Comoros - Karthala Geothermal Project — Comoros

Overview

The Union of the Comoros is currently experiencing an electricity production deficit due to operating and maintenance conditions that have rendered several generating units unavailable. In this emergency situation, the country has turned to the purchase of diesel generators, whose production costs are relatively high, to make up the production deficit and meet demand. Geothermal power offers a more cost-effective solution to electricity generation, which is needed not only to add more intermittent power generation capacity, but also to ensure the viability of the sector. Indeed, the project will deliver a production cost of 11 cents USD per kWh, while the country's electricity tariff is among the highest in Africa at 44 cents USD/kWh. The Comoros archipelago faces difficulties in fuel supply (diesel) and lacks economies of scale for power generation. In Grande Comores, with an installed capacity of 17 MW and an unconstrained peak demand estimated at around 11 MW, this implies that generation capacity is sufficient; however, the high cost of imported petroleum products used for thermal power generation and the poor financial situation of Comorian utility providers make it difficult to purchase fuel in sufficient quantities to meet demand. In order to reduce its dependence on imported petroleum products, the Government of Comoros is pursuing a geothermal exploration program on Grande Comores, with a view to developing a geothermal power plant. This project primarily contributes to climate mitigation results. As such, 100% of the total approved amount is attributed as climate finance, of which 100% is dedicated to mitigation.