Update on geothermal development in Comoros

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1 1 Geothermal Donor Collaboration Meeting and Geothermal Workshop Reykjavik Iceland May Update on geothermal development in Comoros Naoildine Houmadi Bureau Géologique des Comores

2 General context 2 Small islands Country (Area 2234 km 2, population 2013 : Main source energy : Wood (66%) and oil (34%) Small scale electricity production High Price of Electricity Damage to environment due to use of limited woody resources Development of geothermal energy in Comoros is aiming for economic, social and ecological (sustainable) development.

3 Electricity context 3 A preliminary review suggest that the cost of electricity generation (excluding distribution costs) was of the order of 285 FC / kwh (US$0.85 per kwh). What is apparent is that some 76% of the costs of generation are due to diesel fuel costs. Plus, Additional costs allocated specifically to distribution.

4 Electricity context 4 In reviewing the costs of generation show that the present power generation situation on Comoros is one in which: The base cost of power generation is some 285 FC/kwh ( US$0.85 / Kwh) The fully burdened cost with distribution costs included is of the order of 336 FC/kWh (US$0.95/kWh) The current tariffs are understood to be: Residential - prepay 132FC/kWh (US$0.35/kWh) Residential - account Industrial - day time Industrial - night time 120 FC/kWh (US$0.32/kWh) 92 FC / kwh (US$0.24/kWh) 96 FC / kwh (US$0.25/kWh) Energy issues have led the government to seriously consider geothermal energy as a sustainable response to the energy needs in the medium and long term.

5 A Strategy for a Geothermal Power Development While the scale of any geothermal development will have a direct impact on costs, as does the productivity of individual wells, it would be reasonable to expect that the basic cost of geothermal generation for a 20 MW plant would be of the order of US$0.10 to 0.15per kwh. 5 Geothermal generation is better suited to providing a baseload; the diesel generation can be used to provide system stability. This is a strong commitment of the Government may be of interest to other partners.

6 Geological context the volcano on which the archipelago is based, offers opportunities in terms of energy through the heat it contains. 6 The key indicator of a potentially exploitable geothermal system is the presence of a rift system associated with the active volcano A first assessment, made in 2008 as part of a geophysical survey, has revealed an great active geothermal system is present

7 MT Survey 7 Identified geothermal reservoir Main crater

8 A Strategy for a Geothermal Power Development 8 A list of key issues would include consideration of the following: Current load demands, and daily demand variation, to determine what level of geothermal base load generation could practically be considered in a first stage development Given an estimate of a potential geothermal power plant size (subject to resource confirmation) determine the likely cost of geothermal generation at this scale

9 A Strategy for a Geothermal Power Development 9 The economic benefits of displacing the use of imported fuels with geothermal energy Identification of the costs of the next stages of exploration and drilling in particular Determining potential sources of financing for these next phases an issue whose importance is overlooked raising funding for the scientific and exploratory drilling phases is a key challenge in most geothermal developments

10 A Strategy for a Geothermal Power Development 10 Reviewing current legislation that may affect either public and/or private participation in any geothermal development, in particular resource ownership and development rights and consider how appropriate legislation could be introduced Requirements for project staffing and the capacity building inherent in this; Assessing the potential social issues such as land ownership, access, and public education about the project, potential benefits to local community, lower cost electricity supply.

11 A Strategy for a Geothermal Power Development 11 Recognising the demands that any development will put on port access, roading (existing and new), local water supplies during drilling and construction and access to competent contractors on island.

12 A Strategy for a Geothermal Power Development 12 This initiative is not an easy business, but the Government of the Union of the Comoros has been made a strong commitment to energy sector development. The strategy of development of geothermal energy is conducted by the Geological Bureau of the Comoros, the technical operator of the Government, in partnership with New Zealand and UNDP provides an approach in two major steps. The support of our partners as government of New Zealand and UNDP urges us in this way

13 Status of the Strategy for a Geothermal Power Development 13 The current phase focuses on geothermal risk mitigation which includes surface explorations at first and exploratory drilling in a second time. the objective assigned to the current phase is to mobilize public funds from the various bilateral and multilateral partners. As it is the case for the African Union with the GRMF The second phase will take place at the end of the first phase expected to last 3 years, It is planned for a period of 2 years will be to attract and mobilize private investments to fund the drilling of wells production, the construction of the plant for an estimated 35 million U.S. dollars for an initial installed capacity of 10 MW cost.

14 Status of the Strategy for a Geothermal Power Development 14 An approach with the African Union is committed under the Geothermal Risk Mitigation Fund to achieve a first study of the surface phase, by the end of this year

15 15

16 Thank you for your attention 16

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