African Energy Economics (Economics/Energy crossover) | 21 October 2004
Geothermal Development in East African Rift Valley: A Comparative Study in Tanzania
M, w, a, k, i, s, a, m, a, N, j, u, k, i, ,, K, a, m, a, n, d, a, M, v, i, l, a
Abstract
The East African Rift Valley is a geothermal-rich region, hosting significant potential for geothermal energy development. Tanzania, located within this rift valley, has seen limited geothermal exploration and utilization. A mixed-methods approach combining literature review, expert interviews, and case studies was employed. Data were analysed using thematic categorization and statistical tools to assess regional geothermal potential and existing projects' success factors. Geothermal energy development in Tanzania has been constrained by technical challenges such as high initial costs and geological variability, with a notable instance where the cost of drilling reached $50 million per well, highlighting significant investment barriers. Despite these challenges, there is an emerging theme of community engagement and local skills training as critical success factors. The study concludes that while geothermal development in Tanzania faces substantial financial and technical hurdles, strategic interventions focused on reducing costs and enhancing community involvement can unlock the region's full potential for sustainable energy production. Recommendations include leveraging government grants and international funding opportunities to reduce upfront investment risks, fostering local capacity building programmes, and engaging with communities early in project planning stages to address social acceptance issues. The empirical specification follows $Y=\beta_0+\beta^\top X+\varepsilon$, and inference is reported with uncertainty-aware statistical criteria.