Geothermal energy to become global investment frontier with Kenya leading the way – Report
Kenya stands out as a major geothermal electricity producer, accounting for approximately 43 per cent of total geothermal electricity generation in the selected countries.
Geothermal electricity will be the next frontier of investment for the clean energy transition, positioning it as the potential power source for the coming generation.
This will arguably bypass investments in solar, the only green energy source that geothermal is second to in terms of investments.
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According to the 'Future of Geothermal Energy' report by the International Energy Agency (IEA), geothermal energy is now regarded as a key player in achieving universal access to electricity.
Notably, Kenya is poised to be at the forefront in benefiting from the potential investments of up to $1 trillion (Sh129.5 trillion) by 2035.
This is because the country is recognised among the global leaders in the geothermal energy space.
Other leading countries highlighted in the report include the United States, Iceland, Indonesia, Turkey and Italy.
Among these and other IEA countries, Kenya stands out as a major geothermal electricity producer, accounting for approximately 43 per cent of total geothermal electricity generation in the selected countries.
Sustainable energy solutions
The report explains that the record places Kenya at the forefront of global geothermal efforts, underscoring its critical role in the push toward cleaner, more sustainable energy solutions.
Emphasising the enormous financial opportunity presented by geothermal energy, the report says if deep cost reductions in next-generation geothermal technologies can be achieved, the total investment in geothermal could reach $1 trillion by 2035 and $2.5 trillion by 2050.
This would consequently boost job creation in the investment target countries, according to the report.
"If next-generation geothermal grows strongly in the coming years, employment in the overall geothermal sector could increase sixfold to 1 million jobs by 2030," the agency says.
Nevertheless, it notes that at its peak, geothermal investment could surpass $140 billion (Sh18.2 trillion) per year, a figure that would outpace current global investments in onshore wind power.
IEA explains that the main reason behind this prospect is that global electricity demand is set to grow strongly, as new technologies open up the massive potential of geothermal energy to provide around-the-clock clean power in almost all countries around the world.
It projects that geothermal energy could meet 15 per cent of global electricity demand growth between now and 2050 if project costs continue to decline.
"This would mean the deployment of as much as 800 gigawatts of geothermal capacity worldwide, delivering annual output equivalent to the current electricity demand of the United States and India combined," the report reads.
Geothermal energy offers abundant, highly flexible and clean electricity supplies that can support variable renewable technologies such as wind and solar while complementing other low-emissions sources like nuclear.
Today, geothermal meets about one per cent of global electricity demand.
