BGR s Regional Geothemal Programme with AUC. Addis Ababa ; Max Winchenbach
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1 BGR s Regional Geothemal Programme with AUC Addis Ababa ; Max Winchenbach
2 Outline 1. Where BGR uses to intervene with GEOTHERM II Programme 2. Links of GRMF and BGR 3. Facts about the ongoing GEOTHERM II Programme 4. Core Problems identified 5. BGR s Regional Geothermal Programme 6. Possible Interventions 7. Objectives and indicators 8. Activities and priorities 9. Outlook
3 BGR Support Where BGR uses to intervene with GEOTHERM Sectorial Programme GEOTHERM of BGR aims at supporting to minimize the drilling risk, using : Geological/ Geophysical / Geochemical Surface Studies Capacity Building and On-the- Job-Training Institutional Support 5. Plant construction 4. Steam field development 3. Feasibility 1. Reconnaissance Activity COMMISSION Plant construction Plant manufacture FINANCIAL CLOSURE Establish plant contract Development / prod. drilling Permitting Commercial negotiations Preliminary design GO/NO GO Resource ass., feasibility study Exploration drilling, well testing Infrastructure (pads, roads) Permitting GO/NO GO Pre-feasibility study Geophysics GO/NO GO Geology and geochemistry Project identification high Investment by Owner/Host Time [years] Debt Financing or IPP costs risk Prefeasibility Cumulative 10 costs [million US$] 1 Regional Networking Steps Risk of Failure low
4 Examples for interventions of GEOTHERM Programme Surface Study Capacity Building Conference/ Strategy Tendaho Geothermal Survey of Dubti Area, Afar, Northern Ethiopia ( ): Geothermal and geochemical methods Workshop on structural geology of the Rift Valley; 2014; Field School, Kenya Workshop for the setup of the AUC Code of Practice for Geothermal Drilling; Naivasha/ Kenya and Entebbe/ Uganda (2014/ 2015)
5 Link of GRMF und BGR EU- ITF Additional donor: (DFID) Geothermal Risk Mitigation Facility (2012) Exploration drilling (40%) Surface studies (80%), Infrastructure (20%) Continuation prime (30%) Regional Geothermal Coordination Unit (RGCU) Private/ public investors BGR supports accompanying measures, regional and countrywise
6 Facts about the ongoing GEOTHERM II Programme Overall Objective: Partner countries in East Africa find public and private investors for the development of their geothermal resources GEOTHERM Phase II: 1/2009-1/2015, repeated prolongation until 7/2016; Budget is 3,6 Mio. for Technical Cooperation Supporting Measures are linked to KFW/AUC s Risk Mitigation Facility GRMF Partners: AUC; Ministries of Energy, Mining, Geological Surveys, Public Energy Supply Companies. Activities in the following countries: Tanzania, Kenya, Ethiopia, Djibouti, Chile (Yemen, Malawi, Comoros, Uganda); AUC
7 Core Problems identified during GEOTHERM II Different way of scoring renewable energies compared to western countries Still a lack of awareness amongst political decision-makers regarding their geothermal potential and the possibilities of using it (or not ) Confusing or unclear conditions related to the energy sector and commercial licensing Countries get funding contracts for Geothermal projects, but they don t get started Inadequate technical capacity, staff number, unclear institutional responsibilities for exploring geothermal sites
8 BGR s Regional Geothermal Programme with AUC Official Start planned: 7/2016 Duration: 3 years ( ) Budget: 3 Mio. + leftover of GEOTHERM II Partner: AUC and partner countries BGR staff to be involved: Project Manager Project Coordinator Hydrogeologist/ Geochemist Geophysicist/ Technical Manager Geophysicist Structural Geologist/ Remote Sensing Expert
9 Possible interventions Planned lines of action (in-kind): Support in pre-exploration measures and siting Support with the completion of already approved projects in relation to the Geothermal Risk Mitigation Facility (GRMF) and other geothermal risk reduction facilities Support in regulatory questions and strategies Other support and consultation services and information exchange, purchase of equipment Capacity Building
10 Objective: Objective and indicators To improve technical and institutional capacities, regulatory decision-making criteria together with the functional/technical information base for the use of geothermal energy in the partner countries in order to promote investment in geothermal facilities. Indicators: Decisions in at least 2 of the partner countries regarding the completion of exploration drilling are directly attributable to pre-exploration measures in this project. State institutions in at least 2 partner countries have submitted applications to the GRMF or another risk reduction facility for covering the financial risk. Proposals for new or revised laws for the regulatory framework are currently in the process of being adopted in at least two of the partner countries. At least 80% of recipients of training programmes regard these as useful for their work.
11 Pre-Planning Workshop October 2015, Addis Ababa Participants (22): representants of 10 countries 3 representants of AUC 4 representants of BGR 1 representant of KfW 4 representants of international implementing organisations (GIZ, USAID, JICA) input of 14 countries received; Collection of suggestions and priorities regarding possible activities Later priorisation to 5 activities by country
12 Activities: Suggested and requested during Pre-Planning 2015-I Surface and Pre-Feasibility Studies Priority for number of countries: Remote Sensing 5 Geomorphology 0 Structural Geology 6 Hydrogeology 2 Geochemistry 7 Geophysics (TEM, MT, VES, Seismics) 9 Support with exploration drilling/ technology 2 Reservoir engineering 0
13 Activities: Suggested and requested during Pre-Planning 2015-II Application Support and Support in completing submitted GRMF projects Supporting public sector applicants in writing their applications for mitigation facilities Suppport with the conduction of submitted surface studies / feasibilities Provide consultants to support submitted drilling programmes Priority for number of countries: Consultation in regulatory questions Support of institutions or public units for the introduction, control and application of regulations and rules Priority for number of countries: Support in dealing with exploration licenses 0 Support communication setup between public entities regarding responsibilities Support regarding feed-in tariffs 0 0 0
14 Activities: Suggested and requested during Pre-Planning III Other support/ workshops/ training Priority for number of countries: Low and middle enthalpy potential 1 On-the job-training in surface exploration methods 6 Support of training for specific staff 5 Awareness rising within politicians and decision makers 2 Courses in geology, geophysics, geochemistry, remote sensing 3 Absorbing training costs for participants from the region 2 Hardware and related training 3 Financing laboratory analyses 5 Mapping of geothermal sites 1 Purchase of equipment 2 Comparison Data quality in order to maintain standards (ISO) 1 Training data analysis, gravimetry, others 1
15 How to continue? Additional intern pre-selection of suggested activities in terms of Relevance Need Grade of planning Potential Grade of coverage with geothermal intervention Political will Costs 7/ 2016 New Programme should start Planning Workshop (probably 9-10/ 2016) will follow up with all projects/ countries selected as realistic; intervention and time planning Further Follow-up with projects in the selected countries, fine tuning on measures, staff, time frame, equipment Setup of implementation agreement with AUC and partner countries, including all planned interventions, after completed planning Space for additional interventions
16 Questions?
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