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South Africa Procurement News Notice - 99962


Procurement News Notice

PNN 99962
Work Detail The 20GW of geothermal potential blowing hot air beneath East Africa could provide electricity to around 1,3 to 2,6 million homes in Africa If fully developed, the geothermal capacity in Africa would yield an energy capacity five times greater than the current world leader, the US. The bulk of this would come from the spectacularly unexploited East African Rift System (EARS), which currently houses infrastructure capable of producing about 1GW. Geothermal power was first used to produce electricity in 1904 and the global installed capacity reached more than 16GW in 2021. Geothermal heat pumps can be installed almost anywhere and are widely considered the best way of heating and cooling homes. It is known to be used directly by piping thermal water for heating greenhouses, fish farms and municipal heating systems. Africa is sitting on an untapped geothermal goldmine, which could make a dent in the continent’s electricity access deficit that sits at more than 600 million people. The 20GW of geothermal potential blowing hot air beneath East Africa could provide electricity to around 1,3 to 2,6 million average African homes – this is a common calculation used in energy discussions. Using the 6,9 people on average per African household, this equates to around 17,94 million people. Exploration risks the major exploitation hurdle This untapped electricity generation source is available to countries situated within the EARS, and according to the 2023 African Continental Power Systems Masterplan Support Studies – Geothermal Power Plants (GPP) (the study) by the African Union Development Agency (AUDA-NEPAD), excludes direct use for industrial and commercial applications. The study states that geothermal offers multiple benefits including high-capacity factors and low costs; however, to date, only 1GW, roughly 5% of the total, has been harnessed. “However, the initial development of these projects presents considerable challenges and risks both in terms of resource exploration and fund raising.” The study points out that the high costs of drilling exploration, with no guarantee of the estimated potential during the surface exploration phase, discourages many private investors and developers. Where the EARS countries rank in the geothermal pecking order Kenya has the most advanced geothermal industry, having grown its installed capacity from 15MW to 950MW and actively pursuing an increase to 10GW by 2040. Kenya’s expertise and experience has seen it over the past few years consult with other countries in Africa on their potential to explore geothermal sources in other African countries. The study cites Kenya as being a global leader, “with over one third of its total capacity derived from geothermal, 328MW under construction and a stated target of up to 10GW by 2040.” The study says that Ethiopia has initiated efforts to develop large GPP, with investment in drilling campaigns in several geothermal fields to confirm its potential. Djibouti, Tanzania and Zambia are taking its first steps by undertaking surface evaluations and sinking exploration wells to estimate the potential. The Democratic Republic of Congo (DRC) and Eritrea are still to consider and develop ‘conducive’ government policies around geothermal.
Country South Africa , Southern Africa
Industry Energy & Power
Entry Date 29 May 2025
Source https://www.esi-africa.com/magazine-article/geothermal-energy-blowing-steam-up-africas-rift-valley/

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