DJIBOUTI 30 th September 2014

Republic of Djibouti

PRESIDENCE DE LA REPUBLIQUE

POWER AFRICA GEOTHERMAL ROADSHOW HOSTED BY THE USAID AND USEA

.

26th September to October 4th 2014 In Portland, Oregon; Reno, Nevada; and

Washington DC, USA

GEOTHERMAL DEVELOPMENT

IN

DJIBOUTI

30 th September 2014

Republic of Djibouti

PRESIDENCE DE LA REPUBLIQUE

POWER AFRICA GEOTHERMAL ROADSHOW HOSTED BY THE USAID AND USEA

.

26th September to October 4th 2014 In Portland, Oregon; Reno, Nevada; and

Washington DC, USA

BACKGROUND

Djibouti is located on the East Coast of Africa between Ethiopia and Somalia, the entrance of the Red Sea in the extreme West of the Aden Gulf. The Geologic characteristics of the territory of the Republic of Djibouti are exceptionally favorable for the development of Geothermal Energy. Djibouti includes the Afar depression, which is part of the East African Rift, located at the intersection of three important tectonic structures.

Djibouti

Surface hydrothermal manifestations

Brief history of the geothermal exploration in Djibouti

FIRST PHASE 1970-1975

Preliminary field studies

Asal rift geophysical studies

First geothermal drillings in Asal Rift geothermal area

Nord-Goubhet

SECOND PHASE 1981-1990

Hanlé geothermal drillings

Asal rift new drillings and geophysics

Scaling and corrosion study of Asal rift deep reservoir

Nord-Goubhet studies

CURRENT PHASE 2000-

New exploration project of the Asal rift REI

Capacity building of the national research institution CERD

Realisation of prefaisability studies: Nord-Goubhet, lake Abhé and Obock

FIALE deep drilling project

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COURBE 1 (Aquater)

COURBE 2 (Aquater)

COURBE 1 (Virkir O)

COURBE 2 (Virkir O)

Asal rift geothermal prospect Well ASAL3 tests

Asal rift geothermal prospect Well ASAL3 tests

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LAKE ABHE GEOTHERMAL PREFAISABILITY STUDY

(CERD 2012)

Lake Abhé

Geothermal prospect area

PREFAISABILITY STUDY OF THE OBOCK GEOTHERMAL PROSPECT

(CERD 2014)

Conceptual model Geophysical survey

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NORD-GOUBHET GEOTHERMAL PROSPECT (CERD 2011)

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Potential Geothermal Sectors

Lava

Lake

Fiale

Caldera

Seismic Activity

Geothermal Sectors and Location of Assal Exploratory

Wells

Goubhet

Al Kharab

Prefeasibility Study Promises: • Magma Chamber at only 3000 m

• Seawater Flow Between Goubhet Al Kharab and Lac Assal Provides Geothermal Fluid Recharge

• Rift fracturing for Improved Permeability

ASAL-FIALE CALDERA DRILLING TARGET

Wellbore data :

Log (dip meter), core

Gravimetric analysis

Borehole televiewer (BHTV)

Field scale data :

Reservoir structure

Seismic data

Lithology index

Fracture class properties : Fracture orientation: dip, azimuth Fracture length, fracture aperture Common parameters : friction angle, cohesion, stress field

Familles Direction Densités Perméabilité

1 N130 4x10-7 2.x10-14

2 N130 5x10-7 4x10-14

3 N130 5x10-7 12x10-14

4 N130 5x10-7 2.6x10-14

5 N100 2x10-7 2.6x10-14

We can use these data to generate the stochastic model.

With this model :

o we will eventually achieve hydraulic stimulation in order to feed the deep reservoir.

o we can simulate the requisite pressure and flow rate for that in order to mitigate the induced seismicity.

o we can stimulate the flow of fluids within the reservoir, over its production lifetime.

What GoD does after the drilling program in

Asal-Fiale Project ?

After the drilling program the Government of Djibouti will launch a call for tender

to aware a private concession to IPPs to develop, construct and sell to off taker.

Donor Involvement Reduces Development Risk for IPP

Exploratory

Drilling

Phase

Confirmation of

Geothermal

Resource

Power Plant

Design Construction

Operations &

Maintenance

Large Investment

Highest Risk Even higher Investment

Medium Risk

IPP Risk Donors) Risk (GoD +

ASAL-FIALE PROJECT

Donors support: 1. World Bank manage (WB) directly; IDA (International Development

Agency); ESMAP (Energy Sector Management Assistance Program); GEF (Global Environmental fund) ; OFID (Opec Fund for International Development)

2. African Development Bank (AfdB) manage directly ; AfDB fund (African Development Bank); SEFA (Sustainable Energy Fund for Africa)

3. Agence Francaise de Developpement (AFD) manage directly his own fund AFD .

Budget: US $ 31 Millions .

To drill 4 productions wells full size.

Future power plant : 100 MWe

GEOTHERMAL INSTITUTIONAL FRAME

The Ministry of Higher Education and Research is responsible for overall research studies.

CERD: The Center for Study and Research of Djibouti is in the main institution for scientifically research - prefaisability studies of geothermal prospects - seismological, GPS, Geodetic surveys - geological mapping - GIS and remote sensing

The Ministry Of Energy is responsible of overall energy sector .

EDD: The Electricity of Djibouti is the Power Utility Company in charge of generation , production , distribution and selling Energy.

POWER SECTOR ENVIRONMENT

Created in January 1960, EDD « Electricity of Djibouti » as a public utility owned by the government under the Ministry of Energy.

The Main duty of EDD is:

Generation

Transmission

Distribution

Thermal plants : 120 MW installed capacity

• 66 637 MWH Energy Production in 2013.

• Mainly heavy fuel and diesel.

Hydro-electricity (Imported): 40o GWh per year

• Dependant on the capability of the grid.

Solar pilot plant : 300 kWp installed capacity

• 522 Mwh Energy production in 2012.

• Mainly solar photovoltaic cells.

POWER SECTOR ENVIRONMENT

Planned Project for the near Future

1. Seawater Desalination Plant 2. Container terminal Expansion 3. Livestock Port of Damerjog . 4. Cement plant 5. Ghoubhet Mining port 6. Tadjourah Port 7. New Airport 8. Djibouti-Gallileh Railway

Additional new capacities

236 MW

• 15 ¢ per kWh Subsidized

Tariff

• 22¢ to 27¢ per kWh Residential

Tariff

• 28 ¢ per kWh Small and medium

companies

• 18¢ per kWh

• 20¢ to 23 ¢ per kWh Industry

ENERGY FORECAST DEMAND

The peak annual demand is expected to increase from:

2014 90 MW 2020 298 MW 2032 404 MW

Growth rate of 4.5% per year.

Power forecast

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2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

CHA

RGES

(M

W)

BILAN OFFRE/DEMANDE

Hydraulique Thermique Déficit de puissance demande

404

298

90

Why this new Entity?

Necessity to gather all stakehoders in geothermal energy from the differents

institutions in Djibouti.

Necessity to make available the overall needed data on geothermal prospects

Promote the rapid developement of geothermal resources (surface studies,

exploration wells)

Djiboutian Office for Geothermal

Energy Developement (ODDEG)

Work plan

Set up a legal and institutional framework

National Energy Master Plan

Draw up a strategic plan

Elaborate an atlas of geothermal ressources

Planning the faisability studies for the three advanced geothermal

prospect ( Nord-Goubhet, Lac Abhé, Obock)

Planning new surface studies for the 9 reming geothermal prospect

National Energy Master Plan is setting up within support the EU.

WE INVITE YOU TO INVEST

IN DJIBOUTI