Ralph Nyakabwa-Atwoki. Challenges in Developing Katwe Geothermal Power Project in Western Uganda.

Transcription

1 Ralph Nyakabwa-Atwoki Challenges in Developing Katwe Geothermal Power Project in Western Uganda.

2 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

3 Objective of this presentation 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.

4 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 Megawatts when fully completed

5 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!

6 Average per capita watts/person Regional energy outlook CIA regional Power consumption in BWh /yr) World rank: County: SA KE SU TZ UG BU RW

7 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.

8 Uganda's energy outlook Installed Capacity Installed Capacity Current Generation

9 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.

10 Geothermal resources in Uganda correlates to other world known global seismic activity and >>>

11 > the Africa Rift System and >>>

12 > the geothermal resources of Uganda.

13 Brief geological aspects of the project C C 250 C 18 d O in SO C 100 C C 6 Kibiro Buranga Katwe d 18 O in H2O D Biiso Kibiro Kigorobya dg m be ha Kitoba -5 se 8 12 Ri 9 ai Buseruka e ni -W uk hi M Northing (m) Subsurface temperature of between 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 Eastings (m)

14 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.

15 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.

16 Knowledge gap challenges 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.

17 Surface vis underground geothermal knowledge 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

18 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.

19 Environment challenges The project is located in National Park And also in Grade One Earthquake prone area

20 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

21 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.

22 Solutions for the future Customer strategy Business strategy Innovation strategy Knowledge to money Technology strategy Research & development strategy Money to knowledge Scientific progress

23 Conclusion Taking Africa's bleak energy consumption shown by only South Africa ranked the 16 th with the rest of our region occupying between 104 th and 163 rd 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.

24 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