The African Rift Valley is set to see more geothermal projects as a result of funding support from the World Bank, Iceland and other Nordic countries. The first tranche includes $13 million funded by the Icelandic International Development Agency and the Nordic Development Fund over the next two years. The first phase will include test drilling in the highly active geothermal sector in the African Rift Valley countries.
Studies show that if the region’s geothermal potential is fully realized, it could cover at least one-quarter of the energy the East African countries need by 2030; however, high start-up costs have hindered the sector. Iceland International Development Agency chief Engilbert Gudmundsson said Iceland was hoping to jumpstart the undertaking by providing start-up capital and development expertise.
"The drilling is the most costly part of the exploration and the primary hindrance to the utilization of geothermal energy," Gudmundsson said in a ministry statement. "However, if the drilling yields positive results, it will be possible to harness geothermal energy for electricity production and utilize it to further economic development, with the active participation of the private sector."
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