Stimulating Geothermal Development in Eastern Africa: the Establishment of the African Rift Geothermal Facility

Abstract

Despite the high geothermal potential of the African Rift, only Kenya is currently exploiting this potential, with a producing capacity of 127 MW. Although geothermal energy is an economically viable energy option in Eastern Africa, the need for detailed exploration and the high cost and risk of exploratory drilling, compounded by institutional and regulatory barriers, have hampered the exploitation of this indigenous and environmentally friendly energy source in the region. In order to overcome the financial, investment and technical risks and barriers, and to replicate the success of geothermal development in Olkaria, Kenya, throughout the region, an African Rift Geothermal Facility (ARGeo) is being established. ARGeo is a project proposal funded by the Global Environment Facility (GEF), initiated by several countries in Eastern Africa, and implemented by the United Nations Environment Programme (UNEP) and the German Development Bank (KfW). The project will be executed in partnership with UNU-GTP, ICEIDA, the Italian Ministry of Environment, the USA Government, the German Geological Agency (BGR) and others. The project proposes to establish a comprehensive program of financial, policy and technical instruments for the promotion of geothermal energy that will directly support the development of viable geothermal energy resources in the African Rift. The project is designed to actively reduce barriers and to stimulate and facilitate investment through public and private sector partnership through a drilling risk guarantee fund and a technical assistance program and institutional strengthening. A pipeline of eligible projects is being developed, and an initial 4 prospects will be targeted for immediate support by the project. In this paper, we present the objectives, approach, rationale, planned activities and the targeted geothermal prospects of this initiative.