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GEOTHERMAL EXPLORATION AND
DEVELOPMENT IN RWANDA
September – October 2014
Energy Development Corporation Limited
Ministry of Infrastructure
Presentation Outline 1
Overview of the energy sector
Present Situation of Geothermal Development
Incentives for Private Sector
Investment Opportunities
Overview of energy sector and target
Energy consumption :85% biomass,11% petroleum products and 4%
electricity
Electricity access: 18%
Installed generation capacity: 110 MW
Electricity tariff: 26 US$ Cents/KWh
Generation capacity to increase to 209 MW by 2015 and 563 MW by
2017 respectively
2
Investment Strategy in the Energy Sector
Support, attract and involve the private sector in power generation
Promote IPP (Independent Power Producer) and PPP (Public Private
Partnership) structures
Provision of concession underpinned with minimum 25 years Power
Purchase Agreement (PPA)
Negotiated Feed - in Tariff
Provision of State guarantee depending on the size and type of the project
Projects and Concessions granted through competitive process
3
4 geothermal prospect areas to be explored
Capacity of each prospect area to be estimated & proved by
installing wellhead generator (Pilot power plant)
Prospect areas to be ready for large capacity power plant
installation
Clear legal and regulatory geothermal framework to involve private
sector
Diesel power plants to be replaced by geothermal
Present Situation of geothermal development
Geothermal Exploration & Development strategy (2010)
4
Thermal site and geothermal prospects in Rwanda
5
Gisenyi Karisimbi
Kinigi
Thermal area in Bugarama
Current status of geothermal exploration 6
Prospect Recon. study
Detailed survey
Expl. drilling
Test drilling
Res. evaluation
Field dev.
Power Plant
constr.
Karisimbi done done yes yes no no no
Kinigi done additional survey
required
no no no no no
Gisenyi done additional survey
required
no no no no no
Bugarama done ongoing no no no no no
Incentives for developing geothermal 7
Competitive tendering and transparent procurement
Existing large geo-scientific data base
Commitment by GOR to lower the risks of geothermal exploration by using
modern exploration techniques & drilling of exploration wells
Draft of a geothermal policy, a geothermal resources exploration, development and
management act and Regulations available
Negotiated attractive tariffs
Geothermal Risk mitigation Facility for Eastern Africa available to eligible projects
and developers
A variety of non-fiscal and fiscal incentives (tax exemption on importation of power
equipment, investment allowance…)
Investment process 8
Strategic projects granted through competitive approach (tendering
process)
Unsolicited projects through:
Submission of Project Proposal for review;
Signing and Obtaining the Memorandum of Understanding
(MoU);
Application for Investment Certificate to benefit project related
incentives
Submission of the Feasibility Study and the Environment Impact
Assessment (EIA);
PPA negotiation
Power Generation License
Opportunities
Consultancy in exploration of Rwanda geothermal resources
Partnership in exploration and development of Rwanda geothermal
resources
Supply of geo-scientific equipment for geothermal exploration
Installation of short-term wellhead generators to be replaced by
permanent plant installment
Investment opportunities for development of proven geothermal fields
9
Useful Contact
Governmental energy policy: Ministry of Infrastructure (MININFRA)
Contact person: Mr. Alain Harerimana
Advisor to the Minister
Mobile Phone: +250 782 790 270
Email:[email protected]
Government incentives&foreign investment: Rwanda Development Board (RDB)
Contact person: Mr. Olivier Ngororabanga
Energy Specialist
Investment Promotion & Implementation Department
Mob +250 788 646 404
Email: [email protected]
Technical information: Geothermal Development Unit/EDCL
Contact person: Ms. Uwera Rutagarama
Head of Geothermal Development Unit
Mob: +250 788 350 132
Email: [email protected]
10
THANK YOU
