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Next-Gen Geothermal Funding 2026: VCs, Banks, Government Capital

Who Is Really Funding Next-Gen Geothermal in 2026? Next-generation geothermal has moved beyond laboratory research into a capital-intensive commercialization phase. In 2026, the most important financing is no longer coming from one investor category: venture capital funds are financing drilling, subsurface modelling and hardware; strategic energy companies are providing equipment, project access and market credibility; banks are beginning to lend against contracted projects; and governments are absorbing exploration and first-of-a-kind technology risk. The strongest financing activity is concentrated in the United States and Canada, but Europe is becoming increasingly important through Germany-based deployment, European Union grants, UK innovation support, and strategic participation from European energy companies. The central investment question is changing from “Can this technology work?” to “Can the developer deliver repeatable, financeable projects at commercial cost?” The 2026 fun...

Geothermal Projects In Africa, Countries Overview

 Geothermal Projects in Africa: Country-wise Overview

By :Robert Buluma

Africa is increasingly turning to geothermal energy as a sustainable solution to meet its growing electricity demands. With abundant geothermal resources spread across the continent, several countries have embarked on ambitious projects to harness this clean and renewable energy source. Let's delve into the geothermal projects in various African countries, highlighting key players and prospects.


Algeria

Algeria is exploring its geothermal potential, particularly in the northern regions. Although in the early stages, initiatives are underway to assess feasibility and potential locations for geothermal power plants. 


Burundi

Burundi has shown interest in developing its geothermal resources, primarily in the northwest region near Lake Tanganyika. The government is actively seeking partnerships with international firms to kickstart exploration and development efforts.


Comoros

The Comoros Islands are situated in a geologically active zone, making them potentially suitable for geothermal energy production. However, projects are still in the planning stages, with feasibility studies being conducted to determine viability. Steam Srl is one of the international companies already agitating for this Comorian resource.

 Democratic Republic of Congo (DRC)

The DRC possesses significant geothermal potential, particularly in the eastern regions near the Great Rift Valley. Despite political and infrastructural challenges, the government is exploring opportunities for geothermal development with assistance from international organizations. Congo other than going down in history as the first country to ever explore Africas Geothermal prospects this wells are pots of gold rich in Uranium,Titanium,Lithium and Hydrogen same reason why there is no peace in this region however things always change and the country will eventually find time to explore its resources.

 Egypt

Egypt has embarked on geothermal exploration projects in the Sinai Peninsula and the Red Sea region. The government aims to diversify its energy mix and reduce reliance on fossil fuels, presenting opportunities for geothermal investment and development. Egypt's Geothermal wells are rich in Lithium and the country oil and gas wells could be repurposed or Geothermal could be harnessed hybridly With oil.


Eritrea

Eritrea is actively exploring its geothermal potential, primarily in the Danakil Depression region. Feasibility studies and exploration activities are ongoing, laying the groundwork for potential geothermal power generation projects in the future.


Ethiopia

Ethiopia is a frontrunner in geothermal development in Africa, with several operational projects and ambitious expansion plans. The country's Rift Valley region is rich in geothermal resources, attracting investment from both domestic and international firms. The country has one of the best mineral policies globally courtesy of competence at its geothermal realm.


 Kenya

Kenya is a global leader in geothermal energy production, with well-established projects in the Rift Valley region. Companies like KenGen and OrPower 4 are actively involved in exploration, development, and operation of geothermal power plants, contributing significantly to the country's electricity generation capacity. Today Kenya is 5MW short of reaching the 1GW geothermal mantra. It has really tried however there is still alot of prospects and projects still to be fasttracked. Kenya's Geothermal alone can power Africa, Cool Arabic countries, Heat South America, and still Europe will get its Flowers from the Geothermal greenhouses.


Madagascar

Madagascar is exploring its geothermal potential in the central highlands and eastern regions. The government has initiated feasibility studies and is seeking partnerships to accelerate geothermal development efforts.


 Malawi

Malawi has begun assessing its geothermal resources, particularly along the East African Rift System. While still in the early stages, there is growing interest in exploiting geothermal energy to bolster the country's energy security and reduce dependence on imported fuels.


Morocco 

Morocco is actively pursuing geothermal projects, primarily in the Atlas Mountains and northern regions. The government's focus on renewable energy development presents opportunities for geothermal exploration and investment in the country.


 Mozambique

Mozambique has potential geothermal resources along its Rift Valley region. While projects are in the preliminary stages, the government is exploring partnerships to advance geothermal exploration and development activities. Given that Moz is reach in Oil and Gas this country can still reap big when it comes to geothermal energy through repurposing of its oil and gas wells.


Nigeria

Nigeria is tapping into its geothermal potential, particularly in the central and northern regions. With support from organizations like the World Bank, the government is advancing geothermal exploration and development initiatives to diversify the country's energy mix given that it has a higher reliance on fossils but still you ever heard of oil and gas wells being tapped for geothermal. You should by now.

 Rwanda

Rwanda is actively exploring geothermal resources in the Western Rift Valley region. The government has prioritized renewable energy development, creating an enabling environment for geothermal investment and project development. Rwanda just like Ethiopia it has one of the best Energy policies in this region. More than once the country has been trying to go Nuclear but its clear Geothermal will be the Rwandanian Energy prince.


South Africa

South Africa has geothermal potential in its Eastern Cape and Western Cape provinces. While still in the early stages, exploration activities are underway to assess feasibility and identify suitable locations for geothermal power generation.


South Sudan

South Sudan possesses geothermal potential in the East African Rift System. Despite challenges related to political instability and infrastructure, there is growing interest in harnessing geothermal energy to support economic development and energy access initiatives. Given that this country is rich in oil and gas with minerals taking a centre stage its a no brainer that Geothermal is the vital ingredient.


 Tanzania

Tanzania has significant geothermal resources in the East African Rift System, particularly in the Rift Valley region. The government has partnered with international organizations and private firms to accelerate geothermal exploration and development efforts.


 Uganda

Uganda is exploring geothermal resources in the Western Rift Valley region. With support from organizations like the African Development Bank, the government is advancing geothermal projects to enhance energy security and promote sustainable development. Goes without saying that Uganda has its own oil reserves so what happens when this oil gets depleated? Geothermal ofcourse. We dont even have to wait we can tap this two resources in one take.

 Zambia

Zambia has geothermal potential along its portion of the East African Rift System. While still in the early stages, the government is exploring opportunities for geothermal development to diversify the country's energy sources and meet growing electricity demand.

You'd like to have a grasp of geothermal projects in Poland , you can read this article Status of Geothermal in Poland

Tunisia

This country has been exporting Tomatoes from its Geothermal greenhouses and reaping big. Its geothermal potential is yet to be explored but having visited the area,its temperatures are promising. 


Other Countries

Some of the other countries with Geothermal manifestations in Africa whose People are still oblivious of this pot of gold are scattered within the continent.

Africa holds immense geothermal potential, and countries across the continent are increasingly recognizing the importance of harnessing this clean and renewable energy source. While challenges persist, ongoing exploration and development efforts, coupled with favorable government policies and international partnerships, are driving the expansion of geothermal projects in Africa, paving the way for a sustainable energy future.

Related: The $500 Billion Geothermal Revolution that no one saw coming.

Our Business Intelligence team comprises of Geothermal champions drawn all over the world with the main intent of guiding investors to the best Geothermal prospects one has ever come across.

Source: Alphaxioms

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