Challenges in

Developing Katwe

Geothermal Power

Project in Western

Uganda.

Ralph Nyakabwa-Atwoki

Outline of the presentation

Objective of this presentation

Katwe Geothermal Power Project Limited

Regional economic and energy outlook

Geothermal resources in Uganda

Development experience and challenges

The need for innovative and interventions

Conclusions

Acknowledgement

To brief the Conference Delegates

especially those from countries with and

intending to develop their geothermal

resources, on the experience of

developing novel geothermal energy in

absence of geothermal energy policy.

Objective of this presentation

The project Developers

Katwe Geothermal Power Project Limited

(KGPPL) an Independent Power Producer

is owned by indigenous investors with an

exploration licence for Katwe

Bunyampaka geothermal area in Kasese

District, West Uganda. The project is

being developed with an American

partners A A E Systems Inc. It will

produce 150-200 Megawatts when fully

completed

Africa & regional energy scenario

Faltering power plan

Getahun Demissie summarizes it as the paradox

energy poverty in the middle of plenty taking

Africa’s potential of the renewable energy mix of

wind, solar, hydro, bagasse and geothermal

power potential of say 386,000TWh.

Christine Mungai puts Sub-Saharan Africa

generated power is estimated 68-Gigawatts no

more than that of Spain, with South Africa alone

accounting for 40-GW!

0

50

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150

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Avera

ge p

er

ca

pit

a w

att

s/p

ers

on

World rank: 16 107 117 120 133 159 163

County: SA KE SU TZ UG BU RW

Regional energy outlook CIA regional Power consumption in BWh /yr)

Uganda's energy sector scenario

NGO apex forum’s paradox of growth without

transformation is on the electric energy sector,

as the building of dams, multilateral supported

programmes like Rural Electrification Agency;

electricity consumption of 75-kWh per capita is

one of the lowest in the world, accessed by12%

in urban and 6% in rural areas as annual

demand growth remains at 8% per year.

Installed Capacity

Uganda's energy outlook

Installed

Capacity

Current

Generation

The blame game goes to who ?

Governments

Development

Partners? Yes

H.E. Obasanjo: Africans cannot plan

for their next 2 years, when people

outside of Africa are planning for

what to do for the continent in the next

20 years,

Rukuni: governments and our donors

alike are still experimenting to find the

research and technology models

will work in Africa.

Geothermal resources in Uganda

correlates to other world known global

seismic activity and >>>

> the Africa Rift System and >>>

> the geothermal resources of Uganda.

Subsurface temperature of

between140-200°C for Katwe,

areas have been predicted by

geothermometry. The above

temperature if confirmed is

suitable for electricity production

& direct use in industry and

agriculture.

Movement of the fluids from

recharge areas to the reservoirs

and hot springs is from high

ground and fault controlled.

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-10 -8 -6 -4 -2 0 2 4 6 8 10

d18

O in H2O

d18O

in

SO

4

Kibiro

Buranga

Katwe

150°C

50°

C

200°C250°C

300°C

100°C

285000 290000 295000 300000 305000 310000 315000 320000 325000 330000 335000 340000

Eastings (m)

160000

165000

170000

175000

180000

185000

190000

195000

200000

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rth

ing

(m

)

25

26

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2829

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32 33

34

1

2

3

21

22

416

19

20

7

8

9

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11

12

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31

14

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17

Kibiro

Biiso

Kigorobya

Buseruka

Kitoba

Muk

hiha

ni-W

aise

mbe

Ridge

-12

-11

-9

-8

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-3

-2

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6

D

Brief geological aspects of the project

Brief geological aspects of the project

Anomalous areas have been mapped for geology and geophysical studies in the project concession.

Temperature gradient drilling and measurements at Katwe (30 - 36°C/km) suggest a geothermal reservoir that is either deep seated or offset from the drilled area.

The Project Development challenges

The biggest challenge facing the

geothermal industry in the region is the

reluctance of many investors to finance

exploration endeavours.

Engineers, specialist multi disciplinary,

specialist professionals in geosciences

and environment concentrated in government.

Acquisition of the requisite geothermal knowledge

needed

Intensive desk research

Discovered a rift between Surface vis

underground example KGPPL team proficient in

surface technology (after the valve) while being

heavily constrained in underground ‘below the

valve’ knowledge leading to

Regional, frequent and expensive travels.

Knowledge gap challenges

Surface is electrical &

mechanical engineering i.e.

Generators, Switchgears,

Transmissions; Steam

properties, Thermodynamics,

Turbines, etc

Underground is y geology i.e.

geochemistry, hydrology geophysical,

transient electromagnetic (TEM)

magneto-telluric (MT), drilling of wells ,

etc

Surface vis underground geothermal

knowledge

Absence of legal and policy

framework

Delayed the completion of surface surveys,

environment impact assessment and drilling of three

test wells critical to the completion of the feasibility

that was slated for September, 2013

The absence of the feasibility study and the

environmental impact assessment aggravated the

issuance of the Power Purchase Agreement (PPA)

critical to our development partner’s financial closure

and release the project development capital .

The project is located in National Park

And also in Grade One Earthquake prone area

Environment challenges

Absence of legal and policy

framework

Relentless hunting for prospective

willing and financially capable developers

with interest in developing geothermal

prospects using their own venture

capital using Finance, Design, Build,

Operate and Transfer (FDBOT) model

The need for innovative and

interventions

The development of energy innovations geared

toward the problems of Energy Consumers and

independent power producers investing I rather

than products and services per say. Systematic

energy development is of utmost importance

when planning long-term strategic solutions

that create value and conserve energy. Such

a strategic process is shown overleaf.

Customer strategy

Scientific progress

Business strategy

Innovation strategy “Knowledge to money”

Technology strategy

Research & development strategy

“Money to knowledge”

Solutions for the future

Conclusion

Taking Africa's bleak energy consumption shown

by only South Africa ranked the 16th with the rest

of our region occupying between 104th and 163rd in

the world, global warming and environmental

damage, governments and financiers should

urgently rebrand, renew and rethink their strategies

to develop geothermal energy to meet the needs

of upcoming regional power pool undertaken by

Equatorial Lakes Region’s Nile Equatorial Lakes

Subsidiary Action Programme.

Acknowledgement

I now thank organizers Spintelligent, and Clarion

Events for inviting me to speak at this prestigious

East African Power industry Convention and the

distinguished delegates. I sincerely hope that my

presentation is of value to you all and the

development Geothermal energy resources at large.

I THANK YOU FOR YOUR ATTENTION