Africa to attract $ 35b in geothermal investments by 2050

Nigeria urged to seek global par tnerships to enhance capacity

AFRICA’S geothermal sector will attract, at least, $ 35 billion in investments by 2050, showing the critical role geothermal is set to play in meeting the continent’s rapidly growing energy demand.

According to Rystad Energy’s latest projection, the significant investment will see Africa’s installed geothermal capacity surpass Europe by the end of the decade.

Although Africa currently possesses only around 1 gigawatt ( GW) of geothermal capacity in 2023, which is half of Europe’s total, its overall installed capacity is expected to more than double by 2030, solely considering the projects that have already been announced.

Factoring in undisclosed projects essential for meeting government targets, the capacity in Africa could triple by 2030.

“By 2050, we expect geothermal power generation capacity in Africa to expand to 13 GW, more than double the expected 5.5 GW of installed capacity in Europe.

“Many African countries with geothermal potential rely heavily on hydropower for their electricity supply. The geothermal industry in Africa is picking up steam and could help meet soaring demand across the continent in the decades to come,” it stated.

The forecasts indicate substantial expansion ahead when considering the analysis of announced projects. The anticipated developments, factoring in economic factors and demand, underscore a swift implementation. This progress is expected to elevate the continent’s position from the sixth- largest geothermal power generator in 2023 to the third- largest by 2030.

It emphasised that African nations can decrease their dependence on hydropower and address associated risks by integrating more geothermal energy into their power blend.

To reach a geothermal capacity of 13 GW in Africa by 2050, Rystad Energy’s primary scenario heavily depends on the advancement of geothermal resources in Kenya and Ethiopia.

“Kenya has already demonstrated its commitment to incorporating geothermal energy into its power mix. With abundant geothermal resources, strong local expertise and increasing interest from international players, it is expected that Kenya will exceed 8 GW of geothermal capacity by 2050,” it stated.

Executive Director of Powerup Nigeria, Adetayo Adegbemle suggested that Nigeria ought to send delegations to these nations for studying, aiming to enhance the country’s geothermal capacity.

He mentioned that the Energy Commission of Nigeria ( ECN) could have been engaged in such activities, but lately, they have been inactive. Therefore, he recommended that the Federal Government should reconstitute the Commission.