Feb 07, 2013
AfDB to boost geothermal power development in East AfricaBack
Africa|Climate Investment Funds|Concrete|Development Bank|PROJECT|Renewable Energy|Renewable-Energy|Resources|Africa|Comoros|Djibouti|Ethiopia|Kenya|Tanzania|Bank|Building|Development Finance Institution|Energy|Renewable Energy Programme|Rift Valley|Drilling|Power|Thierno Bah|Tonia Kandiero|Eastern Africa
© Reuse this
The AfDB was leading the development of scaling-up the renewable-energy programme of the World Bank’s Climate Investment Funds, which would include the financing of a geothermal development project.
This formed part of the development finance institution’s geothermal development programme for Africa, which saw it working on a series of small-scale geothermal units, adapted to the specific context of each country of the East African Rift Valley that had geothermal potential.
The AfDB was also currently busy with the development of a 50 MW power plant, in the Lac Assal region of Djibouti, while playing a central role in defining a geothermal development roadmap in Ethiopia.
Additionally, the bank had started the identification process of a site for a 20 MW geothermal plant in the Comoros.
“Our ambition is to support the accelerated development of the large untapped geothermal resource potential in the Eastern Africa region. Geothermal development has been relatively limited in this region in the past.
“Only about 217 MW of geothermal energy has been developed so far, most of it in Kenya. This is insignificant compared with the region’s huge potential, estimated at 10 000 MW in Kenya alone,” AfDB resident representative in Tanzania Tonia Kandiero said.
A new model had emerged to fast-track the development of geothermal resources in the East African Rift Valley and the financing of the early stage and high-risk activities mainly related to drilling by development finance institutions using concessional financing.
The financing would go to a special purpose company in charge of undertaking the drilling activities and taking most of the drilling risk.
“An eloquent illustration of this new model is the Menengai geothermal development project in Kenya, which the AfDB has recently supported with about $150-million highly concessional financing from its own resources blended with climate investment funds,” AfDB senior power engineer Thierno Bah explained.
Once completed, the Menengai project was expected to created significant development opportunities for Kenyan citizens by increasing the energy supply in the country by an amount equivalent to the current consumption needs of 500 000 Kenyan households, 300 000 small businesses and some 1 000 GWh for other businesses and industries.
The project would displace around two-million tons of carbon dioxide a year, significantly contributing to the fight against climate change.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines (150 word limit)
Other Electricity News
Updated 7 hours ago Some concern has been expressed about recent delays to South Africa’s hitherto successful Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), under which 26 projects have already been connected to the grid following three bid windows during...
Article contains comments
Updated 50 minutes ago Protech Khuthele Holdings on Wednesday said, in a cautionary note to shareholders, that, as the failed company unwound, investigations were ongoing into its affairs. The company provided no indication of the completion date.
Updated 53 minutes ago Private equity investors are increasingly becoming more active in Africa’s bid to narrow the $90-billion a year infrastructure funding gap constraining the continent’s growth. This was according to a survey by the Southern African Venture Capital and Private Equity...
Updated 1 hour 28 minutes ago The shortlist of innovations in the Africa Prize for Engineering Innovation was announced on Wednesday, comprising 12 new innovations from seven African countries. The shortlist announced by the UK’s Royal Academy of Engineering (RAEng) included innovations in...
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
Updated 7 hours ago The latest TransUnion Vehicle Pricing Index (VPI) contains a number of small, but significant indications that the tide may at last be turning for the beleaguered used car industry. For the third successive quarter, used car inflation has increased on a year-on-year...
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu. Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.