U.S. private equity and hedge funds are backing an effort by Ethiopia to turn itself into an exporter of electricity to the region, channeling at least $4 billion into geothermal projects across the nation. The Ethiopian government has signed 25-year power purchase agreements with Reykjavik Geothermal Ltd., a developer led by Michael Philipp, the former head of Europe, Middle East and Africa for Credit Suisse Group AG. It is now at the beginning of building out other forms of renewable energy, especially geothermal wells that tap the natural heat from underground rock structures in a rift valley that passes through the nation. “Ethiopia has some of the best geothermal reserves in the world, certainly top 10, maybe top five,” Michael Philipp, chairman of Reykjavik Geothermal, said by phone. Backers of Reykjavik Geothermal won’t finance the projects alone.

Source: Ethiopian News February 05, 2018 09:42 UTC