Dec. 15 (Bloomberg) -- KfW Group, Germany’s state-owned lender, said it will supply 50 million euros ($65 million) for projects in East Africa to tap underground heat for use as a renewable energy source.
KfW’s development bank signed a contract with the African Union to supply financing for exploratory drillings in East Africa to attract geothermal investments, KfW said today in an e-mail. Funding also includes European Union money, it said.
East Africa supplies 60 percent of its power with hydro plants that are backed by costlier and dirtier diesel generators when drought occurs, KfW said. The region’s geothermal potential is more than 7,000 megawatts, almost double its current power generation capacity, it said.
“Expanding geothermal energy sources leads to emissions- free power generation and lower energy costs,” said Norbert Kloppenburg, a KfW board member.
--Editor: Randall Hackley
To contact the reporter on this story: Stefan Nicola in Berlin at email@example.com
To contact the editor responsible for this story: Reed Landberg at firstname.lastname@example.org