OVERVIEW OF GEOTHERMAL EXPLORATION AND ... - African Union
OVERVIEW OF GEOTHERMAL EXPLORATION AND ... - African Union
OVERVIEW OF GEOTHERMAL EXPLORATION AND ... - African Union
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BARRIERS FOR DEVELOPMENT <strong>OF</strong><br />
<strong>GEOTHERMAL</strong> RESOURCE<br />
IN COUNTRIES <strong>OF</strong> THE EARS:<br />
OVERCOMING THESE CHALLENGES<br />
Meseret Teklemariam (Ph.D)<br />
11 th Annual East <strong>African</strong> Power Industry Convention<br />
Nairobi, Kenya<br />
August 31-September 3, 2010
OUTLINE<br />
THE EARS<br />
EARS COUNTRIES<br />
STATUS <strong>AND</strong> STRATEGY <strong>OF</strong> GED<br />
NEED, EXPECTATION & DESIRED OUTCOME<br />
GAPS <strong>OF</strong> KEY ISSUES<br />
MAIN CHALLENGES TO DEVELOP GR<br />
OVERCOMING THESE CHALLENGES
THE EAST AFRICAN RIFT SYSTEM<br />
Extends about 6500 Km from the Dead Sea<br />
(North) to Mozambique (South)<br />
Huge Geothermal Resource with<br />
Estimated Potential of > 15,000 MWe
OUR CONTINENT IN DARKNESS<br />
Most of the EA countries are dependent on TBF= 70- 90%: Causes Deforestation<br />
&Environmental degradation
COUNTRIES -East <strong>African</strong> Rift System<br />
• Keen to investigate and further develop GE due<br />
to:<br />
‣Strong growth in electricity demand &<br />
urgent need to increase access to electricity<br />
‣ Hydro proven unreliable as a base load<br />
source due to climatic fluctuations<br />
‣Volatile price of petroleum fuels etc..
DISTRIBUTION <strong>OF</strong> INDIGENOUS RE SOURCES<br />
Djibouti and Eritrea have no other known indigenous energy resources<br />
except potential for geothermal energy:<br />
Rely 100% on petroleum fuels for commercial energy supply<br />
Kenya and Tanzania are almost exhausting their hydro-potentials,<br />
DRC, Zambia, Ethiopia, Uganda’s with relatively large hydro-potential<br />
is subject to climatic fluctuations.<br />
Hydropower supply needs to be stabilized by suitable<br />
energy mix, using geothermal power generation.<br />
THERE IS AN ABUNDANCE <strong>OF</strong> HIGH ENTHALPY <strong>GEOTHERMAL</strong><br />
RESOURCES SUITED TO LOW COST <strong>AND</strong> CLEAN ELECTRICITY<br />
GENERATION USING ESTABLISHED TECHNOLOGY.
East <strong>African</strong> Countries Using Or<br />
Having Carried Out Research On<br />
Geothermal Resources<br />
Djibouti<br />
Eritrea<br />
Ethiopia*<br />
Kenya*<br />
Tanzania<br />
Uganda<br />
Zambia *<br />
Rwanda<br />
Burundi<br />
DRCongo<br />
Comoros Islands<br />
*Plant installed
STATUS <strong>OF</strong> <strong>GEOTHERMAL</strong> E&D<br />
Countries Reconnaissance S. Detailed Detailed Drilling Feasibility Power Remark<br />
Development<br />
Burundi X - - - - - -<br />
Comoros X - - - - - -<br />
DRC X - - - - -<br />
Djibouti X X X X - - -<br />
Eritrea X X X - - -<br />
Ethiopia X X X X - X 7 MWe<br />
Kenya X X X X - X 209 MWe<br />
Rwanda X X X - - - -<br />
Tanzania X X X - - - -<br />
Uganda X X X - - -<br />
Zambia X* - - - - - * Not F. plant<br />
200KW<br />
= Reconnaissance<br />
= Semi-Detailed<br />
= Detailed<br />
= Power generation
STAGES <strong>OF</strong> <strong>EXPLORATION</strong> <strong>AND</strong><br />
DEVELOPMENT<br />
•Burundi, Comoros, DRC and Zambia are at reconnaissance stage of<br />
exploration;<br />
•Rwanda, Tanzania, Uganda and Eritrea are from semi detailed to<br />
detailed stages of exploration;<br />
•Djibouti is at detailed investigation;<br />
•Ethiopia is from detailed to Power development stage (Pilot Plant);<br />
• Kenya is at most advanced stages of power development.
KENYA= 209 MWe (1956-Present)<br />
Olkaria I Power Plant 70 MW<br />
Olkaria II Power Plant 105 MW<br />
Olkaria IV<br />
Olkaria III power Plant 50 MWe.<br />
Oserian Power Plant 4MW<br />
Omenda, P. 2008
ETHIOPIA: 7 MWe 1982-Present<br />
<strong>GEOTHERMAL</strong> PILOT POWER PLANT<br />
7 MWe
DJIBOUTI<br />
DETAILED<br />
INVESTIGATIONS<br />
Bouh, 2008
ERITREA<br />
SEMI DETAILED<br />
DETAILED<br />
INVESTIGATION<br />
Yohannes, E. 2008<br />
ALID <strong>GEOTHERMAL</strong><br />
AREA
UG<strong>AND</strong>A<br />
SEMI DETAILED<br />
DETAILED<br />
INVESTIGATION<br />
Bahati, G. 2008
TANZANIA<br />
Semi-Detailed<br />
investigation
RW<strong>AND</strong>A<br />
SEMI-DETAILED –<br />
DETAILED<br />
INVESTIGATION<br />
Uwera, R. 2010
ZAMBIA<br />
RECONNAISSANCE<br />
Kapisya Prospect<br />
Lake Mweru ! Mpulungu<br />
Sumbu National Park<br />
!<br />
! Kasama<br />
! Isoka<br />
D. R. CONGO<br />
"<br />
Lake Tanganyika<br />
TANZANIA<br />
ANGOLA<br />
Mansa<br />
! Bangweulu Floodplains MALAWI<br />
North Luangwa National Park<br />
! Mpika<br />
! Solwezi<br />
Luambe National Park<br />
Kitwe !<br />
!<br />
Ndola<br />
Kasanka National Park<br />
South Luangwa National park<br />
Liuwa Plains National Park<br />
Kafue National Park<br />
Chipata !<br />
! Mkushi<br />
! Kapiri Mposhi<br />
Z A M B I A<br />
Mongu<br />
!<br />
Lusaka<br />
! Lower Zambezi National Park<br />
Lochinvar National Park<br />
! Chirundu<br />
Siavonga<br />
!<br />
Lake Kariba ZIMBABWE<br />
Sioma Ngwezi National Park<br />
NAMIBIA ! Livingstone<br />
Victoria Falls<br />
BOTSWANA<br />
MOZAMBIQUE
BURUNDI<br />
RECONNAISSANCE
DEMOCRATIC<br />
REPUBLIC <strong>OF</strong><br />
CONGO<br />
Buko<br />
mo<br />
Makera<br />
Mayi ya<br />
Moto<br />
Rwi<br />
ndi<br />
Nyamulagi<br />
ra<br />
Kisuma Tingi<br />
KisumSpring<br />
Nyiragon<br />
a Kihira Sake<br />
go<br />
Kabuno<br />
Bay<br />
Lc<br />
Goma Ls<br />
R<br />
Ruk<br />
ore<br />
Mpenge<br />
Lake<br />
Kivu<br />
RECONNAISSANCE<br />
Mahyuz<br />
a Kankule I<br />
& II
THE COMOROS ISL<strong>AND</strong>S<br />
Karthala volcano<br />
KENGEN DID<br />
INVESTIGATIONS
The EARS countries are individually at different stages<br />
of Exploration and Development.<br />
In this regard, the strategic objective of each country at<br />
the end of coming 5 years is different from the other
STRATEGY FOR <strong>EXPLORATION</strong> <strong>AND</strong><br />
DEVELOPMENT IN EARS
STRATEGY FOR <strong>EXPLORATION</strong> <strong>AND</strong><br />
DEVELOPMENT IN EARS<br />
Strategic plan of Exploration and Development (Five Years)<br />
Countries<br />
Reconnaissance S.<br />
Detailed<br />
Detailed Drilling<br />
Feasibility<br />
Power<br />
Development<br />
Burundi X X X - - - -<br />
Comoros X X X - - - -<br />
DRC X X X - -<br />
Remark<br />
Djibouti X X X X X X ASSAL<br />
Eritrea X X X X X X ALID (PP)<br />
Ethiopia X X X X X X 125 MWe<br />
Kenya X X X X X X 880 MWe<br />
Rwanda X X X X X X Pilot Plant<br />
(Karisimba)<br />
Tanzania X X X - - - -<br />
Uganda X X X X - x -Pilot plant<br />
Zambia X* X X - - - * Not F. plant<br />
200KW<br />
= Detailed investigation<br />
= Power Generation<br />
Informations are collected from all 11 countries
NEED, EXPECTATION <strong>AND</strong> DESIRED OUTCOME<br />
<strong>OF</strong> COUNTRIES <strong>OF</strong> THE EARS
NEEDS, EXPECTATION, DESIRED OUTCOME <strong>AND</strong> STRATEGIC OBJECTIVES<br />
No. Needs Expectations Desired Outcome Strategic Objective (5 years)<br />
1. Training Quality training<br />
will be given<br />
through CB<br />
assistance<br />
2. Equipment<br />
supply<br />
3. Technical and<br />
Financial<br />
assistance<br />
(Integrated<br />
geoscientific<br />
Investigations)<br />
Adequate<br />
equipment will be<br />
supplied through<br />
CB<br />
Adequate finance<br />
and on the job<br />
training will be<br />
available for<br />
selecting potential<br />
geothermal sites<br />
PPP= Private Public Partnership<br />
IPP= Independent Power Producer<br />
Adequate<br />
manpower<br />
skilled<br />
Adequate<br />
equipment for E,<br />
DandU<br />
Existence of<br />
identified<br />
potential<br />
geothermal sites<br />
including target<br />
sites for deep<br />
drilling<br />
Number of geoscientists,<br />
engineers and drillers etc.<br />
X types and numbers of<br />
equipment<br />
X number of geothermal<br />
sites for further exploration<br />
drilling
NEEDS, EXPECTATION, DESIRED OUTCOME <strong>AND</strong> STRATEGIC OBJECTIVES<br />
N<br />
o.<br />
Needs Expectations Desired<br />
Outcome<br />
4. Technical and<br />
Financial<br />
assistance for<br />
drilling and<br />
Risk Mitigation<br />
fund<br />
5. Finance for<br />
power<br />
development,<br />
Private<br />
developers<br />
(PPP, IPP)<br />
Adequate<br />
finance<br />
including RMF<br />
will be available<br />
to enhance the<br />
development of<br />
the region<br />
geothermal<br />
resource<br />
Adequate<br />
finance<br />
participation<br />
private<br />
geothermal<br />
developers<br />
increase<br />
of<br />
will<br />
Existence<br />
confirmed<br />
Geothermal<br />
reservoir<br />
Existence<br />
Geothermal<br />
power plants<br />
of<br />
of<br />
Strategic Objective (5<br />
years)<br />
X number of productive<br />
wells for generation<br />
About 1000 MWe of<br />
power from geothermal<br />
energy in the EARS<br />
PPP= Private Public Partnership<br />
IPP= Independent Power Producer
GAPS TO ACHIEVE SO<br />
$
MAIN CHALLENGES ARE:<br />
• Large Upfront cost of geothermal exploration and<br />
development<br />
• Risks Associated with Resource Exploration and Power<br />
development<br />
• Risks associated with investment in power development<br />
projects<br />
• Inadequate skilled manpower and equipment for<br />
geothermal Resource Exploration and development<br />
• Lack of appropriate policy and institutional as well as<br />
regulatory framework to attract private investors in the<br />
region
CLEAR <strong>AND</strong> COHERENT LEGISLATION <strong>AND</strong><br />
REGULATION<br />
• Geothermal Act ( Except in Kenya )<br />
• Specific geothermal concession agreement; In most cases,<br />
geothermal is under mining law<br />
• Appropriate Institutional framework for exploring and<br />
developing geothermal resource: except in Kenya<br />
• Specific geothermal Feed in Tariff exists in some<br />
countries such as in Kenya, Ethiopia and Rwanda (Draft)<br />
Successful development of geothermal resource, is governed<br />
by laws and fulfilled by institutions
HOW DO WE OVERCOME THESE<br />
BARRIERS/CHALLENGES FOR<br />
ACCELERATING GER DEVELOPMENT<br />
IN THE REGION?
LEARN FROM OTHER BEST PRACTICES<br />
BENCHMARKING<br />
• Good legislative package that attract private investment;<br />
• Commitment of govt. to take the geothermal exploration<br />
risk at its shoulder;<br />
• Set up favorable institutions to enhance exploration and<br />
development • of the geothermal resource in the country;<br />
• Increase domestic budgetary allocation;<br />
• Include the development of Geothermal energy<br />
development plan in Power Development Master Plan with<br />
other alternative energy resources;<br />
• Un-bundled structures (generation, transmission and
STRATEGIES FOR DEVELOPMENT<br />
• Establish clear and coherent legislation and regulation<br />
governing geothermal resource<br />
• long term conducive policies and incentives that attract private<br />
investment<br />
•A Regional Network of Geothermal agencies should be set-up to<br />
ensure the promotion and use of geothermal expertise in the region<br />
• Acquiring a number of Risk Guarantee fund for exploratory and<br />
appraisal drilling of projects in the region<br />
•Accessing bi-and multilateral technical and economical cooperation<br />
•look for loans and grants from IO to finance the projects for further<br />
EX. & Development.<br />
•Alternative is look for PS participation and financing from<br />
developers , investors, equipment suppliers and development banks.
THESE COULD BE IMPLEMENTED BY<br />
ADOPTING AN INTEGRATED REGIONAL APPROACH<br />
TOWARD <strong>GEOTHERMAL</strong> DEVELOPMENT<br />
TO WORK TOGETHER IN SUPPORT <strong>OF</strong><br />
THE REGIONAL <strong>AND</strong> EVENTUAL CONTINENTAL<br />
OBJECTIVES.
BENEFITS <strong>OF</strong> REGIONAL APPROACH<br />
• High level political support,<br />
• Establish mechanisms for regional cooperation and<br />
decision making,<br />
• Synergy and the existing common market,<br />
• Cross-learning/training opportunities,<br />
• Economies of scale and<br />
• Peer support leading to more cost and time effective<br />
implementation than would otherwise have been possible<br />
only at national level.
Regional Geothermal Programme<br />
Use<br />
AS A VEHICLE<br />
IN:<br />
Removing Existing Barriers (Lack of Capacity in terms of<br />
Knowledge And Equipment, Technical and Financial) to the<br />
increased use of Geothermal Energy<br />
Reducing the country dependence on fossil Fuels and the<br />
greenhouse gas emmission level<br />
Avoid duplication of efforts of various support programmes<br />
Create synergy and complementarities among SP
Various geothermal support programmes<br />
recognize the challenges for development of GE<br />
in the region including:<br />
• awareness of availability and potential benefits,<br />
• technical capacities in the region, and<br />
• insufficient availability of the required<br />
investment resources
<strong>GEOTHERMAL</strong> SUPPORT PROGRAMMES IN THE<br />
REGION (Among Others)<br />
•The <strong>African</strong> Rift Geothermal Development Facility<br />
Programme (ARGeo)<br />
•German Federal Institute for Geosciences and Natural<br />
Resources (BGR) (GEOTHERM II),<br />
•German Development Bank (KfW)<br />
• United Nations University-Geothermal Training<br />
Programme / UNU-KENGEN-GDC<br />
•International Atomic Energy Agency (IAEA),<br />
•Icelandic International Development Agency<br />
(ICEIDA)
<strong>GEOTHERMAL</strong> SUPPORT PROGRAMMES<br />
•AUC/ICS-UNIDO regional geothermal energy project for<br />
East <strong>African</strong> Region (EAR),<br />
•The International Finance Corporation (IFC)<br />
•The World Bank -ESMAP programme<br />
•Japan International Cooperation Agency<br />
•AfD- French development Bank<br />
•European Investment Bank (EIB)<br />
•China Exim bank
THE EVOLVING SITUATION IN THE REGION<br />
“REGIONAL <strong>GEOTHERMAL</strong> PROGRAMME”
ARGeo-Project<br />
Eastern <strong>African</strong> Regional Geothermal Programme<br />
Project components: RN- TA & RMF<br />
Kenya, Ethiopia, Djibouti, Eritrea, Uganda and Tanzania<br />
Implementing agents are: World bank and UNEP<br />
Three projects from Djibouti, Kenya and Ethiopia are selected<br />
for RMF.<br />
RN & TA of UNEP started in June 2010.
<strong>GEOTHERMAL</strong> DRILLING RISK<br />
MITIGATION FUND FOR EASTERN<br />
AFRICA COUNTRIES<br />
Ethiopia<br />
Kenya<br />
Rwanda<br />
Tanzania<br />
Uganda
DIE<br />
REGIONAL <strong>GEOTHERMAL</strong> PROGRAMME<br />
Initiated based on the AAD (June 2009)<br />
Recommended to launch a<br />
regional programme that<br />
will engage in the PEDU of the<br />
geothermal energy resource of<br />
these Eleven signatory countries<br />
Recommended to convene a<br />
permanent Regional<br />
Forum with the participation of<br />
these countries<br />
42
REGIONAL <strong>GEOTHERMAL</strong> STAKEHOLDERS’<br />
WORKSHOP
DISCUSSIONS : DONORS/IB/DB <strong>AND</strong> MEMBER<br />
COUNTRIES<br />
ADOPTED<br />
ACTION PLAN &<br />
WAY FORWARD<br />
MARCH 16, 2010<br />
NAIROBI, KENYA
REGIONAL <strong>GEOTHERMAL</strong> PROGRAMME<br />
FUND<br />
MOBILIZATION<br />
POLICY<br />
HARMONIZATION<br />
PRIVATE SECTOR<br />
PARTICIPATION<br />
CAPACITY<br />
BUILDING<br />
REGIONAL<br />
NETWORKING &TECHNICAL<br />
ASSISTANCE<br />
AWARENESS<br />
CREATION<br />
Meseret Teklemariam, RGSW, Nairobi, 15-17.03.2010
KEY ISSUES IN DEVELOPING THE FIELD RGP<br />
+MW
THE REGIONAL INTERCONNECTION<br />
PLAN:<br />
THE EAPP<br />
‣ EAPP plans to achieve high voltage interconnection of the<br />
national grids of all countries between Egypt, Tanzania and<br />
Eastern DRC<br />
‣Most of the power to be wheeled through this regional grid<br />
is to come from hydro-power<br />
‣EAPP recognized the need to develop the large geothermal<br />
resource potential in the region to improve the energy mix<br />
‣ Need to develop the large geothermal resource potential in<br />
the region (i) to lend stability to the RPP & (ii) to provide base<br />
load power at national level.
WAY FORWARD<br />
•Accelerate development and utilization of GER by implementing<br />
the identified actionable “key activities” developed from the gaps<br />
within the framework of regional geothermal programme<br />
•Create complementarities and synergy among various support<br />
programmes to avoid duplication of efforts<br />
• Strengthen the RGP for PED and Utilization of geothermal<br />
resources to scale up modern energy services in the region to<br />
support Socio economic development and improve the standard &<br />
quality of life through out the EARS countries.
ACTIVITIES UNDER THE UMBRELLA <strong>OF</strong> ARGEO<br />
ARGeo-C1<br />
Ethiopia (2006)<br />
SC-III NAIVASHA,<br />
KENYA, Nov, 2008<br />
UNU-GTP & KENGEN<br />
Decision Makers W. on GE, June<br />
2009 (ICS-UNIDO/AUC/BGR/EG)<br />
Training for Decision makers,<br />
Entebbe, Uganda, Nov. 2008<br />
(UNU-GTP)<br />
Djibouti<br />
ARGeo-C2,<br />
UG<strong>AND</strong>A (2008)
THIRD EAST AFRICAN RIFT <strong>GEOTHERMAL</strong><br />
CONFERENCE<br />
ARGeo-C3<br />
EXPLORING <strong>AND</strong> HARNESSING THE<br />
RENEWABLE <strong>AND</strong> PROMISING<br />
<strong>GEOTHERMAL</strong> ENERGY<br />
DJIBOUTI, NOVEMEBER 22-25, 2010<br />
Organized by<br />
CENTRE D’ETUDE ET DE RECHERCHE DE DJIBOUTI<br />
argeo-c3-djibouti@intnet.dj
THANK YOU