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mobilize new investment from private sector developers. Malaysia and Papua New Guinea are also likely candidates to increase their geothermal capacity in the next decade.143 East Africa The East African Rift Valley is the region with the second-strongest geothermal potential after Asia, and Kenya is the region’s leader in geothermal power development. The Kenyan government has taken concrete steps to encourage new development, including the creation of a dedicated public company, Geothermal Development Company (GDC), and is planning to add 2,000 MW of capacity by 2020. Based on 2011 project preparations, Djibouti and Ethiopia are also likely to increase their installed capacity by 50 to 200 MW in coming years.144 As of March 2013, Tanzania, Burundi, Rwanda, Uganda, and Ethiopia were participating in a “Geothermal Compact,” led by the World Bank and Iceland, which supports surface exploration studies and provides technical assistance toward developing geothermal resources. Zambia is expected to join the compact soon.145 Rwanda is believed to have total geothermal resources of more than 700 MW, and in 2011, the Rwandan government announced plans to spend an estimated $935 million to develop 310 MW of new geothermal capacity by 2017.146 Rwanda started exploratory drilling for geothermal resources near the Karisimbi volcano in April 2013. If tests are successful, a 10 MW pilot phase of the project will be constructed. Great Wall Drilling Company (China) won the contract for test drilling, a Rwandan firm will handle rehabilitation of the road to the drilling site, and Yashinoya Ltd. (Kenya) will handle civil works engineering. Exploratory drilling in Rwanda’s Kinigi region, another area likely to hold significant geothermal resources, is expected to begin in 2014.147 Latin America The countries most likely to develop new geothermal power projects in Latin America are Mexico, Costa Rica, Nicaragua, and El Salvador. Total additional capacity is expected to be in the range of 500 to 1,500 MW by 2020, depending on particular country policies and available funding. Other countries with geothermal resources and the potential for new development include Guatemala, Honduras, Panama, Colombia, Ecuador, Chile, Bolivia, Cuba, Haiti, and Dominica.148 Japan Japan ranks eighth in installed geothermal energy capacity, but third globally in potential geothermal resources (its last large geothermal power plant was completed in 1999).149 Japan has implemented an FIT and has at least partially deregulated the sector. Combined 143 World Bank, ESMAP, Geothermal Handbook, June 2012, 30. 144 World Bank, ESMAP, Geothermal Handbook, June 2012, 30. 145 World Bank, “Full Steam Ahead,” March 6, 2013. 146 Reuters, “Rwanda to Spend $935 Mln on Geothermal Power,” March 22, 2011; New Times, “Geothermal Drilling Starts Next Month,” March 27, 2011. 147 Cichon, “Rwanda Set to Start Major Geothermal Development,” March 27, 2013; New Times, “Geothermal Drilling Starts Next Month,” March 27, 2011. 148 World Bank, ESMAP, Geothermal Handbook, June 2012, 30. 149 Industry representative, interview by USITC staff, Tokyo, May 13, 2013; KPMG, World Geothermal Market and Outlook, n.d., 10–11. 5-36PDF Image | Renewable Energy and Related Services: Recent Developments
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