African Business News

Geothermal will lower power costs

If you visit the Blue Lagoon Geothermal Spa in Iceland, you will be able to take a dive into a natural hot water swimming pool that is heated directly from the belly of the earth. This lagoon is testament to Iceland’s geothermal energy that generates more than 90 per cent of Iceland’s electricity. Kenya too has its fair share of geothermal energy. Hot water springs are a common attraction in places like Lake Bogoria in the Great Rift Valley. You can even boil an egg in these hot springs. But much more than this, you can power a country with the related steam that shoots from the depths.

This steam is so powerful that it has been generating Kenya’s geothermal-powered electricity for more than three decades now. Indeed, Kenya was the first country in Africa to generate electricity from geothermal sources.

This sector has since grown so much that last year in 2013, geothermal generated 773 MW of electricity, second only to hydro which was generating 820 MW. Geothermal has, therefore, played a big role in the country’s electricity access rate of 56 per cent in urban areas and 12 per cent in rural areas.

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Building Strong, Sustainable Energy Partnerships With Africa

U.S. Department of Energy official Daniel Poneman visits Mozambique and South Africa to highlight the importance of building strong energy partnerships.

On his trip to Africa in summer 2013, President Obama announced the Power Africa initiative, which aims to double access to power in sub-Saharan Africa. In March, U.S. Deputy Secretary of Energy Daniel Poneman traveled to South Africa and Mozambique to highlight the importance of building strong partnerships to work toward a more sustainable and prosperous energy future for both the United States and Africa.

Poneman met with energy sector leaders and discussed ways to unlock the potential of energy resources and move toward a low-carbon and more resilient energy economy, according to a March 31 blog post on the Energy Department website by Special Advisor Desiree Pipkins.

Shown above, Poneman joined South African energy sector officials to cut the ribbon at the POWER-GEN Africa 2014 exhibition in Cape Town, South Africa.

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Africa’s biggest investor touts new energy plan, including shale

The Public Investment Corp. plans to lead investment in energy projects in Africa by buying into South African shale gas projects and helping to fund what could be the world’s biggest power generation complex in Democratic Republic of Congo.

The continent’s largest money manager, which is based in the South African capital of Pretoria and has 1.6 trillion rand ($152 billion) under management, will buy stakes in energy companies operating in Africa, its chief executive officer, Elias Masilela, 49, said in an April 1 interview in Johannesburg.

“We have taken the decision that we will play the lead in the energy space,” Masilela said. “Energy is one of the biggest barriers for the continent and if we don’t deal with it, it is going to deal with us.”

Africa’s two biggest economies, Nigeria and South Africa, are among countries on the continent suffering power shortages that are restraining economic growth. The PIC’s focus on energy comes as South Africa explores developing shale projects in its arid Karoo area and attempts to develop the Inga hydropower complex on the Congo River are revived.

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Africa urged to consider solar energy

The Minister of Power, Prof. Chinedu Nebo, has suggested that African countries adopted solar energy as major source of power generation.

Nebo made the call at the Ministerial Consultation on Energy in Africa at the ongoing African Union and Ministers of Economy and Finance Summit in Abuja on Friday.

He said Africa had huge mineral resources such as gas, wind, coal, among others, in abundance for energy development.

He added that natural solar energy, which was in abundance in the region, should not be neglected.

“Solar power can give us 10 times or more to the other resources we already have.

“I don’t believe that solar generated energy is too expensive. In the next couple of years, it will get parity with gas and coal.

“The only problem is with storage. But the flood of solar in the region cannot be stopped’’, he said.

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