Chapter 6: geosciences and geothermal energy.

According to a preliminary report by the U.S. Geological Energy Association, Rwanda's geothermal resources may be sufficient to provide 100 percent electrification in Rwanda. (1) This chapter proposes a two-track, sequential action plan for tapping these resources.

Rwanda does not have a long history of geothermal resource exploration. For this reason, geological and geophysical data from the geothermal prospects under investigation are sparse and inconclusive. Mapping of hot springs, fumaroles, and other geothermal surface manifestations has not been carried out in a systematic, comprehensive manner. (2) Building capacity for a systematic analysis of country's resource would be a primary goal of this program.

Systematic assessment and exploitation of geothermal resources for energy production would not only help meet the ongoing energy crisis; it would also help meet long-term needs of energy security. To be sure, a narrow focus on geothermal capacity is not advisable, because commercial viability of geothermal resources is yet unproven. But this study considers broader applications of geoscientific capacity: geothermal, minerals, oil, and underground water. Once a threshold capacity in geosciences is developed, Rwanda can use it in a variety of sectors relevant to national needs.

The first track is a fast-track "urgent" program to identify one or more viable geothermal resources and generate power on a pilot basis within three years. The pilot plant would pave the way for larger-scale geothermal power generation as quickly as possible. The Fast-Track "Urgent" program could be a short-term initiative managed by an expert team housed within the Ministry of Infrastructure's unit of Energy and Communications. Once the pilot geothermal plant is installed and is operating, Rwandans can plan, tender, monitor, and operate the system. In the future, larger-scale geothermal plants could be transferred to a permanent geothermal department (Electrogaz or elsewhere in the government).

The second track will focus on long-term capacity building for improved oversight and management of mining operations, hydrogeological operations, and geothermal operations. This initiative, steered by a proposed Rwanda Geoscientific Center (RGC), can provide support for human and institutional capacity building to a wide range of government and private sector agencies on a long-term basis.

Capacity building under the long-term track would be both supply and demand driven. The program would focus on building human resources by strengthening existing educational institutions. It would also build linkages with regional and international educational institutions. The primary goals of the long-term capacity-building track would be to (a) help develop a cadre of well-trained professionals in the geosciences sector who can conduct applied research, investigate geological resources, plan and implement projects, and design policies and (b) develop greater technical and managerial capacity in the Ministry of Infrastructure and the Ministry of Energy.

The two tracks would accelerate the resource assessments, tests, and drilling needed to enable Rwanda to quickly begin to generate electricity on a pilot basis using geothermal energy and, subsequently, to develop human and institutional capacity to expand geothermal-based power generation to a much larger scale. They would also improve national capabilities to manage mining and hydrogeological activities for increased export-based revenue earning, expand access to potable water at affordable costs, and increase large and small hydropower generation.

The two tracks should ideally operate in parallel. However, in view of limited resources, the first track could implement the action items for building human resources, even if the second track is not formally operational.

STRATEGY A: FAST-TRACK "URGENT" PLAN FOR GEOTHERMAL RESOURCE ASSESSMENT AND PILOT POWER GENERATION

The fast-track component seeks to support the Government's goal of conducting resource assessment and resource testing studies to establish the viability of geothermal resources in Rwanda. If resources prove viable for commercial development, the fast-track program will support the tasks needed to have a 2-5 MW (megawatt) pilot plant installed and operating in Rwanda within three years. If pilot phase proves satisfactory, Rwanda can expand production of geothermal energy to 30-50 MW.

Implementing this strategy would require establishment of a geothermal task force (or expert group) within the Ministry of Infrastructure. This group would carry out the following tasks:

* Begin work immediately with the Federal Institute for Geosciences and Natural Resources (BGR) to initiate and complete required geothermal resource assessment work as quickly as possible and identify the most promising geothermal sites in Rwanda.

* Identify and invite other suitable public and private agencies for resource assessment and testing.

* Prepare a database of the results of geothermal investigations and rank the studied sites according to their potential for commercial use.

* Arrange for "slim-hole" exploration drilling and resource testing at two or three of the most promising sites for the pilot plant.

* Oversee the installation, commissioning, and operation of the pilot plant, if resources are tested commercially viable.

* Prepare an application for gaining entry to the East African Rift Valley Geothermal Program (ARGeo), citing results of resource analysis and viability testing.

* Select and ensure that Rwandan geoscientists and engineers participate in all stages of geothermal resource assessment; exploration drilling; technical analyses; tendering for, installation, and operation of the pilot plant; and monitoring of the geothermal resource.

* Enter into discussions with multilateral and bilateral development agencies and private companies that may be interested in assisting Rwanda with its geothermal program, and explore their possible involvement/support/qualifications for exploration drilling, purchase, and installation of the pilot plant and larger-scale geothermal power generation projects.

* Build close ties for sharing knowledge with East African countries in advanced stages of resource assessment and exploitation. Ethiopia, Kenya, and Uganda have greater geothermal expertise than Rwanda. Particularly useful would be potential collaboration for on-the-job training in geothermal investigation and plant operation.

Achieving the pilot plant objectives within the three-year time frame would require a high level of commitment and initiative on the part of the task force staff. Participation of bilateral and multilateral agencies should be encouraged to accelerate and finance geothermal resource assessment, exploratory drilling, resource testing, and pilot plant installation.

INSTITUTIONAL SET-UP

Responsibility for power generation is currently housed within the Ministry of Infrastructure, Office of the Minister of State in charge of Energy and Communications. Within this office, the Department of Geothermal Coordination consists of one part-time person. It is recommended that two consultant professionals and one administrative support person be hired to work in the department for three years and that the consultant professionals have Rwandan counterparts work with them and learn on the job. The Geothermal Department director can be an expatriate from the East Africa region, Europe, or the United States. He or she should have a geoscientific or engineering background and expertise in geothermal resource assessment, institutional management, and fundraising in East Africa. The director would have overall responsibility for the implementation of the geothermal resource assessment, evaluation of the results, tendering for exploration drilling, resource testing, and analysis. He or she would also be responsible for preparing monthly progress reports that would be distributed to interested Government stakeholders to keep them informed of project progress.

The Geothermal Department technical adviser should have an engineering or other technical degree and experience in planning and overseeing the tendering, installation, and commissioning of geothermal power plants. The job would include overseeing the tendering, contracting, and installation of the planned 2-5 MW pilot plant. The technical adviser should be an expatriate from the region, Europe, or the United States.

CAPACITY BUILDING THROUGH HANDS-ON TRAINING

In order to familiarize Rwandan counterparts with geothermal plants and projects in the region and overseas, provision should be made for study tours and training visits to Ethiopia, Kenya, Iceland, and the United States. The visits should include both short- and long-term training opportunities, including travel to geothermal training seminars in the United States and month-long, hands-on training sessions at geothermal plants in the United States and elsewhere. Longer-term training sessions should be planned if funding is available and training opportunities can be arranged. Rwanda should also establish membership in the East African Rift Valley Geothermal Program (ARGeo) once work has been initiated on the planned geothermal resource assessment.

Suggested topics for hands-on training during the resource investigation phase include the following:

* geological investigations and mapping (surface surveys, mapping, and well site geological work);

* geochemical analyses (major element geochemical sampling and analyses, gas chemistry, and isotopic surveys, including interpretations);

* geophysical surveys;

* exploration drilling and drilling engineering;

* well testing;

* reservoir engineering;

* field development and management;

* well-logging and downhole measurements;

* well output testing;

* site selection and development;

* well design;

* rig sizing, operation, maintenance, and repair;

* drilling costing and economics;

* resource management;

* reinjection and waste disposal planning, monitoring, and management;

* reservoir analysis, modeling, and computer simulation;

* geothermal resource and steamfield data management;

* interference testing; and

* scaling and corrosion analysis and mitigation technologies.

STRATEGY B: LONG-TERM INSTITUTION/CAPACITY BUILDING FOR GEOTHERMAL ENERGY AND GEOSCIENCE DEVELOPMENT: THE RWANDA GEOSCIENTIFIC CENTER

The proposed Rwanda Geoscientific Center (RGC) would focus primarily on building human resources. It would assist government agencies and the private sector in building capacity to carry out applied research, gender-balanced training, technology demonstration, monitoring, evaluation, and information dissemination activities to upgrade and promote the use of improved techniques for resource identification and use of geothermal energy, underground water assessment and exploitation, and mineral/mining assessment and exploration. Priority would be given to accelerating the use of improved techniques for mining, hydrogeological research, and use of geothermal energy for power generation. The use of geothermal energy for direct use applications (such as greenhouse heating and fruit and vegetable drying) would also be considered.

The proposed RGC would work both independently and in collaboration with the other ministerial services involved in geoscientific work (namely, the Rwanda Geology and Mining Authority of the Ministry of Lands, Environment, Forestry, Water and Mines). It is recommended that the RGC receive support from international organizations to carry out the following tasks:

* Establish a geoscientific information system, including a Geographic Information System (GIS) database that will provide information on geothermal, mining, and hydrogeological resources for dissemination to public and private sector stakeholders.

* Provide support and technical assistance to the Kigali Institute of Science, Technology and Management (KIST) to strengthen its capacity to train geothermal scientists and engineers.

* Assist with the planning and implementation of in-country and overseas training in geothermal energy, mining, and hydrogeology. This training should include training programs at KIST, NUR, and the Geology and Mining Authority, as well as long-term overseas training programs for graduate-level geoscientists.

* Lobby the Government of Rwanda to address policy, regulatory, and procedural constraints to private sector-based geothermal and mining development (for example, time requirements for concession agreements, permits) and enactment of necessary incentives (import duty exoneration, tax holidays, sovereign guarantee), in order to foster continuing and active private sector participation in geothermal power and mineral extraction projects.

* Provide support for public awareness and extension services in rural communities to promote private sector-based mining activities and use of geothermal energy.

* Monitor and evaluate ongoing geothermal, mining, and hydrogeological projects in Rwanda and elsewhere in the region and world.

* Provide information and technical assistance to private sector entities seeking to establish geothermal and mining initiatives.

* Plan and implement applied research and development (R&D) activities on geothermal, mining, and hydrogeological investigations on a commercial basis (or with donor funding), to enable the RGC to become self-sustaining;

* Liaise with other Rwandan institutions (including the Electrogaz Water Analysis Department and the Rwanda Geology and Mines Authority) to carry out necessary mining and hydrogeological tests and analyses.

* Organize mass educational and promotional efforts on issues related to geothermal energy, mining, and hydrogeology.

* Undertake economic and financial analyses of geothermal, mining, and water resource-related projects, including the impact of the sale of carbon credits as a result of the use of environmentally clean geothermal energy.

* Carry out an inventory of existing geothermal and mineral workshop and testing equipment in Rwandan national educational institutions and laboratories;

* Collaborate with (and strengthen) other facilities for geothermal, mining, and water resource-related work in Rwanda (including the Water Quality Monitoring Division of Electrogaz, the Rwanda Geological and Mining Authority, and the Geographic Information System (GIS) Center of the National University of Rwanda [NUR])

* Provide short training courses in water analysis procedures in Rwanda, and allow six Rwandans to spend three months training in Tunisia.

* Establish linkages with other East African geoscientific agencies, national power companies, geothermal equipment manufacturers, and geothermal plant operation/service providers through staff exchanges.

* Establish a relationship with ARGeo for information, training, equipment, and potential risk-mitigation financing for exploratory drilling.

* Establish linkages with multilateral and bilateral technical assistance and financing agencies in industrial countries that are assisting Rwanda in the development of sustainable energy resources, in order to enlist their support to address the urgent need for geothermal power generation.

* Link with the Ministry of Infrastructure and the Electrogaz Electricity Department to ensure that geothermal activities are carried out in conformity with Government policies and electricity sector planning.

* Establish learning relationship with the Geothermal Education Office in California, which could help Rwandan institutions obtain instructional materials on geothermal energy and the geosciences.

* Establish a geothermal laboratory and testing facility to carry out geological mapping, geochemical testing, and certain aspects of geophysical surveys.

* Establish linkages with local and regional companies that have rigs capable of carrying out geothermal drilling.

* Provide practical training at geothermal plants in East Africa, Europe, and the United States.

* Provide on-the-job training in Rwanda in geothermal resource assessment.

The proposed RGC would support the following stakeholders:

* Rwandan Government agencies involved in promoting and regulating private power developers, mining interests, and water resource exploration (that is, the Rwanda Geology and Mines Authority);

* students and faculty at Rwandan schools and institutions of higher learning;

* private sector companies in Rwanda with mining and geothermal-related capabilities (well-drilling, water analysis, and so forth);

* private investors and mining and geothermal companies interested in financing or developing power generation, mining, or water resource projects;

* local and overseas financial institutions involved in purchasing carbon credits generated by the use of geothermal plants;

* bilateral and multilateral aid and lending agencies that may be able to assist with various components of future large-scale geothermal and mining projects;

* Rwandan and international environmental standards organizations;

* foreign companies that provide geothermal, mining, and water resource-related goods and services; and

* the Rwanda Central Water Quality Laboratory (part of Electrogaz).

The RGC would be expected to carry out the following activities in order to promote and assist private sector-based geothermal, mining, and water resource development:

* Assess policy and regulatory constraints the private sector faces in geothermal, mining, and water sectors (taxes, delays in concessions and permits, negotiation delays, lack of skilled local human resources, environmental requirements).

* Organize workshops, seminars, and conferences for private sector geothermal and mining stakeholders to describe upcoming commercial opportunities and understand and address barriers to private sector participation.

* Help establish a Geothermal Association of Rwanda (GAR) to act as a focal point for public and private sector involvement in geothermal development issues. The GAR would organize monthly stakeholder meetings on various geothermal issues and issue a quarterly electronic newsletter.

* Support RGC and GAR membership in the Geothermal Resources Council, the International Geothermal Association (IGA) and the Geothermal Energy Association in order to receive membership rosters, newsletters, and other publications, including lists and descriptions of private sector suppliers of geothermal-related goods and services.

* Bring technical advances in geothermal and mineral resource identification, testing, power-plant, and mineral extraction technologies to Rwanda, and strengthen local private sector geothermal and mining companies.

The RGC would deliver the following outputs:

* development of the human resources needed for systematic assessment and exploitation of Rwanda's geological resources (geothermal energy, minerals, oil, and groundwater);

* establishment and operation of a national center to promote and accelerate the use of geothermal energy technologies in ways that are appropriate to Rwanda, including grid connection, power supplies to minigrid-based rural electrification projects, and direct uses via the public and private sectors;

* an enhanced intellectual capital base to provide baseline data to potential geothermal independent power producers and overcome barriers to increased development of private sector-based geothermal energy;

* ongoing applied R&D programs, including distance learning using links to research-related institutions in Africa, Asia, Europe, and North and South America;

* continuing program of monitoring and evaluation of ongoing geothermal projects in Rwanda;

* testing and evaluation of equipment used to provide geothermal services in accord with international standards;

* ongoing information dissemination, using a range of media mechanisms to increase public awareness about geothermal issues and options;

* ongoing geothermal-related educational programs in primary, secondary, and tertiary institutions;

* strengthened geothermal capacity in the private sector and with other national stakeholders; and

* a sustainable level of applied R&D activity in Rwanda to pave the way for expanded development of geothermal power generation and direct uses, with support from private contracts and donor agencies.

The RGC could be part of the Ministry of Infrastructure but housed elsewhere. Alternatively, it could be part of the soon-to-be-created National Agency for Energy in Rwanda (ANER); a Kigali-based annex to the Institute for Scientific Research and Technology (IRST) of the Ministry of Science, Technology and Scientific Research; or an agency of the Ministry of Lands, Environment, Forestry, Water and Mines.

REQUIRED CAPACITY-BUILDING EFFORTS

Implementation of the strategies proposed in this study requires capacity building at several levels. Options for building capacity in government agencies and educational institutions are presented below.

The five-person Task Force for the Rwanda Geology and Mining Authority is part of the Ministry of Lands, Environment, Forestry, Water and Mines. The authority plans to employ about 25 people, including 15 geologists and mining engineers. Its main objectives will be to:

* produce raw geological data to promote investment in the mining sector (large-scale geological maps, geochemical and mineral data);

* regulate the mining industry, by elaborating mining laws, supervising private mining activities, and monitoring compliance with environmental rules;

* upgrade mineral quality, by adding value through basic mineral processing such as smelters; and

* train and advise people working in small-scale mining activities grouped in cooperatives (19 such cooperatives are functional in Rwanda).

Capacity building for the Rwanda Geology and Mining Authority (RGMA) is needed to overcome the following constraints:

* gaps in exploration work (exploration has not been conducted since the 1980s);

* low level of investment in industrial minerals and rocks;

* small-scale, artisanal nature of mining in Rwanda;

* low level of financing available to local mining companies; and

* export of low-quality mineral ores.

Capacity building includes the training of NUR and KIST chemistry, physics, and engineering graduates as geoscientists (geologists, geochemists, and mining engineers), to be employed by the RGMA. (3) Training is to be carried out in Tanzania, South Africa, and possibly Ethiopia and Uganda, at an estimated annual cost of about $6,000 per person. Training in Europe could take place in Belgium or France, at an estimated annual cost of $12,000-$15,000 per person. Training at the bachelor's level would focus on the practical aspects of mining; master's-level training would produce a cadre of specialists in geological mining, geochemistry, geophysics, and mining engineering.

Capacity building would also target the 19 mining cooperatives, in the form of training seminars and access to credit for mining operations. Training would cover modern mining techniques, economies of scale, administration and bookkeeping, and other relevant topics.

Efforts to strengthen the geosciences-related capabilities of NUR and KIST would include the following:

* Establishment of links with institutions of higher education in Africa, Europe, Asia, and North America to facilitate Rwandan student participation in bachelor's, master's, and Ph.D. programs in the geosciences and engineering as they apply to geothermal resource utilization and power plant operation. Programs would include both basic and applied R&D programs, to facilitate public and private sector-based geothermal development, build national geothermal capacity, and promote the establishment of public and private sector-based geothermal services appropriate for the Rwandan and East African marketplace.

* Establishment and use of a distance-learning facility at RGC, with satellite links to universities, national laboratories, and other institutions carrying out applied research in various aspects of geothermal energy development.

* Curriculum development, preparation of instructional materials, and training of teaching staff at primary and secondary schools, technical colleges, and institutes in geothermal educational programs.

In order to strengthen Rwandan geoscientific capacity, it is necessary to train students at the university level for both bachelor's and master's degrees. It is recommended that NUR and KIST build learning partnerships with universities in Tanzania, South Africa, Kenya, Uganda, or Europe, where selected Rwandan students would study geology, geophysics, and geological engineering.

NOTES

(1.) See background documents in appendix 1, especially Gawell, Reed, and Wright (1999).

(2.) Some limited observations and surface geochemical work was conducted at hydrothermal springs in the western and central part of the country.

(3.) To put the human resource requirements of operating geothermal plants in perspective, the Kenya Electricity Generating Co., Ltd. (KenGen) employs about 60 full-time professionals to maintain two geothermal plants of 45 MW and 70 MW. They include geologists, geophysicists, geochemists, reservoir engineers, drilling engineers, and power station operation, maintenance, and electrical engineers, some of who have master's degrees or Ph.D.s in geothermal technology. Fifty-nine Kenyan professionals have graduated from specialized institutions, including the Geothermal Institute at the University of Auckland (New Zealand) and the United Nations University Geothermal Training Program in Iceland.