Geothermal

A groundbreaking ceremony has marked the start of construction for a new Chinese-built geothermal power plant in Kenya's Great Rift Valley, underscoring Beijing's commitment to renewable energy in Africa. The 35-megawatt Orpower 22 geothermal plant, developed by the state-owned PowerChina and funded by the Chinese firm Kaishan Group at a cost of US$93 million, aims to enhance Kenya’s energy production capabilities. This initiative is part of a broader trend of increasing Chinese investments in renewable energy projects across the continent.

During the ceremony, Kenyan President William Ruto emphasized the significance of the new plant, stating it would elevate Kenya’s global geothermal production ranking to fifth place. He highlighted the potential for geothermal energy to drive economic growth, pointing out that despite being the first African nation to harness this resource, Kenya has only explored about 10 percent of its geothermal energy potential. With an estimated capacity of nearly 10,000 megawatts, the vast untapped resources present significant opportunities for future energy development.

PowerChina's involvement in Kenya's geothermal sector reflects a growing trend of Chinese-funded renewable energy projects throughout Africa. Last year, the company commissioned another geothermal facility, the Sosian Geothermal Power Station, also with a capacity of 35 megawatts. This is in line with Chinese President Xi Jinping's 2021 pledge to cease financing new overseas coal-fired power plants and redirect resources towards renewable energy investments. At the recent Forum on China-Africa Cooperation summit, Xi reiterated China's commitment to supporting renewable projects across the continent.

The increasing focus on renewable energy is further illustrated by recent financial commitments from Chinese banks for projects in Africa, amounting to US$502 million for initiatives including solar and hydropower plants. This shift towards smaller-scale loans, termed the "small is beautiful" approach, aims to quickly deploy funds to environmentally and socially beneficial projects rather than large infrastructure ventures. With ongoing developments like the De Aar Central Solar Power Plant in South Africa, which will be the continent’s largest solar installation, and the 100MW Redstone concentrated solar power plant, China's renewable energy investments are shaping the future of energy on the African continent.