OVERVIEW OF GEOTHERMAL EXPLORATION AND ... - African Union

BARRIERS FOR DEVELOPMENT OF
GEOTHERMAL RESOURCE
IN COUNTRIES OF THE EARS:
OVERCOMING THESE CHALLENGES
Meseret Teklemariam (Ph.D)
11 th Annual East African Power Industry Convention
Nairobi, Kenya
August 31-September 3, 2010

OUTLINE
THE EARS
EARS COUNTRIES
STATUS AND STRATEGY OF GED
NEED, EXPECTATION & DESIRED OUTCOME
GAPS OF KEY ISSUES
MAIN CHALLENGES TO DEVELOP GR
OVERCOMING THESE CHALLENGES

THE EAST AFRICAN RIFT SYSTEM
Extends about 6500 Km from the Dead Sea
(North) to Mozambique (South)
Huge Geothermal Resource with
Estimated Potential of > 15,000 MWe

OUR CONTINENT IN DARKNESS
Most of the EA countries are dependent on TBF= 70- 90%: Causes Deforestation
&Environmental degradation

COUNTRIES -East African Rift System
• Keen to investigate and further develop GE due
to:
‣Strong growth in electricity demand &
urgent need to increase access to electricity
‣ Hydro proven unreliable as a base load
source due to climatic fluctuations
‣Volatile price of petroleum fuels etc..

DISTRIBUTION OF INDIGENOUS RE SOURCES
Djibouti and Eritrea have no other known indigenous energy resources
except potential for geothermal energy:
Rely 100% on petroleum fuels for commercial energy supply
Kenya and Tanzania are almost exhausting their hydro-potentials,
DRC, Zambia, Ethiopia, Uganda’s with relatively large hydro-potential
is subject to climatic fluctuations.
Hydropower supply needs to be stabilized by suitable
energy mix, using geothermal power generation.
THERE IS AN ABUNDANCE OF HIGH ENTHALPY GEOTHERMAL
RESOURCES SUITED TO LOW COST AND CLEAN ELECTRICITY
GENERATION USING ESTABLISHED TECHNOLOGY.

East African Countries Using Or
Having Carried Out Research On
Geothermal Resources
Djibouti
Eritrea
Ethiopia*
Kenya*
Tanzania
Uganda
Zambia *
Rwanda
Burundi
DRCongo
Comoros Islands
*Plant installed

STATUS OF GEOTHERMAL E&D
Countries Reconnaissance S. Detailed Detailed Drilling Feasibility Power Remark
Development
Burundi X - - - - - -
Comoros X - - - - - -
DRC X - - - - -
Djibouti X X X X - - -
Eritrea X X X - - -
Ethiopia X X X X - X 7 MWe
Kenya X X X X - X 209 MWe
Rwanda X X X - - - -
Tanzania X X X - - - -
Uganda X X X - - -
Zambia X* - - - - - * Not F. plant
200KW
= Reconnaissance
= Semi-Detailed
= Detailed
= Power generation

STAGES OF EXPLORATION AND
DEVELOPMENT
•Burundi, Comoros, DRC and Zambia are at reconnaissance stage of
exploration;
•Rwanda, Tanzania, Uganda and Eritrea are from semi detailed to
detailed stages of exploration;
•Djibouti is at detailed investigation;
•Ethiopia is from detailed to Power development stage (Pilot Plant);
• Kenya is at most advanced stages of power development.

KENYA= 209 MWe (1956-Present)
Olkaria I Power Plant 70 MW
Olkaria II Power Plant 105 MW
Olkaria IV
Olkaria III power Plant 50 MWe.
Oserian Power Plant 4MW
Omenda, P. 2008

ETHIOPIA: 7 MWe 1982-Present
GEOTHERMAL PILOT POWER PLANT
7 MWe

DJIBOUTI
DETAILED
INVESTIGATIONS
Bouh, 2008

ERITREA
SEMI DETAILED
DETAILED
INVESTIGATION
Yohannes, E. 2008
ALID GEOTHERMAL
AREA

UGANDA
SEMI DETAILED
DETAILED
INVESTIGATION
Bahati, G. 2008

TANZANIA
Semi-Detailed
investigation

RWANDA
SEMI-DETAILED –
DETAILED
INVESTIGATION
Uwera, R. 2010

ZAMBIA
RECONNAISSANCE
Kapisya Prospect
Lake Mweru ! Mpulungu
Sumbu National Park
!
! Kasama
! Isoka
D. R. CONGO
"
Lake Tanganyika
TANZANIA
ANGOLA
Mansa
! Bangweulu Floodplains MALAWI
North Luangwa National Park
! Mpika
! Solwezi
Luambe National Park
Kitwe !
!
Ndola
Kasanka National Park
South Luangwa National park
Liuwa Plains National Park
Kafue National Park
Chipata !
! Mkushi
! Kapiri Mposhi
Z A M B I A
Mongu
!
Lusaka
! Lower Zambezi National Park
Lochinvar National Park
! Chirundu
Siavonga
!
Lake Kariba ZIMBABWE
Sioma Ngwezi National Park
NAMIBIA ! Livingstone
Victoria Falls
BOTSWANA
MOZAMBIQUE

BURUNDI
RECONNAISSANCE

DEMOCRATIC
REPUBLIC OF
CONGO
Buko
mo
Makera
Mayi ya
Moto
Rwi
ndi
Nyamulagi
ra
Kisuma Tingi
KisumSpring
Nyiragon
a Kihira Sake
go
Kabuno
Bay
Lc
Goma Ls
R
Ruk
ore
Mpenge
Lake
Kivu
RECONNAISSANCE
Mahyuz
a Kankule I
& II

THE COMOROS ISLANDS
Karthala volcano
KENGEN DID
INVESTIGATIONS

The EARS countries are individually at different stages
of Exploration and Development.
In this regard, the strategic objective of each country at
the end of coming 5 years is different from the other

STRATEGY FOR EXPLORATION AND
DEVELOPMENT IN EARS

STRATEGY FOR EXPLORATION AND
DEVELOPMENT IN EARS
Strategic plan of Exploration and Development (Five Years)
Countries
Reconnaissance S.
Detailed
Detailed Drilling
Feasibility
Power
Development
Burundi X X X - - - -
Comoros X X X - - - -
DRC X X X - -
Remark
Djibouti X X X X X X ASSAL
Eritrea X X X X X X ALID (PP)
Ethiopia X X X X X X 125 MWe
Kenya X X X X X X 880 MWe
Rwanda X X X X X X Pilot Plant
(Karisimba)
Tanzania X X X - - - -
Uganda X X X X - x -Pilot plant
Zambia X* X X - - - * Not F. plant
200KW
= Detailed investigation
= Power Generation
Informations are collected from all 11 countries

NEED, EXPECTATION AND DESIRED OUTCOME
OF COUNTRIES OF THE EARS

NEEDS, EXPECTATION, DESIRED OUTCOME AND STRATEGIC OBJECTIVES
No. Needs Expectations Desired Outcome Strategic Objective (5 years)
1. Training Quality training
will be given
through CB
assistance
2. Equipment
supply
3. Technical and
Financial
assistance
(Integrated
geoscientific
Investigations)
Adequate
equipment will be
supplied through
CB
Adequate finance
and on the job
training will be
available for
selecting potential
geothermal sites
PPP= Private Public Partnership
IPP= Independent Power Producer
Adequate
manpower
skilled
Adequate
equipment for E,
DandU
Existence of
identified
potential
geothermal sites
including target
sites for deep
drilling
Number of geoscientists,
engineers and drillers etc.
X types and numbers of
equipment
X number of geothermal
sites for further exploration
drilling

NEEDS, EXPECTATION, DESIRED OUTCOME AND STRATEGIC OBJECTIVES
N
o.
Needs Expectations Desired
Outcome
4. Technical and
Financial
assistance for
drilling and
Risk Mitigation
fund
5. Finance for
power
development,
Private
developers
(PPP, IPP)
Adequate
finance
including RMF
will be available
to enhance the
development of
the region
geothermal
resource
Adequate
finance
participation
private
geothermal
developers
increase
of
will
Existence
confirmed
Geothermal
reservoir
Existence
Geothermal
power plants
of
of
Strategic Objective (5
years)
X number of productive
wells for generation
About 1000 MWe of
power from geothermal
energy in the EARS
PPP= Private Public Partnership
IPP= Independent Power Producer

GAPS TO ACHIEVE SO
$

MAIN CHALLENGES ARE:
• Large Upfront cost of geothermal exploration and
development
• Risks Associated with Resource Exploration and Power
development
• Risks associated with investment in power development
projects
• Inadequate skilled manpower and equipment for
geothermal Resource Exploration and development
• Lack of appropriate policy and institutional as well as
regulatory framework to attract private investors in the
region

CLEAR AND COHERENT LEGISLATION AND
REGULATION
• Geothermal Act ( Except in Kenya )
• Specific geothermal concession agreement; In most cases,
geothermal is under mining law
• Appropriate Institutional framework for exploring and
developing geothermal resource: except in Kenya
• Specific geothermal Feed in Tariff exists in some
countries such as in Kenya, Ethiopia and Rwanda (Draft)
Successful development of geothermal resource, is governed
by laws and fulfilled by institutions

HOW DO WE OVERCOME THESE
BARRIERS/CHALLENGES FOR
ACCELERATING GER DEVELOPMENT
IN THE REGION?

LEARN FROM OTHER BEST PRACTICES
BENCHMARKING
• Good legislative package that attract private investment;
• Commitment of govt. to take the geothermal exploration
risk at its shoulder;
• Set up favorable institutions to enhance exploration and
development • of the geothermal resource in the country;
• Increase domestic budgetary allocation;
• Include the development of Geothermal energy
development plan in Power Development Master Plan with
other alternative energy resources;
• Un-bundled structures (generation, transmission and

STRATEGIES FOR DEVELOPMENT
• Establish clear and coherent legislation and regulation
governing geothermal resource
• long term conducive policies and incentives that attract private
investment
•A Regional Network of Geothermal agencies should be set-up to
ensure the promotion and use of geothermal expertise in the region
• Acquiring a number of Risk Guarantee fund for exploratory and
appraisal drilling of projects in the region
•Accessing bi-and multilateral technical and economical cooperation
•look for loans and grants from IO to finance the projects for further
EX. & Development.
•Alternative is look for PS participation and financing from
developers , investors, equipment suppliers and development banks.

THESE COULD BE IMPLEMENTED BY
ADOPTING AN INTEGRATED REGIONAL APPROACH
TOWARD GEOTHERMAL DEVELOPMENT
TO WORK TOGETHER IN SUPPORT OF
THE REGIONAL AND EVENTUAL CONTINENTAL
OBJECTIVES.

BENEFITS OF REGIONAL APPROACH
• High level political support,
• Establish mechanisms for regional cooperation and
decision making,
• Synergy and the existing common market,
• Cross-learning/training opportunities,
• Economies of scale and
• Peer support leading to more cost and time effective
implementation than would otherwise have been possible
only at national level.

Regional Geothermal Programme
Use
AS A VEHICLE
IN:
Removing Existing Barriers (Lack of Capacity in terms of
Knowledge And Equipment, Technical and Financial) to the
increased use of Geothermal Energy
Reducing the country dependence on fossil Fuels and the
greenhouse gas emmission level
Avoid duplication of efforts of various support programmes
Create synergy and complementarities among SP

Various geothermal support programmes
recognize the challenges for development of GE
in the region including:
• awareness of availability and potential benefits,
• technical capacities in the region, and
• insufficient availability of the required
investment resources

GEOTHERMAL SUPPORT PROGRAMMES IN THE
REGION (Among Others)
•The African Rift Geothermal Development Facility
Programme (ARGeo)
•German Federal Institute for Geosciences and Natural
Resources (BGR) (GEOTHERM II),
•German Development Bank (KfW)
• United Nations University-Geothermal Training
Programme / UNU-KENGEN-GDC
•International Atomic Energy Agency (IAEA),
•Icelandic International Development Agency
(ICEIDA)

GEOTHERMAL SUPPORT PROGRAMMES
•AUC/ICS-UNIDO regional geothermal energy project for
East African Region (EAR),
•The International Finance Corporation (IFC)
•The World Bank -ESMAP programme
•Japan International Cooperation Agency
•AfD- French development Bank
•European Investment Bank (EIB)
•China Exim bank

THE EVOLVING SITUATION IN THE REGION
“REGIONAL GEOTHERMAL PROGRAMME”

ARGeo-Project
Eastern African Regional Geothermal Programme
Project components: RN- TA & RMF
Kenya, Ethiopia, Djibouti, Eritrea, Uganda and Tanzania
Implementing agents are: World bank and UNEP
Three projects from Djibouti, Kenya and Ethiopia are selected
for RMF.
RN & TA of UNEP started in June 2010.

GEOTHERMAL DRILLING RISK
MITIGATION FUND FOR EASTERN
AFRICA COUNTRIES
Ethiopia
Kenya
Rwanda
Tanzania
Uganda

DIE
REGIONAL GEOTHERMAL PROGRAMME
Initiated based on the AAD (June 2009)
Recommended to launch a
regional programme that
will engage in the PEDU of the
geothermal energy resource of
these Eleven signatory countries
Recommended to convene a
permanent Regional
Forum with the participation of
these countries
42

REGIONAL GEOTHERMAL STAKEHOLDERS’
WORKSHOP

DISCUSSIONS : DONORS/IB/DB AND MEMBER
COUNTRIES
ADOPTED
ACTION PLAN &
WAY FORWARD
MARCH 16, 2010
NAIROBI, KENYA

REGIONAL GEOTHERMAL PROGRAMME
FUND
MOBILIZATION
POLICY
HARMONIZATION
PRIVATE SECTOR
PARTICIPATION
CAPACITY
BUILDING
REGIONAL
NETWORKING &TECHNICAL
ASSISTANCE
AWARENESS
CREATION
Meseret Teklemariam, RGSW, Nairobi, 15-17.03.2010

KEY ISSUES IN DEVELOPING THE FIELD RGP
+MW

THE REGIONAL INTERCONNECTION
PLAN:
THE EAPP
‣ EAPP plans to achieve high voltage interconnection of the
national grids of all countries between Egypt, Tanzania and
Eastern DRC
‣Most of the power to be wheeled through this regional grid
is to come from hydro-power
‣EAPP recognized the need to develop the large geothermal
resource potential in the region to improve the energy mix
‣ Need to develop the large geothermal resource potential in
the region (i) to lend stability to the RPP & (ii) to provide base
load power at national level.

WAY FORWARD
•Accelerate development and utilization of GER by implementing
the identified actionable “key activities” developed from the gaps
within the framework of regional geothermal programme
•Create complementarities and synergy among various support
programmes to avoid duplication of efforts
• Strengthen the RGP for PED and Utilization of geothermal
resources to scale up modern energy services in the region to
support Socio economic development and improve the standard &
quality of life through out the EARS countries.

ACTIVITIES UNDER THE UMBRELLA OF ARGEO
ARGeo-C1
Ethiopia (2006)
SC-III NAIVASHA,
KENYA, Nov, 2008
UNU-GTP & KENGEN
Decision Makers W. on GE, June
2009 (ICS-UNIDO/AUC/BGR/EG)
Training for Decision makers,
Entebbe, Uganda, Nov. 2008
(UNU-GTP)
Djibouti
ARGeo-C2,
UGANDA (2008)

THIRD EAST AFRICAN RIFT GEOTHERMAL
CONFERENCE
ARGeo-C3
EXPLORING AND HARNESSING THE
RENEWABLE AND PROMISING
GEOTHERMAL ENERGY
DJIBOUTI, NOVEMEBER 22-25, 2010
Organized by
CENTRE D’ETUDE ET DE RECHERCHE DE DJIBOUTI
argeo-c3-djibouti@intnet.dj

THANK YOU