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Africa A number of factors are leading certain countries in Africa to explore the viability of developing the continents geothermal resources. First, Africa has the smallest amount of energy use of any populated continent in the world. Only approximately 25 percent of Africa’s population has access to electricity, more than half of which is traditional biomass which contributes to deforestation and health problems. Increasing demand for electricity also adds impetus to the need to increase access to electricity in Africa. At the same time, increasing demand for electricity exacerbates issues currently associated with Africa’s electricity sector. For example, reliance on imported petro-products for thermal power generation exposes African countries to the price volatility of fossil fuels. Additionally, due to climactic fluctuations, the reliability of hydropower as a primary source of electricity for many African countries has been called into question. Africa’s geothermal resources are concentrated in the East African Rift System (EARS comprises the Democratic Republic of Congo, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mozambique, Rwanda, Tanzania, Uganda, and Zambia) and remain largely undeveloped. Currently, only approximately 217 MW of geothermal resources have been developed in Kenya and Ethiopia for electricity production. The estimated potential of geothermal resources in EARS is more than 15,000 MW.2 Ethiopia Between 2005 and 2010 Ethiopia’s gross domestic product (GDP) grew by 11 percent annually. In order to perpetuate economic growth into the next decade Ethiopia’s government has established a plan for the country to achieve middle income economic status by 2025, while at the same time developing a carbon neutral economy. A major pillar of Ethiopia’s plan for economic growth is the expansion of renewable energy generation, including geothermal.3 Currently, Ethiopia is home to only one operating geothermal power plant; the 7.3 MW Aluto-Langano plant located in the country’s south. However, Ethiopia’s geothermal resource capacity has been estimated at 5,000 MW, and the country’s government has grown increasingly interested in developing its geothermal resources. In 2009 Ethiopia’s Ministry of Mines and Energy signed a Memorandum of Understanding (MOU) with Marubeni Corporation for the Japanese Company to conduct survey work for the expansion of the Aluto-Langano geothermal plant.4 In 2010 the World Bank granted a US$ 330 million loan to Ethiopia, a portion of which the country intends to use for the development of geothermal resources.5 Ethiopia has also received funding for the Aluto-Langano geothermal project, which plans to expand generation capacity at the power plant from 7.3 MW to 70 MW.6 Kenya Geothermal energy is positioned to play a central role in Kenya’s plans for economic growth and transformation into a middle-income country. Obstacles to Kenya’s economic growth include an overreliance on imported petroleum products used in thermal generation, as well as hydropower. The former exposes Kenya to price variability while the reliability of the latter is subject to changes in the local climate. The result is an electricity sector that is unreliable and prone to power shortages. One World Bank study indicates that the disruption of public power supply costs Kenyan companies about 7 percent of their annual sales revenues.7 Kenya’s power sector is also reliant on traditional biomass, May 2012 4PDF Image | Geothermal International Market Report
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