BAKU, Azerbaijan, November 4. By 2050, Africa's geothermal sector is poised to attract a minimum of $35 billion in investments, underscoring its pivotal role in addressing the continent's surging energy needs, Trend reports.
Recent projections from Rystad Energy, independent energy research and business intelligence company from Norway, illuminate the significance of this investment influx, as it propels Africa's installed geothermal capacity beyond that of Europe by the end of the decade.
While Africa currently hosts only around 1 GW of geothermal capacity in 2023 - half of Europe's total - the continent's total installed capacity is expected to more than double by 2030, based solely on already disclosed projects, the research says.
If factoring in forthcoming projects essential to meet government objectives, capacity could triple by 2030. By 2050, the geothermal power generation capacity in Africa is anticipated to expand to 13 GW, more than twice the projected 5.5 GW of installed capacity in Europe, Rystad Energy expects. The primary drivers of this growth will be Kenya and Ethiopia, accounting for nearly 90 percent of the total capacity.
The geothermal industry in Africa is gaining momentum and stands ready to address the burgeoning demand across the continent in the coming decades. The analysis of already announced projects indicates substantial growth on the horizon, but the anticipated developments, taking into account economic feasibility and demand, emphasize the swift expansion, the agency pointed out. This growth will propel Africa from the sixth largest geothermal power generator in 2023 to the third largest in 2030.
Thus, Rystad Energy anticipates that investments in Africa's geothermal sector will surpass $35 billion between 2024 and 2050, driven by the escalating energy demand in East Africa.
