An upsurge in geothermal production has propelled Kenyan utility KenGen to significant profit gains, while Rystad Energy forecasts that Africa’s geothermal sector will outpace Europe’s by 2030.
Africa is poised to overtake Europe in geothermal capacity by 2030, driven by significant investments and rapid development in the geothermal energy sector. According to a report by Rystad Energy, Africa’s geothermal power capacity is expected to reach 13 GW by 2050, more than double the current 1 GW capacity. This growth is attributed to the favorable conditions for geothermal energy generation in the Rift Valley region of East Africa, particularly in countries like Kenya and Ethiopia.
Kenya, in particular, has made substantial progress in harnessing its geothermal potential, becoming the world’s seventh-largest geothermal producer. The country’s geothermal industry has benefited from early drilling campaigns by state-owned entities, which helped “de-risk” investment for geothermal developers. As a result, Kenya is well-positioned to attract green industries due to its abundant supply of power and heat from geothermal sources.
The surge in geothermal output has also led to a leap in profits for Kenyan utility KenGen. Rystad Energy’s analysis indicates that Africa’s geothermal industry is on track to surpass Europe’s capacity by 2030, with an estimated $35 billion in investment expected to pour into geothermal projects in Kenya and Ethiopia through 2050. By mid-century, Kenya and Ethiopia are projected to account for nearly 90% of the 13 GW in geothermal energy generation capacity in Africa.
Despite Africa’s current capacity being half of Europe’s, the continent’s geothermal capacity is set to more than double within seven years and potentially triple by 2030. This growth underscores the significant potential for geothermal energy development in Africa and its increasing importance in the global energy landscape.
The expected expansion of Africa’s geothermal capacity reflects the continent’s commitment to sustainable and renewable energy sources, positioning it as a key player in the global transition to cleaner energy alternatives. In summary, Africa’s geothermal industry is poised for substantial growth, with the continent set to overtake Europe in geothermal capacity by 2030. The favorable conditions for geothermal energy generation in East Africa, coupled with significant investments and rapid development, are driving this expansion, positioning Africa as a significant player in the global geothermal energy landscape.
