practice because it mitigates the geothermal resource risk, links the power plant construction with identifying steam, and increases the internal rate of return of the electricity generation phase.

This initiative represents Ethiopia’s commitment to diversifying its energy sources and tapping into the potential of geothermal resources. Geothermal energy is a clean and renewable source, and the Aluto project showcases Ethiopia’s dedication to environmentally friendly power generation. This development poised to contribute substantially to the country’s energy mix, aligning with Ethiopia’s broader goals of achieving energy security and supporting economic growth through sustainable means.

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