The African Development Bank (AfDB) has released an ambitious geothermal development program which includes small-scale geothermal units pertaining to countries along the African Rift Valley.
The new model to expedite geothermal development in the area requires early-stage financing with the AfDB using concessional financing which goes to a special purposes company, like a reinsurer. This will help shore up private investors while exploiting sustainable energy.
Tonia Kandiero, AfDB representative in Tanzania, said at the 4th African Rift Geothermal Conference: “Only about 217 MW of geothermal energy has been developed so far, most of it being in Kenya. This is insignificant compared to the region’s huge potential."
The financier is currently working on a 50-MW power plant in Djibouti as well as other initiatives throughout Ethiopia and Tanzania. AfDB also started the feasibility studies for a 20-MW geothermal plant in the Comoros.
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