tanzania status report 2019agid.theargeo.org/reports/unu-gtp2019/short course 4...ewura (regulator)...

Sustainable Development Goals Short Course IV on Exploration and Development of Geothermal Resources

Taramaeli T. Mnjokava(TGDC)

([email protected]/[email protected])

GEOTHERMAL EXPLORATION IN TANZANIA ‐STATUS REPORT

28th November, 2019

SDG Short Course IV on Exploration and Development of Geothermal ResourcesOrganized by UNU‐GTP and KenGen | Lake Bogoria and Lake Naivasha | Nov 14‐4 Dec, 2019

CONTENTS

1. COUNTRY OVERVIEW1.1 OVERVIEW ON ELECTRICITY SUBSECTOR1.2 GEOLOGY OF TANZANIA

2. GEOTHERMAL RESOURCES IN TANZANIA3. GEOTHERMAL DEVELOPMENT IN TANZANIA4. STATUS OF PLANNED GEOTHERMAL

PROJECTS5. INVESTMENT OPPORTUNITIES 6. CONCLUSION


Location:

TANZANIA• Population: 44.9 M(2012)• Size: 945,087 Km2

• Access to electricity: 67.5 % (Dec 2016)• Vision: Middle income by 2025

1. COUNTRY OVERVIEW


1.1 Overview of power sector in Tanzania

Hydro 4.7 GW

Small hydro

480 MW

bio fuelwind > 8m/sec

Solar >200Wp/m2

Natural gas 57.3 TCF

Potential energy sources

Coal 1.2 Billion Tones

Nuclearunder

assessment

Geothermal 5000MW

0%

10%

20%

30%

40%

50%

60%

70%

80%

Energy consumptions

Energy consumptions

85%

9%5%

1%

Primary energy supply

BiomassPetroleum productsElectricity


5

Ministry of Energy

Generation

Transmission

Distribution

TANESCO(1,230.2 MW)

IPP(205.36 MW)

TANESCO

Natural gas782.82 MW

Hydro 567.7 MW

Liquid fuel 70.54 MW

Biomass 10.5 MW

EWURA (Regulator)

Responsible for policy matter

REA

Imported(16 MW)

Installed capacity 1,435.56 MW

Customers

67.5% accessibility to electricity 43% electricity connectivity Peak demand 1051.27MW Power demand growth 10–15% per

annum Transmission networks; 400kV,

220kV, 132kV, 66kV

Sources (MoE, TANESCO, REA)

…Electricity sub sector in Tanzania


1. National Power system is mostly relying on hydropower and gas; due to frequent and persistentdrought spells making hydro generation unpredictable and un-dependable. Thus no longerbase load.2. Use liquid oil based generation to bridge power shortage: BUT is expensive and

unreliable due oil price fluctuations. It is environmentally unfriendly.3. Demand exceeding supply (power rationing): due to rapid growth of economic activities andrural electrification program more generation is required to meet demand.4. Government is encouraging investment to expand generating capacity, distribution system anddeveloping indigenous source of energy. Diversification of energy/generation mix (hydro, gas,geothermal, wind, solar, biomass).5. Develop other sources and use gas for other purposes including export of LNG.

….Electricity


Energy Policy development and LegislationsDOCUMENT CURRENT STATUS AND PLANS

National Energy Policy 2003 2003, currently under review Public Private Partnership (PPP) policy Published in 2010Public Procurement Act (PPA) 2011 In placeElectricity Act 2008 In place provides for private sector

participationRural Energy Act 2005 In place EWURA (2001): The regulator has drafted model PPA for generations sources including geothermal.

Distributed for stakeholders comments (downloadable from www.ewura.go.tz

Power System Master Plan (PSMP) 2012 Update, currently under reviewEnvironmental Management Act 2004 In place Geothermal Policy, legal and regulatory framework

Has been developed. In the process to enacted.


1.2 GEOLOGY OF TANZANIA

SIMPLIFIED GEOLOGICAL MAP OF TANZANIA

•Dominated by a large mineralized Precambrian craton, with formations of >2 bil yrs old, surrounded by Proterozoic crystalline rocks (mobile belts).

•Younger sediments and volcanoclastics of recent times occupy the rifted graben, coastal plains and inland basins.

SDG Short Course III on Exploration and Development of Geothermal ResourcesOrganized by UNU‐GTP and KenGen | Lake Bogoria and Lake Naivasha | Nov 7‐27, 2018

Structural geology• EARS• Rift basins• Intracratonic basins• Sedimentary basins

… GEOLOGY OF TANZANIA


2. GEOTHERMAL RESOURCES IN TANZANIAo Theoretical country’s geothermal

estimated potential is > 5000MW established.

o There are over 50 clusters of hot springs identified in the country occurring in different geological settings.

o Available from low, medium (sedimentary, fault controlled) to high (volcanic) temperature systems


3. GEOTHERMAL DEVELOPMENT IN TANZANIA

The geothermal development assessment

1976 – 2004(Virkir, SWECO, UNDP, First Energy Company)Reconnaissance exploration in different areaso 50 hot springs sampled

2004 – 2005(DECON through

AfDB)Rural electrification studyo Recommended detailed assessment of Mbeya area.

2006 – 2013(BGR, MEM,

TANESCO and GST)

Geotherm I and II

o Located 3 TGH wells at Ngozi-Songwegeothermal prospect (Mbeya).

2013(JICA)

Geothermal development in Tanzania-updates for future JICA contribution

2013 - 2014(GoT)

Establishment of Dedicated company for geothermal development

o TGDC operationalized in July 2014.

2014 - 2018(TGDC)

Preliminary and detailed explorations in different siteso Four sites are ready for resources confirmation; Ngozi, Songwe, Kiejo-Mbaka and Luhoi

Resources confirmation and pre-feasibility studies for Ngozi site by 2020/21

Pilot project for direct uses by 2020 in Songwe and Kiejo-Mbakasites


... GEOTHERMAL DEVELOPMENT IN TANZANIA

The country’s targeto 200MW from geothermal by year 2025 (PSMP (2016 Update) and TGDC’s 25 Yrs. StrategicPlan (2017)).

The strategieso Create financial sustainability through cheap sourceso Creating enabling environment for geothermal developmento Strengthening technical capabilityo Research and development of geothermal sector

The Flagship projects to achieve 2025 targeto Four (4) flagship sites (Ngozi, Songwe, Kiejo‐Mbaka and Luhoi) identifiedo All four prospects are ready for test drilling programme to confirm the resources.


4. STATUS OF PLANNED GEOTHERMAL PROJECTSSite Status Next Level of geothermal resource assessment

Ngozi Detailed surface study completed (UNEP 2016)

o Preparation for test drilling program of 3 slim wells (GoT & GRMF funds),o Drilling consultant (ISOR/VERKIS) selected in October 2019 and current on

site,o Test drilling programme to be completed by 2020/21.

Kiejo- Mbaka Detailed surface study completed in 2017 under MFA-Iceland support

o 7 locations for test drilling identified o Test drilling programme of 4 wells scheduled for 2020/21o The project has qualified for GRMF financing support (5th AR).

LuhoiDetailed surface study completed in 2017 under MFA-support

o Low temperature geothermal (95±5°C) system suitable for direct uses binary power generation

o 5 drilling sites have been identified for test drillingo Funds mobilization to conduct test drilling are ongoing

SongweAdditional gap filling study completed in June 2018 under support of EAGER

o Shallow wells are proposedo Drilling programme planned for implementation in FY 2020/21o Pilot project for direct use by 2020

Other sites Reconnaissance Ibadakuli, Maji moto (Mara),Maji moto (Katavi), Takwa , Msule and Eyasi


5. INVESTMENT OPPORTUNITIES o Country’s electricity demand (10 - 15 % per annum):

→Significant investment in generation, transmission and distribution needed.

o Creation of suitable environment for investments:→ formulation of legal and regulatory framework for geothermal development.

o Direct uses opportunities:→ Different opportunities identified by surveys conducted in different prospects.

o Tanzania Investment Centre (TIC):→ Coordination, encouragement, promotion and facilitation of investment in

Tanzania.


... INVESTMENT OPPORTUNITIES

Potential usesDrying of Agricultural CropsGreenhouse Farming Aquaculture Industrial uses Direct space heating/coolingGeo‐tourismSwimming pools/refreshment

Direct uses opportunities. ↓

↓


6. CONCLUSIONo Tanzania has significant geothermal potential which to-date remains untapped.

o GoT is determined to fast track geothermal development for enhancing power supply reliability, security and affordability.

o GoT is targeting achieving 35MW by 2022 from geothermal for gradually replacing expensive fossil.

o 4 prospects (Ngozi, Songwe, Kiejo-Mbaka and Luhoi) are ready for test drilling to confirm the resource.

o The geothermal Legal and framework under formulation which will encourage private investments.

o GoT continues to develop required capacity to develop and manage geothermal as a national resource.

o TGDC and the GoT have established a number partnerships locally and abroad to support geothermal development


Thanks

yourfor

Attention


INFORMATION

Name of course: SDG Short Course IV on Exploration and Development of Geothermal Resources

Location: Lake Bogoria and Lake Naivasha, Kenya

Timing: November 14‐December 4, 2019

Organized by: United Nations University Geothermal Training Programme (UNU‐GTP) and Kenya Electricity Generating Company PLC (KenGen)

Financed by: UNU‐GTP and KenGen

Presentation author(s): Taramaeli T. Mnjokava ([email protected]/[email protected]),

Name of employer: Tanzania Geothermal Development Company Limited

Address: P. O.Box 14801, DAR ES SALAAM, TANZANIA.

Website: www.tgdc.go.tz

tanzania status report 2019agid.theargeo.org/reports/unu-gtp2019/short course 4...ewura (regulator)...

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