Ambassador Koen Vervaeke’s (Head of the European Union Delegation to the African Union) speech during the Decision Makers’ Workshop on Geothermal Energy in Addis Ababa from 8-10 June 2009.
The objective of the workshop was to assess the role of geothermal energy in Eastern Africa and how to move forward with the ongoing implementation of the Africa-EU Energy Partnership.
The renewable energy sector stands out in terms of ability to reduce greenhouse gas emissions and pollution, exploit local and decentralised energy sources, and create new industries and jobs. Renewable energy is playing an increased role in EU energy policy. The new EU directive on renewable energy, which was adopted in 2008, sets mandatory national targets for the overall share of energy from renewable sources in gross final consumption of energy. Each Member State has its own target (between 10% and 49%) consistent with a “EU target” of at least a 20 % share of its final energy consumption coming from renewable sources in 2020. With the intensive development of renewable energy within the EU and with an ambitious research programme, costs are also expected to come down.
Geothermal energy is one renewable source, which can contribute to the targets where local conditions are favourable. In Italy, a country with a long history of geothermal energy, electricity generation from geothermal energy is expected to come close to 1,000 MW in 2010. Geothermal energy for heating, often in combination with a heat pump, is also being used more and more within the EU. In many developing countries, in Africa in particular, the potential for renewable energy is large, and only marginally utilized. The Rift Valley with its geothermal potential is one such example.
The support from the EU and its member states comes from Commission and bilateral programmes and from a number of specialized initiatives. Let me just mention a few with particular bearing on the theme for this workshop. First to be mentioned should be the support provided by KfW and other financiers to the development of the Olkaria geothermal power station in Kenya which is now a major power producer in the country (158 MW). This support, which has been provided to several phases of development, now continues with the support to Olkaria III, where a contract was signed in December 2008.
The EU Africa Infrastructure Trust Fund, which was created to support regional infrastructure projects in Africa, will also be receiving additional financing in the amount of 200 M€ under the EC’s 10th EDF. Currently KfW is preparing a geothermal risk guarantee facility for East African countries on behalf of the German Ministry for Economic Cooperation and Development. This proposed guarantee facility is now in the project pipeline of the Infrastructure Trust Fund for receiving support.
The ACP-EU Energy Facility, which is the EU facility targeting local access to energy and focussing on renewable energy, will be replenished in the amount of 200 M€ plus possible MS contributions. One of the (74) projects under the first energy facility launched in 2005 was the development of a geothermal project for the islands of Dominique, Martinique and Guadeloupe in the Caribbean.
The energy component of the 7th Framework Programme on research and the Strategic Energy Technology (SET) plan represent other EU activities which will contribute to the advancement of renewable energy technologies. Under these research programmes, advanced geothermal projects have been supported, which I gather is well known to this audience. Joint research and technology transfer are important areas that will be promoted under the Africa-EU Energy Partnership.
