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 2  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 Investment Strategy in the Energy Sector 3  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 Present Situation of geothermal development 4 Geothermal Exploration & Development strategy (2010)  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 Thermal site and geothermal prospects in Rwanda 5 Karisimbi Kinigi Gisenyi Thermal area in Bugarama Current status of geothermal exploration 6 Prospect Recon. study Detailed survey Expl. drilling Test Res. Field drilling evaluation dev. Power Plant constr. Karisimbi done done yes yes no no no Kinigi done no no no no no Gisenyi done no no no no no Bugarama done additional survey required additional survey required 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 9  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 Useful Contact 10 Governmental energy policy: Ministry of Infrastructure (MININFRA) Contact person: Mr. Alain Harerimana Advisor to the Minister Mobile Phone: +250 782 790 270 Email:harelimanaa@gmail.com 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: olivier.ngororabanga@rdb.rw Technical information: Geothermal Development Unit/EDCL Contact person: Ms. Uwera Rutagarama Head of Geothermal Development Unit Mob: +250 788 350 132 Email: urutagarama@ewsa.rw THANK YOU