UNEP has announced a huge expansion of geothermal energy in East Africa’s Rift Valley to meet growing demand.

A U.N. backed project testing new seismic and drilling technology in Kenya has proved that geothermal is a viable and cost effective source of power that has the potential to produce 7,000 megawatts in Africa.

"Its part of Africa's future… geothermal is 100% indigenous, environmentally friendly and a technology that has been underutilised for too long," said Achim Steiner, UNEP executive director.

Geothermal power comes from steam made from underground water heated by the Earth's core, which is in turn used to turn turbines.

The nearly $1 million project in the geologically active Great Rift Valley that runs through Kenya, has helped identify new drilling sites with production capacity of 4-5 MW from 2 MW generated from old wells.

It could mean a saving of as much as $75 million for the developer of a 70 MW installation as well as reduced electricity costs for consumers.

The project is set to expand to Djibouti, Eritrea, Ethiopia, Uganda and Tanzania in 2009 by using the equipment and techniques piloted in Kenya and underwriting the risks of drilling.

The total funding of nearly $18 million is provided by the Global Environment Facility and the World Bank.

By proving that geothermal power is economically viable, the Kenyan project has created incentives to attract private companies and reach the country's full potential.

Many African countries, including South Africa, face serious supply challenges which have caused power outages.