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)
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
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...