Healing Rift: African nations begin examining Rift Valley potential, with Kenya two steps ahead

In Africa, countries up and down the Rift Valley are at last taking a long, hard look at the potential for geothermal power production in the active spreading zone. Kenya, meanwhile, is done looking for potential, its looking for money – and finding it.

The Rift Valley, which actually gets its start in Syria in the Middle East, runs down eastern Africa north to south, passing through or bordering 11 countries. It splits into two east and west branches 1/3 of the way down the continent, wrapping around Lake Victoria and rejoing to the south. All of the continent’s large lakes are in the rift system.

The countries touching the rift system include (north to south) Eritrea, Etheopia, Uganda, Kenya, Rwanda, Democratic Republic of the Congo, Burundi, Tanzania, Zambia, Malawi, and Mozambique. Southeastern parts of the Sudan may also overlay geothermal-rich areas.

Recent assessments by the United Nations Environment Programme (UNEP) and the Global Environment Facility there is 4,000 MW of electricity ready for harvesting along the Rift Valley. Malawi, Mozambique and Tanzania are singled out as having huge potential for geothermal energy.

These first round explorations found 650 MW of potential in Tanzania. The government there is looking into small-scale plants for rural electricity mini-grid systems, although this has not yet started. Areas holding the most promise for Mozambique are in the northern and central provinces confirming the possibility of small-scale power generation only, warranting more detailed studies and eventual exploratory drilling. At least 38 thermal springs have been identified in the country.

In Madagascar, off the east coast of the continent and outside the rift system, eight sites have been identified and France is financing a prototype pre-feasibility study. Zambia lacks the funding to move on the several sites it has planned for construction and Botswana, also outside the system but to the west, is looking for proposals for a feasibility study for the construction of a solar geothermal plant.

Meanwhile, Kenya, the only country to have begun tapping the resource, continues full steam ahead. First, the country is buying its own drilling rigs (two) rather than wait for private companies. It will spend $36 million to speed up exploration for steam fields and may be in the market for five more.

Next came an announcement that Kenya and Japan had signed an aid deal worth $300 million to Kenyan geothermal development. The geothermal project involves construction of Olkaria 1 Unit 4 and 5 that should add 140 MW of power to the national grid and expand Kenya’s geothermal power production capacity by 85%. The country’s goal is 1200 MW by 2015 from geothermal sources.

The money is part of the $375 million package that Kenya and Japan negotiated during Prime Minister Raila Odinga’s recent trip to Tokyo and confirms Japan’s desire for a stronger presence in Africa.

However, Kenya’s main electricity generator KenGen sees the need for another $700 million to finish the $1.3 billion project, and believes it will get it soon. It expects an announcement could be made within months depending on talks with the World Bank, the French Development Agency, the European Investment Bank and German development bank KfW Entwicklungsbank. KenGen raised over $300 million in a corporate bond issue to finance various capacity expansion programs.