Africa’s Best Energy Choice is Geothermal
Africa is on a quest to deliver universal energy access and advance green industrialization, yet it grapples with delivering reliable baseload electricity. In countries like Nigeria, power outages and shortages translate into significant economic losses, costing approximately $26 billion annually. Ethiopia and Uganda frequently face blackouts as droughts diminish hydropower output. Across the continent, expensive and polluting diesel generators are utilized to fill the gaps; for instance, Nigerian businesses alone spend about $22 billion on off-grid fuel each year. Amid these challenges, geothermal energy emerges as a potent solution to meet Africa’s escalating energy demands.
Many renewable energy options, while promising, can be erratic. Solar, wind, and hydropower generation are highly dependent on environmental conditions; in Africa, where grid systems are often under-resourced, these interruptions can have dire economic consequences. Geothermal energy stands out by harnessing the Earth’s internal heat. This energy is derived from steam trapped in underground rock formations, which is then used to drive turbines for electricity generation. Since the Earth’s core persistently generates extreme heat from radioactive decay, geothermal energy can be continuously produced, making it a reliable energy source.
However, geothermal energy isn’t without its challenges. The process of drilling deep into the earth and installing the necessary infrastructure is time-consuming and capital-intensive. This involves a costly exploration phase, which requires thorough geological surveys. Additionally, geothermal production poses environmental risks, and the reservoirs are primarily located near tectonic plate boundaries, limiting accessibility.
Geothermal energy can always be generated, making it an ideal candidate for supporting a reliable power supply
Mugwe Manga
The advantages of geothermal energy, however, significantly overshadow its drawbacks. Once the initial investment is made, geothermal plants can deliver low-cost electricity for decades. On a large scale, geothermal energy can provide baseload stability, facilitating the optimal integration of other renewable sources like wind and solar without disrupting the grid. As advancements in directional drilling, data analytics, and artificial intelligence drive down costs and enhance success rates, the attractiveness of geothermal energy is likely to grow.
Africa, rich in geothermal potential, can capitalize on this energy source, especially as production methods improve. Oil and gas companies, under pressure to transition to cleaner energies, are increasingly applying their expertise to geothermal projects. Enhanced geothermal systems (EGS), which utilize oil and gas drilling techniques to tap into hotter rocks at greater depths, epitomize this approach. The International Energy Agency estimates that Africa holds nearly one-fifth of the global potential for enhanced geothermal systems, with potential outputs reaching 115 terawatts. Capturing even 1% of this potential by 2050 could fulfill Africa’s entire electricity demand.
Kenya is leading the charge in geothermal energy production. Its inaugural geothermal plant, Olkaria I, began operations in 1981, currently boasting a capacity of 45 megawatts. Overall, Kenya’s installed geothermal capacity stands at 985 MW, placing the country sixth globally. Geothermal energy now constitutes 47% of Kenya’s total electricity generation, cementing its status as the largest renewable energy source within a grid that’s 93% green.
Kenya’s adoption of geothermal energy has propelled a rapid expansion of energy access. In 2013, only 37% of Kenyans had electricity; today, that figure has surged to over 76%. Remarkably, Kenya has tapped into less than 10% of its geothermal potential, with state-backed utility KenGen planning to achieve a gigawatt of installed capacity by 2026 and position Kenya among the world’s top three geothermal producers by 2030.
While geothermal is not a solution everywhere, it can work for Africa, especially as production techniques are improved
Mugwe Manga
The advantages of geothermal systems extend beyond electricity generation. They can also provide direct heating solutions in sectors such as horticulture, aquaculture, and food processing—all of which require stable heat sources. In Kenya, for instance, Oserian flower farms utilize geothermal steam to heat their greenhouses, resulting in consistent and high-quality flower blooms. Notably, these applications do not require access to extremely hot reservoirs, as moderate-temperature reservoirs are more accessible.
Moreover, geothermal brines, which are byproducts of geothermal energy production, often contain valuable minerals such as lithium—crucial for battery production—and rare earth elements utilized in electronics. By extracting and trading these high-value materials, African nations could further benefit from the green transition.
Geothermal energy could also serve as a catalyst for economic integration across Africa. Already, regional “power pools”—which coordinate electricity generation and transmission across borders—are preparing the ground for greater unity in Africa’s fragmented energy market. This widespread adoption of stable and abundant geothermal energy can accelerate this transition, ultimately supporting the African Union’s vision of an African Single Electricity Market.
Yet, challenges remain, particularly the lack of robust political support for geothermal energy initiatives. While geothermal exploration and development is a lengthy process requiring significant risk-tolerant investments, projects like dams and solar farms often garner immediate donor interest and media coverage due to their quicker impact.
However, looking at the bigger picture, the potential of geothermal energy is remarkable. By anchoring power grids, it can enhance the reliability of other renewable sources. Through supplying continuous heat, it can aid in the decarbonization of various industries, from food processing to textiles. Furthermore, by producing critical minerals, it can elevate Africa’s role in global supply chains. Finally, supporting cross-border energy exchanges could expedite the development of an integrated African electricity market—an essential element for improving access, reliability, and affordability of energy across the continent.
- Mugwe Manga is Senior Green Finance Adviser at FSD Kenya, a board member and co-founder of the geothermal energy company Olsuswa Energy Limited, and the author of “The Energy Future of Africa: A Journey Through Africa’s Green Revolution and How It Can Change the World” (Footprints Press Limited, 2022).
Copyright: Project Syndicate
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