World Bank Calls for a Geothermal Energy Revolution
Nearly 40 countries have met their energy needs by utilizing geothermal energy. The global potential for geothermal energy is very much untapped, with worldwide geothermal electricity capacity at only 11 gigawatts, or .3% of the total global power generation. To change this, the World Bank is implementing a Global Geothermal Development Plan to generate geothermal power for low- and middle-income countries to deliver power to 1.3 billion around the world who are without it.
At the Iceland Geothermal Conference in Reykjavik on March 6, Sri Mulyani, World Bank Managing Director, spoke about the need for donations to support the Plan as well as the importance of geothermal energy for developing countries. “Geothermal energy could be a triple win for developing countries: clean, reliable, locally-produced power,” said Indrawati. “And once it is up and running, it is cheap and virtually endless.” She adds that previously geothermal energy work has been done at the national and regional levels and that what is needed now is “a global push.”
The World Bank’s plan will focus on exploratory test drilling which makes geothermal projects more capital intensive than other renewable sources due to expensive and sometimes fruitless drilling. Significant investment in these projects is needed before a site is deemed viable enough to provide considerable geothermal energy. The cost of testing the potential of a site to produce geothermal energy is US$15 to 25 million, an investment that is lost if the site proves not suitable. However, in countries with more dense populations, geothermal energy, which has the smallest land footprint per kilowatt-hour, is an especially useful resource. The goal is to develop a pipeline of projects that are commercially-viable and ready for private investment.
25% of Iceland’s electrical power is generated by geothermal power plants and 95% of Iceland is heated by volcanic hot water. Currently, Iceland is potentially looking to sell and export the surplus energy the country produces. In collaboration with Iceland, the World Bank is working to assist surface exploration studies and technical assistance for some African countries. The Olkaria Geothermal Plant in Kenya has received long-term support from the World Bank. Only 16% of the Kenyan population has access to electricity. With an abundance of geothermal resources present in East Africa’s Rift Valley, the geothermal potential could provide 150 million households with power. The World Bank’s plan is to double geothermal generation to deliver close to 30% of Kenya’s electricity by 2020. Pierre Audient, Clean Energy Program Team Leader at the World Bank’s Energy Sector Management Assistance Program calls it “a potentially transformative resource,” especially for many developing countries.
Throughout the developing world, there are untapped geothermal resources. Geothermal energy is carbon-free access to electricity, is relatively clean, and delivers constant power. World Bank Group funding for geothermal developments has risen from $73 million in 2007 to $336 million in 2012. With the Global Geothermal Development Plan, the World Bank hopes to increase its support.
– Rafael Panlilio
Source: World Bank