michael fadelle, energy development programme for dominica, 5-2012
DESCRIPTION
Presentation at conference SIDS E4ALL in Barbados, May 2012TRANSCRIPT
Michael A. Fadelle
Coordinator
Renewable Energy Programme
May 2012
Introduction Dominica:
Known as "The Nature Island of the
Caribbean" due to its abundant plant and
animal life, extensive park system, volcanic
peaks, lava craters, the largest boiling lake in
the world, waterfalls, rivers, and lakes.
Blessed with abundant resources and
significant potential for economic and social
development.
Has a population of approximately 71,000.
Size island is about 750 square kilometres.
Dominica faces significant challenges
regarding it’s development.
4 5/8/2012
Introduction continued
Economy is predominantly agriculturally based: - high level of dependence on bananas;
Dominica’s economy has suffered due to market access problems.
Increasing dependence on tourism (nature/eco-tourism) and services (financial; ICT).
Dominica requires reliable and cost-effective types of infrastructure, and especially in energy.
Electricity and transport sectors represent considerable challenges for Dominica.
5 5/8/2012
Introduction continued Dominica has no natural petroleum
resources.
Small size of the market, therefore
high cost of fuel and electricity.
Further, the reliability and efficiency
of the current electricity distribution
system and public transportation is
extremely limited.
Dominica possesses considerable
natural resources to provide for its
energy security with a combination of
renewable energy technologies –
hydro, wind, solar, biomass,
geothermal – and improved energy
efficiency.
6 5/8/2012
Introduction continued
Use of clean renewable energy and energy efficiency technologies will enhance the
tourism sector. Dominica is the Nature Island of the Caribbean!!
These technologies will also benefit agriculture, industry, commerce, government and residents.
Dominica’s Medium Term Economic Strategy states that major investments in electricity generation and distribution are necessary to facilitate the requirements for the further diversification of the economy.
Dominica can demonstrate the viability of sustainable energy systems to other nations.
7 5/8/2012
Electricity Services Currently, diesel generators fuelled by
imported oil (70%) and hydropower plants
(30%) generate Dominica’s electric power.
There are two operating diesel plants (Fond
Cole and Portsmouth) – 16.03 MW
Three hydropower facilities (Laudat,
Trafalgar and Padu) – 6.42 MW
Total: 22.45 MW
Thermal generation has grown modestly.
Recent addition of 3 medium speed
generator for addition 4.2MW at the Fond
Cole power station.
Cost of electricity in Dominica has risen
significantly in recent years and are subject
to world oil prices. 8 5/8/2012
Electricity
Services
continued
Residential customers pay approx. EC$0.70/kWh (US$0.26) for the first 50kWh and EC$0.81/kWh (US$0.30) for additional kWh.
Fuel surcharge is calculated monthly and added as a per cost to the total consumption.
Dominica’s electricity tariffs is among the highest in the Eastern Caribbean - a source of concern and protest among many residents.
Slow economic growth resulted in a very slow growth in peak electricity demand.
9 5/8/2012
Electricity
Services continued
Customer base for electricity services comprises domestic, commercial, hotel, industrial, lighting and street lighting.
Dominica Electricity Services Ltd. (DOMLEC) is the only licenced provider of electricity.
DOMLEC is owned by US firm WRB (51%). The Dominica Social Security owns 20%. Local corporate and private citizens own the remaining 29%.
10 5/8/2012
Energy Supply through the Years
11
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Generating Plant kW Installed Capacity - DOMLEC
- Hydro 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600
- Diesel 10,036 10,036 11,090 11,090 12,840 12,840 12,840 13,590 14,440 15,890 15,890 17,170 17,170
Total 17,636 17,636 18,690 18,690 20,440 20,440 20,440 21,190 22,040 23,490 23,490 24,770 24,770
5/8/2012
Energy Supply through the Years
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Production (MWh) Gross Generation
Hydro 36,226 33,841 33,670 32,410 31,590 27,036 35,929 28,523 33,736 27,876 27,797 21,885
20,554
Diesel 23,867 31,942 36,630 42,226 45,925 53,929 44,203 48,404 45,493 55,779 57,619 64,497
66,944
Total 60,093 65,783 70,300 74,636 77,515 80,965 80,132 76,927 79,229 83,655 85,416 86,382
87,498
12 5/8/2012
Energy Supply through the Years
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Sales of Electricity by Sector (MWh)
Domestic 24,968 26,721 28,716 30,023 30,872 31,772 32,856 32,942 33,062 33,492 34,176 33,732
34,051
Commercial 11,655 13,435 14,767 15,503 16,052 17,068 22,758 21,669 24,017 24,993 26,469 28,788
30,278
Hotel 1,792 1,757 2,312 3,244 3,154 4,026 2,839 2,473 2,704 2,649 2,439 2,002
6,004
Industrial 2,686 2,326 4,348 4,553 4,420 2,801 4,607 4,354 5,508 5,504 5,357 5,600
2,028
Lighting 6,566 7,054 6,110 6,202 6,409 7,127 9 2 1 1 - 1
-
Street Lighting 914 1,000 1,041 1,069 1,098 1,120 1,125 1,295 1,127 1,150 1,130 1,298
1,325
Total 48,581 52,293 57,294 60,594 62,005 63,914 64,194 62,735 66,419 67,789 69,571 71,421
73,686
% change 7.64 9.56 5.76 2.33 3.08 0.44 - 2.27 5.87 2.06 2.63 2.66
3.17
13 5/8/2012
14
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000 Domestic
Commercial
Hotel
Industrial
Lighting
StreetLighting
Energy Supply through the Years Electricity Sales by Sector and Year: 1996-2008
5/8/2012
Energy Supply through the Years Electricity Sales by Sector’s Piece of the Pie in 2008
15
Domestic 46%
Commercial 41%
Hotel 8%
Industrial 3%
Lighting 0%
Street Lighting 2%
5/8/2012
Energy Supply through the Years
Peak Demand (kW)
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
10,130 11,390 12,348 13,010 12,966
13,866 13,043
12,923 13,190 14,368 14,467 14,501
14,663
Growth
(%) - 12.44 8.41 5.36 - 0.34
6.94 - 5.94 - 0.92 2.07 8.93 0.69 0.24
1.12
16 5/8/2012
Energy Supply through the Years Peak Demand
17
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
5/8/2012
Electricity Services continued...
The Electricity Supply Act of 2006 liberalized the electricity sector in Dominica
The Act also established the IRC to deal with regulatory matters for the generation, transmission, distribution and supply of electricity services, among other things.
18 5/8/2012
Energy and Transportation
The transportation sector is a
concern for Dominica in terms of
sustainable energy use:
Unregulated bus routes;
Low-efficiency used car
imports.
High fuel consuming
vehicles;
19 5/8/2012
Current Energy Development Programme The Government of Dominica has embarked
on a programme to explore and develop Dominica’s geothermal resources, primarily to generate clean and lower cost electricity.
Dominica embarked on a European Union funded 1.5 million Euro geothermal resource exploration project, “Preparation of a Geothermal based Cross-Border Electrical Connection in the Caribbean”.
The project is co-funded by the AFD and the FFEM with an additional €4.5million, the EIB for €1.1 million for a submarine interconnection study.
The Government of Dominica contributed in excess of €5 million.
20 5/8/2012
Current Energy Development Programme Project is to determine whether the geothermal
resource in Dominica is technically suitable for
generating electricity.
Can lead to underwater electrical transmission
and interconnection to supply neighbouring
islands of Guadeloupe and Martinique with 40-
50 MW of electricity each.
The project required exploratory drilling to
characterize the resource, particularly pressure,
temperature, and mineral content, and to
determine the feasibility and long term viability
of the investment required.
21 5/8/2012
Current Energy Development Programme
Government established PMU to manage the implementation of the project.
All required staff was in place at September 2010.
PMU responsible to Minister for Public Works, ENERGY and Ports
PMU budget is approximately 450,000 euros for the first three years.
22 5/8/2012
Current Energy Development programme The progress of this EU project depended on
the results of initial surface investigations at the Wotten Waven Geothermal Resource area.
Tests were conducted under a Transnational Partnership Agreement between Dominica, Guadeloupe, and Martinique, and ADEME and BRGM partly funded under the EU’s INTERREG IIIB (Caribbean Space) programme.
This "Géothermie Caraïbe" project was the preliminary phase of the more comprehensive EU funded initiative in Dominica.
Cost was approximately €1.1m.
Activities were conducted by consultants and technical staff of the CFG (French Geothermal Company) of the BRGM.
23 5/8/2012
Current Energy Development programme The INTERREG phase focused on key points
which will ensure the success of the project from a technical, administrative and legal point of view.
This project had four (4) main objectives:-
To validate the information in the OAS studies carried out in 2005;
To make a preliminary analysis of the environmental impact of the proposed project;
To make a preliminary analysis of the legal and institutional framework of the project; and
To revise and update the economic assessment of the project.
Report and results of the investigations under the INTERREG IIIB phase submitted and presented at a conference of the Partners in December 2009.
24 5/8/2012
Current Energy Development programme
The EU/AFD/EIB/GoD funded project is divided into two (2) principal Activities.
Activity I will deal with the final characterization of the Geothermal Power Production potential that will specify the power production areas, undertake an investment prospectus for the proposed development, and undertake test drilling in those specific areas.
Activity II will support the establishment of the PMU and provide TA in respect of policy, environment, regulation, communication and public relations, and monitoring. Will include advice on PPA with existing and potential electricity distributor.
25 5/8/2012
Current Energy Development Programme Project intends to sell at least 40-50 MW of
electricity each to Guadeloupe and Martinique.
Up to 20 MW will be reserved for the Dominican market.
Total investment required for 120 MW plant estimated at US$450M to US$500M.
Plan to start with small geothermal power plant of 5-10MW for local market. – will help to test and evaluate the resource and the reservoir.
Production can begin by the year 2014.
Project can reduce the cost of electricity from US$0.27/KWh to US$0.06-0.10/KWh, before fuel surcharge… (Geothermal Power plant will require practically NO fuel …)
26 5/8/2012
Geothermal Project Drilling contract signed with Iceland Drilling Co. in April
2011 to drill three test or exploratory wells.
Sites were selected based on results of OAS and Interreg IIIB funded studies, and with support from technical advisors.
Government/PMU secured sites.
EIA for test drilling conducted by French firm - Caraibes Environnement – based in Guadeloupe - funded by ADEME.
EIA approved. Results found to be favourable.
Drilling and Well Testing supervisors contracted – Geothermal Resource Group (US firm).
Well testing contractor selected – Iceland GeoSurvey (ISOR) of Iceland.
Drilling works started in December 2011.
The wells were drilled utilizing the Wire-line Coring mining technique. A level area of approximately 3000 square meters was prepared for the drilling rig and related equipment to carry out the drilling and testing activities.
27 5/8/2012
Geothermal Project
Well Locations
Well Site 1: Trafalgar/Wotten Waven
Well Site 2: Laudat - Adjacent to the Aerial Tram Rain Forest facility
Well Site 3: Laudat - Close to Domlec’s Balancing Tank
28 5/8/2012
Geothermal Project Contractors
Drilling Contractor: Iceland Drilling Company (IDC)
•Original Contract Sum: (exclusive of VAT (15%): 3,976,702.00 Euros
Well Testing Contractor: Iceland GeoSurvey (ISOR)
•Contract Sum: 461,146 Euros
Drilling Supervisor: Geothermal Resource Group (GRG)
•Contract Sum: 426,394.34 Euros
Site Preparation Contractor: Offshore Civil & Marine Inc.
Lot One XCD$ 715,672.60
Lot Two XCD$ 1,197,935.74
Lot Three XCD$ 986,216.71
Key Timelines
November 20, 2011: Shipment with drilling rig and related equipment arrived in Dominica;
December 4, 2011: Drilling rig taken to site;
December 5, 2011: Official commencement ceremony of the drilling of exploratory geothermal wells;
December 15, 2011: Drilling rig up was completed;
December 16, 2011: Exploratory drilling commenced.
29 5/8/2012
Geothermal Project
First Well Drilled – Site 2
o Drilling started on December 16, 2011
o Drilling completed on January 28, 2012
o Final depth of well: 1469 metres
o Depth of 4 ½” slotted liner: 1337m
o Highest temperature logged: 241 degrees Celsius
o Highest Pressure logged: 82 Bars (1190 psi)
o Number of days drilling: 41
o Total Number of work days: 65
o Date of flow test: March 9th and 10th 2012
Results of Flow Test Total flow estimated at 6.4 – 6.6 kg/s with 4.9-5.1l/s
liquid flow and 1.5kg/s of steam
Enthalpy 940-980kJ/kg
Fluctuating gas concentrations between 34 and 63 wt%
Dominant gas is CO2 (93.6 to 96.2 vol%)
30
5/8/2012
Geothermal Project
Second Well Drilled – Site 3
Commencement date of WW-3: February 15, 2012
Completion date of WW-3: March 14, 2012
Final depth of well WW-3: 1613 meters
Depth of 4 ½” slotted liner: 1605m
Highest temperature logged: 245 degrees Celsius
Highest Pressure logged: 98 Bars (1421 psi)
Number of days drilling: 29
Total Number of work days: 40
Date of flow test: April 17, 2012
Preliminary results of flow test
Total flow estimated at 22 kg/s
Well thermal output equivalent to 3.5MW
31 5/8/2012
Geothermal Project
Third Well Drilled – Site 1 o Commencement date of WW-1: March 28,
2012 o Completion date of WW-1: April 27, 2012 o Total depth: 1200m o Depth of 4 ½” slotted liner: 1200m o Highest temperature logged: 180 degrees
Celsius o Maximum pressure logged: 108 Bars
(1566psi) o Total number of days drilling: 31 o Total number of work days: 42 Preliminary results suggest that Well 1 is very permeable, and it has the potential to be a very good well for geothermal energy. The projected date for opening up and flowing the well is the week of June 10, 2012. By that time the well would have had sufficient time to recover thermally and allow for a good flow test.
Final Results and Reports of the exploratory drilling are expected by
September 2012.
32 5/8/2012
Geothermal Project
Government is very satisfied with preliminary results of the test wells
drilled
33 5/8/2012
Geothermal Project
Next phase will involve:
Evaluation of test drilling results.
Deciding on the approach for:
o Power Plant development:– small plant for domestic market, and large plant for export market;
o Project ownership/corporate structure;
o Nature and extent of Government’s participation and involvement;
Complete/finalize feasibility for small (10MW) power plant;
Undertake feasibility studies of submarine electrical interconnection between Martinique, Guadeloupe and Dominica;
34 5/8/2012
Geothermal Project
Results of flow tests will allow for
the creation of a model of the
geothermal field (including the
geothermal reservoir), and to
identify the location of the power
plant, production and reinjection
wells, and allow for the sustainable
exploitation of the geothermal
resource.
35 5/8/2012
Current Energy Development Programme
Dominica is also moving speedily to: Do further review the Electricity Supply
Act (ESA) of 2006;- CREDP/GTZ/CSEP (OAS)
Prepare Regulations for the ESA; - CREDP/GTZ
Enact Geothermal Resources Development Bill; - supported by the World Bank Geothermal Resources Development Bill
drafted.
Planning and Environmental Regulations for Renewable Energy drafted.
BOTH documents submitted for review and vetting by the Attorney General’s chambers.
Articulate its National Energy Policy and Road Map (support from the OAS); and
Prepare a Sustainable Energy Plan; - CARICOM, the OAS, and the GTZ.
36 5/8/2012
Current Energy Development Programme Goals of the Sustainable Energy Plan
The Energy Policy and Sustainable Energy Plan:
Lays out a strategy by which the energy production and use in Dominica may be transformed, becoming more economically and environmentally sustainable, while enhancing the electricity generation mix.
Ensure the existence of adequate energy supplies at affordable rates to sustain economic development, while meeting current and projected power demand.
Provide for stable, reliable, and affordable electricity supplies for all customers.
Lower the price of electricity for consumers.
37 5/8/2012
Current Energy Development Programme Goals of the Sustainable Energy Plan continued...
Enhance the security of energy supply and use for all sectors of the economy.
Allow reasonable incomes for businesses engaged in the local energy sector.
Attract international investment where appropriate – tourism; manufacturing; agro-processing...
Promote energy efficiency and conservation at all levels of the economy in order to achieve optimum economic use of renewable and non-renewable sources of energy.
38 5/8/2012
Current Energy Development Programme Goals of the Sustainable Energy Plan continued...
Protect the local and global environment by
maximizing the use of renewable-energy and
energy-efficiency alternatives where viable. This is especially relevant in Dominica as much of the renewable energy generation may take place in nature preserves or rain forest areas. It is essential that this be done in a manner that does not threaten biodiversity, forestation levels, and other environmental aspects.
Promote the generation of income through energy
exports produced from indigenous energy sources
(esp. geothermal resources).
39 5/8/2012
Current Energy Development Programme Other Initiatives
Other planned and proposed initiatives include:
Undertake supplementary electricity generating plant of 15 MW with financial assistance from the Gov’t of Venezuela as a short term energy security measure, and to safeguard against power failure.
Preparing an Electricity System Development Study and Electricity Generation Plan for the country;
Studies to identify sites for NEW hydro power plants around the island;
Geothermal Resource assessment in the north of Dominica;
Undertake Energy Audit of Gov’t facilities and street lights;
Encourage use of solar hot water systems in homes and hotel sector;
40 5/8/2012
Current Energy Development Programme
Government issued a Geothermal Resource Licence to West Indies Power Ltd. in July 2008 to:
Explore and exploit geothermal resources in Soufriere resource area in the south of Dominica.
Plan is to produce 15 MW of electricity in the first instance for sale to existing electricity distributor.
Initial investigations started, with good results.
Plan to begin test drilling later this year.
EIA and Development Plan as part of Planning approval are to be submitted.
41 5/8/2012
Outstanding Matters
1. Approval and implementation of National Energy Policy.
2. Finalize and approve, and implement Sustainable Energy Plan –
important component is the Energy Efficiency programme for
Dominica.
3. Need for a comprehensive strategy and approach to implementing
host of Technical Assistance activities and programmes for both RE
and EE, in the context of sustainable development.
4. Need for TA to review and validate project and renewable energy
resource evaluation reports.
5. Need for TA to undertake electricity system generation study and
generation plan - USTDA considering similar support to DOMLEC.
6. TA to undertake Energy Audit of Government facilities and street
lights.
7. Energy Efficiency audits in tourism/hotel sector including cost
reduction measures including use of solar power – hot water and AC
refrigeration.
8. Capacity development in RE technologies.
42 5/8/2012
Energy Development Programme for Dominica
Thank You.
43 5/8/2012