UNEP - ARGeoUNEP-African Rift Geothermal Development Facility
PART II
UNEP ARGeo:
Unlocking Barriers for Geothermal Development in East Africa Region
2Extends about 6500 Km from the Dead Sea (North) to Mozambique (South)
THE EAST AFRICAN RIFT SYSTEM
Huge Geothermal Resource with Estimated Potential of > 20,000 MWe
3
East African Countries Using Or Having Carried Out Research On Geothermal Resources Burundi
ComorosDRC*DjiboutiEritreaEthiopia*Kenya*MalawiMozambiqueRwandaTanzaniaUgandaZambia *
*Plant installed
4
Countries Reconnaissance S. Detailed Detailed Drilling Feasibility
Power Development
Remark
Burundi X - - - - - -
Comoros X - - - - - -DRC X - - - - -
Djibouti X X X X - - -
Eritrea X X X - - -
Ethiopia X X X X - X 7.2 MWe
Kenya X X X X - X 635 MWe
Rwanda X X X X - - -
Tanzania X X X - - - -Uganda X X X - - -
Zambia X* X X X - - * Not F. plant 200KW
STATUS OF GEOTHERMAL E&D
= Reconnaissance= Detailed= Semi-Detailed = Power generation
5
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 is almost exhausting its hydro-potentials,
DRC, Zambia, Ethiopia, Uganda’s with relatively large hydro-potential are 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 IN THE REGION SUITED TO LOW COST AND CLEAN ELECTRICITY GENERATION USING ESTABLISHED TECHNOLOGY.
DISTRIBUTION OF INDIGENOUS RE SOURCES
1
GEOTHERMAL POTENTIAL IN KENYA
Source: TMO; Internet Sources; Argeo
> 10,000MW in over 23 sites
• Suswa,• Longonot,• Olkaria,• Eburru,• Menengai,• Arus-Bogoria,• Lake Baringo,• Korosi,• Paka,• Lake Magadi,• Badlands,• Silali,• Emuruangogolak,• Namarunu• Barrier• Mwananyamala• Homa Hills• Nyambene
Ridges• Chyulu Hills
Menengai Block (1,600MW)
(Drilling Ongoing) 105 MWe tender awarded to private developers
Olkaria Block(1,200MW)
(i)Installed 636 MW
(ii)Developing 560MW (the first 140MWe Olkaria V advertised)Private developers
already licensed at Olkaria, Akiira and Longonot fields
7
• Exploration began in 1969 (UNDP & EG)
• About 18 Geothermal Prospect areas were identified in the whole ERV (covers 13% of the country)
• Much larger are for direct uses (agriculture, agro-industry etc)
ETHIOPIA
8
DETAILED
INVESTIGATION
Consortium of donors- 50 MWe
Bouh, 2008
Abdou 2013
DJIBOUTI
9
SEMI DETAILED
DETAILED
INVESTIGATION
Yohannes, E. 2008
ERITREA
10
DETAILED INVESTIGATION
KARISMBI (2012)
Two wells were drilled (2013-14)
Kinigi G.Prospect
Uwera, R. 2013
RWANDA
11
$T
$T$T
$T$T
$T
$T$T$T$T
$T
$T
$T
$T
$T
$T$T
$T$T
$T
$T
$T $T
$T
$T
$T
$T$T
$T
$T
$T
$T
$T$T
$T
$T
$T
$T
$T
$T
$T$T
$T
$T
$T
$T$T
$T
$T
Mbeya geothermal field
Lake Natron geothermal field
Rufiji geothermal field
Semi-Detailed investigation
Detailed-MBEYA-Rufiji
TANZANIA
12
SEMI DETAILEDDETAILEDINVESTIGATION
Katwe KibiroBuranga Pynamir
Bahati, G. 2008
Kato. V. 2013
UGANDA
13
RECONNAISSANCE
BURUNDI
Oswald, 2013ICEIDA, 2011
1414
Kiabukwa (Upemba rift) Shallow wells
91°C 40 l/s
1952: Binary pilot plant 0.2 MW; abandoned few years after commissioning
RECONNAISSANCE
DEMOCRATIC REPUBLIC OF CONGO
15
THE COMOROS ISLANDS
Karthala volcano
KENGEN DID INVESTIGATIONS
16
MALAWI
• Reconnaissance stage of Exploration
• Identified a number of geothermal prospect areas
• Main Challenges: Inadequate skilled manpower, etc..
Chisambi, 2011
17
!
!
!
! !
!
!
!
!!
! !!
!
!
!
!
!
"
Kafue National Park
Solwezi
Kitwe
Kapiri Mposhi
LusakaMongu
Liuwa Plains National Park
Sioma Ngwezi National ParkLivingstone
Victoria Falls
Lake Kar iba
Chirundu
Lower Zambezi National Park
Mkushi
Ndola
Chipata
South Luangwa National parkKasanka National Park
Luambe National Park
Lake Mweru
Lake Tanganyika
MpulunguSumbu National Park
Kasama Isoka
MansaNorth Luangwa National Park
Mpika
Bangweulu Floodplains
D. R. CONGO
Siavonga
Kapisya Prospect
ANGOLA
NAMIBIA
ZIMBABWE
TANZANIA
MOZAMBIQUE
MALAWI
Z A M B I A
Lochinvar National Park
BOTSWANA
Figure 8. Map of Zambia showing the location of Kapisya Geothermal Prospect
RECONNAISSANCE
ZAMBIA
PD- Kalhari Geo Eergy Ltd commenced drilling in Kafue B. in 2013 by PD
18
STRATEGY FOR EXPLORATION AND DEVELOPMENT OF GR IN EARS
19
Strategic plan of Exploration and Development (Five Years)
Countries Reconnaissance S.Detailed Detailed Drilling Feasibility
Power Development
Remark
Burundi X X X - - - -
Comoros X X X - - - 10-15 MWDRC X X X - -
Djibouti X X X X X X 50 MW (Assal)
Eritrea X X X X X X ALID (PP)
Ethiopia X X X X X X 580 MWe
Kenya X X X X X X 880 MWe
Rwanda X X X X X X Pilot Plant + 100
Tanzania X X X - - -
X X X X X x -50 MWe
Zambia X* X X - - - * Not F. plant 200KW
STRAEGY FOR EXPLORATION AND DEVELOPMENT
IN EARS
= Detailed investigation = Power Generation
Uganda
20
WHAT RESOURCES DO WE HAVE?
21
MAIN CHALLENGES/BARRIERS:
• Large Upfront cost of geothermal exploration and development
• Risks Associated with Resource Exploration and Power development
• Inadequate skilled manpower and equipment for geothermal Resource Exploration and development
• Limited national budgetary allocation and donor funding• Inadequate Private Sector Participation in the region
• Lack of Supportive government policy and regulatory framework
• Long lead project development time
22
STRATEGY TO FAST TRACK GEOTHERMAL DEVELOPMENT
23
1.The Resource
2.The Government
3.Policy, Laws and regulations
4.Institutional and infrastructural Capacities
5.The private sector
6.Support Programmes/development partners
7. Technology
What to consider !
2424242424
THE RESOURCE- LTLCNPDMP
2525
Comparisons with others sources
* Based on construction time – additional time would be needed for feasibility and other pre-construction activities ** 6US cents/kwh based on importing hydro power from Ethiopia vs. 12 US cents/kwh based on remaining projects in Kenya, e.g. Mutonga*** Lower than 10 cents/kwh, greater than 80% availability, less than 3 years, lower than 0.20 CO2 kg/kwh and known natural potentia
• Wind
• Coal
• MSD
• Nuclear
• Gas CNG
• Hydro**
• Gas Kerosene
• Solar
• Co-gene- ration
9.3
8.4
8.6
6.4
8.8
10.2
12.5
16.5
30-50
tbd
Assessment criteria
Generation Option
Low costUS$c/kwh Availability Fast delivery* Environment friendly Natural potential Comments
• Current GTs running at high loads, need more base load
• Coal potential in Kitui
• Significant potential, but dependent on weather
• Could pursue along side coal opportunity
• Dependent on weather with low average availability
• Min plant size of 500 MW required, politically sensitive
• Significant proven potential
• High exposure to hydrology risk (60% of installed capacity)
• Need to import, liquify for transport and re-gas
• Attractive intermediate capacity, but not large base load
• Geothermal
Location and transmission benefit
? ?
?
??
25
GDC, 2011
26
• Establishment of policy framework that attracts private investment
• Government’s commitment to undertake the exploration risk
• Setting up of favorable institutions to enhance exploration and development of the geothermal resource in the country (e.g. GDC in Kenya);
• Upscale national investment
• Recognition of geothermal energy as a viable solution for electricity generation and energy mix
• Un-bundling the geothermal and electricity generation sector to cater for steam development, generation, transmission and distribution
GOVERNMENT COMMITMENT
27
• Establishment of policy framework that attracts private investment
• Government’s commitment to undertake the exploration risk
• Setting up of favorable institutions to enhance exploration and development of the geothermal resource in the country (e.g. GDC in Kenya, TGDC, GDU);
• Upscale national investment
• Recognition of geothermal energy as a viable solution for electricity generation and energy mix
• Un-bundling the geothermal and electricity generation sector to cater for steam development, generation, transmission and distribution
GOVERNMENT COMMITMENT
28
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: Kenya
• Specific geothermal Feed in Tariff. Draft feed in tariff exists in countries such as Ethiopia, Uganda
Successful development of geothermal resource, is governed by laws and fulfilled by appropriate institutions
29
Effective Planning
• National Level Planning (NPDMP)
• Tactical Level Planning Prioritization/Ranking)
• Strategic Level Planning (Single Govt.entity or Concession in the form PPP/IPP)
3030
Enablers –TechnologyWellhead Generation
INVESTORS TO INSTALL WELLHEADS FOR EARLY GENERATION
Provide power shortly after drilling Cheaper than conventional power plants Provide revenue early Improve the profitability of the project
Importance
Typical Sizes – 5-10 MW Containerized/portable Mounted on the well pad 9 months to manufacture, ship and install Cost USD 1.5 million/MW
Characteristics
31
ADOPTING AN INTEGRATED REGIONAL APPROACH
TOWARD GEOTHERMAL DEVELOPMENT
TO WORK TOGETHER IN SUPPORT OF
THE REGIONAL AND EVENTUAL CONTINENTAL OBJECTIVES
IS A VEHICLE….
3. REGIONAL STRATEGY
3232
• UNEP- African Rift Geothermal Development Facility Programme (ARGeo),
• AUC-German Development Bank (KfW)- GRMF and RGP
• Federal German Institute of Geosciences and Natural Resources (BGR)
• Icelandic International Development Agency (ICEIDA) linked with WB
• United Nations University- Geothermal Training Programme (UNU-GTP)- Capacity Building
• USAID East Africa Geothermal Partnership (EAGP)
R. GEOTHERMAL SUPPORT P. (Among others)
African Rift Geothermal Development Facility (ARGeo)ARGeo: GEF Funded project with Financing of about USD 4.75M and Co-financing about USD 70 M (in kind and in Cash)
About: Rapid, targeted and demand driven technical and financial support to East African countries for the promotion and adoption of geothermal energy
Goal: To encourage both Private and Public developers to accelerate development of geothermal resource in the region through mitigation of risks associated with resource exploration
Target Countries: six GEF Funded ARGeo member countries namely: Eritrea, Ethiopia, Kenya, Rwanda, Tanzania and Uganda. Additional seven countries are also supported through this project with the support of partners. These countries include: Burundi, Comoros, Djibouti, Democratic Republic of Congo (DRC), Malawi, Mozambique, and Zambia.
3434
POLICY ADVICE
CAPACITY BUILDING
AWARENESS CREATION
REGIONAL NETWORKING, INFORMATION
SYSTEMS
ARGeo PROJECT COMPONENTS
TECHNICAL ASSISTANCE FOR SURACE STUDIES
Created Country’s Ownership: VB
Created C
ountry’s Ow
nership: VB
Created C
ountry’s Ow
nership: VB
Countries “Own and Lead” the project - UNEP gives service as per needs and expectations of countries
Created Partnership and SynergyC
reat
ed P
artn
ersh
ip a
nd S
yner
gy
Cre
ated
Par
tner
ship
and
Syn
ergy
AUCICEIDABGRUS-Power Africa
WBDFIDItaly DC
The UNEP ARGeo Project in 2014 completed two project pipelines of Silali (Kenya) and Tendaho (Ethiopia), which will be used for future investment and development and to be financed through AUC-KfW Geothermal Mitigation Facility, DFID and EU.
First two Completed projects
Silali Tendaho(Dubti-Ayrobera)
• ID Banks (KfW (USD 100M) and AfD Euro 20 M) developed interest to invest in these two confirmed geothermal resource sites.
Technical Assistance for Surface exploration studiesSilali Geothermal Prospect, Kenya
• Provisioned Scientific equipment and Geochemical /physical softwares
• Recruited Senior consultants
• Conceptual Model with location of target sites for deep drilling
• Hands on experience and on the job training
Technical Assistance for Surface exploration studiesTendaho Geothermal Prospect, Ethiopia
• Provisioned Scientific equipment and softwares
• Recruited Senior Consultants
• Conceptual Model with location of target sites for deep drilling
• Hands on experience and on the job training
Started implementation of surface studies in Alid (Eritrea) in 2015
Surface studies in Kibiro Geothermal Prospect , Uganda (2015-16)
• Procured Equipment
• Recruited consultants
• Currently Reviewing existing data and reports
Surface studies in Ngozi Geothermal Prospect , Tanzania (2015-16)
Field work @ Ngozi
NAIROBI
• Procured Equipment
• Recruited consultants
• Currently Preparing the final report as per the comments of the TRM (May 2016)
• SREP- 50 M USD
43
UNEP- Rwanda Geothermal Workshop (2015-16)
Rwanda:
• Reviewed the ISOR report on existing data in Rwanda
• Reviewed the results of surface studies of Kinigi and Gisenyi Geothermal prospects (May 2016)
• Organized the Western Rift Technical Workshop in Kigali, Rwanda in March 2016.
44
Spurred Geothermal interest through organization of Biennial Geothermal conferences (ARGEo-C4/C5)- November 2012/2014
• ARGeo-C4/C5 were among the UNEP ARGeo Project Biennial Geothermal Conferences being implemented under the “Regional networking, information systems, capacity building and awareness creation”.
• Brought together more than 600 international and regional delegates from 35 countries that includes policy makers, technical experts as well as developers and financiers.
Developed and Launched ARGeo East African Information Database
UNEP and ICEIDA Launching AGID, 29 October 2014, Arusha, Tanzania
www.agid.org Being Enhanced to GIS Based Database
46
0
20
40
60
80
100
120
140
Geoscientists GeoscienceTechnicians
ReserviourEngineer
ReservoirTechnicians
Drilling Engineer DrillingTechnicians
Power PlantEngineer
Plant Technicians
Num
ber o
f Sta
ff
Age (20-30) Age (30-40) Age (40-50) Age (50-60) Male Female
1
2
4
8
16
32
64
128
256
512
1024
Comoros Djibouti DRC Eritrea Ethiopia Kenya Malawi Mozambique Rwanda Tanzania Uganda Zambia
No.
of S
taff
Geoscientists Reservoir Engineers Drilling Engineers Plant Engineers
Current Staff30%
0-5 Years35% 5-10 Years
21%
10-15 Years14%
Required Staff70%
Geoscientists
Prepared Skill gap Analysis report – Basis for establishment of AGCE
0
20
40
60
80
100
120
140
Geoscientists GeoscienceTechnicians
ReserviourEngineer
ReservoirTechnicians
Drilling Engineer DrillingTechnicians
Power PlantEngineer
Plant Technicians
Num
ber o
f Sta
ffAge (20-30) Age (30-40) Age (40-50) Age (50-60) Male Female
Provides matured institutional support to a more sustainable and institutionalize process of creating Africa Geothermal Center of Excellence (AGCE).
Members of Steering Committee of AGCE
Determined and identified needs and expectations of countries
Representatives from 13 African Countries
Project implementation progress (achievement) so far: • Two geothermal resource sites (Silali and Tendaho (Dubti)) confirmed for further
drilling and investment-
• Investment and development banks (KfW and AfD) developed interest to invest in the two confirmed geothermal resource sites.
• Integrated geo-scientific studies to develop conceptual model for other three
geothermal sites in Tanzania, Uganda and Eritrea is underway.
• Strengthened institutional and infrastructural capacities of countries through CB (300 people from EA countries) , Policy advice and organizing biennial Geothermal Conferences
• Geothermal related data from 13 countries are accessible to public- AGID
• Broader partnership through AUC, MFA- Iceland, JICA, US Power Africa, AfDB, DFID, BGR, EU EI PDF, WB-ESMAP developed
• Additional leveraging of resources (both in kind and in cash) for ARGeo Phase 2 through these partnership- About 1.5 Million (in kind and in cash)
• Started an institutional support to a more sustainable and institutionalize process of creating Africa Geothermal Center of Excellence (AGCE) and EAGA.
6th African Rift Geothermal Conference (ARGeo-C6)
United Nations Conference Center (UNCC), 31st Oct to 6th Nov 2016Addis Ababa, Ethiopia
• Ensure sustainability of geothermal resource development through Consolidating results of started activities of ARGeo in the last four years and provide the institutional support of AGCE and EAGA
• Finalize implementation of surface studies in Alid geothermal prospect, Eritrea, Kibiro (Uganda) and Ngozi (Tanzania) geothermal Prospects (4Q 2015)
• Develop tools and guidelines for Direct Use application on the basis of the outcome of the technical workshop on the WR
• In parallel work closely with AUC as per signed AM- Implementaion of PIDA
Next Steps- 2017/18