Abstract

Ethiopia is endowed with various types of renewable energy resources. The country has significant amount of geothermal energy source that can be developed to produce more than 10,000 MW electric power. The unique location of Ethiopia where The Great Rift Valley extending 1000 km from the Afar depression at Red Sea–Gulf of Aden junction north-west to Turkana depression on the south enables the country to share the abundant geothermal energy of the rift valley. Currently the total electric energy produced from geothermal source is not more than 8 MW. The disparity between the power demand and supply gap available in the country and the need to diversify the hydroelectric energy to other renewable sources enhance the development geothermal energy source in the country. High initial investment cost for geothermal energy development as opposed to hydropower energy, lack of technical competence and low tariff regime of electric power are some of the challenges faced by the country to develop geothermal energy. In this chapter, the opportunities and challenges of developing geothermal energy in Ethiopia are discussed. In addition, some recommendations to overcome the challenges are highlighted.

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