Volume 1, Number 5
31 December 2000
Russia may face an energy crisis in 2003-2005, First Deputy Nuclear Minister Nigmatulin stated on a Moscow radio program recently. With a strengthening economy, annual GDP growth of 5-5.5%, and the resultant increasing energy demand, Russia's power sector will require US$4 billion a year from 2001-2005 and US$8 billion a year from 2006-2010 to meet the increased demand. Geothermal energy could help satisfy a portion of the increased demand, particularly in the Russian Far East.
According to Russian sources, geothermal energy could produce almost 2%, or 16.9 billion kWh, of Russia's electricity.
According to the Geothermal Energy Association, using today's technology, the countries of the former USSR, including Russia, have a geothermal electricity production potential of 768-1902 MWe. Using enhanced technology, the potential is 1501-3741 MWe.
Geothermal Resources in Russia, the latest in a series of geothermal databases built by Bob Lawrence & Associates, Inc., contains information on 107 specific geothermal sites or projects in Russia with a projected electricity generation potential of 2031.7 MWe. The database was compiled using information collected in an extensive data and Internet search which accessed technical literature dating back 25 years, as well as numerous other U.S. and Russian sources.
Geothermal Resources in Russia is supported by Idaho National Engineering and Environmental Laboratory (INEEL) and the U.S. Department of Energy, Assistant Secretary for Energy Efficiency and Renewable Energy, Office of Wind and Geothermal Technologies.
Sources: Itar-Tass, 15 December; Geothermal Resources in Russia, Bob Lawrence & Associates, Inc.
A team of U.S. geothermal experts traveled to Fiji, Vanuatu, and Papua New Guinea in October to conduct geothermal prefeasibility studies.
Gerald Huttrer, President of U.S. Geothermal Industries Corporation and Geothermal Management Company, Inc.; Eduardo Granados, Vice President of GeothermEx, Inc.; and David Mendive, Vice President of Geothermal Development Associates met with representatives of private sector, government, and academic entities in the three countries.
The team conducted field examinations of five sites--Savusavu and Labasa (Fiji), Takara and Teuma (Vanuatu), and Lihir (Papua New Guinea)--which were determined on the basis of pre-travel studies to be the most prospective for early economic development. They found that, with the exception of Lihir, which has potential for generating several tens of MWe and/or MWt, development of the other geothermal areas examined is limited by the relatively small capacity, low prices of energy, and slow growth of the electrical market.
In Papua New Guinea:
For more information, contact Gerald Huttrer.
Maps: CIA World Factbook.
Over 500 representatives of the multilateral development banks, development organizations, funding institutions, and NGOs, as well as members of the private sector, research experts, and other stakeholders from around the world converged on the World Bank headquarters in Washington , D.C. in early December to discuss the best ways to meet the energy needs of the rural poor. A large part of the solution is off-grid renewable energy.
"Access to modern and clean energy, in conjunction with other essential services, can help the poor transform their lives," said World Bank President James Wolfensohn, addressing participants of the Village Power 2000 Conference. Despite international efforts, however, progress in reducing the number of the nearly 2 billion who have no access to modern energy has been slow.
The week-long event featured a variety of workshops, as well as keynote speeches by, among others, World Bank Chief Economist Nick Stern and Sir Mark Moody-Stuart, co-chairman of the G8 Renewable Energy Task Force and chairman of the Royal Dutch Shell Group.
Frank Tugwell, President of Winrock International, issued a challenge to conference participants to bring electricity to 500 million people in the next 10 years.
According to Ing. Luis Velázquez Molieri, Executive Secretary of the National Energy Commission (CNE) of Nicaragua, the poor are willing to pay for electricity. Ninety-nine percent of those who lack electricity in Nicaragua expressed a strong desire for it, and, at current costs, are willing to pay $5-8 for 30-80 kWh/month.
Village Power 2000 was cosponsored by the National Renewable Energy Laboratory, the United Nations Development Programme/World Bank Energy Sector Management Assistance Program (ESMAP), the U.S. Agency for International Development (USAID), Winrock International, and the World Bank.
For additional information, see the Village Power 2000 Conference web site.
U.S. exporters of environmentally beneficial goods and services now have access to subsovereign financing for their foreign buyers. The Export-Import Bank of the United States (Ex-Im Bank) will accept the credit of qualified cities, states, and other subsovereign entities in emerging markets for purchases of U.S. goods, including environmental products. The subsovereign guarantee program complements Ex-Im Bank's environmental exports program, which features enhanced export credit insurance, loans, and loan guarantees for qualifying exports.
Ex-Im Bank's subsovereign guarantee program is open to qualifying entities whose foreign currency debts are not in default and are rated B/B2 or stronger by an accepted global credit ratings agency. Currently localities in Argentina, Brazil, Bulgaria, China, Colombia, Croatia, the Czech Republic, Estonia, Latvia, Poland, and South Korea qualify for the subsovereign guarantee program. The list of eligible entities will change as credit ratings change. Ex-Im Bank is exploring ways to expand the program in the near future to reach more subsovereign governments in a greater number of countries.
For more information about Ex-Im Bank support for environmentally-beneficial U.S. exports and Ex-Im Bank's subsovereign risk program, visit the Ex-Im Bank web site:
The Government of Uganda has received a grant from the African Development Fund to finance the Alternative Resource Assessment and Utilization Study (Notice Identification No. AfDB138-547/00).
The main objective of the study is to find a technically, financially, and economically feasible, socially and environmentally sound, and sustainable least cost alternative energy resources development program to meet the energy demand of energy deficient rural areas and small towns of Uganda. The study will be carried out in three phases:
The study will be completed over a period of 13 months from the date of mobilization by a consultant. Interested consultants will undergo a prequalification process, after which those who are shortlisted will receive requests to submit proposals. Interested bidders may obtain further information by contacting:
The Permanent Secretary
The African Development Fund, part of the African Development Bank (AfDB) Group, provides development finance on concessional terms to low-income regional member countries which are unable to borrow on the non-concessional terms of the AfDB.
Beijing is expected to improve the city's energy consumption structure by exploring new energy resources such as geothermal power, solar energy, bio-energy, and wind power to reduce the use of traditional energy resources.
The exploration of new energy resources will also benefit Beijing's goal to win the bid for 2008 Olympic Games, said Sinoprojects.com, the leading website on investment projects in China.
According to an analysis of current resource reserves by the State Development Planning Commission, China's coal, oil, gas, and hydropower reserves will run out in 100 years. The analysis noted, however, that Beijing has potential renewable energy resources which would help the city use more clean energy resources while reducing the consumption of traditional energy resources.
Beijing has 150 geothermal wells, capable of producing 8.8 million cubic meters of hot water annually. About 400,000 cubic meters of the resource can be used for heating. Geothermal resources could provide heat for about 20-30 million square meters, equivalent to the consumption of 3 million tons of coal, in the city.
China is breaking up the country's power monopoly, requiring all 31 provincial power bureaus to turn over their administrative functions to provincial economic and trade commissions by the end of the year. Next, power enterprises will be allowed to go public and to lure more direct foreign investment. Experts say full competition of China's power industry would reduce prices nationwide by an average of 20%.
Source: Xinhua News Agency, 29 October, 1 December
Indonesian state-owned utility Perusahaan Listrik Negara (PLN) has reached an agreement with Chevron Corp. and Texaco Power and Gasification to cut the tariffs on their 300 MWe Djarat geothermal project.
PLN said that the tariff for the project in western Java has been cut to $0.027/kWh from $0.069/kWh. Chevron and Texaco each hold a 39.5% stake in the project. The remainder is held by PT Prasaran Nusantara Jaya of Indonesia.
A Texaco official confirmed the tariff reduction and said that the $83-million project is on track to come on-line in 2002.
PLN noted that the lowering of the tariff showed that it could reach an amicable accord with the IPPs in the country without legal recourse.
On a separate note, Indonesian state oil and gas company Pertamina and PLN Pembangkit Java Bali I (PJB- I), a subsidiary of PLN, have signed an agreement to jointly develop up to 2000 MWe of geothermal plants throughout Indonesia that will eventually include private developers as partners.
Among the projects that the companies are planning under the agreement are the 60 MWe Kamojang unit IV, the 20 MWe Sibayak unit I, the 40 MWe Lahendong unit II, and the 60 MWe Ulubelu unit I.
The Government of Indonesia granted Pertamina monopoly rights over the exploitation of geothermal resources in the early 1980s. Last May, however, it lifted the monopoly and transferred the management and licensing rights of geothermal resources to individual regions.
Under the new rule, geothermal contracts will be valid for 30 years but regional administrations may extend the contracts at the request of investors. Both private companies and cooperatives are allowed to develop the country's geothermal resources for power generation for themselves or the public. The regional administrations and the central government will share the royalties paid by investors.
Source: The McGraw-Hill Companies, Inc.
The following projects are in various stages of development. Projects which have not been listed before are marked .
Sources: United Nations Development Business; the Infrastructure Division; the International Trade Administration, U.S. Department of Commerce Global Infrastructure Projects Database; others as noted.
The conference addresses the re-alignment, deregulation, and restructuring of the energy sector with special emphasis on investment opportunities in the Dominican Republic, Jamaica, and Trinidad.
The workshop will bring together engineers, scientists, and managers involved in geothermal reservoir studies and developments; provide a forum for the exchange of ideas on the exploration, development, and use of geothermal resources; and enable the prompt and open reporting of progress.
The program will feature speakers from Peru and other countries and will focus on: the impact of the Kyoto Protocol and Clean Development Mechanism (CDM) in Peru, national policies on the use of renewable energy in rural areas, the sustainability of renewable energy systems, financing renewable energy systems, and rural electrification projects in the Amazon region.
The meeting will feature a special session on the Bulalo and Tiwi Geothermal fields operated by Philippine Geothermal, Inc.
Hosted by Tufts University and organized by the Northeast Sustainable Energy Association (NESEA), the conference will explore avenues to a more sustainable future while promoting economic growth. Building Energy is the premier conference that brings together experts in the fields of renewable energy and green building.
Hear the inside story from over 70 leading experts on oil and gas, power, telecoms, e-project finance, transportation, and water.
Keynote speakers will include Wallace S. Broecker of the Lamont-Doherty Earth Observatory, who will address the fossil fuel impacts on global climate change; Donald Langmuir of the Colorado School of Mines (Emeritus), who will discuss various aspects of the geochemistry of nuclear waste storage, disposal, and remediation; and Marshall J. Reed of the U.S. Department of Energy, who will provide an overview of the technological challenges facing the geothermal industry.
Those interested in participating should submit an abstract by the early February deadline.
The objectives of ITEC are to provide a firm bridge between northern and southern countries in the field of thermal energy technologies; to provide a forum and encourage a realistic dialogue at all levels, thus stimulating the professional communities and enhancing technical activities in the field; and to accelerate developments, innovations, implementations of R&D and exchange of information in thermal energy fields, including geothermal.
Watch for the next issue of Green Green
Green Green is produced for the Idaho National Engineering & Environmental Laboratory (INEEL) under Purchase Order No. K99-181018 and the U.S. Department of Energy, Assistant Secretary for Energy Efficiency and Renewable Energy, Office of Wind and Geothermal Technologies.
This information was prepared as an account of work sponsored by an agency of the U.S. Government. Neither the U.S. Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring by the U.S. Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the U.S. Government or any agency thereof.
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