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Diversifying Rwanda’s Geothermal Energy Sector

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Diversifying Rwanda’s Geothermal Energy Sector

Rwanda is exploring agricultural processes to enhance its geothermal resource base. Geothermal investments in Africa are projected to reach 35 billion USD by 2050. By this time, Africa’s geothermal energy production capacity will surpass that of Europe.

Adding 30 megawatts of geothermal energy

Rwanda’s geothermal resources offer an opportunity to diversify its electricity sources and reduce dependence on energy imports. According to official reports, the country plans to add 30 megawatts of geothermal energy to its power grid. However, Rwanda is also considering alternative uses of this energy resource due to the high costs of producing electricity from geothermal sources.

« We are focusing on developing direct heat applications and continuing the exploration of deeper resources for future electricity generation », said Eugene Karangwa, head of alternative energy and geothermal at Rwanda Energy Group (REG). Karangwa emphasized that Rwanda aims to use geothermal resources not only for electricity production but also for direct applications such as heating and drying.

In collaboration with the United Nations and the United Nations Environment Programme, Rwanda is working to build capacity on the best ways to harness its geothermal resources. Due to associated costs and the characteristics of its geothermal sources, the country is exploring various applications, including agro-processing, artisanal fishing, vegetable drying, cold storage, and other industrial processes requiring heat.

Challenges in Rwanda’s geothermal exploration

According to the head of alternative energy and geothermal at REG, the primary challenge slowing the development of geothermal energy is the high cost of exploration, particularly well-drilling expenses. « We are seeking financing to drill deeper and develop a pilot project that combines geothermal and solar energy for cold storage systems », Karangwa told local media.

So far, the government has contributed over 200,000 USD, approximately 20 % of the total 800,000 USD required for exploring the Gisenyi geothermal project. REG is also collaborating with European and Kenyan universities under the African Union and European Union’s renewable energy initiatives.

Rwanda is currently in discussions with the Geothermal Risk Mitigation Facility (GRMF) and is utilizing technology to support exploration activities.

Geothermal potential in Africa

Rwanda is on track to invest in geothermal energy. Reports indicate that Africa’s geothermal sector is set for significant growth, with investments expected to reach 35 billion USD by 2050, potentially surpassing Europe’s geothermal capacity within the next decade.

According to Rystad Energy, geothermal energy plays a crucial role in meeting Africa’s growing energy demands. The report highlights Kenya’s Olkaria geothermal plant, which has been operational since 1981 and currently produces nearly 900 megawatts, with the potential to reach 5,000 megawatts by 2030.

In contrast, Rwanda’s geothermal energy comes from a geological zone known as the Kivu Rift, part of the East African Rift system. Unlike the high-temperature geothermal areas in Kenya and Ethiopia, the Kivu Rift has lower geothermal temperatures. As a result, Rwanda is exploring additional applications for its geothermal resources beyond electricity production.

Although Africa had only about 1 gigawatt (GW) of geothermal capacity in 2023 around half of Europe’s total production Africa’s installed capacity is expected to more than double by 2030, based on already announced projects.

Kenya : Africa’s geothermal energy leader

Kenya is currently the largest producer of geothermal energy in Africa. At the COP28 summit, Kenya secured a 1 billion USD agreement for a geothermal project at Suswa with the Indonesian government and Pertamina Geothermal Energy, supported by Masdar.

The agreement allows Kenya to develop a 300-megawatt geothermal power plant that will supply electricity to the national grid and support industrial development. Additionally, Kenya’s Geothermal Development Company has signed another deal with AMEA Power from the United Arab Emirates, which has committed 800 million USD to a 200-megawatt geothermal project at Paka.

According to the International Energy Agency (IEA), geothermal energy accounted for 28 % of Kenya’s installed energy capacity last year, making it the largest contributor to the country’s energy mix.

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