European Union aids African geothermal development

Providing enough power for poverty stricken African nations has proved difficult, as investors have been reluctant to enter into deals in less developed and unstable countries, while also attempting to remain sustainable. Geothermal power is thought to offer considerable benefits in Africa, but getting the industry into a dominant position in the region has proved difficult.

However, a new partnership between the EU and African Union (AU) is set to reward investors with grants in order to bring down the cost of entry into the market. The Geothermal Risk Mitigation Facility (GRMF) will offer both public and private sector investors with help researching viable geothermal areas.

The initial investment will be $65m and will look at countries predominantly in the east of the continent, with projects in Ethiopa, Kenya, Rwanda, Tanzania and Uganda the first to be looked at.

Gary Quince, Head of EU Delegation to the AU, told the Xinhua news agency: “The idea is to provide grants to investors who are undertaking studies then drilling to find the good sites for geothermal power stations. The work carries quite a lot of risk; very often they drill and they don’t find the steam necessary for investment in the power stations. So, by reducing the costs we have to cover some of the risks.”

Geothermal energy is relatively untapped in the region, but there is thought to be significant potential. Geothermal energy currently accounts for ten percent of the total power consumption in Kenya, and the country hopes to increase that number to 25 percent within five years.