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51
UNEP - ARGeo UNEP-African Rift Geothermal Development Facility PART II UNEP ARGeo: Unlocking Barriers for Geothermal Development in East Africa Region

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Page 1: UNEP: African Rift Geothermal Development Facility

UNEP - ARGeoUNEP-African Rift Geothermal Development Facility

PART II

UNEP ARGeo:

Unlocking Barriers for Geothermal Development in East Africa Region

Page 2: UNEP: African Rift Geothermal Development Facility

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

Page 3: UNEP: African Rift Geothermal Development Facility

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East African Countries Using Or Having Carried Out Research On Geothermal Resources Burundi

ComorosDRC*DjiboutiEritreaEthiopia*Kenya*MalawiMozambiqueRwandaTanzaniaUgandaZambia *

*Plant installed

Page 4: UNEP: African Rift Geothermal Development Facility

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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

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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

Page 6: UNEP: African Rift Geothermal Development Facility

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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

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• 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

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DETAILED

INVESTIGATION

Consortium of donors- 50 MWe

Bouh, 2008

Abdou 2013

DJIBOUTI

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SEMI DETAILED

DETAILED

INVESTIGATION

Yohannes, E. 2008

ERITREA

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DETAILED INVESTIGATION

KARISMBI (2012)

Two wells were drilled (2013-14)

Kinigi G.Prospect

Uwera, R. 2013

RWANDA

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Mbeya geothermal field

Lake Natron geothermal field

Rufiji geothermal field

Semi-Detailed investigation

Detailed-MBEYA-Rufiji

TANZANIA

Page 12: UNEP: African Rift Geothermal Development Facility

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SEMI DETAILEDDETAILEDINVESTIGATION

Katwe KibiroBuranga Pynamir

Bahati, G. 2008

Kato. V. 2013

UGANDA

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RECONNAISSANCE

BURUNDI

Oswald, 2013ICEIDA, 2011

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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

Page 15: UNEP: African Rift Geothermal Development Facility

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THE COMOROS ISLANDS

Karthala volcano

KENGEN DID INVESTIGATIONS

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MALAWI

• Reconnaissance stage of Exploration

• Identified a number of geothermal prospect areas

• Main Challenges: Inadequate skilled manpower, etc..

Chisambi, 2011

Page 17: UNEP: African Rift Geothermal Development Facility

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!

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!!

! !!

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!

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!

"

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

Page 18: UNEP: African Rift Geothermal Development Facility

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STRATEGY FOR EXPLORATION AND DEVELOPMENT OF GR IN EARS

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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

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WHAT RESOURCES DO WE HAVE?

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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

Page 22: UNEP: African Rift Geothermal Development Facility

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STRATEGY TO FAST TRACK GEOTHERMAL DEVELOPMENT

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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 !

Page 24: UNEP: African Rift Geothermal Development Facility

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THE RESOURCE- LTLCNPDMP

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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

Page 26: UNEP: African Rift Geothermal Development Facility

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• 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

Page 27: UNEP: African Rift Geothermal Development Facility

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• 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

Page 28: UNEP: African Rift Geothermal Development Facility

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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

Page 29: UNEP: African Rift Geothermal Development Facility

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Effective Planning

• National Level Planning (NPDMP)

• Tactical Level Planning Prioritization/Ranking)

• Strategic Level Planning (Single Govt.entity or Concession in the form PPP/IPP)

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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

Page 31: UNEP: African Rift Geothermal Development Facility

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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

Page 32: UNEP: African Rift Geothermal Development Facility

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• 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)

Page 33: UNEP: African Rift Geothermal Development Facility

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.

Page 34: UNEP: African Rift Geothermal Development Facility

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POLICY ADVICE

CAPACITY BUILDING

AWARENESS CREATION

REGIONAL NETWORKING, INFORMATION

SYSTEMS

ARGeo PROJECT COMPONENTS

TECHNICAL ASSISTANCE FOR SURACE STUDIES

Page 35: UNEP: African Rift Geothermal Development Facility

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

Page 36: UNEP: African Rift Geothermal Development Facility

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

Page 37: UNEP: African Rift Geothermal Development Facility

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.

Page 38: UNEP: African Rift Geothermal Development Facility

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

Page 39: UNEP: African Rift Geothermal Development Facility

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

Page 40: UNEP: African Rift Geothermal Development Facility

Started implementation of surface studies in Alid (Eritrea) in 2015

Page 41: UNEP: African Rift Geothermal Development Facility

Surface studies in Kibiro Geothermal Prospect , Uganda (2015-16)

• Procured Equipment

• Recruited consultants

• Currently Reviewing existing data and reports

Page 42: UNEP: African Rift Geothermal Development Facility

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

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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.

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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.

Page 45: UNEP: African Rift Geothermal Development Facility

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

Page 46: UNEP: African Rift Geothermal Development Facility

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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

Page 47: UNEP: African Rift Geothermal Development Facility

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

Page 48: UNEP: African Rift Geothermal Development Facility

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.

  

Page 49: UNEP: African Rift Geothermal Development Facility

6th African Rift Geothermal Conference (ARGeo-C6)

United Nations Conference Center (UNCC), 31st Oct to 6th Nov 2016Addis Ababa, Ethiopia

Page 50: UNEP: African Rift Geothermal Development Facility

• 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

Page 51: UNEP: African Rift Geothermal Development Facility

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THANK YOU

MESERET TEKLEMARIAMEmail: [email protected]

CONTACT