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Challenges in Developing Katwe Geothermal Power Project in Kikorongo-Bunyampaka, Kasese District, Western Uganda

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Challenges in Developing Katwe Geothermal Power Project in Kikorongo-Bunyampaka, Kasese District, Western Uganda PROCEEDINGS, Thirty-Eighth Workshop on Geothermal Reservoir Engineering Stanford University, Stanford, California, February 11-13, 2013 SGP-TR-198 CHALLENGES IN DEVELOPING KATWE GEOTHERMAL POWER PROJECT IN KIKORONGO-BUNYAMPAKA, KASESE DISTRICT, WESTERN UGANDA Ralph K.B. Nyakabwa-Atwoki Katwe Geothermal Power Project Limited, Impala House, 13-15 Kimathi Avenue, P. O Box 25696, Kampala, Uganda. E-mail: [email protected] ABSTRACT 1.0 INTRODUCTION 1.1 Katwe Geothermal Power Project Developers Exploration for geothermal energy in Uganda has Katwe Geothermal Power Project Limited (KGPPL) progressed to a level of attracting independent power is an indigenous Independent Power Producer producers’ investment in line with Uganda’s fully company registered in Uganda desirous of liberalized energy in addition to Government of establishing an electric power generating station Uganda Overall Policy of increasing the use of utilizing geothermal renewable energy existing at modern renewable energy, from the current 4% to Katwe–Kikorongo in Kasese District in Western 61% of the total energy consumption by the year Uganda. KGPPL is a holder of an Exploration 2017. License number 0772 valid to June, 2014 (Figure 1). Messrs. Katwe Geothermal Power Project Limited is one of the developers granted a concession in Katwe Kikorongo- Bunyampaka geothermal field. According to exploration work carried out by the Department of Geological Survey and Mines indicate that the geothermal activity in the four areas is related to the volcanic and tectonic activities of the Rift Valley, which has a higher heat flow than the surrounding Precambrian crust. Subsurface temperatures of approximately 140-200°C for Katwe, has been predicted by geothermometry and mixing models. Anomalous area has been delineated in Katwe prospect using geophysical methods. The geology, geochemistry, hydrology and geophysics studies together with the drilling of shallow boreholes to a depth of 200-300m for temperature gradient measurement has been completed and the temperatures measured (30-36°C/km) are slightly above the global average of 30°C/km, which suggests Figure 1: Map of KGPPL Concession Field deep reservoirs in Katwe area. KGPPL power project will be jointly implemented The Katwe Geothermal Project estimated at 100 – with an American Development Partner, Messrs. 200 Mega Watts, will be developed as a turnkey AAE Systems Inc. of Sunnyvale, California, project in partnership with an American Investor on U.S.A.(hereafter called the Developer) on a turnkey finance, design, build, operate and transfer basis basis on the finance, design, build, operate and employing a venture capital of approximately United transfer (FDBOT) model. The project concession States dollars one billon. field is estimated to yield 100-200 Megawatts. The project encountered a myriad of challenges that This project follows the liberalization of the energy have affected the completion of surface surveys, sector, enacting enabling legal framework, environment impact assessment and drilling of three Government’s commitment to the development and test wells, greatly affecting the completion of this the use of renewable energy resources in addition to phase that was slated for September, 2013. investing in geophysical exploration of one of the three geothermal power sites (Bahati, 2011) in Albert 1 Graben area in Western Uganda with a potential 1.3 Geothermal manifestations capacity of 450-Megawatts (Ministry of Energy and The geothermal surface manifestations in the Katwe Mineral Development, 2007 <MEMD>). prospect are hot springs located in the Lake Kitagata crater and warm springs and travertine deposits that 1.2 The Geothermal Resources have built up tufas in the Lake Katwe crater, which is Geothermal resources were estimated at about 450 located 12 km southwest of Lake Kitagata. The MW in the Ugandan Rift System (McNitt, 1982). maximum surface temperatures in the hot springs in Most of the geothermal areas of Uganda are all Lake Kitagata crater is 70°C, while in Lake Katwe located in the Western Rift Valley that runs along the Crater it is 32ºC. border of Uganda with the Democratic Republic of Congo, and is part of the western branch of the East The geothermal renewable energy existing at Katwe African Rift System (Figure 1). Kikorongo is reported to possess a surface temperature of 71 and interred reservoir temperature between 150 and 230 degrees Celsius, respectively. The area is said to have sufficient information for the development of geothermal energy and has been selected for drilling of the first geothermal well in Uganda. Temperature gradient drilling and measurements at Katwe indicates a range of 30 - 36°C/km as depicted in the map (Figure 3). Figure 1:.The East African Rift System. Other geothermal areas are located in South-west, Northern and North-east. (Figure: 2). Figure 3: Katwe. Resistivity at 300 m a.s.l., (from Gislason et al., 2005). The developer is in cognizance of the above information and has signed a Memorandum of Understanding with the Government of Uganda guarantying the purchase of power to be produced by the developer thus paving the financial closure en route to establishing the first geothermal electric power station in Uganda. The project will be implemented in three phases: Figure 2: Geothermal Resources of Uganda. Completing surface surveys with concurrent Carryout Environmental Impact Assessment for drilling in a selected areas while 2 Selecting and training of manpower in all facets 2.0 BRIEF UGANDA’S ECONOMIC AND of geothermal engineering and management ENERGY SECTOR INDICATORS Procure and install a wellhead plant (Geothermal Geothermal Associates) similar to one 2-MW 2.1 Economic Indicators Geothermal Steam Power Plant installed at • Area 241 000 km2. Oserian Power Station at Lake Naivasha, Kenya. • 33 million people. (Figure 4). • Economy depends mainly on agriculture. • Oil products imported (100%). • Biomass represents 93% of the national energy balance. • Renewable energy policy 2007 goal is to increase the use of modern renewable energy from the current 4% to 61% of the total energy consumption by 2017. Energy development a priority the Uganda 5 year national development plan (2010 (Figure 5) Figure 4: Oserian wellhead geothermal Power Plant While continuously drilling for more steam to cover the concession area, Design, manufacture, and install the main power station equal to actual maximum steam produced in the concession area of 152 kM2 up to a capacity of 200-Mega Watts. The design and construction of the major electric power plant is estimated to take two years. The immediate output of the project is alleviation of the national unprecedented electric power shortage and its attendant disruption of productive systems, industrial unrest and revenues by injecting 2.0 - 10 Mega Watts in ten months after steam discovery and building a 100-150 Megawatts, in the long term. The total project, when completed, is estimated to cost United States Dollars One billion Figure: Map of Uganda The project is eligible for Geothermal Risk Mitigation Facility for Eastern Africa (Geothermal The country’s installed generation capacity is Risk Mitigation Facility (GRMF) created to support currently 818.5 Mega Watts with full commissioning East African Rift System eligible countries composed of the 250-MW Bujagali Hydro Power Plant and of Ethiopia, Kenya, Rwanda, Tanzania and Uganda. Electromax extension of 32-MW. Large hydropower This facility is to protect developers against the risk generation accounts for 630-MW while smaller of finding no steam or that steam laden with heavy hydropower plants account for 41.5-MW, with 26- metals or of corrosive nature rendering it unusable MW generated through co-generation with the use of for power generation. Additional protection will be biomass at Kakira and Kinyara Sugar Factories. provided by Uganda’s membership of Multilateral However, the current dependable capacity is about Investment Guarantee Agency (MIGA) of the World 650. (See Appendix 1at the end of this paper). Bank 3 While the national unprecedented electric power Drilling of 2-3 wells to discover a reservoir in shortage with consumers facing up to twenty–four the most promising prospect within the hours load shading and its attendant disruption of exploration license concession for the productive systems leading to industrial unrest and preparation of technical and financial revenues may be past, the peak demand of only 487- investment plans for the installation of an MW is an indication of low electric penetration. appropriately sized power plant and feasibility of direct use in industry and agriculture Annual demand for electricity is growing at about 8% per year; Electricity coverage of 12% for the whole country and 6% in rural areas, the upgrading of 3.0 CHALLENGES OF DEVELOPING transmission network to evacuate the power being GEOTHERMAL POWER IN UGANDA generated, improving the integrity of and other related activities and programmes of availing electric 3.1 Lack Geothermal Policy in Uganda power in rural areas will erode the power availability The major energy development in Uganda since the and sooner than later, the demand will exceed the construction of the first power station has been hydro supply. power systems. So the policy framework for this generation system is well developed. The National Energy Plan (MEMD involves the construction of three large hydropower plants namely On the other hand geothermal power development is Isimba (188 MW-2016), Karuma (600 MW - 2018), shrouded in the Renewable Energy Policy, that of the and Ayago (600 MW- 2020) within the next 4 to 8 Mining Policy, and even some suggestions that years. Uganda Electricity Transmission Company some sections of the current Petroleum Act could be Limited data indicate other power production projects applicable to geothermal energy development. of various energy mixes like other min hydros solar, gas and test crude, peat, municipal waste etc The above issue was the greatest frustration faced by estimated at 276-MW to be completed in the same Katwe Geothermal Power Project Developers in their period.
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