Investors and African governments searching for clean energy are now turning to renewable energy. While there has been rapid growth rate in the sector in other parts of the world, most of Africa’s substantial new and renewable energy resources remain largely under-exploited.  Judging by the recent investments in the sector, investors are spoilt for choice when choosing the type of renewable energy to invest in.  

Notable renewable energy projects in the East African region

UNEP recently announced a huge expansion of geothermal energy in East Africa’s Rift Valley. The nearly $1 million 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. The project is set to expand to Djibouti , Eritrea , Ethiopia , Uganda and Tanzania this year by using the equipment and techniques piloted in Kenya. By proving that geothermal power is economically viable, the Kenyan project has created incentives to attract investors.

Last year in Rwanda they finally realized the dream of generating electricity out of methane gas from Lake Kivu . An Israeli company generated the first electric power from the gas, boosting the country’s grid by 1.8 megawatts. Government officials said that output is enough to supply the whole of Rubavu district where the lake is found, with some 100 megawatts of electricity expected to be produced once the project is completed. In February, American energy firm Contour global signed a $300 million methane gas extraction deal from Lake Kivu. Contour Global expects to produce 100MW of energy over the next 25 years. The first phase of the project, the first of its kind world wide, will produce 25MW by 2010. The basin of Lake Kivu has been found to have high concentrations of natural gas with a capacity to support production of 700 megawatt for over 55 years.

The Lake Turkana Wind Power Project plans to produce 300MW of electricity by 2012 through harnessing renewable wind power in Kenya.  The project expected to cost an estimated $760 million, will add 30% or more to the total existing installed capacity available in Kenya.

French manufacturer Vergnet signed a deal with Ethiopia in 2008 to build a $300 million wind farm in the horn of Africa country. The wind farm which is expected to churn 120 megawatts within two and a half years will help stop Ethiopia from relying on hydroelectric dams.

Industry status in the continent

• Geothermal energy stands at 9000 megawatts, with only 60megawatts exploited in Kenya and Tanzania.
• The African Development Bank (AfDB) estimates indicate that a significant proportion of current electricity generation in 16 eastern and southern African countries could be met by bagasse-based cogeneration in the sugar industry.
• Sub-saharan Africa has potential to provide more than 170 gigawatts of additional power generation capacity – more than double the sub-region’s current installations, through 3,200 “low-carbon” energy projects, such as combined heat and power and biofuels production.
• Development of the sector has been slowed by lack of financial resources and poor infrastructure, according to the AfDB