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Status of Geothermal
Development in Tanzania
Eng. Kato Kabaka
Tanzania Geothermal Company Limited (TGDC)
April, 2018
Iceland Geothermal Conference
Reykjavik, Iceland
Outline
1. Country in Brief
2. Significance of geothermal in energy mix
3. Policy and Legal framework
4. Establishment of State Owned Company (TGDC)
5. Geothermal Resources in Tanzania
6. Flagship projects update
7. Direct use opportunities
8. Capacity Development
9. Way forward
1. Tanzania In Brief Background information
• Country area: 945,087 km2
• Population: 55 million (2017 projections )
• Access to electricity: 67%
• Connection to electricity : 30%
• Grid installed capacity: 1431.42 MW;
-Gas: 782.82MW, Hydropower :567.7 MW,
Diesel/HFO: 70.4 MW, Biomass: 10.5MW
• Off grid & cross border imports: 94.3MW
• Target installed capacity by 2020: 5000 MW
 Increasing base load energy source
 Increasing system reliability
 Cushion against climate variability
 Increasingly cost-effectiveness
 Environmentally clean renewable energy
4
2. Significance of geothermal in the energy mix
• Regulatory Authority: EWURA Act, 2001
• Environmental Management Act, 2004;
• Public-Private Partnership Act, 2010 and its Regulations (2011);
• National Energy Policy, 2015 ( Energy policy document)
• Power System Master Plan 2016
• The Mining Act with its Regulations, 2010 and its updates 2017;
• Geothermal law ( legislation process has started)
3. Policies and Legal and regulatory framework
4. Establishment of TGDC
TGDC was established in December 2013; operational since July 2014
TGDC’S MANDATES
• Geothermal resource assessment
• Domestic capacity for geothermal development and Consultancy services
• Promoting direct uses of geothermal energy
• Assist the GOT to mobilize finance for geothermal resource development
• Geothermal power generation and supply steam for power generation
and direct use to public and private companies
TARGET: 200MW FROM GEOTHERMAL BY 2025
TGDC has developed a roadmap and project pipeline for 2025 target and
beyond up to 2042.
TGDC STRATEGIC FOCUS AREAS
1. Mobilize funds for project implementation
2. Capacity building (human skills and equipment)
3. Research and development (with higher learning institution)
4. Enabling environment- appropriate legal and regulatory framework
... TGDC in Brief
5. Geothermal Energy potential Areas in Tanzania
NGOZI
SONGWE
MBAKA- KIEJO
LUHOI
NATRON
Flagship Projects
1. Ngozi
2. Songwe
3. Kiejo- Mbaka
4. Luhoi
5. Natron
PROJEC
T SITE
STATUS
Ngozi
• Volcano- based geothermal system (T>223+130C)
• Preparations for Test Drilling ongoing
• Environmental certificate obtained
• GRMF support for 40% grant finance
• The GoT has allocated funds test drilling
• Test drilling planned in 2018/19
• Next steps: Infrastructure upgrading and
drilling of three slim test wells
• Funds: GOT/SREP/GRMF ( 17.5MUSD)
6. Status of Major Projects
PROJECT
SITE
STATUS
Songwe
• Fault- based geothermal system, T=112+ 160C
• Detailed surface study was completed in 2016
• Direct use study in progress (DFID/EAGER support)
• Gap filling study for shallow wells locations ongoing
• The GoT has allocated funds for test drilling
• Next steps: Infrastructure improvement and
drilling of three shallow wells
• Funds: GOT/SREP ( 650,000 USD)
5. Status of Major Projects
PROJECT • STATUS
MBAKA-
KIEJO
• Project located in SW Tanzania
• Medium temperature T=1400C
• Detail surface study completed in 2017;
• The test drilling locations identified.
• Mobilizing fund from GoT and GRMF 5th
AR (prequalified)
• Direct use study ongoing
• Environmental studies ongoing for permits
• Support: MFA-Iceland
PROJECT STATUS
Luhoi
• Project is located in coastal area
• Fault- based geothermal system
• Low temperature system
• Detailed surface study completed
• Working on Final report
• Support: MFA-Iceland/ ICEIDA
PROJECT STATUS
NATRON
• Natron is located at the southern
border with Kenya
• Preliminary surface study completed
• EoI submitted to GRMF 5th AR for co-
financing of detailed surface study
• Packaging of full application to GRMF
in preparation
• Next step is mobilization of funds for
test drilling
Site Status Next steps
Ngozi
Detailed surface study
completed
Mobilization of funds for test drilling (slim wells)
Estimated cost of test drilling =17.5MUSD
Songwe
Detailed surface study
completed
Mobilization of funds for test drilling (TGH),
Estimated cost of test drilling = 650,000 USD
Kiejo-Mbaka
Technical surface study
completed
Mobilization of funds for test drilling (GOT/GRMF)
Environmental studies ongoing
Luhoi Technical surface study
completed
Mobilization of funds for test drilling (GOT/GRMF)
Environmental studies ongoing
Natron Reconnaissance
Mobilization of funds for detailed surface study
(GOT/GRMF)
Summary of project implementation
7. Direct use opportunities
Firewood piles at Wakulima Tea Factory for drying tea
leavesRiverside fish farming
Green house farming near Ngozi project
No commercial application
✓ Swimming/refreshment
✓ Sinters for feeding animals
Potential uses
✓Drying of Agricultural produce
✓Greenhouse Farming
✓Aquaculture
✓Industrial uses
✓Direct space heating/cooling
✓Geo-tourism
✓Swimming pools/refreshment
8. Local Capacity building for geothermal development
a) Human skill development
• Good cooperation with local and international academic institutions
(UNU-GTP, AGCE/UNEP, Japan, local institutions, etc.,)
• Developing organizational & institutional capacity (geosciences,
engineering, compliance, project management, drilling, direct uses,
etc.)
b) Essential equipment and tools
• Acquisition of basic exploration equipment e.g.., MT, TEM, etc.
• Processes for procurement of small drilling rig is on going
1. Target is develop 200 MW from geothermal by 2025.
2. Projects consider both power generation and direct uses
3. Formulation of geothermal law on going
4. Development of local capacity for geothermal projects
5. Ngozi and Songwe projects are ready for test drilling
6. Mobilization of funds (GoT, GRMF, SREP, and other partners) to
support geothermal development ongoing
9.Way forward
Field team at work

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B2 - Status of Geothermal Development in Tanzania

  • 1. Status of Geothermal Development in Tanzania Eng. Kato Kabaka Tanzania Geothermal Company Limited (TGDC) April, 2018 Iceland Geothermal Conference Reykjavik, Iceland
  • 2. Outline 1. Country in Brief 2. Significance of geothermal in energy mix 3. Policy and Legal framework 4. Establishment of State Owned Company (TGDC) 5. Geothermal Resources in Tanzania 6. Flagship projects update 7. Direct use opportunities 8. Capacity Development 9. Way forward
  • 3. 1. Tanzania In Brief Background information • Country area: 945,087 km2 • Population: 55 million (2017 projections ) • Access to electricity: 67% • Connection to electricity : 30% • Grid installed capacity: 1431.42 MW; -Gas: 782.82MW, Hydropower :567.7 MW, Diesel/HFO: 70.4 MW, Biomass: 10.5MW • Off grid & cross border imports: 94.3MW • Target installed capacity by 2020: 5000 MW
  • 4.  Increasing base load energy source  Increasing system reliability  Cushion against climate variability  Increasingly cost-effectiveness  Environmentally clean renewable energy 4 2. Significance of geothermal in the energy mix
  • 5. • Regulatory Authority: EWURA Act, 2001 • Environmental Management Act, 2004; • Public-Private Partnership Act, 2010 and its Regulations (2011); • National Energy Policy, 2015 ( Energy policy document) • Power System Master Plan 2016 • The Mining Act with its Regulations, 2010 and its updates 2017; • Geothermal law ( legislation process has started) 3. Policies and Legal and regulatory framework
  • 6. 4. Establishment of TGDC TGDC was established in December 2013; operational since July 2014 TGDC’S MANDATES • Geothermal resource assessment • Domestic capacity for geothermal development and Consultancy services • Promoting direct uses of geothermal energy • Assist the GOT to mobilize finance for geothermal resource development • Geothermal power generation and supply steam for power generation and direct use to public and private companies
  • 7. TARGET: 200MW FROM GEOTHERMAL BY 2025 TGDC has developed a roadmap and project pipeline for 2025 target and beyond up to 2042. TGDC STRATEGIC FOCUS AREAS 1. Mobilize funds for project implementation 2. Capacity building (human skills and equipment) 3. Research and development (with higher learning institution) 4. Enabling environment- appropriate legal and regulatory framework ... TGDC in Brief
  • 8. 5. Geothermal Energy potential Areas in Tanzania NGOZI SONGWE MBAKA- KIEJO LUHOI NATRON Flagship Projects 1. Ngozi 2. Songwe 3. Kiejo- Mbaka 4. Luhoi 5. Natron
  • 9. PROJEC T SITE STATUS Ngozi • Volcano- based geothermal system (T>223+130C) • Preparations for Test Drilling ongoing • Environmental certificate obtained • GRMF support for 40% grant finance • The GoT has allocated funds test drilling • Test drilling planned in 2018/19 • Next steps: Infrastructure upgrading and drilling of three slim test wells • Funds: GOT/SREP/GRMF ( 17.5MUSD) 6. Status of Major Projects
  • 10. PROJECT SITE STATUS Songwe • Fault- based geothermal system, T=112+ 160C • Detailed surface study was completed in 2016 • Direct use study in progress (DFID/EAGER support) • Gap filling study for shallow wells locations ongoing • The GoT has allocated funds for test drilling • Next steps: Infrastructure improvement and drilling of three shallow wells • Funds: GOT/SREP ( 650,000 USD) 5. Status of Major Projects
  • 11. PROJECT • STATUS MBAKA- KIEJO • Project located in SW Tanzania • Medium temperature T=1400C • Detail surface study completed in 2017; • The test drilling locations identified. • Mobilizing fund from GoT and GRMF 5th AR (prequalified) • Direct use study ongoing • Environmental studies ongoing for permits • Support: MFA-Iceland
  • 12. PROJECT STATUS Luhoi • Project is located in coastal area • Fault- based geothermal system • Low temperature system • Detailed surface study completed • Working on Final report • Support: MFA-Iceland/ ICEIDA
  • 13. PROJECT STATUS NATRON • Natron is located at the southern border with Kenya • Preliminary surface study completed • EoI submitted to GRMF 5th AR for co- financing of detailed surface study • Packaging of full application to GRMF in preparation • Next step is mobilization of funds for test drilling
  • 14. Site Status Next steps Ngozi Detailed surface study completed Mobilization of funds for test drilling (slim wells) Estimated cost of test drilling =17.5MUSD Songwe Detailed surface study completed Mobilization of funds for test drilling (TGH), Estimated cost of test drilling = 650,000 USD Kiejo-Mbaka Technical surface study completed Mobilization of funds for test drilling (GOT/GRMF) Environmental studies ongoing Luhoi Technical surface study completed Mobilization of funds for test drilling (GOT/GRMF) Environmental studies ongoing Natron Reconnaissance Mobilization of funds for detailed surface study (GOT/GRMF) Summary of project implementation
  • 15. 7. Direct use opportunities Firewood piles at Wakulima Tea Factory for drying tea leavesRiverside fish farming Green house farming near Ngozi project No commercial application ✓ Swimming/refreshment ✓ Sinters for feeding animals Potential uses ✓Drying of Agricultural produce ✓Greenhouse Farming ✓Aquaculture ✓Industrial uses ✓Direct space heating/cooling ✓Geo-tourism ✓Swimming pools/refreshment
  • 16. 8. Local Capacity building for geothermal development a) Human skill development • Good cooperation with local and international academic institutions (UNU-GTP, AGCE/UNEP, Japan, local institutions, etc.,) • Developing organizational & institutional capacity (geosciences, engineering, compliance, project management, drilling, direct uses, etc.) b) Essential equipment and tools • Acquisition of basic exploration equipment e.g.., MT, TEM, etc. • Processes for procurement of small drilling rig is on going
  • 17. 1. Target is develop 200 MW from geothermal by 2025. 2. Projects consider both power generation and direct uses 3. Formulation of geothermal law on going 4. Development of local capacity for geothermal projects 5. Ngozi and Songwe projects are ready for test drilling 6. Mobilization of funds (GoT, GRMF, SREP, and other partners) to support geothermal development ongoing 9.Way forward