Geothermal Gains Steam in East Africa

Geothermal Gains Steam in East Africa

The Great Rift Valley is one of the most active tectonic regions on the whole planet, spanning a vast region with Eritrea and Djibouti in the north, south through Ethiopia, Uganda, Kenya, Rwanda, Tanzania and continuing into the Indian Ocean.  This geologic hotspot has already proven itself as a geothermal resource for Kenya and Ethiopia.  A panel at WIREC ’08 entitled “African Rift Valley Geothermal Initiative” brought together various luminaries in this area to each present an update on the latest progress.

Idi Nadhoim, the Vice President of the island nation of Comoros gave a presentation on the potential and need for geothermal for his nation.  Mr. Nadhoim said that he is "under pressure to install a diesel quickfix to meet the nation's energy shortage.  In light of this, Kuwaiti investors have agreed to finance a 5 megawatt geothermal on a unique fast track status." Watching this speaker interact directly with government agency representatives and private sector interests showed clearly the value of a conference such as WIREC.  Not only was the presentation on Comoros informative and revealing, but also a genuine dialogue and lines of communication were opened up.

Two US agencies were represented, the State Department and the Trade and Development Association.  Both of these speakers highlighted the successes in both Kenya and Ethiopia.  Hydropower, while still the main source for electricity, has proven unreliable in the region due to drought and diminishing water supplies.  Kenya is currently producing 130 megawatts of geothermal power, which represents 11% of its total need.  The USTDA provides grants for exploration and start-up in the region and its grant to Djibouti has proven fruitful.  Djibouti is currently developing geothermal with Reykjavik Energy and aims to be 100% geothermal within years.

Erik Fernstrom, the World Bank chief of the African Rift Geothermal (ARGeo) Project, was also on hand to give status updates.  He reported that "the World Bank has recently recommended geothermal sites for drilling in Djibouti, Kenya and Ethiopia.  ARGeo also provides up to $12 million a year in risk insurance for drilling, to mitigate losses."  The two Olkaria (pictured above) geothermal plants in Kenya were both started with World Bank support and now produce upwards of 110 megawatts.

An integral private sector representative was on hand to show how US companies both support and profit from these developments.  Reno, Nevada based Geothermal Development Associates highlighted their work in both Kenya and Ethiopia.  In particular the geothermal plant at Oserian, Kenya, which produces both electricity and heat for a profitable cut-flower business in the world’s largest geothermal greenhouse.

Preliminary geothermal prospects in the African Rift Valley are estimated to produce a total of 7,000 megawatts.  Geothermal has already proven itself on the ground in the region, and presents a wealth of opportunity for this developing region.  Providing a stable, affordable, renewable energy source that is completely sustainable would do a lot to create more stability and prosperity in the region.