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Reykjavik Geothermal Agrees to Build 1,000 Megawatts in Ethiopia

Reykjavik Geothermal, the Icelandic company that’s helped build power plants in more than 30 countries, agreed to develop as much as 1,000 megawatts of projects in Ethiopia over the next 10 years.

The company expects to spend a total of $4 billion and will begin drilling test wells early next year, Chairman Michael Philipp said in an interview today in New York. About 10 megawatts will be in operation by 2015, with a total of 500 megawatts by 2018. A second phase may include as much as 500 additional megawatts of capacity. Ethiopian Electric Power Corp. has agreed to buy all the electricity under a 25-year contract.