As part of a wider funding package of over US$ 4bn to accelerate renewable energy investment, support COVID-19 economic resilience by backing private sector investment, improve sustainable transport and upgrade schools and social housing, the European Investment Bank (EIB) has approved a total of US$ 95M to support the implementation of geothermal power generation projects in East Africa.
This money according to the European Union’s investment bank will particularly be used to finance several projects implemented by promoters active in the geothermal power sector in the region, individual private sector investments into geothermal power generation to be precise.
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Eligible projects will typically include Greenfield development and brownfield expansions, with proven geothermal resources. 2
Diversifying baseload renewable electricity supply in the EA region
According to the bank, investments in geothermal energy will help diversify baseload renewable electricity supply in the East African region and contribute to the reduction in greenhouse gas (GHG) emissions compared to fossil-fuel based alternatives, thereby supporting the sustainable economic development of the beneficiary countries. 6
These countries include Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Mayotte, Mozambique, Reunion, Rwanda, Seychelles, Somalia, South Sudan, Tanzania, and Uganda. 3
EIBs contribution in addressing local priorities and global challenges
Commenting on the entire package, Werner Hoyer, the President of the EIB said that the projects approved highlight the banks’ engagement across Europe and around the world to unlock private and public investment that addresses local priorities and global challenges. 7
“Tomorrow I will update the EIB’s Governors, EU finance and economy ministers, on the EU Bank’s rapid response to challenges caused by the COVID-19 pandemic and our strong and growing support for green transition and climate action across the globe,” he concluded. 4
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