Geothermal Resources Development Proclamation No. 981/2016.

This Proclamation regulates geothermal resources development activities within the territory of the Federal Democratic Republic of Ethiopia. The objectives of the Proclamation include, among other things, ensuring that the country’s geothermal resources are developed in an orderly, sustainable and environmentally responsible manner, promoting the use of Grade II geothermal resources for various uses and encouraging a sustainable, carbon-neutral economy in Ethiopia. The Proclamation distinguishes between Grade I geothermal resources (capable to generate electric power and to provide services such as direct heating and combined heat and power) and Grade II geothermal resources (used for the purposes such as direct heating, agricultural and industrial applications and recreational bathing and medicinal purposes). The competent body may decide that other natural resources in the geothermal resource license area may be developed, in so far as feasible and in a manner consistent with this Proclamation and under the laws applicable to them. No land which is within areas reserved for natural habitats or national parks may be used for geothermal operations and no operations may take place within 500 metres of a water reservoir or dam. The licensing authority shall establish and maintain a register of geothermal resources. A licence holder may use water from any water body, situated on, under, or flowing through, such land or drill a well required for his activities, subject to the relevant Water Laws, relevant basin plans and upholding best practices and applicable health and safety regulations and directives. Geothermal operations shall be carried out in such a manner as to prevent unnecessary waste of or damage to geothermal or other energy and mineral resources; to protect and enhance the quality of surface and ground waters, air and other natural resources, including wildlife, soil and vegetation; and preserve cultural resources, including archeological, scenic and recreational resources. Used water shall be disposed consistent with Water Laws and relevant basin plans and related Environmental Laws.
A holder of a license issued or agreement concluded in relation to geothermal operations pursuant to Mining Operations Proclamation No. 678/2010 (as amended) prior to the coming into force of this Proclamation may apply at any time for a license in accordance with this Proclamation, and regulation and directive issued hereunder.