Geothermal Power Plants

Panorama of Crater salt lake Assal, Djibouti

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Geothermal Power Plants
Geothermal Power Plants
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Alternative Energy
Business Model Description

Invest in or provide project financing for geothermal power plants, drilling and capacity building through public-private partnership (PPP) or independent power producer (IPP) schemes.

Expected Impact

Increase access to energy, enhance economic productivity, and reduce carbon emissions.

How is this information gathered?
Updated: 12 Nov, 2021 Date of Production: 11 Nov, 2021
Djibouti
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Djibouti has 500-1,000 MW of geothermal reserve
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
Typical costs for geothermal power plants range from USD 1,870 to USD 5,050 per kW, noting that binary plants are normally more expensive than direct dry steam and flash plants (8).
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7) Climate Action (SDG 13)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Responsible Consumption and Production (SDG 12)

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Sector Sources
  • 1) PNUD Djibouti. Plan Cadre des Nations Unies pour l'Aide de Developpement. 2018-2022. 2018. https://www.undp.org/sites/g/files/zskgke326/files/undp/library/corporate/Executive%20Board/2018/First-regular-session/DPDCPDJI3_UNDAF%20Final.pdf. 2) Ministère des Affaires Etrangères et de la Coopération Internationale. Evaluation a mis parcours du programme d'action d'Istanbul. 2015. http://unohrlls.org/custom-content/uploads/2015/12/Djibouti-National-Report-to-the-Midterm-Review.pdf. 3) The Business Year. Djibouti Embraces Renewables. 2020. https://www.thebusinessyear.com/djibouti-renewable-energy-investment-promises-50-percent-contribution-2-years/focus. 4) Ministère de l'Habitat, de l'Urbanisme, de l'Aménagement duTerritoire et de l'Environnement. Rapport National sur le development durable RIO+20. 2012. https://sustainabledevelopment.un.org/content/documents/1011DjiboutireportRio+20.pdf. 5) Republic of Djibouti. Strategie de croissance accelere et de croissance d'emploie. 2015. https://planipolis.iiep.unesco.org/sites/default/files/ressources/djibouti_scape-francais.pdf. 6) International Renewable Energy Agency (IRENA). Renewable Energy: A Gender Perspective. 2019. https://www.irena.org/publications/2019/Jan/Renewable-Energy-A-Gender-Perspective. 7) World Bank & PPIAF. Public-Private Partnerships Briefs Djibouti: Solar Rural Electrification. 2016. https://library.pppknowledgelab.org/documents/3532/download. 8) The Africa Report. Djibouti: Aiming to be first African country entirely reliant on green energy. 2021. https://www.theafricareport.com/79681/djibouti-aiming-to-be-first-african-country-entirely-reliant-on-green-energy.
IOA Sources
  • 9) USAID. Djibouti Power Africa Fact Sheet. 2020. https://www.usaid.gov/powerafrica/djibouti. 10) The Africa Report. Djibouti: Aiming to be first African country entirely reliant on green energy. 2021. https://www.theafricareport.com/79681/djibouti-aiming-to-be-first-african-country-entirely-reliant-on-green-energy. 11) International Renewable Energy Agency (IRENA). Geothermal Power Technology Brief. 2017. https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2017/Aug/IRENA_Geothermal_Power_2017.pdf. 12) Climate Policy Initiative. Using Private Finance to Accelerate Geothermal Deployment: Sarulla Geothermal Power Plant, Indonesia. 2015. https://www.climateinvestmentfunds.org/sites/cif_enc/files/knowledge-documents/using-private-finance-to-accelerate-geothermal-deployment-sarulla-geothermal-power-plant-in-indonesia-_1.pdf. 13) European Union (EU) Geothermal Investment Guide. 2013. http://www.geoelec.eu/wp-content/uploads/2011/09/D3.4.pdf. 14) International Renewable Energy Agency (IRENA). Djibouti Renewables Readiness Assessment. 2015. https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2015/IRENA_RRA_Djibout_2015_EN.pdf. 15) Energy Sage. Smarter energy decision. Environmental impacts of geothermal energy. 2021. https://www.energysage.com/about-clean-energy/geothermal/environmental-impacts-geothermal-energy. 16) Association internationale des juristes, AfricaDroit. Production of electricity in Djibouti – A new regulatory framework favoring renewable energy. 2019. https://africadroit.com/2019/09/13/production-of-electricity-in-djibouti-a-new-regulatory-framework-favouring-renewable-energy. 17) Republic of Djibouti. Plan de development rural de Dikhil. 2017. https://www.academia.edu/37693834/PLAN_DE_DEVELPPEMENT_RURAL_DIKHIL_final_08-03-2017.pdf. 18) Dursun Bahtiyar & Cihan Gokcol. The role of geothermal energy in sustainable development of Turkey. 2012. https://journals.sagepub.com/doi/pdf/10.1260/0144-5987.30.2.207. 19) UN Global SDG Database. SDG Indicators. 2021. https://unstats.un.org/sdgs/indicators/database. 20) Sustainable Development Report. Country Profiles: Djibouti. 2021. https://dashboards.sdgindex.org/profiles/djibouti 21) KenGen, Geothermal. 2021. https://www.kengen.co.ke/index.php/business/power-generation/geothermal.html. 22) Government of Djibouti. Strategie de Croissance Accélérée et de Promotion de l'Emploi. 2015. https://economie.gouv.dj/wp-content/uploads/de95d383afef8bcbe0a3bc609a7f5c76.pdf. 23) Lund, John W. Geothermal Energy - Environmental effects and economic costs. 2018. https://www.britannica.com/science/geothermal-energy/Environmental-effects-and-economic-costs. 24) African Development Bank (AfDB). Project Appraisal Report Geothermal Exploration Project in the Lake Assal Region. 2013. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/Djibouti%20-%20Geothermal%20Exploration%20Project%20in%20the%20Lake%20Assal%20Region%20-%20Appraisal%20Report.pdf . 25) Republic of Djibouti. Vision Djibouti 2035. 2014. http://ccd.dj/w2017/wp-content/uploads/2016/01/Vision-Nationale.pdf. 26) UNEP. Energy Profile Djibouti. 2021. https://wedocs.unep.org/bitstream/handle/20.500.11822/20491/Energy_profile_Djibouti.pdf?sequence=1&isAllowed=y. 27) World Bank. Port Development and Competition in East and Southern Africa: Prospects and Challenges. 2018. https://documents1.worldbank.org/curated/en/963231561663013431/pdf/Country-and-Port-Fact-Sheets-and-Projections.pdf. 28) The Borgern Project. Women's right in Djibouti and what US is doing to help. 2020. https://borgenproject.org/womens-rights-in-djibouti. 29) Horn of Africa Initiative (HoAI). African Development Fund approves grants for $83.6 million to boost Ethiopia-Djibouti electricity trade. 2021. https://hoainitiative.org/african-development-fund-approves-grants-for-83-6-million-to-boost-ethiopia-djibouti-electricity-trade. 30) Office of Energy Efficiency & Renewable Energy. Environmental Impacts and Siting of Wind Projects. 2021. https://www.energy.gov/eere/wind/environmental-impacts-and-siting-wind-projects. 31) Afrik 21. Djibouti: KenGen to start geothermal drilling at Galla Le Koma by June. 2021. https://www.afrik21.africa/en/djibouti-kengen-to-start-geothermal-drilling-at-galla-le-koma-by-june/. 32) International Renewable Energy Agency (IRENA). Geothermal Development in Eastern Africa. 2020. https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2020/Nov/IRENA_Geothermal_Eastern_Africa_2020.pdf.