IGA NEWS
Newsletter of the International Geothermal Association
Quarterly No. 103

IGA ACTIVITIES
Message from the President
The first quarter of 2016 has been an action-packed few
months, geothermally speaking.
In January, I attended the IRENA General Assembly in
Abu Dhabi. Many events and meetings were offered,
but the Ministerial Meeting on Renewable Energy andClimate Change in Africa stood out, titled, The
Implications of COP21 for Africa: Challenges andOpportunities. Geothermal energy is playing a large role inachieving access to electricity across the region. Much of
the potential remains to be developed, both in terms ofgeothermal electrical and direct uses. The meetingemphasized the need for coordination, collaborationand cooperation across Sub-Saharan Africa between
energy initiatives, governments, development partners
and international institutions.
Another outstanding experience was listening to theinspiring presentation of Christiana Figueres, theExecutive Secretary of the United Nations Framework
Convention on Climate Change (UNFCCC). Ms.
Figueres spokes about the COP21 Paris agreement,saying, “The World has said we have drawn theboundary around how much we are going to emit for
the rest of the history of mankind on this planet”.
Strong words.
In February the North Rhine-Westphalia Climate andEnvironment Minister, Johannes Remmel, announced
project funding for continued support of the IGA
Secretariat in Bochum through December 2018. The
IGA is hosted by the International Geothermal Centre
Bochum (GZB) at the University of Applied Sciences in
Bochum. The project is Phase 2 of the original project,which made possible the IGA Secretariat to stay at
Bochum since 2011.
Minister Remmel said, “Geothermal energy is baseload
energy and can play a key role in energy transition for
densely populated metropolitan areas. The federal state
has a significant heating demand that also can be met bygeothermal energy. Our study on geothermal potential
shows more than 50% of the heat demand in NRW
could be covered by low-enthalpy geothermal
applications, like borehole heat exchangers. The GZB isa competent partner in exploring and making use of
these resources.”www.geothermal-energy.org

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CONTENTS
IGA ACTIVITIES

Message from the President... 1
IGA Headquarters Will Remain in Bochum… 3
23rd Annual Congress of the AGM … 3
Excerpts from Interview to Juliet Newson… 5
From the IGA Secretariat Desk… 5

AFRICA

Ethiopia… 6
Kenya… 7
Tanzania… 8
Uganda… 8

AMERICAS

Caribbean… 9
Chile… 10
Ecuador… 11
El Salvador… 11
Honduras… 12
Mexico… 12
Nicaragua… 13
United States… 13

ASIA / PACIFIC RIM

India… 15
Indonesia… 16
Japan… 17
Pakistan… 18
Philippines… 19

EUROPE

England… 20
Finland… 20
Germany… 21
Iceland… 21
Italy… 22
Poland… 22
Turkey… 22

OCEANIA
Australia… 23
New Zealand… 24

OTHER

Book Reviews: Geothermal Power Plants… 25
Technology: The IMAGE Project… 26
Technology: Geothermal Energy & CSS…27
Climate Change… 27, 28, 29
Finance… 30, 31
Upcoming Events… 7
April-June 2016

IGA News No. 103

2

On behalf of the IGA, I want tothank Minister Remmel, thefederal state of North RhineWestphalia, and the EU for
supporting geothermal energy
research and use for Europe andthe world.
In June, the IGA holds elections
for a new Board of Directors. The
IGA
Secretariat
andtheNominating Committee, led by Mr
Paolo Romagnoli of ENEL GreenPower, have been hard at workorganizing the elections, which
will be held online. There aremany new faces (and somefamiliar
ones)
among
the
candidates. The profiles of eachcandidate will be available soon on
the IGA website.

Dr Nina Rman, Geological Survey of Slovenia, and her daughter, Pika; Dr Juliet
For myself, I have been working
Newson, IGA President; and Dr Ana Vranjes, Geothermal Researcher,on behalf of the IGA. I addressed
University of Belgrade. Photo taken at Laboratory for Geothermal Energy andthe 2016 Energy Efficiency andEnergy Efficiency, University of Belgrade.
Renewable Energy conference inand met with Professor Dr Dejan Milenić and Dr Ana
Sofia, Bulgaria, which was supported by the Bulgarian
Vranjes of the Laboratory for Geothermal Energy and
Ministry of Economy, the Ministry of Environment andEnergy Efficiency, Department of Hydrogeology,
Water, and the Sofia Municipality. I travelled to Serbia
Faculty of Mining and Geology, University of Belgrade.
Serbia has many geothermal springs, and encompasses
the southern part of the Pannonian Basin, a well-known
geothermal resource throughout Eastern Europe. On
behalf of the IGA, I expressed the hope we can lookforward to the establishment of a Serbian national
geothermal association. The meeting with Dr Vranjes
and Professor Dr Milenić was facilitated by my friend,colleague and geothermal researcher from theGeological Survey of Slovenia, Dr Nina Rman.
From Serbia, I travelled to Iceland to participate in the
ESMAP Global Geothermal Development Roundtable,
and then in succession: the Iceland Geothermal
Conference, IGA Board meetings and the preliminary
meetings for organizing the next World Geothermal
Congress in Iceland in 2020.
For the people in the Northern Hemisphere, I wish you
well for the coming spring and summer; for southerners
like myself, I hope geothermal energy is keeping you
warm this winter!
Regards,

Juliet Newson, PresidentInternational Geothermal Association
www.geothermal-energy.org

April-June 2016

IGA News No. 103

3

IGA Headquarters Will Remain
Three more Years in Bochum,
Germany
The Minister of the German federal state of North
Rhine-Westphalia’s (NRW) Ministry for Climate
Protection, Environment, Agriculture, Conservation andConsumer Protection (MKULNV), Johannes Remmel,
visited the headquarters of the International Geothermal
Association (IGA) on February 17. He officially kickstarted Phase 2 of the Association at its host institution,
the International Geothermal Centre of Bochum (GZB)
at the University of Applied Sciences of Bochum. The
GZB is an institute for research, education,communication and networking with a regional to
global focus. Many institutions for these different tasks
are based at the GZB.
The IGA and the offices of its Secretariat have been
hosted in Bochum since 2011, and now will remain
there up to December 2018.
During his visit, Minister Remmel officially handed overthe note of project funding for the extension of the
IGA’s headquarters in Germany. The project extension
cost of around €1 million is partly funded by the federal
state and partly by the European Union (EU). It is
expected that the IGA will continue enhancing thescientific and technology transfer between NRWcompanies/institutions and international entities andthereby open up new markets.
Dr. Juliet Newson, the President of the IGA,
appreciated the support by the federal state, sent a
message stating: “On behalf of the International
Geothermal Association (IGA), I want to thank thefederal state of North Rhine-Westphalia, and the EU forthe continuing support of the IGA Secretariat in
Bochum. The IGA is pleased to be associated with thestrong renewable energy focus of North RhineWestphalia. We appreciate the opportunity to encourageuse of geothermal as a clean energy option for Europe
and for the world.”
Prof. Dr. Rolf Bracke, the Director of the GZB, said:“The new knowledge and transfer platform for
geothermal climate protection technologies provides a
win-win situation for the IGA and the GZB. The
research institute GZB provides the IGA and thenearby industry with an excellent framework setting andis at the same time strengthened through theinternational networks and contacts of the IGA.”
Prof. Dr. Martin Sternberg, President of the Universityof Applied Sciences in Bochum, stated: “TheInternational Geothermal Association significantly
assisted the GZB as well as German companies andresearch entities in its international projects and inbecoming more prominent globally. We appreciate thewww.geothermal-energy.org

Prof. Dr. Rolf Bracke, left, and Minister Johannes
Remmel.
recognition by the federal state, the EU and the IGA
Board of Directors that the IGA continues to steer its
operations from Bochum.”
Source:http://www.energieagentur.nrw/geothermie/meldunge
n/geothermie_ist_wichtiger_faktor_fuer_die_gelungene_energiewende_in_unseren_ballungsraeumen

23rd Congress of the Mexican
Geothermal Association
Luis C.A. Gutiérrez-Negrín, Chair of
the Information CommitteDuring the second week of March, the Mexican
Geothermal Association (AGM: Asociación Geotérmica
Mexicana) held its 23rd annual congress and annual
general assembly in Morelia, state of Michoacán,
Mexico. The congress gathered around 130 persons
from the geothermal divisions of the Comisión Federal
de Electricidad (CFE) and the Instituto deInvestigaciones Eléctricas (IIE: Electric ResearchInstitute), as well as from the universities of Mexico(UNAM: National Autonomous University of Mexico)and Michoacán (UMSNH) and other institutions, likethe Mexican Center for Innovation in Geothermal
Energy (CeMIE-Geo: Centro Mexicano de Innovación
en Energía Geotérmica), students, the Energy Ministry(SENER), Lawrence Berkeley National Laboratory(LBNL) and private companies. The general breakdownof participants appears in the following table.
SectorNumber

%

CFE

17

13.0

IIE

10

7.6

UMSNH-INICIT-CeMIE-Geo

30

22.9

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IGA News No. 103

4UNAM-II-CeMIE-Geo

11

8.4

CICESE-CeMIE-Geo

4

3.1

Students (ESIA, UNAM)

23

17.6

SENER

3

2.3

Private companies*

23

17.6

Other (International, retired)

10

7.6

Total

131

100.0

*(ChemTreat, Energy Forever Exergy, ENAL, Enel
Green Power Mexico, GEA, Geocónsul, Grupo Dragón,
Nalco-Ecolab, Permex, Spectramex, and other).
During the congress, 29 technical papers were presented
orally and 11 as posters, some of which were alsopresented orally. There was one invited conference
given by Patrick Dobson, from the US LBNL. Almost
three quarters (72%) of the technical papers (23) wererelated to exploration (geology, geochemistry,geophysics); other topics covered were fieldmanagement (3), direct uses (3), power plants (2), heatflow and potential (2) and modeling (2).
On March 9, there was a pre-congress, eight-hourworkshop on “Introduction to Isotopic in
Hydrothermal Systems” and “Introduction to
Geothermal Heat Pumps”, conducted by IIE
researchers Mahendra Pal Verma and Alfoso GarcíaGutiérrez, respectively. There were 28 attendees mostly

from UNAM, UMSNH and ESIA (Escuela Superior deIngeniería y Arquitectura). Others were from CICESE(Center of Scientific Research and High Education of
Ensenada), private companies and the Energy Ministry(SENER).
It is worth mentioning that the current AGM’s Board of
Directors decided to organize a parallel commercial
exhibition during the congress, for the first time in 23
years. Thus, the organizing committee offered 12
booths that were quickly taken by private companies
and public institutions to exhibit their products andservices. Exhibitors were: CeMIE-Geo, ChemTreat
Mexico, Exergy SpA, Industrias Falcón, Instituto deGeofísica de la UNAM, IIE, Instrumentos Científicos,
Kuster, and Servicio Geológico Mexicano. One special
sponsor of the congress was Ormat Technologies.
Magaly Flores-Armenta, head of the geothermal divisionof CFE opened the congress in the morning of March
10. She was accompanied by José Manuel Romo-Jones,
technical leader of CeMIE-Geo, Michelle RamírezBueno, director of Geothermal Energy of SENER, andGeorgina Izquierdo-Montalvo, President of the AGM,
all of them were introduced by Luis C.A. GutiérrezNegrín, former AGM’s president.
At the evening of March 10, after concluding thetechnical presentations, Georgina Izquierdo presented
the Pathé Award to Jorge Guiza-Lambarri,acknowledging his contribution to the early developing

Participants in the AGM’s 2016 Annual Congress

www.geothermal-energy.org

April-June 2016

IGA News No. 103
of geothermal in Mexico. Guiza-Lambarri, currently 92,
is a chemical engineer that was in charge of thegeothermal office of CFE between 1948 and 1971, andafter his retirement in 1978 he was responsible of the
IIE facilities in the Cerro Prieto geothermal field up to
1985. The 2016 Pathé Award was delivered by José Luis
Hernández-Galán, recipient of the 2015 award. Afterthat ceremony, participants to the congress attended an
opening reception in the colonial Municipal Palace inthe historic downtown of Morelia, enhanced by the
Folkloric Ballet of Michoacán that performed several
typical dances.
On March 11 after the closing ceremony of thecongress, the AGM held its 23rd Annual Ordinary
Assembly in the same facilities, which was restricted toits current members. Georgina Izquierdo-Montalvo who
presided the meeting, called to order, read the minutesof the past annual meeting and informed on the statusof the Association, and the AGM’s treasurer presented
the current finance situation as of February 29th.
Minutes and reports were approved, and the general
assembly concluded around 20:30 hours.

Bulgaria Could Use more
Geothermal Energy: Juliet
NewsonIn an interview prior the conference “Energy Efficiency& Renewable Energy” held in Sofia, Bulgaria on 5-7
April, Juliet Newson, IGA’s President, was asked what
she would recommend to change the low usage percapita of geothermal energy in Bulgaria, in spite of thecountry’s high geothermal potential. She said: “We areaware of a number of geothermal resource uses in
Bulgaria. The town of Velingrad for example is known
for its hot and cold mineral springs that are used forheating and balneology. As the temperature ofgeothermal wells in the country ranges between 20°C 100°C direct use applications are most appropriate.
North-East Bulgaria (Moesian plate) and South Bulgaria(Rila-Rhodopes massif) host most of the geothermal
resources. Direct thermal water use in Bulgaria
concentrates on balneology (largest share with 60%),
space heating, air-conditioning, greenhouses, groundsource heat pumps, direct thermal water supply, bottlingof potable water and soft drinks and for sometechnological processes.
“Bulgaria’s energy mix traditionally consists of coal(about 50%) and nuclear (36%). There is a window ofopportunities for geothermal energy in the country,
particularly in use of heat. As far as we are aware nogovernmental incentives are provided to geothermal
developers. In terms of the regulatory environment,
support for the municipalities to build capacity in
geothermal resource assessment and management would
www.geothermal-energy.org

5
increase the confidence of investors. Also, awarenessraising for decision makers, potential investors and the
public would improve the situation.”
Responding other questions, Juliet Newson added:“The legislative and regulatory framework forgeothermal energy is very diverse within the EU
member states, and in some cases is a real barrier togeothermal energy use. There are countries with barriersof fiscal nature (i.e. mining royalty, sewage penalty,
groundwater use fee, environmental tax). Challenges
include for example royalties e.g. in France, Hungary,
Poland, Romania. Geothermal resources often are
subject to Mining Law whereas the production ofgeothermal fluids from the shallow subsurface isgenerally regulated by Water use legislation…
Geothermal energy plays an important role in the energy
transition due to its diverse uses for heating/cooling,
electricity generation, agricultural drying processes,
balneology, etc.”
Source: http://viaexpo.com/en/press/there-is-awindow-of-opportunities-for-geothermal-energy-inbulgaria

From the IGA Secretariat Desk
Note & photos by Marietta Sander, IGA
Executive Director
IGA in Klima Forum 2016 - The IGA Executive
Director attended the ‘KlimaForum2016’ in Düsseldorf,
Germany on 29 February. High-level German industry

and governmental representatives discussed thestructural challenges of energy transition and the climate
April-June 2016

IGA News No. 103
change mitigation targets in the state of NorthrhineWestphalia, and particularly the Ruhr area where the
IGA Secretariat is located. Further information isavailable in German online: https://www.klimadiskursnrw.de/.
IGA in GeoTHERM2016 - On 25-26 February, IGA
attended the GeoTHERM 2016 in Offenburg,
Germany. The IGA was also represented with a boothin the exhibition area. A total number of 200 exhibitors
demonstrated their services and products in the two
exhibition halls. GeoTHERM is a large GermanEuropean geothermal exhibition plus congress held
annually. The next GeoTHERM will take place on 1516 February 2017 also in Offenburg. For more info visit
the GeoTHERM website: http://www.geothermgermany.com/.

6
countries, including Norway, South Africa, Saudi Arabia
and Tunisia attended the event, as well as high-level
representatives and guests from 74 countries.
To invite the world to the 2016 Dialogue and topromote the international dialogue on the energy
transition, a GREEN ENERGIEWENDE SOFA
(https://www.energiewende2016.com/the-greenenergiewende-sofa/) travels around the world initiating
discussions at several international meetings andconferences before ending its “tour” in Berlin at thestart of the next dialogue. Further information isavailable online: www.energiewende2016.com. An
online livestream is also available.

New IGA Poster Available - IGA recently launched a
new IGA poster: ‘Geothermal Support Programs in theframework of International Development Cooperation’.
The map shows projects by financial and technicalsupport agencies that assist geothermal development
worldwide. If you wish to print the map in the originalformat feel free to contact the IGA Secretariat (iga@hsbochum.de) to obtain the file.
Lecturer Opportunity - The IGA Academy is starting
its teaching and training activities and has therefore
launched an online application in early April. The IGA
Academy is currently looking for geothermal specialists
who would like to offer academic or technicalgeothermal courses on behalf of the IGA Academy.
Applications will be reviewed by the IGA Education
Committee and the IGA Secretariat to ensure that the
IGA Academy will only offer courses led by highly
qualified lecturers. We hope to receive many good
applications in order to be able to offer a diverse course
program in the near future. The pool of lectures andtheir fields of expertise will be the basis for upcoming
IGA courses. Some courses will be offered incooperation with international universities and shall be
evaluated for future certification and accreditation.
If you would like to apply to become a lecturer onbehalf of the IGA Academy, please feel free to apply via
the following website: http://www.geothermalenergy.org/iga_academy/geothermal_experts.html.
The IGA at the Berlin Energy Transition Dialogue- On 17-18 March, the IGA Executive Director
attended the second Berlin Energy Transition Dialogue
in Berlin, Germany. Via this dialogue platform, theGerman Federal Government continues sharing
experiences on the energy transition (Energiewende).
Foreign Minister Frank-Walter Steinmeier and Federal
Minister for Economic Affairs and Energy Sigmar
Gabriel opened the Energy Transition Dialogue at theFederal Foreign Office. Ministers from numerous
www.geothermal-energy.org

At the event, IRENA launched its 2nd edition of the
REmap in Berlin. The report provides an in-depth
perspective on the energy transition in 40 countries,
representing 80% of carbon emitters. To download thereport visit: http://ow.ly/Zi5U8.
On 17 March, the physicist and environmental activist
Amory Lovins, co-founder and director of the Rocky
Mountain Institute was awarded the Officer’s Cross of
the Order of Merit of the Federal Republic of Germany(Bundesverdienstkreuz). His outstanding achievements onshaping the renewable energy pathway led to this
distinguished honor.

AFRICA
Ethiopia: Geothermal
Potential for 10,000 MW, Says
the Geological Survey
April-June 2016

IGA News No. 103
The Geological Survey of Ethiopia (GSE) said thecountry could generate over 10,000 megawatt (MW)from geothermal energy. The Public Relations andCommunication Director at GSE, Tamiru Mersha,
made that remark based on the study his institution
conducted in the rift valley region, an area endowedwith high subsurface temperatures. The study identified
22 potential areas for geothermal energy production.
In addition, the 70 MW project in Aluto-Langano
continues to show progress. A total of four wells will be
drilled in collaboration with the Japanese Government(see IGA News 102, pp. 8-9). Two of these wells, withdepths of 1920 and 1953 meters have already been
completed. According to Tamiru, the GSE would handover the remaining two wells to the Ethiopian ElectricPower this year. He further said preparations areunderway to begin work on another project that could
generate 100 MW around the Tendaho area, Afarregional state. The GSE would work with the Ethiopian
Electric Power to identify potential areas and drill wells
as various stakeholders have expressed interest to takepart in the work.
Source:http://www.fanabc.com/english/index.php/news/item/4953-ethiopia-capable-to-generate-over-10,000mwgeothermal-energy-study

Kenya: Developments in
Olkaria, Grant for Akiira
KenGen to develop Olkaria V and VI – Kenya andJapan signed a 46 billion yen (US$408 million) loan
agreement for the construction of the Olkaria V
geothermal power station that is expected to be
operational within the next two years. Kenya Electricity
Generating Co. (KenGen) announced it will receive theloan from the Japan International Cooperation Agency(JICA) for the construction of the plant, composed of
two units each with an installed capacity of 140 MW.
KenGen plans to tender for the construction of the
facility, located about 70 km (44 miles) northwest of thecapital, Nairobi. Construction is expected to begin in thethird quarter of 2016, and power from the plant would
be added to the national grid by 2018. In early April, thejapan Deputy Embassador to Kenya, Mikio Mori,
confirmed that the procurement phase of the Olkaria V
project was complete. “Bids have been sent to three
applicants who were successful in the request for
proposal stage. We expect construction works on the
power plant to start in five months,” said Mori, but did
not disclose the three applicants.
It was also unveiled that KenGen has agreed to invest
US$650 million in the construction and development ofproject Olkaria VI, which will have a total installedcapacity of 180 MW. Thus, the investment per MW will
www.geothermal-energy.org

7

UPCOMING EVENTS
3rd Iceland Geothermal Conference (IGC)
26-29 April 2015, Reykjavik, IcelandInternational 100% Renewable Energy
Conference (IRENEC)
26-28 May 2016, Istambul, Turkey
4th Indonesia International Geothermal
Convention & Exhibition (IIGCE 2016)10-12 August 2016, Jakarta Indonesia(Special fee for IGA Members: US$400)
European Geothermal Congress (EGEC 2016)19-24 September 2016, Strasbourg, France
40th GRC Annual Meeting & GEA Geothermal
Energy Expo
23-26 October 2016, Sacramento, CA, US
6th African Rift Geothermal Conference(ARGeo-C6)
31 Oct-6 Nov 2016, Asmara, Eritrea
German Geothermal Congress (DGK 2016)29 Nov-1 Dec 2016, Essen, Germany
Note: Please check the IGA website for more
events.
be US$3.61 million. The company may partner with US,
Chinese or Indian investors to finance and develop
geothermal power plants, including that of Olkaria VI.
The company will probably take a minority stake in the
Olkaria VI geothermal power plant. The construction of
the power plant is expected to start in 2018.
KenGen plans to more than double its generation
capacity to 4270 MW by 2025 at a cost of US$8.1
billion.
Sources: http://www.4-traders.com/KENYAELECTRICITY-GENERAT-9295413/news/KenyaElectricity-Generating-to-Invest-USD650-Million-inOlkaria-VI-Geothermal-Power-Plant-in-Keny21731245/, http://www.theafricareport.com/EastHorn-Africa/energy-kenya-signs-408-million-loan-withjapan-for-140-mw-geothermal-plant.html,
http://www.bloomberg.com/news/articles/2016-0128/kengen-of-kenya-secures-387-2m-from-jica-forgeothermal-plant,
http://www.standardmedia.co.ke/business/article/2000
196774/olkaria-v-ground-breaking-expected-in-august
Olkaria III Reaches 140 MW – Ormat Technologies,
Inc. announced in early February that it reached
April-June 2016

IGA News No. 103

8commercial operation of Plant 4 in the Olkaria III
complex in Kenya, increasing the complex’s total
generating capacity by 29 MW to 139 MW. Plant 4 willsell its electricity to Kenya Power and Lighting
Company Limited (KPLC) under a 20-year Power
Purchase Agreement (PPA). In October 2015, Ormat
signed an amendment to the PPA that enables theincrease the capacity of Plant 4 in phases, to an
aggregate of 100 MW.
Ormat has implemented a multi-phased development
strategy in Olkaria III. The first phase of Plant 1
commenced operation in 2000 and the second one in2009. Plant 2 began commercial operation in 2013 andplant 3 in 2014. Ormat financed the first three plants ofthe complex with a US$310 million debt facility
provided by the Overseas Private Investment
Corporation (OPIC), the U.S. Government’s
development finance institution. Plant 4 was financedby Ormat equity which is covered under an insurance
policy from MIGA (a member of the World Bank
Group) to cover its exposure to certain political risks
involved in operating in developing countries.
“Now that we have the commercial terms in place, wewill continue to evaluate the feasibility of future
expansions of the Olkaria III complex as well as otherprospects to support our growth in Kenya,” noted Isaac
Angel, Ormat’s Chief Executive Officer.
Source: http://www.ormat.com/news/latestitems/ormat-announces-commercial-operation-plant-4olkaria-iii-kenya-expanding-complex-c

Drilling in Akiira.

Grant for Exploratory Drilling in Akiira - Akiira
Geothermal Limited has received a Sh138 million(US$1.36 million) grant from the African Union
Commission (AUC) to fund exploratory drilling which it
is currently undertaking in Naivasha. The grant by AUC
is part of the Geothermal Risk Mitigation Facility and is
aimed at mitigating financial risks at early stages ofgeothermal exploration. The firm started exploratory
drilling in August 2015 in a bid to construct a 70 MW
www.geothermal-energy.org

geothermal power plant. According to Akiira
Geothermal’s Chief Executive Robert Bunyi, two wells
have been drilled and a third one will be drilled in April
2016. In August 2015, the company signed a PPA with
Kenya Power at a cost of 9.23 US cents per kWh. The
project is composed of three 70 MW stages each, withthe first one scheduled for December 2018. The
company received a Sh86 million (US$ 850,000) grantfrom the Overseas Private Investment Corporation(OPIC) in October 2014 as part of President Obama’s
Power Africa program that facilitated to pay for thetechnical and legal work needed before drilling. Akiira
Geothermal Ltd. is owned by Centum Investments inconjunction with other three entities that include Ram
Energy and Marine Power from the US and Frontier
Investments Management ApS from Denmark.
Source:http://www.capitalfm.co.ke/business/2016/03/akiirageothermal-limited-gets-sh138mn-for-explorationworks-2/

Tanzania: Support for
Geothermal Exploration andDrilling in Lake Ngozi by Next
June
The Ministry of Energy and Minerals of Tanzania
signed a cooperation agreement to support geothermal
development in the country, under the joint Nordic
Development Fund (NDF) and Icelandic International
Development Agency (ICEIDA) regional Geothermal
Exploration Project. The main objective of this regional
project is to assist countries in the East Africa Rift
Valley to enhance geothermal knowledge and capacity inorder to enable further actions on geothermal utilizationand complete the exploratory phase of geothermal
development. The Geothermal Exploration Project is
the initial phase of the Geothermal Compact
partnership program, initiated jointly by ICEIDA andthe World Bank. This includes active support during the
exploration phase.
The implementing agency in Tanzania is the Tanzania
Geothermal Development Company (TGDC). TGDC
was incorporated in December 2013 as a 100% stateowned company with the mandate of spearheading
geothermal resources development in the country. The
objective of the sub-project is to enhance knowledge of
selected geothermal areas of the country, including
Luhoi, Ngozi and Kiejo-Mbaka, and to identify potentialsites for exploration drilling and improved capacity toadvance geothermal energy production. The sub-projectplaces particular emphasis on building the capacity of
Tanzanian experts through hands-on training during
surface exploration and lectures on methods and datainterpretation.
April-June 2016

IGA News No. 103
Sources: http://www.ndf.fi/news/supportinggeothermal-development-tanzania,
http://www.ndf.fi/project/geothermal-explorationproject-ndf-c48

9
GIDS Consult Limited is currently carrying out
geothermal exploration and evaluation studies with anaim of installing an at least 100 MW geothermal power
plant at the Buranga prospect. The company is planningto drill three deep exploration/production wells at theprospect and install a 30 MW wellhead unit at eachsuccessful well.
Source: http://africastopover.com/shop/publicsector/geothermal-exploration-and-development-atburanga-prospect/

AMERICAS
Caribbean: Activities in Nevis
and St. Vincent and the
Grenadines
Geothermal fieldwork in Tanzania. Photo: ICEIDA.
In other news, the Minister of Energy and Minerals,
Prof. Sospeter Muhongo, has directed TGDC that it
must begin drilling three wells in the area of Lake Ngozi
by June 2016. “We cannot continue waiting due to theelevated shortage of power the country experiences
while Tanzania is where the Rift Valley covers huge area
compared to other countries within a region,” he said.
The Minister explained that according to a research
conducted in the field, the expected subsurface
temperature is between 230 and 250°C.

St. Kitts and Nevis - The tiny volcanic island of Nevis
is located in the northern region of the Lesser Antilles.
With a population of 12,000, it currently imports 4.2
million gallons (15.9 million liters) of diesel fuel annuallyat a cost of US$ 12 million. Nevis consumes a
maximum of 10 MW of energy. Nevis is the smaller
island of a pair, known as the Federation of St. Kitts
and Nevis. It is home to active hot springs and a large
geothermal reservoir. Seven volcanic centers have been
identified on Nevis, and drilling at three sites has
indicated that the geothermal reservoir is capable ofproducing all the electric energy the island demands.

Prof. Muhongo advised the company to continue with asignificant exploration in other areas that show similar
indicators, including the Mbaka area in the Rungwe
district. He said three foreign companies, including
Symbion Tanzania, have already shown interest toinvest in geothermal in collaboration with the Tanzania
Petroleum Development Corporation (TPDC).
Source:http://allafrica.com/stories/201602081329.html

Uganda: Geothermal
Exploration at Buranga
Prospect
The Government of Uganda is promoting the use ofrenewable energy sources as alternatives or supplements
to other traditional sources like hydropower, and fossil
fuels (oil and gas). Among the renewable sources ofenergy being considered is geothermal energy. Prefeasibility studies at the Buranga geothermal prospectindicate subsurface temperatures of approximately 150 200°C. The temperatures are suitable for electricity
production and direct use in industry and agriculture.
www.geothermal-energy.org

Deputy Premier and Minister of Tourism of Nevis, andMinister of Foreign Affairs of St. Kitts and Nevis Mark
Brantley said: “About 10 years ago we discovered that
we have geothermal energy here. It has taken a while
but we are now at a stage where all the exploration work
has been done and we have been assured thatgeothermal goes live in December of 2017. What thatmeans is that when that plant switches on in Decemberof 2017, fully 100 per cent of Nevis’ electricity will be
April-June 2016

IGA News No. 103
supplied by renewables. Nowhere else in the world canboast that and so it will make us the greenest place onplanet earth. That’s the new tagline – the greenest place
on planet earth.”
The Nevis project is developed by Nevis Renewable
Energy International (NREI, which is an affiliate ofTexas based Thermal Energy Partners LLC (TEP).
NREI said in late March that the Italian company
Turboden has been selected through a competitive bid
process, to provide ORC turbines and to serve as theengineering, procurement and construction (EPC)
contractor for its 9 MW geothermal project in Nevis. As
the equipment provider and the lead company providing
EPC services, Turboden will provide high efficiency
binary cycle generation equipment that maximizes theavailable energy from the Nevis geothermal reservoir,
informed NREI.
Sources: http://www.caribbean360.com/news/nevishas-a-date-with-geothermal-energy#ixzz3yV3mUbEC,
http://antiguaobserver.com/nevis-envisages-sellingpower-to-antigua-barbuda/,
http://www.thinkgeoenergy.com/nevis-geothermalproject-chooses-turbine-supplier-and-epccontractor/?utm_source=ThinkGeoEnergy+List&utm_
campaign=e7f265fafeTGE_Newsletter_RSS1_12_2015&utm_medium=email&utm_term=0_657e42f767-e7f265fafe-415210497
Loan to Construct a 15 MW Power Plant - The Abu
Dhabi Fund for Development (ADFD) will loan St.
Vincent and the Grenadines Dh55 million (US$15
million) to install a geothermal power station in this
volcanic island country. Working with the International
Renewable Energy Agency (IRENA), the project isbeing funded as part of the Dh1.285 billion (US$350
million) project facility, set up in 2012 to provide
finance for renewable energy projects in developing
IRENA member countries. The geothermal power plantis planned to generate 15 MW. When finished, the plant
will cut the cost of electricity generation by 25 per cent,and make the grid more resilient to power cuts.

10
growing needs of developing countries, and supporting
their social and economic development,” said
Mohammed Al Suwaidi, director general of ADFD. He
added that despite the potential of renewable energy insustainable development across the world, funding forcostly sustainable projects remains one of the biggest
barriers to enabling universal energy access.
Source:http://www.thenational.ae/uae/environment/abudhabis-dh55m-loan-to-st-vincent-for-geothermal-power

Chile: Generators for Cerro
Pabellón Are underConstruction in England
Located on an Andean plateau 4500 m above sea levelin the north of Chile at Cerro Pabellón, the firstgeothermal plant in South America is underconstruction following a US$320 million investment,
financed through resources provided by Enel GreenPower. Cerro Pabellón is thought to be the first binary
geothermal plant in the world to be built at such a highaltitude. It is due to be completed in 2017.
Brush, an English manufacturer of power generationequipment including turbogenerators and switchgear,
based in Loughborough, England, is supplying thegenerators for the Cerro Pabellón project. They are two
specially-modified, 27.6 MW, four-pole, 1500 rpm
generators to the site with a rated voltage of 9500 V anda power output of 32,471 kVA. The generators will be
powered by 15 MW turbines and have been designed towithstand the challenges presented by extracting
geothermal energy in high altitude conditions.
Brush said its generators are suitable for corrosive
environments and are extra protected against hydrogensulfide (H2S) and sulfur dioxide (SO2), which pose asubstantial operational hazard. The company said its
four-pole generators have specialist anti-corrosive paintlayers to protect against long-term damage.

St. Vincent Prime Minister Ralph Gonsalves
said: “The proposed geothermal power plant
will give a strong boost to the energy sector
in our country, supporting its economic
growth and development programs.” As a
volcanic island, geothermal energy is inabundance in the Caribbean country and the
project will help drive the wider energy
sector and help support sustainableeconomic development across the country’s
32 islands.
“ADFD has paid particular attention to therenewable energy sector, given the essential
role of the sustainable energy in meeting thewww.geothermal-energy.org

A Brush generator for Cerro Pabellón. Photo by Brush.
April-June 2016

IGA News No. 103
Brush, also informed that at high altitudes the air ismuch thinner. Due to this effect, all high voltage
electrical clearances need to be much greater to reduce
the potential for any damaging partial discharge activity
in the stator windings. Erwin van Campen, project
manager for Brush, said, “Because of the pressures puton the electrical insulation at 4500 m, we have de-rated
the voltage of the generators from the usual 13.8 to 9.5
kV to counteract any potential energy-loss scenarios…
We also had to re-evaluate our approach to cooling thegenerators due to the thinner air that circulates inside
the cooling circuit. However, at such heights ambient
temperatures can reach extremes of -31°C, which posessignificant challenges…”
Van Campean concluded, “Cerro Pabellón is not only
pushing the boundaries of geothermal energy, it istesting the limits of generator capacity in the harshest of
climates.”
Source: http://www.dieselgasturbine.com/March2016/Unlocking-The-Power-Of-GeothermalEnergy/#.VvtOjuJ9601

Ecuador: Pre-feasibility Studyat the Chachimbiro
Geothermal Project11
cooperation in renewable energy and energy efficiency
amounting to almost US$20 million.
Source: http://renewables.seenews.com/news/to-thepoint-japan-supports-new-geothermal-studies-inecuador-513662

El Salvador: Expectations toIncrease the Share ofGeothermal to 40% by 2019
The Government of El Salvador has announced its
ambition to raise the share of geothermal energy in the
country’s electricity supply by 15%. According to theplans, geothermal energy would represent a 40% sharein the energy mix, so said Eugenio Chicas, the Secretaryof Communications of the Presidency of El Salvador.
In a statement, he indicated that these plans are part of a“best effort” that seeks to change the energy supply of
El Salvador to renewable energy sources. There were nocomments on any possible investment or how many
geothermal projects would be developed and who
would help achieve the objective for geothermal energy
development.
“The expectation is that at the end of the mandate wewill depend 40% on geothermal energy, but also to groweven more in hydropower,” said the Government’s
spokesman, adding that “also is betting onenergy production based on gas, solar andwind power.”
He explained that this transition will help
improve the economic dynamics “that thecountry has begun to walk” which, he said,
has led to a growth rate between 2.4% and2.6% in 2015.
Source: http://www.thinkgeoenergy.com/elsalvador-plans-to-reach-a-40-share-ofgeothermal-in-energy-mix-by2019/?utm_source=ThinkGeoEnergy+List&
utm_campaign=d70cf9da42TGE_Newsletter_RSS1_12_2015&utm_medi
um=email&utm_term=0_657e42f767d70cf9da42-415210497

In April, Ecuador will launch a detailed pre-feasibility
study at the Chachimbiro geothermal project funded bya US$7 million grant from the Japan International
Cooperation Agency (JICA). The project is located in
Urcuqui, Imbabura province (see IGA News No. 102,
pp. 12-136). The study will be conducted by the stateowned power company Corporación Eléctrica delEcuador (Celec), through its Termopichincha unit.
Chachimbiro is part of the Ecuadorian-Japanesewww.geothermal-energy.org

In other news, the Transactions Unit (Unidad
de Transacciones), in charge of managing thetransmission grid and the wholesale electricity market of
El Salvador, informed that geothermal energy produced
22% of the total power generated in the country in
2015, which was 6310.4 GWh. In other words,
geothermal power plants produced around 1380 GWh,
being the main source of renewable energy.
Source:http://www.laprensagrafica.com/2016/02/01/demand
a-de-energia-crecio-4-en-2015
April-June 2016

IGA News No. 103

Honduras: Construction at
Platanares Begins
Ormat Technologies, Inc. announced in January that its
indirect, wholly-owned subsidiary has commenced
construction of the 35 MW Platanares geothermal
project. The project was acquired by Ormat in
December 2013 via a Build, Operate, and Transfer(BOT) contract with ELCOSA, for approximately 15
years from the commercial operation date (COD). In
December 2015, Ormat concluded the drilling activity
as well as extensive tests that support the decision to
construct a 35 MW project, which is larger than initiallyestimated.
Geotérmica Platanares will sell its power, mainly under
30-year power purchase agreements with the national
utility of Honduras, ENEE. The project expects toreach commercial operation by the end of 2017 andgenerate an average annual revenue of approximately
US$33 million. Isaac Angel, Ormat’s Chief Executive
Officer stated that “Following a prudent process of field
assessment and development, and in line with ourcontinued focus on plant optimization, we were able toincrease the projected capacity of the Platanares plant to
35 MW and improve the expected returns… The
Platanares project will be the first geothermal project in
Honduras and will further expand Ormat’s global
presence.”

12
Víctor graduated from Mexico’s Universidad Autónoma
Metropolitana (UAM) as Energy Engineer in 1978 andjoined the Geothermal Department of IIE (the Mexican
Electrical Research Institute, where he started his longcareer in geothermal engineering. He had training inreservoir engineering at Stanford University in 1980 andin reservoir simulation at Intercomp (Houston, USA)
in1981-82.
A great deal of his work focused on developing
mathematical models and other techniques for reliablecharacterization, evaluation and monitoring theevolution of geothermal reservoirs. His work included
studies on the Los Azufres, Cerro Prieto, Las Tres
Vírgenes and Los Humeros Mexican geothermal fields,
as well as in the Chipilapa (El Salvador), Macizo
Volcánico del Ruiz (Colombia) and Platanares(Honduras) fields. In 1992, he was promoted toManager of the Geothermal Department, a job he held
successfully until his untimely death. His tenure wascharacterized by his affability, optimism andcontributions to the development of geothermal energy
in Mexico.

The Platanares geothermal project is regulated by the
Law to Promote the Generation of Electric Energy by
Renewable Resources, which was enacted in 2007.
Under this law, the project may benefits from an
income tax exemption during the first 10 years ofoperation.
Source: http://www.ormat.com/news/latestitems/ormat-announces-start-construction-35-mwplatanares-geothermal-project-honduras

México: In Memoriam Víctor
Manuel Arellano Gómez(19.09.1955 – 30.01.2016)
Eduardo R. Iglesias, IGA Information
Committe
Víctor Manuel Arellano Gómez, Manager of the
Geothermal Department of the Instituto deInvestigaciones Eléctricas (IIE), Full Member of the
National Academy of Engineering (Mexico), Member ofthe Mexican National System of Researchers andoutstanding researcher in the fields of geothermal
reservoir engineering, geochemistry and softwaredevelopment for geothermal applications passed awayon 30 January 2016.
www.geothermal-energy.org

In 1987, he received a Master’s Degree in Engineeringwith mention of honor from the Universidad Autónoma
del Estado de Morelos, developing (under mysupervision) the first expert system in the world
April-June 2016

IGA News No. 103(ANAPRESS) to automatically analyze pressure tests inwells.
Víctor was a founding member of the Mexican
Geothermal Association (AGM) created in 1992, was its
President during the 1994-1995 period and remained an
active member until the end. He received the 2012
Pathé Distinction, the more important recognition in
Mexico from the AGM. He was also a veteran memberof the International Geothermal Association. Víctor wasa member of editorial board of Geothermics (1994-1997);
he was recognized by Renewable Energy Global
Innovations in 2011 when he developed an original
methodology to study the response to exploitation ofgeothermal reservoirs. Among his other many
recognitions, he received Best Paper Award from the
Geothermal Resources Council (2006 and 2007). He
had more than 200 publications on geothermal energy,
including articles, proceedings, book chapters andreports. He also gave training in geothermal energy in
Mexico and abroad.
Victor is survived by his wife, Dr. Rosa María BarragánReyes, a well-known geothermalist and former memberof the IGA Board of Directors (2004-2010). Rest inpeace Víctor, his many friends and colleagues will misshim. A website in his honor can be found at:www.victorarellanogomez.org.mx.

Nicaragua: Eruption of the
Momotombo Volcano
The Momotombo volcano began erupting in December,
for the first time in a hundred years, throwing gas andash into the air. The Advanced Spaceborne Thermal
Emission and Reflection Radiometer (ASTER) recently
passed overhead and took an incredible picture of the
volcano. The image clearly shows how lava flows in thecommunity of El Papalonal came near the 22 MW

13Momotombo geothermal plant to the SW of the
volcano owned by Empresa Nicaraguense deElectricidad (ENEL). Momotombo is an iconic
stratovolcano in Nicaragua, and is located near Leon,the country’s second-largest city. Notable eruptions
have forced evacuations in the past; e.g., the city had tobe moved 30 miles away in 1610 following a major
eruption and its remains, León Viejo, is now a World
Heritage Site.
Source: http://www.gizmodo.in/science/NicaraguasMomotombo-Volcano-Is-Glorious-In-False-ColorSatellite-Imagery/articleshow/51283578.cms

US: Ormat’s Projects,
Generation in California andClimate Plan on Hold
Ormat to Add up to 190 MW of Geothermal
Capacity to its Portfolio by 2018 - Nevada-based
Ormat Technologies plans to add between 160 MW and
190 MW of geothermal generation capacity globally toits portfolio by the end of 2018, Ormat CEO Isaac
Angel said on late February. Of that total, 21 MW will
be added this year from the 7 MW expansion of the
Bouillante facility in Guadeloupe and completion of the
14 MW first phase at the Sarulla project in Indonesia.
The company’s expansion plans will include bringing
new plants online, expanding existing plants and adding
capacity through acquisition. Angel said Ormat has
begun development efforts at two U.S. projects in
Nevada —Tungsten Mountain and Dixie Meadows.
Each project should have an installed capacity of 25 to
35 MW when complete. He added that the company
plans to complete construction of Tungsten Mountainin 2017 and Dixie Meadows in 2018. It has drilled
several exploration wells and is currently working tosecure power purchase agreements for both facilities.
With respect to the Bouillante power
plant, in mid March Ormat announced
that it has signed an Investment
Agreement and Shareholders Agreementwith Sageos holding, a fully owned
subsidiary of Bureau de Recherches
Géologiques et Minières (BRGM), theFrench governmental geological survey,
to gradually acquire 85% of Geothermie
Bouillante SA. This company owns andoperates the Bouillante geothermal power
plant
that
currently
generates
approximately 10 MW, and owns two
exploration licenses with a total additional
potential capacity of up to 30 MW, alllocated in Guadeloupe Island, a French
territory in the Caribbean. Ormat expects
to optimize the use of the resource at the

www.geothermal-energy.org

April-June 2016

IGA News No. 103
existing facilities and recover its current production toits design capacity of 14.75 MW by mid-2017.
Additionally, Ormat plans modifications to the existing
equipment, as well as to further develop the asset with apotential of reaching 45 MW in phased development, by
2021. Under the Investment Agreement, Ormat will pay
Sageos an additional amount of up to €16 million(US$17.8 million) subject to the achievement of agreed
production thresholds and capacity expansion within adefined timeframe.
Sources:
http://www.renewableenergyworld.com/articles/2016/
02/ormat-to-add-up-to-190-mw-of-geothermalcapacity-to-portfolio-by-2018.html,
http://www.ormat.com/news/latest-items/ormatsigns-definitive-agreements-acquire-geothermal-powerplant-island-guadeloupe
Good Start for Geothermal in California - On 3
January 2016, geothermal energy was the biggest
provider of electricity from renewable sources to the
California Independent System Operator (CAISO) grid,with over 26,000 MWh (see the attached graph). Solarenergy (PV and thermal) peaked at noon and supplied
21,079 MWh. Wind provided 17,555 MWh.

14
The Supreme Court Puts Obama’s Clean Power
Plan on Hold - A divided US Supreme Court agreed tohalt enforcement of President Barack Obama’s
sweeping plan to address climate change (see IGA News
102, pp. 13-14) until after legal challenges are resolved.
The surprising move is a blow to the administration anda victory for the coalition of 27 mostly Republican-led
states and industry opponents that call the regulations“an unprecedented power grab.”
By temporarily freezing the rule the high court’s ordersignals that opponents have made a strong argument
against the plan, which aims to stave off the worst
predicted impacts of climate change by reducing carbon
dioxide emissions at existing power plants by about onethird by 2030. A federal appeals court last monthrefused to put it on hold.
The appeals court is not likely to issue a ruling on theplan until months after it hears oral arguments begin on
2nd June. But any decision likely would be appealed to
the Supreme Court, meaning resolution of the legal fightis not likely to happen until Obama leaves office.
Compliance with the new rules is not required until
2022, but states must submit their plans to theEnvironmental Protection Administration (EPA) by
September or seek an extension. Implementation of therules is considered essential to the US meeting emissionreduction targets in a global climate agreement signed in
Paris in December 2015. The Obama administrationand environmental groups also say the plan will spurnew clean-energy jobs.
The US is still on course to sign the Paris agreement in a
New York ceremony organized by UN secretary-general
Ban Ki-moon this April, the White House has signaled.
And its emissions target of at least a 26% cut on 2005
levels by 2025 may be conservative, environmentalists
argue. The US could reach the Clean Power Plan’s 2030
target five years in advance as coal power stations are
retired in greater numbers.

Geothermal energy in California supplies a steadyaverage of about 1000 MW, 24 hours a day, 365 days ayear. On 3 January the hour-average was 1091.7 MW
and the peak was 1096 MW. Taking into account that
renewables supplied 14.4% of the total electric demandthat day, geothermal represented 4.74% of that total in
the region operated by CAISO.
Source:http://geothermalresourcescouncil.blogspot.mx/2016/01/usa-california-geothermal-is1.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed:+GlobalGeothermalNews+(Global+Geothermal+News)www.geothermal-energy.org

Sources:
http://www.pennenergy.com/articles/pennenergy/201
6/02/supreme-court-puts-obama-s-clean-power-planonhold.html?cmpid=EnlDailyPowerFebruary102016&eid=291021978&bid=1306429,
http://www.climatechangenews.com/2016/02/12/usgreen-groups-this-is-not-kyoto-mark-two/
250 MW Geothermal Project Could Be Developedin the Salton Sea – California’a Imperial Irrigation
District (IID) recently approved a 1900-acre (526hectares) lease for the Australian company Controlled
Thermal Resources to develop a 250 MW geothermal
plant in one of the state’s most geothermal-rich areas,
the Salton Sea. The project will help California to meet
April-June 2016

IGA News No. 103

15

the new 50% renewables-by-2050 mandate
by bringing down costs through economies
of scale and delivering price-competitivenessbaseload generation, necessary to balance theintermittency of renewables.
The project has still a few hurdles ahead ofit, such as securing a buyer for its electrical
output and garnering approval by the
California Energy Commission. The
developer will pay IID about US$40,000 per
year for the next three years, about $200,000
per year after construction begins androyalties on its electrical output. The Salton
Sea area already hosts 11 small geothermal
plants, but the geothermal development is
Stillwater hybrid geothermal-solar plant (source: EGP).
estimated to have 1.05 to 1.81 GW ofsystems of its kind in the United States. In 2015, thegeneration capacity by 2030, according to a recent study
company developed a solar thermal system to operate infrom the National Renewable Energy Laboratory
conjunction with the existing Stillwater geothermal(NREL).
power station.
Source: http://www.utilitydive.com/news/australianSource: http://www.thinkgeoenergy.com/italian-primecompany-unveils-major-250-mw-geothermal-project-inminister-inaugurates-geothermal-solar-hybrid-plant-incalifornias/415798/
nevada/?utm_source=ThinkGeoEnergy+List&utm_ca
Formal Inauguration of Hybrid Plant in Nevada mpaign=3ea41e220dItalian Prime Minister Matteo Renzi, Enel CEO
TGE_Newsletter_RSS1_12_2015&utm_medium=email
Francesco Starace, Enel Green Power CEO Francesco&utm_term=0_657e42f767-3ea41e220d-415210497
Venturini and Nevada Governor Brian Sandoval,
attended on late March the inauguration of Enel GreenPower’s Stillwater renewable hybrid facility in Fallon,
ASIA/PACIFIC RIM
Nevada. Stillwater is the world’s first power plant to
combine medium enthalpy, binary cycle geothermal,
India: The Government tosolar thermal and solar photovoltaic technologies at theInvest in Kenya’s Geothermal
same site. The Director of the National Renewable
Energy Laboratory (NREL), Dr. Martin Keller, US
Projects
Senator Dean Heller, US Representative Mark Amodei
The Government of India is planning to invest US$200
and other US national, state and local dignitaries also
million in geothermal power production in Kenya’s
attended the event.
Nakuru and Baringo counties through the Line Credit
By combining generation technologies of different
Initiative, one of the Government of India development
profiles at one production site, energy availability is
assistance instruments.
increased and energy intermittency reduced. Geothermal
During a recent visit to Nakuru County, Suchitra Durai,
and
solar
(thermalandphotovoltaic)areIndia High Commissioner to Kenya talked about India’s
complementary, meaning that production from solar isinvestments in many projects in Africa. “GDC (thehigher during the sunniest and hottest days of the year,
state-owned Geothermal Development Company) has
when the thermal efficiency of the geothermal plant is
geothermal projects in Suswa (Nakuru) and Baringo
lower. In addition, research findings between March and(Silali-Bogoria), we are planning to invest in this and we
December 2015 confirm that the combination of 2 MW
are at the moment in discussions with GDC. Studies
of a solar thermal facility with 33.1 MW of thehave been done by Indian companies and these havegeothermal plant increased overall output at Stillwater
been examined by our Ministry of External Affairs in
by 3.6% compared with production from geothermal
New Delhi. There were some clarifications that we
only.
wanted and that is why I have come to see the projects
The Stillwater plant began operation in 2009 with thein Menengai and Olkaria geothermal complexes’, saidcompletion of the geothermal plant. Since then, the site
Suchitra. She added they have been in discussion withhas served as a hub of innovation for EGP. In 2012, theGDC for more than a year and now that the Indiancompany added a 26.4 MW solar PV unit to thePrime Minister Narendra Modi has announced a line ofgeothermal plant –at the time one of the largest PV
credit for projects all over Africa they would like to take
www.geothermal-energy.org

April-June 2016

IGA News No. 103
it forwards as they would like Kenya to benefit withsome projects.
The high commissioner also noted that through theIndian Technical and Economic Cooperation Program
they have 250 capacity building courses for government
employees and asked the County Government of
Nakuru employees to take advantage of them. These
courses are in numerous fields, and take three weeks to
six months and are fully funded by the Indian
Government, each year Kenya is given 75-100 slots.
The acting managing director and chief executive GDCPaul Ngugi said the financing by the Indian
Government will facilitate drilling in Suswa and SilaliBogoria. “The financing will mainly provide drillingmaterials such as casings, rock bits and valves for wellhead equipment. Part of Suswa is in Nakuru and SilaliBogoria is in Baringo County’, said Ngugi.
Regarding direct geothermal uses at Menengai
Geothermal Complex, Ngugi mentioned that soon
GDC will seek the cooperation of the County
Government of Nakuru in the creation of industrial
parks as they are better suited to utilize opportunities
available from steam direct use. Also GDC is seeking
partnerships with local communities because using ofsteam to heat fish ponds and greenhouses can beapplied by people on the ground.
Source:http://www.hivisasa.com/nakuru/business/116251

Indonesia: Recent
Developments, Prices,
Probable New Company andCooperation Activities
More Than 1700 MW to Be Added in 2016-2019 According to the Indonesian Ministry of Energy andMineral Resources (MEMR), 1716 MW of geothermal
power will be added to the grid between 2016 and 2019:
Year
2016

2017

2018

2019

Project Name (and capacity in MW)
Lumut Balai (55), Karaha (30), Sarulla (114),
Lahendong (20), and Ulubelu (55). Total:
274
Ulubelu (55), Sarulla (118.5), Lahendong(20), and Liki Pinawangan Muaralaboh (70).
Total: 263.5
Sarulla (118.5), Lumut Balai (55), Hululais(55), Tulehu (20), Rantau Dedap (220), Gn.
Rajabasa (110) and Dieng (55). Total: 633.5.
Gn. Rajabasa (165), Dieng (165), Karaha(60), Cisolok-Cisukarame (45) andPangalengan (110). Total: 545

www.geothermal-energy.org

16
The MEMR explained that “Geothermal development
within the next five years will be focused on thedevelopment of geothermal potency having a highenthalpy, while geothermal potency having a mediumlow enthalpy will be developed within the next 10 years
and also the small scale geothermal development.”
If all of those new projects are installed as planned,
geothermal power in Indonesia will be doubled in justfour years, from the current 1438.5 MW reported by theend of 2015. The Government faces several challenges,
and the MEMR will develop five strategic steps forregulation production bonus, direct and in-direct
utilization, among other issues. The Government willdevelop Geothermal Opened Areas throughGeothermal Preliminary Survey Assignments (PSP) or
Preliminary Survey Assignments plus Exploration(PSPE) and the Policy on Geothermal electricity saleprices by using Feed-in Tariffs (FIT) and State Capital
Participation (PMN) in geothermal projects.
In addition, the Government of Indonesia will offer 21
geothermal blocks to investors over the next two years.
Combined these 21 blocks, which are estimated torequire US$4.2 billion in investment, have a power
generation capacity of 1065 MW. An official ofIndonesia’s MEMR said that 16 blocks will be offeredthrough an open auction, eight in 2016 and eight in2017. For the remaining five geothermal blocks theGovernment will select the operator (a state-owned
company) through direct appointment. Most likely theGovernment will appoint Pertamina Geothermal
Energy (PGE), subsidiary of energy company
Pertamina, to operate these blocks. The first open
auction is reported in the next note.
Sources: http://www.esdm.go.id/index-en/50geothermal/8070-the-government-targeted-pltpinstalled-capacity-for-1751-mw-for-five-years.html,
http://www.indonesia-investments.com/news/todaysheadlines/government-of-indonesia-to-auctiongeothermal-power-blocks/item6391
Government Assigns 11 Geothermal Work Areas The Ministry of Energy and Mineral Resources willassign state-owned enterprises (SOEs) to manage 11
geothermal working areas this year. “A number of SOEs
have submitted their applications,” said Saefulhak
Yunus, director of geothermal energy. According to
Yunus, Pertamina is proposing to work on fivegeothermal areas, PLN applies for four work areas,
while PT Geo Dipa Energi (Persero) asks for two. The
Energy Ministry has not revealed which 11 geothermal
working will be assigned to the three SOEs, because isstill reviewing their proposals. The government’s plan toassign SOEs to manage the 11 geothermal working
areas is part of the Energy Ministry’s target to offer 27
geothermal areas with a total capacity of 1535 MW until
2017. The paperwork for the management of the other
April-June 2016

IGA News No. 103
16 work areas is being prepared. Of the 27 work areas
offered, five have been offered to the public.
Source:http://en.tempo.co/read/news/2016/04/01/05675895
5/Govt-Assigns-11-Geothermal-Work-Areas-to-SOEs

17
The eight new contracts were officially signed in a
ceremony on 12 February in the presence of Vice
President Jusuf Kalla and Energy and Mineral Resources
Minister Sudirman Said. The signatories include
President Director of PT Pertamina Geothermal Energy
Irfan Zainuddin, President Director of PT PLN(Persero) Sofyan Basir, President Director of PT
Indonesia Power Antonius Resep Tyas, President
Director of PT Supreme Energy Muara Laboh Supramu
Santosa, and President Director of Star Energy
Geothermal Wayang Windu Ltd Rudy Suparman.
Sources:
http://jakartaglobe.beritasatu.com/business/pln-pgesolve-geothermal-quarrel-govt-intervention/,
http://www.antaranews.com/en/news/103074/eightcontracts-signed-for-geothermal-power-and-steamprices, GEA Weekly No. 50.

Photo: Reuters Photo/Beawiharta.
Solved Disagreement over Geothermal Steam
Pricing - Issues have arisen over an attempted
negotiation for steam price sales between Pertamina
Geothermal Energy (PGE), the geothermal division ofIndonesian state energy firm Pertamina, and theelectricity firm Perusahaan Listrik Negara (PLN). PGE
was prepared to cease sales of steam for the Kamojang
geothermal power plant in West Java after the twoparties failed to agree on a lower steam price.
The disagreement casts a negative light on the future ofgeothermal development in Indonesia, whose
competitiveness is in peril due to constantly low global
oil and coal prices. PGE officials stated that they need afair price to make investing in geothermal projects
worthwhile. There is a struggle to balance the price forcustomers with the need for sufficient funding.
Fortunately, after intervention of the State-Owned
Enterprise (SOE) Minister Rini Soemarno, PLN and
PGE reached an agreement in renewing their powerpurchase deal for electricity from the Kamojang and
Lahendong plants. PLN has agreed to purchase steam
for its Kamojang 1, 2 and 3 plants in West Java, at six
cents per kW/h and purchase power at 9.4 cents per
kWh for the Kamojang 4 plant. The utility firm will buy
at six cents per kWh for Lahendong in North Sulawesi.
The prices have lowered since the previous contracts,
but are significantly higher than PLN offered.
Kamojang and Lahendong plants have a combined
capacity of 300 MW, accounting for 20 percent ofIndonesia’s current geothermal production capacity.
www.geothermal-energy.org

Government to Set Up Company to Use Renewable
Energy Only - The Government plans to establish an
electricity company that would use only renewable
power sources, in an effort to boost the development of
renewable energy, Indonesian Energy and Mineral
Resources Minister Sudirman Said said in Jakarta inearly January. The minister mentioned that theaccelerated development of renewable energy would
contribute to the country’s energy security in the longrun. According to the minister, the Government ispreparing policies, funding, technology and humanresources capacity building to accelerate renewableenergy development. He added: “Such a company
would bridge [state electricity firm] PLN’s limitations interms of upstream development budget and it could
support the Government’s ambitious target of achieving
a national energy mix with renewable energy.”
Since the beginning of 2015, Sudirman said, theGovernment had made various efforts to boost
renewable energy development, as covered in Law No.
30/2007 on energy and Government Regulation No. 79/2014 on National Energy Policy (KEN). KEN hastargeted the portion of renewable energy in the nationalmix to hit 23 percent by 2025, almost four times theachievement so far. “That’s why renewable energy
development is certain,” he told. To achieve 25 percent
renewable energy from 35,000 MW power plants,
equivalent to 8750 MW in the next four years, several
power plants have been built.
Source:http://www.thejakartapost.com/news/2016/01/07/go
vt-set-renewable-only-powerfirm.html#sthash.nUMbIIpu.dpuf
Pertamina-BPPT Teaming up to Build Geothermal
Power Plant – The Kamojang Unit of PT Pertamina
Geothermal Energy is cooperating with theTechnological Study and Application Center (BPPT) in
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IGA News No. 103
an experiment to build a geothermal power plant with acapacity of 3 MW. BPPT designed the plant, and thecomponents are produced by PT Nusantara Turbin &Propulsi (NTP), PT Barata Indonesia, and PT Pindad.
Under the cooperation scheme, the Kamojang unit of
PGE will supply geothermal steam to the mini
generating plant that is being built and to be operated by
BPPT. It is located in the working area of the Kamojang
power plant; trial operations are planned for May.
The Kamojang geothermal field that Pertamina hasoperated since 1983 holds one of the world’s best
geothermal reserves in quality. The reservoir produces
dry geothermal steam, which can enter the turbine
directly without the need of chemical treatment.
Currently the Kamojang Unit of PGE has two units; i.e.,
Unit 4 (60 MW) and Unit 5 (35 MW). There are otherthree units operated by PT Indonesia Power, and so thefield has an installed capacity of 235 MW.
BPPT is also cooperating with the PGE’s Lahendong
Unit in North Sulawesi, with a 0.5 MW binary plant.
Abadi Purnomo, Chairman of the Indonesia
Geothermal Association, said the cooperation between
PGE and BPPT is very positive to promotetechnological mastery. BPPT and PGE began
cooperation in Kamojang in 2010.
Source: http://en.republika.co.id/berita/en/jakartaregion-others/16/02/21/o2w4ak317-pertaminabpptteaming-up-to-build-geothermal-power-plant

Japan: Starts Construction ofa New Binary Power Plant
Idemitsu Kosan Co., Ltd. has begun construction of a 5
MW binary power plant at the Takigami (Geothermal)
Office of its wholly owned subsidiary Idemitsu Oita

18
Geothermal Co., Ltd. Since the start of operation of the
Geothermal Power Station of Kyushu Electric Power
Company, Inc., the Takigami Office has supplied steam
used to generate a power equivalent of 25 MW. Since
then, it has contributed to the maintenance of one of
the top utilization rates in Japan for 19 years, including
adaptation to Kyushu Electric’s 27.5 MW output
expansion in June 2010.
Presently, it has begun the construction of a binary
power plant on the same site, scheduled to becommissioned in March 2017. After its completion, thiswill be one of the largest binary power plants in Japan,
with a generating capacity of 5050 kW.
Source:http://www.idemitsu.com/company/news/2015/1603
01.html

Pakistan: Huge Geothermal
Potential
According to Pakistani scientist Javed Ahmad, thegeothermal potential of Pakistan could be up to 100
GW, and the prices of geothermal electricity could be as
low as 5-10 US$ cents per kWh, depending upon thelocation of the power plants. He claims that the US has
offered Pakistan US$7-8 billion for equipment to
explore and exploit those geothermal resources. The
funding would become available to all four federating
units of the country. Pakistan’s Minister for Water andPower, Khawaja Muhammad Asif, has included
geothermal energy in the policy for development of
renewable energy for power generation. This decision
will unfold a series of opportunities for investors to
exploit the geothermal resources in the country forelectricity production.
Javed Ahmad also mentioned that: “USexperts have acknowledged my researchaccording to which the presence of hot waterand steam, springs, fumaroles and geysers
have been found in the Northern Himalayas”.
Field surveys identified mud volcanoes andhot geothermal fluids in Balochistan provinceand dormant volcanoes, 150°C magmaticwaters in the Chagai volcanic Arc in the sameprovince. The research has also pinpointedhydrocarbon basins in Sinch where coproduced geothermal waters have 80-170°C
temperatures. In addition, there are some 300
dry, depleted and abandoned oil and gas
wells, which can be used for geothermalenergy development.

Conceptual drawing of completed facility. Source: Idemitsu.
www.geothermal-energy.org

Source:http://www.thenews.com.pk/print/107521Pak-geothermal-energy-resources-cangenerate-100000MW-power
April-June 2016

IGA News No. 103

Philippines: Mabini,
Maibarara, Transmission Lineand Low Enthalpy Project
Development of the Mabini Project - Drilling will
start in the Mabini geothermal project, Batangas
province in next May, said an official of the Basic
Energy Corp. This company and partners Trans-Asia
Oil and Energy Development Corp. signed a joint
operating agreement for the Mabini geothermal power
project in November 2015, after the approval by the
Energy Department of the deed of assignment for the
Mabini geothermal service contract number 8 of Basic
Energy to Trans-Asia. Basic Energy now owns 75
percent of the service contract, while Trans-Asia holds
the remaining 25 percent. The approved arrangement
calls for a 75-25 equity and project cost participation
between Basic Energy and Trans-Asia. According toprevious prospective estimates, the project could
generate between 20 and 60 MW.
Source:http://thestandard.com.ph/business/196055/basicenergy-to-start-geothermal-drilling-in-batangas.html

Discharge of the first well, Mai6D on Maibarara
project site (source: Maibarara Geothermal Inc.;
taken from ThinkGeoEnergy).
Expansion of the Maibarara Project - Maibarara
Geothermal Inc. said it started the 12 MW geothermal
power plant expansion in Batangas province, as itprepares for full commercial operation in 2017. The
company operates the existing 20 MW Maibarara
geothermal power project in Sto. Tomas, under a joint
venture with Trans-Asia Oil and Energy Development
Corp. and PNOC Renewables Corp. The Energy
Department awarded the Maibarara service contract inFebruary 2010 following an open and competitive
selection process in October 2009. It became the newest
geothermal power facility in the country and the first
www.geothermal-energy.org

19
under the President Aquino Administration, when it
started commercial operation on February 8, 2014. The
Maibarara expansion project involves the installation ofa new 12 MW unit adjacent to the existing 20 MW
Maibarara-1 geothermal project and is expected to add
at least 95,000 MWh to the plant’s annual generation.
Francisco Delfin Jr., Maibarara Geothermal President,
said: “We opted to increase Maibarara-2’s gross capacityfrom 10 MW to 12 MW after the successful flow-test ofwell MB-15RD and the release of an independent
resource validation by California-based Geothermal
Science, Inc., which confirmed more than sufficient
reserves for combined M1 and M2 power generation for
25 years”. He added: “We aim for M2 unit to be on-lineby the third quarter of 2017”.
Source:http://thestandard.com.ph/business/195778/maibarara-expands-geothermal-project.html
EDC Seeks Approval for Transmission Line Energy Development Corp. (EDC) is seeking regulatory
approval to construct a P130-million (US$2.54 million)
facility that will connect the Bac-Man 3 geothermal
expansion project to the Luzon grid. The EDC’s 31
MW Bac-Man 3 geothermal power plant in Sorsogon
province is expected to be operational by December
2017. Once on line, it would help satisfy Luzon’s theincreasing energy demand. In order to supply the energy
to be generated by the Bac-Man 3 project to the public,
EDC must connect the plant to the Luzon grid. For thispurpose, the EDC intends to construct a connection
asset for its exclusive use, which shall connect the plant
directly to the Palayan Bayan switchyard.
The proposed interconnection project consists of a 230kilovolt (kV) connection asset, composed oftransmission wires, steel towers, steel poles and otherrelated facilities. EDC is asking that “the commission
provisionally authorize the development, ownership andoperation of the connection project, considering thatthe impending power crisis projected by the DOE
warrants the issuance of a provisional authority,”
according to its 13-page application.
The Bac-Man 3 project costs P7.6 billion (US$160.6
million). EDC said it has sufficient funds on hand toundertake the project, including the interconnection
project. In September 2015, EDC signed a design andequipment supply contract with Hyundai Engineering
Co. Ltd. and a construction services contract with
Galing Power and Energy Construction Co. Inc., for theengineering, procurement and construction of the BacMan 3.
Source: http://www.businessmirror.com.ph/edc-awaitserc-okay-to-build-p130-million-facility-to-connectgeothermal-project-to-luzon-grid-2/
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IGA News No. 103
Low Enthalpy Geothermal Project in Camiguin - A
Low Enthalpy Geothermal Project (LEGP) will be
undertaken in the island province of Camiguin, which is
known for its seven volcanoes and several volcanic
domes. Using binary technology and other direct-use
applications, the LEGP could produce enough toprovide electric power to the more than 100,000
inhabitants of the province. The geothermal resource
was discovered by officials and technicians of theRenewable Energy Management Bureau (REMB) of the
Department of Energy (DOE).
The Department’s officials identified Camiguin as oneof the potential areas for locally funded LEGPs. The
DOE-REMB will check the rock types, structures,volcanic history and geohydrology of Camiguin throughimageries interpretation and geological surveys,
including measurements of temperature and chemistryof the underground reservoir fluids from the water andgas samples. DOE envisions to formulate policy andguidelines for the development of low-to-medium
enthalpy geothermal energy resources for small-scale
power generation, agro-industrial and direct application.
The agency also plans to offer potential geothermalareas to investors for energy exploration, development,
and utilization
Source: http://www.mb.com.ph/geothermal-plant-toprovide-ample-electricity-incamiguin/#QPBL3I8Qe19CYFwT.99

EUROPE
England: Probable EGS Projectin Cornwall

20
and enough electricity to power around 4000 houses.
Source: http://www.plymouthherald.co.uk/CornwallCouncil-invest-1-5m-hot-rocks-geothermal/story28904681-detail/story.html#ixzz431sWXacZ

Finland: Drilling to Begin in a
New Geothermal District
Heating Project
A Finnish geothermal district heating project isadvancing in Otaniemi, Espoo. There, the company St1Deep Heat Oy has invested in the construction ageothermal heat pilot plant, planning to initiate welldrilling to a depth of seven km in late March or early
April 2016. One of the goals of this pilot project is toincrease Finnish expertise in geothermal. The project isconsidered to be one of the most important researchand product development investments in the field ofenergy in the country.
Through competitive tendering, St1 Deep Heat has
joined Strada Energy as its partner in drilling deep-rockwells. The British company is specialized in geothermal
drilling and utilizes patented technology that makes
deep drilling in Finland’s hard granite bedrock feasible.
Strada Energy CEO Glenn Baldwin expressed that his
company’s “…unique patented fluid hammer operating
system combined with water-based percussion
techniques enables a cost-efficient and quick way to drill
over 7000 meters total measured depth wells in granite.”
It is expected that the well drilling phase will takearound six months. The heat pilot plant is scheduled tobe completed in 2017. The heat generated will be soldto Fortum’s district heating network and will cover a
maximum of 10% of Espoo’s district heating needs.

The cabinet of the Cornwall Council has agreed toinvest £1.5 million (US$2.12 million) into geothermal
Source: http://www.thinkgeoenergy.com/finlandhot rocks energy, to unlock cash from the EU.
pushing-ahead-with-innovative-geothermal-heatingCouncilors backed a report that says the cash is needed
project/
to unlock more money from the European
Union. The report says a geothermal projectgenerating 15 MW could power 25,000
homes and create up to 260 jobs.
Knowledge of the resource dates back morethan 40 years to the Camborne School ofMines Hot Dry Rocks project at
Rosemanowes Quarry, between Falmouthand Helston. The Eden project, inpartnership with Cornwall-based EGS
Energy, has planning permission for a 3-4
MW geothermal power plant at its site in aformer china clay pit, near St Austell, taking
energy from the heat in underground granite
rocks. On a site the size of a football pitch,
the geothermal power plant would produce
Winter view, Espoo, Finland (source: flickr/ Antti T. Nissinen, creative
enough heat to meet Eden’s s heating needs,
commons).
www.geothermal-energy.org

April-June 2016

IGA News No. 103

21

Germany: New Power Plant
and New Player in the
Geothermal Market

Iceland: IDDP Receives EU
Grant for Drilling of New Deep
Well

New 5.5 MW Power Plant on Line in Bavaria - Last
January, the Italian firm Turboden informed that its 5.5
MW Organic Rankine Cycle (ORC) power plant wasconnected to the grid in Bavaria. The customer isGeothermische Kraftwerkgesellschaft Traunreut GmbH
(GKT), a company that operates a geothermal well
producing from a low-temperature (118°C) resource.
The ORC plant will also supply up to 12 MW of heat tothe municipality of Traunreut. The 5.5 MW Traunreut
plant is Turboden’s fourth geothermal unit installed inGermany, where now has a portfolio of 20 MW
installed geothermal power generation capacity.
Source:http://www.turboden.eu/en/news/news.php?categoria=news#247

Partners of the International Deep Drilling Project(IDDP) participated in a proposal (DEEPEGS) to theEuropean Union research program called Horizon 2020and secured a Research Grant for participation in the
IDDP-2 well at Reykjanes. The DEEPEGS project is afour-year project led by HS Orka, Iceland, incooperation with other partners from Iceland, France,
Germany, Italy, and Norway. About €20 million
research grant has been awarded to the DEEPEGS.
Approximately 45% of this grant is allocated to various
research projects related to the drilling and testing
operation at the demonstration site in Reykjanes.

EGP Started Activities in the Geothermal Market Enel Green Power (EGP) has acquired 78.6% stake in
Erdwärme Oberland GmbH (EO) from Erdwärme
Bayern GmbH & Co. (EB), a company specialized in
the development of geothermal projects in the Bavarian
region. The acquisition was carried out through theissue of new shares in EO for a total of €22 million,
covering the initial investment requirements for the
project. With this transaction, EGP entered the German
geothermal market. EO has recently developed a project
for the construction of a geothermal plant with amaximum expected capacity of about 26 MW. The
project, located near the town of Weilheim, about 50
km southwest of Munich, will be developed under amineral exploration concession granted by the Bavarian
Ministry for Economic Affairs, Media, Energy andTechnology valid for three years that started lastDecember and in consultation with local communities.
EO will begin with geological exploration this year.
Source:https://www.enelgreenpower.com/enGB/media_investor/press_releases/release.aspx?iddoc=1665163
Drilling Started at Trebur - Drilling has commenced
at the Geothermie-Projekt Groß-Gerau in Trebur, acommunity in Groß-Gerau district in Hessen, nearFrankfurt in Germany. The planned depth of the well is
3,500 to 4,000 meters to an expected water temperatureof 160 degrees Celsius. The power plant will deliver 3
MW of electrical power and 6 MW of thermal power(feeding into district heating network for the supply ofindustrial enterprises and residential areas). The
investment amounts to 40 to 50 million euros.
Source: GRC’s Global Geothermal News, 18 March2016.
www.geothermal-energy.org

The acronym DEEPEGS stands for: Deployment of
Deep Enhanced Geothermal Systems for Sustainable
Energy Business. The DEEPEGS partners are HS
Orka, Fonroche Géothermie of France, Statoil of
Norway, ENEL Green Power of Italy, andLandsvirkjun (Iceland), all operating energy companies,
Herrenkneckt Vertical and Karlsruhe Institute ofTechnology in Germany, BRGM of France, and ISOR
and GEORG from Iceland.

Flow test of the IDDP-1 well at Krafla, Iceland(source: Kristján Einarsson; taken fromThinkGeoEnergy).
The DEEPEGS project will be testing stimulating
technologies for deep EGS development, and intends todeliver new innovative solutions and models for wider
deployments of EGS reservoirs for significant amountsof geothermal power across Europe. The project will
demonstrate the capabilities of EGS for widespread
exploitation of high-enthalpy systems, by testing thedeep roots beneath the existing hydrothermal field at
Reykjanes, with temperature up to 550°C, and in very
deep hydrothermal reservoirs in sedimentary basins at
Valence and Vistrenque in France with temperatures up
to 220°C.
April-June 2016

IGA News No. 103

22

The deep well at Reykjanes, IDDP-2, is expected to becompleted in 2016. A 2.5 km deep production well will
be deepened to 5 km by HS Orka, Statoil and IDDP.
After drilling the well it will be extensively tested for
injectivity and connection to the overlying conventionalhydrothermal field, and subsequently flow tested for
fluid chemistry and production properties.

wind energy, will definitely be the priority of thisgovernment…In the first we see a possibility to meet
the air quality norms in urbanized parts of the country.
The situation is completely different with wind farms.
Wind farms destroy the landscape arrangement and arealien to the Polish cultural heritage and harmful tonatural reserves.”

Source: http://iddp.is/wpcontent/uploads/2015/12/ENSKAFr%C3%A9ttatilkynning_-des-2015-1.pdf

The European Union requires Poland to produce 15%
of its electric power from renewables by 2020, up fromaround 12% currently. Heavily reliant on coal toproduce its energy, previous Polish governments havedeveloped biomass energy sources and subsidized theconstruction of wind farms. In the bill on Wind
Investments, drawn up by the Conservative Polish
Government in late February, a set of new demands forwind power developers was laid out. Polish windharnessers fear that the demands, if implemented, will
significantly impede or phase out the country’s existing
wind farms and will make it impossible to launch new
ones. Poland’s wind market was one of the strongest
performers last year, installing a total of 1.3 GW in new
capacity.

Italy: EGP to Be Integrated
into ENEL
Enel Green Power (EGP) is to be fully integrated into
ENEL under plans almost unanimously approved by
EGP shareholders on early January. ENEL shareholders
also approved the move, which will see the parent
company take its stake in EGP from 63% currently to
100%. The move is in line with the direction outlined by
CEO Francesco Starace after he took over theleadership of the company in 2014. Recently hedescribed the integration of EGP as being about placing
renewables at the core of the group's growth andbusiness models.
Under his plans, green energy will account for 52% of
ENEL’s power capacity by 2019, up from 38% when hetook over in 2004. Increased wind and solar power willaccount for the bulk of the increase. The company has
also announced plans to close 23 fossil fuel power
plants in Italy by 2019, scrapped plans for new facilities
in Italy and Chile and is seeking to offload assets worth
six billion euros, particularly in Eastern Europe.
The change of direction was welcomed by Greenpeace
Italy director Giuseppe Onufrio, whose campaign group
has a long history of clashes with ENEL, many ofwhich have ended in court. “In two cases, we were suingthem for environmental damages and in seven cases
they were suing us for our activities around their plants
or because of our campaign against them,” Onufrio
declared. “Now our relationship has dramaticallychanged, positively,” he said.
Source: http://www.thelocal.it/20160111/eenpeaceback-italian-giants-tilt-to-renewable-energy

Poland: New Government
Prefers Geothermal over Wind
EnergyBarely sworn into the office, Jan Szyszko, Poland’s new
minister of Environment, said that the Law and Justice
Party, which he represents, is against further expansionof wind power facilities in the country. According tosome Polish media, he stated: “Geothermal energy, notwww.geothermal-energy.org

Joanna Józefiak, the Counselor to minister Jan Szyszko,
noted Poland’s favorable geothermal conditions.
“Around 80% of the country is covered by threegeothermal provinces: Central European, ForeCarpathian and Carpathian,” she said, but did notelaborate on the controversial bill. According to theWorld Energy Council (WEC), Poland possesses
substantial resources of geothermal energy, but they are
not of high temperatures; the available resources havereservoir temperatures of 30 to 130°C at depths of one
to four km.
Source:http://www.renewableenergyworld.com/articles/2016/03/new-polish-government-under-fire-for-crackdownon-wind-energy-expansion.html

Turkey: 635 MW Reported by
January 2016
Turkey had 21 geothermal power plans in operation
with a total installed capacity of 635 MW last January.
That places the country eighth worldwide, moving it
ahead of Kenya (625 MW). In 2008, Turkey had only
one geothermal power plant with 30 MW on line, so its
geothermal generating capacity has increased more than
20 times. There are also an additional 96 MW in
construction and planned projects of 430 MW. Driven
by high energy demand, strong conglomerates
developing projects and a favorable energy legislativeand policy framework, Turkey has developed a thriving
geothermal industry, also with the support byinternational investors and suppliers.
April-June 2016

IGA News No. 103

23

Numbers 1-6: Location of geothermal power projects financed by the ERBD in Turkey (Source: ERBD, Infographics).
The market has also seen strong support efforts byfinancial institutions such as IFC/World Bank andthrough a new US$125 million exploration funding
mechanism announced by EBRD in cooperation with
CTF last January. The European Bank for
Reconstruction and Development (EBRD) and the
Clean Technology Fund (CTF) launched a program tosupport exploratory drilling investments in Turkey,
named PLUTO, which combines US$ 100 million fromthe EBRD with US$ 25 million from the CTF, afunding window of the Climate Investment Funds. The
program is part of a global push by multilateraldevelopment banks to scale up geothermal energy
production in two phases. The first one will financegeothermal exploration, drawing on the funds provided
by the CTF. If exploration proves successful, during thesecond phase the EBRD will be available to finance thefinal stages of drilling and the construction of the power
plant. The program aims to develop five new
geothermal power plants with a combined capacity of atleast 60 MW.
Sources: http://www.thinkgeoenergy.com/turkeyssignificant-growth-continues-635-mw-online-today/,www.geothermal-energy.org

http://www.ebrd.com/news/2016/ebrd-and-ctf-givefunding-boost-to-turkeys-geothermal-energy.html

Oceania
Australia: Funding to Map
Geothermal Resources
The Australian Renewable Energy Agency (ARENA) is
providing AUD 450,000 (US$312,660) to the Universityof Adelaide to map Australia’s geothermal resources.
Maps of the distribution, orientation and connect-ivityof fractures in four key sedimentary basins will be
produced to understand better the structuralpermeability in these regions. This will be key indeveloping the country’s hot dry rock geothermal
resources since geothermal projects in Australia face
major headwinds due to the high cost and risk involved
with deep drilling.
The University of Adelaide’s South Australian Centre
for Geothermal Energy Research, part of its Institutefor Mineral and Energy Resources, will also develop a“toolkit” to assist developers in identifying permeability
April-June 2016

IGA News No. 103
pathways within critical Australian sedimentary basins
and reduce the risks associated with drilling operations.
This information will be combined with what will be
discovered through ARENA-supported geothermal
projects and serve as a go-to source for future
developments, providing a head start on viability andrisk assessments.
This latest project is consistent with the 2014
International Geothermal Expert Group forward
looking report that recommended ‘rebooting’ Australia’s
geothermal industry. The International Geothermal
Expert Group was established by ARENA toinvestigate and report on the prospects for thecommercial development of geothermal energy inAustralia.
Source:http://www.climatecontrolnews.com.au/news/latest/funding-to-map-geothermal-resources-inaustralia#2QwWtDPpAwShXiHH.99

New Zealand: Geothermal
Generation & Expansion,
University Agreement andResearch Project
Availability of 98% in Mighty River Power
Geothermal Plants - The New Zealand based
company Mighty River Power (MRP) released its
Quarterly Operational Update corresponding to the lastquarter of 2015. Among other information, thecompany unveiled that had its highest-ever quarter ofgeothermal generation, up 12% on the prior comparable
period (pcp), to 728 GWh. This high geothermal
generation reflected 98% availability of the company’s
geothermal plants during the quarter.
The price MRP received for generation was down 13%
on pcp to NZ$67.91/MWh (US$43.85/MWh). MRP
stated also that national demand for electricity rose to
the highest level for the second quarter on record, up
0.9% compared with the same period last year (adjusted
for temperature). This is the sixth consecutive quarter
where demand has increased on pcp, with a reduction indemand from urban centers being more than off-set byincreases across dairy, irrigation, industrial and rural
centers.
Source:http://www.scoop.co.nz/stories/BU1601/S00278/mig
hty-river-power-quarterly-operational-update.htm
Consent for Expansion of geothermal station of
Ngawha - Top Energy’s geothermal power generation
at Ngawha has received the go-ahead following thewithdrawal of challenges to the Environment Court.
Top Energy’s Chief Executive Russell Shaw said
www.geothermal-energy.org

24
concerns raised by Parahirahi C1 Trust, the kaitiaki ofthe geothermal field and pools at Ngawha, have beenaddressed and a joint Consent Order was filed with theEnvironment Court. The Trust objected when
Commissioners in September 2015 granted an extensionof consents for Top Energy’s existing 25 MW operation
and approved new consents for a further 50 MW ofgeneration to be built in two stages. Parahirahi C1 Trust
Chair, Dr Te Tuhi Robust, described the agreementwith Top Energy as an excellent outcome that provides
more gains around technical issues within the consent.
As part of the agreement, Top Energy has agreed not tocause or contribute to any adverse effects on the pools.
This will require an independent monitoring program tomonitor fluids reinjected into the reservoir, including
controls on the contents of that fluid to eliminate waste,
and to ensure reinjection procedures reflect bestpractice. Another condition is the appointment of a
kaitiaki advisor who will advise an independent peer
review panel and who will be consulted as part of Top
Energy’s cultural indicators monitoring program. In
addition, Top Energy will also support the Trust inundertaking an annual independent scientific audit.
Finally, Top Energy will provide funding support forthe development of Nga Waiariki pools area, which area popular tourist destination and a valuable local
resource for the community.
Source: http://topenergy.co.nz/power-stationconsents-granted/

Ngawha Geothermal Plant (Courtesy Top Energy).

Agreement between Leading Universities in the
Pacific – The University of Auckland recently gave
their signature to a Memorandum of Understanding(MoU) with the University of Indonesia that makes
official a long tradition of cooperation between theuniversities. New Zealand has imparted geothermal
knowledge to Indonesia since their respective engineers
April-June 2016

IGA News No. 103

25

teamed up to develop Indonesia’s first geothermalenergy in the 1970s. Over 160 Indonesian engineers
have attended the University of Auckland’s Geothermal
Institute.
In addition, the University works with the Indonesian
Ministries of Higher Education and Finance that in turnoffer scholarships to allow Indonesian students to study
in New Zealand and then return to their home country
where they can contribute their newly-learned
knowledge while giving back to their communities.
The MoU was made official last year by Professor Ir
Muhammad Anis, the University of Indonesia’s Rector,
and Professor Jennifer Dixon, the University of
Auckland’s deputy Vice-Chancellor of Strategic
Engagement. Founded in 1849, the University ofIndonesia is the oldest tertiary-level educational
institution in Indonesia, with two campuses: one in
Jakarta’s central business (Salemba) and one in Depok(West Java). It consists of 12 faculties divided into threeclusters, including health science, science andtechnology, and social science and humanities.
Source: https://www.auckland.ac.nz/en/about/newsevents-and-notices/news/news-2016/01/linksstrengthened-with-indonesia.html

generates more suitable magma than anywhere else on
the planet so it is the ideal location. And like Iceland,
New Zealand has a long and proud history ofgeothermal energy”. He added: “There are still plenty oftechnological hurdles, so we probably won’t be drilling
into magma chambers in New Zealand for commercial
energy in the next 10 years, but the Icelanders haveshown it is possible, and we need energy solutions so it
could be a realistic prospect for the future”.
Technologies developed in the project, would be shared
as Kiwi power firms drilled into hotter rocks andeventually magma.
Source:http://www.nzherald.co.nz/nz/news/article.cfm?c_id=
1&objectid=11591953

OtherBook Reviews: DiPippo’s
Geothermal Power Plants, 4theditionRaffaele Cataldi, Honorary Presidentof the Italian Geothermal Union

Project For Investigate Superhot Fluids - A new
government fund, allocated by the New Zealand
Ministry of Business, Innovation and Employment, has
put US$450,000 towards an international project to
explore magma as a source of electricity generation. The
project would investigate whether fluids even hotter
than those sourced in current geothermal energy
production could be retrieved from the margins ofmagma chambers. The potential was identified in
Iceland during the Krafla Drilling Project when a wellaccidentally hit a magma chamber, briefly creating theworld’s most powerful geothermal production well in2009.

After those of 2005, 2008 and 2012, last January cameto light the fourth edition of a ‘classic’ of applied
geothermal energy, which probably many experts on thesubject were expecting to see. It is Geothermal Power
Plants, a hardcover book of more than 750 pages withnumerous illustrations and tables, published by
Butterworth-Heinemann, an imprint of Elsevier.

Canterbury University volcanologist Dr. Ben Kennedy
said the university is working alongside Victoria
University and several international organizations,
including Icelandic power company Landsvirkjun, in a
new consortium. Dr. Kennedy said: “New Zealand

The main body of the volume consists of 23 chaptersdivided into three parts. The first one (four chapters and
100 pages) is about exploration and development of the
Earth’s heat. The second part (six chapters and over 200
pages) details the technical aspects of all the geothermal

The author, Prof. Ronald DiPippo, needs no
introduction. He is an expert of world renown withbasic research, project studies and hundreds ofpublications (all very much appreciated), who has been
for over 50 years one of the main authorities in
geothermal technology development in the world.

GEOTHERMICS
International Journal of Geothermal Research and its
Applications
Published under the auspices of the International
Geothermal Association
Content of the latest issues:
http://www.elsevier.com/locate/geothermics
www.geothermal-energy.org

April-June 2016

IGA News No. 103
power plants that exist in the world. The third part (13chapters and more than 350 pages) presents anddiscusses in depth, as ‘case studies’, the basic geologicalsituation,
historicalevolution,andtechnical
characteristics of the main geothermal-electrical plants
in the principal countries and regions of the world,
through December 2014.

26
AppendixF:
REFPROP(Reference
Fluid
Thermodynamic and Transport Properties) to illustrate
ways to simulate geothermal plants using a software
program for fluid properties from NIST, the US
National Institute of Standards and Technology.
In addition to most recent data, research anddevelopment situations of new geothermal fields, thisbook reports on technological advancements integrated
with various topics, especially of geothermal power
stations. With respect to its third (2012) edition, thevolume includes many problems and some appendices.
This is a work completely revamped compared to theprevious edition, and is even more advanced.
In short, is the sort of book that has to be part of thebest scientific libraries in the world. Especially those ofuniversities, research institutes, academic departments,
public and private and service companies that deal withenergy, environment and property development. And it
is also the work that every geothermal expert of any
discipline, will be proud to have in his or her personal
library.

Technology: The IMAGE
Project of the European Union
Funded by the European Union, the Integrated
Methods for Advanced Geothermal Exploration(IMAGE) project is refining geothermal exploration,
answering the question of where to drill. Developing a
new methodology, the project helps to increase thechance that a geothermal reservoir be discovered during
the drilling process, which can then be used in electricity
generation. The new methods ‘image’ geothermal
reservoirs with high accuracy, allowing pin-pointed
drilling.
All chapters contain an essential bibliography. In
addition, those chapters of the first and second parts areintegrated at the end with problems to solve: almost ahundred questions in all. They are set up as exercises forstudents in various disciplines, but are also useful forexperts who want to delve into topics, or refresh theirmemory on various issues of their activity.
The volume also contains six appendices in practice,namely:Appendix A: Development status of geothermal energy
in the world to December 2014;
Appendix B: Unit conversions between different
systems;
Appendix C: Equivalent energy values;
Appendix D: Elements of thermodynamics;
Appendix E: Answers to the problems presented at theend of the first ten chapters;www.geothermal-energy.org

The IMAGE partners applied advanced methodologies
to complete geophysical explorations at different sites in
Europe. Using a series of surveys, the partners
discovered an abundance of data surrounding the spatial
distribution of important parameters of subsurface rockformations. The team also performed laboratory
experiments to study rock physical properties atsupercritical conditions as encountered below the
Earth's surface. The results of these experiments add tothe scientific community’s understanding of the existinggeochemical databases currently used in numericalmodels.
The IMAGE project will help develop the process
behind the prediction of reservoir factors such as
fracture permeability, temperature, and in situ stresses.
Once the data are fully analyzed and incorporated, theinformation will be used to enhance current geothermal
exploration techniques. The IMAGE team is composedof eleven leaders in geothermal research alongside eightindustry partners spanning various European countries.
April-June 2016

IGA News No. 103
Their unifying goal is the advancement of a reliable,scientific exploration method in the search forgeothermal reservoirs.
Source:http://cordis.europa.eu/result/rcn/170356_en.html

Technology: Geothermal
Energy and CO2 Sequestrationand Storage (CCS)27
Seven years in development, the concept, which
combines Multi-Fluid Geo-Energy Systems developedat LLNL and Ohio State University with CO2 Plume
Geothermal (CPG) from researchers at the Universityof Minnesota, is drawing interest from industry.
The US Department of Energy, Office of Energy
Efficiency and Renewable Energy’s GeothermalTechnologies Office funded the study.
Source:https://www.llnl.gov/news/undergroundbattery-could-store-energy-co2

Researchers from Lawrence Livermore National
Laboratory (LLNL), Ohio State University, Universityof Minnesota and TerraCOH, Inc. are developing alarge-scale system that incorporates CO2 sequestrationand energy storage. The team’s paper, published in the
December 2015 issue of the Mechanical Engineeringmagazine, describes a subsurface energy system that
could tap geothermal energy, store energy from aboveground sources, and dispatch it to the grid throughout
the year like a massive underground battery, while at thesame time storing CO2 from fossil-fuel power plants.
“If you want to store the large quantities of renewableenergy necessary to balance seasonal supply-demand
mismatches and store it efficiently, we believe the best
way to do that is underground,” said the paper’s author,
Thomas Buscheck, leader of LLNL’s Geochemical,
Hydrological and Environmental Sciences Group. “We
believe this is a cost-effective way to store the energy
long enough so it can be used later.”Buscheck’s team’s approach involves injecting liquid-like
CO2 into underground reservoirs located in sedimentaryrocks, creating a pressurized plume that pushes brine up
production wells to the surface. The brine could beheated and reinjected into the reservoir to store thermalenergy, and the resulting pressurized CO2 would act as ashock absorber, enabling the system to be charged ordischarged depending on supply and demand. When
there’s insufficient renewable energy, the pressurized
CO2 and brine could be released and converted to
power.
“Storing such vast quantities of CO2 creates so muchpressure. This is the biggest challenge for keeping it
permanently underground, but it is manageable,”
Buscheck said. “To make sure we don’t have too muchpressure, we can divert some of the produced brine togenerate water through desalination. Then, if we tap
into the remaining pressure, we can recharge the systemselectively and put energy into our storage system when
there’s excess and deliver it when it’s needed.”According to the computer models, the amount of CO2that could be stored underground by the system would
be at least 4 million tons per year over 30 years, theequivalent of the CO2 impact of a 600 MW coal plant.
www.geothermal-energy.org

This integrated system would store carbon dioxide in
an underground reservoir, with concentric rings ofhorizontal wells confining the pressurized CO2
beneath the caprock. Stored CO2 displaces brine thatflows up wells to the surface where it is heated bythermal plants (e.g., solar farms) and reinjected into
the reservoir to store thermal energy

Climate Change: New Study
Shows Rising Seas Slowed by
Increasing Water on Land
New measurements from a NASA satellite have allowed
researchers to identify and quantify, for the first time,
how climate-driven increases of liquid water storage onland have affected the rate of sea level rise.
A new study by scientists at NASA’s Jet Propulsion
Laboratory (JPL) in Pasadena, California, and the
University of California, Irvine, shows that changes inweather and climate over the past decade have caused
Earth’s continents to soak up and store an extra 3.2
trillion tons of water in soils, lakes and undergroundaquifers. This occurs in spite ice sheets and glaciers
continue to melt, and has temporarily slowed the rate ofApril-June 2016

IGA News No. 103
sea level rise by about 20 percent. The study was
published in the Feb. 12, 2016 issue of the journal
Science.
Each year, a large amount of water evaporates from theoceans, falls over land as rain or snow, and returns to
the oceans through runoff and river flows. This is theglobal hydrologic cycle. Small changes in the hydrologic
cycle –by persistent regional changes in soil moisture orlake levels, for instance—could change the rate of sea
level rise from what we would expect based on ice sheet
and glacier melt rates. “We always assumed that people’s
increased reliance on groundwater for irrigation andconsumption was resulting in a net transfer of waterfrom the land to the ocean,” said lead author J.T. Reagerof JPL. “What we didn’t realize until now is that overthe past decade, changes in the global water cycle morethan offset the losses that occurred from groundwater
pumping, causing the land to act like a sponge –at least
temporarily. These new data are vital for understanding
decadal variations in sea level change. The information
will be a critical complement to future long-term
projections of sea level rise, which depend on melting
ice and warming oceans.”
The NASA’s Gravity Recovery and Climate Experiment(GRACE) twin satellites provided the first tool capableof quantifying land liquid water storage trends. By
measuring the distance between the two GRACE
satellites to within the width of a strand of human hairas they orbit Earth, researchers can detect changes inEarth’s gravitational pull that result from regionalchanges in the amount of water across Earth’s surface.
With careful analysis of these data, JPL scientists wereable to measure the change in liquid water storage on
the continents, as well as the changes in ice sheets andglaciers.
This study is the first to observe global patterns ofchanges in land water storage, with wet regions getting
more wet and dry areas getting drier. “These patterns
are consistent with earlier observations of changing
precipitation over both land and oceans, and with IPCC
(UN’s Intergovernmental Panel on Climate Change)
projections of changing precipitation under a warming
climate,” said Jay Famiglietti, senior author of the paper
and a professor at the University of California, Irvine.
Source: http://www.nasa.gov/press-release/nasauniversity-study-shows-rising-seas-slowed-by-increasingwater-on-land

Climate Change: Largest Gas
Leak in US History Leaves
100-year Climate Legacy
An estimated 60 metric tons of gas spewed from a wellnear San Fernando Valley, California, every hour,
www.geothermal-energy.org

28
mounting to over 100,000 tons of methane and ethane
during the 112-day blowout, according to a scientificstudy in the journal Science. The figures overcome
previous estimations and will leave an impact on the
climate for the next 100 years, equal to the annual
greenhouse gas emissions from 572,000 cars, said thereport, prepared by researchers from the University ofCalifornia, Irvine (UCI) and the National Oceanic &Atmospheric Administration (NOAA) among other.
The American gas company SoCal detected the ruptured
well on 23 October 2015, which continued to spew gas
until it was plugged on 11 February 2016. At its worst,
the ruptured well –finally plugged in early February–
was California’s largest point source of methane. The
amount of gas being released was double that of a coalmine in Alabama and equal to one-quarter of the annual
methane pollution from all other sources in the Los
Angeles Basin combined, the report added.
Statewide methane emissions during the event increased
by around 20%, according to the California Air
Resources Board, undermining efforts to reducegreenhouse gas levels. Methane is 84 times morepolluting than carbon dioxide in the initial decades after
it is released, and over a 100-year period, the effect of
methane on warming the planet is 25 times that of CO2.
The report confirms the adverse human health impactsof major gas leaks. Scientists discovered above averagelevels of potentially dangerous compounds were foundin the densely populated Porter Ranch in the San
Fernando Valley, causing mass evacuations.
SoCal is currently determining the cause of the leak andauthorities aim to develop a climate mitigation program
in response to the leak.
Source: Note by Joanna Peasland,
http://www.climatechangenews.com/2016/02/26/larg
est-gas-leak-in-us-history-leaves-100-year-climatelegacy/

Climate Change: Climate
Denial Is Alive and Kicking
Say Scientists
It has been 15 years since researchers last ran thenumbers on how climate denial is disseminated in public
discourse. A study recently published in the journal
Global Environmental Change fills the gap, taking a fine
tooth-comb to misinformation pumped out byconservative think tanks from 1998 to 2013.
It analyzed almost 25 million words of op-eds, blogs
and policy reports available online from 16 US groups
such as the American Enterprise Institute, Heritage
Foundation and Heartland Institute. Here are the main
findings.
April-June 2016

IGA News No. 103
1. Climate science denial isn’t over. The volume of
output has ballooned from 203 documents between
1990-97 to 16,028 in 1998-2013. The Heartland Institutetops the list, followed by the Science and Public Policy
Institute, then Center for the Study of Carbon Dioxide
and Climate Change (CO2 Science).

29
and the US, both saw a decline in energy-related
greenhouse gas emissions, the IEA said.
In China, emissions went down by 1.5% because the useof coal fell for the second year in a row. At the sametime, US emissions decreased by 2% due to the switch

2. The emphasis has shifted fromdebating the usefulness of policy todisputing the science, researchers from
Trinity College Dublin and Exeter
University found. By casting doubt on
the scientific consensus, they seek toundermine public support for a range ofgreen policies, rather than fighting them
one by one.
3. Denial is reactive. Content peakedaround the time of the Copenhagensummit in 2009, a major attempt tostrike a global warming accord. The data
similarly shows spikes in attacks on“alarmism” after the release of Al Gore’s
Inconvenient Truth and subsequent
Nobel Prize awards for him and the Intergovernmental
Panel on Climate Change. In response to bills on CO2
regulations in 2008 and 2009, talk of damage to national
economy flared similarly.
4. Attacks on scientists are rooted in politics. Bids toquestion the integrity of scientists or scientific bodies“appear closer (semantically) to politics than science”.
Rather than tackling point-by-point the claims, thelanguage is emotive. A Heartland Institute reportaccuses climate scientist Michael Mann of being in thebusiness of “spreading myths and misinformation tofurther their agenda,” for instance.
5. Influential US newspapers are presenting science on
man-made climate change more in line with consensus.
But it’s not clear if that holds in the case of TV
channels, talk radio, social media or a larger sample ofconservative newspapers, they note.
Source: Note by Alex Pashley, Climate Home
(http://www.climatechangenews.com/2016/01/07/five-takeaways-from-15-years-of-climate-sceptic-literature/)

Climate Change: CO2
Emissions Flat in 2015 Thanks
Largely to Renewables
Renewable energy generation has proven crucial in
keeping global energy-related carbon dioxide (CO2)emissions flat for a second year in a row, according topreliminary 2015 data released by the International
Energy Agency (IEA). Last year global CO2 emissions
stood at 32.1 billion tons, remaining somewhat
unchanged since 2013, as the two largest emitters, China
www.geothermal-energy.org

from coal to natural gas use. Still, the improvement
observed in the two largest emitters was offset by risingemissions in most other Asian developing economies
and the Middle East. There was moderate growth inEurope, as well.
The analysis shows that renewables accounted for some
90% of new electricity generation in 2015 and played avital role in decoupling greenhouse gas emissions from
economic growth. Wind farms accounted for more thanhalf of new power generation.
IEA noted that there have been only four periods overthe past 40 years in which emissions remained at thesame level or even decreased compared to the prioryear. In particular, this happened in the early 1980s, in1992 and 2009. These three periods are associated with
global economic weakness, unlike in 2014 and 2015,
when global gross domestic product (GDP) grew by
3.4% and 3.1%, respectively, based on data from theInternational Monetary Fund.
Source: http://renewables.seenews.com/news/co2emissions-flat-in-2015-thanks-largely-to-renewables-iea517100

Climate Change: Humandriven Carbon Release Rate
Unprecedented in the Past 66
Million Years
The earliest measurements of Earth’s climate using
thermometers and other tools started in the 1850s. To
look further back in time, scientists investigate air
bubbles trapped in ice cores, expanding the scope ofApril-June 2016

IGA News No. 103
climate records to nearly a million years. But to study
Earth’s history over millions of years, researchers
examine the chemical and biological signatures in deepsea sediments.
New research published in March in the journal Nature
Geoscience by geoscientist Richard Zeebe of the
University of Hawaii at Manoa and colleagues, looks atchanges in Earth’s temperature and atmospheric carbon
dioxide (CO2) since the end of the age of the dinosaurs.
The evidence is in sediment cores retrieved frombeneath the seafloor by geologists working aboard theocean drillship JOIDES Resolution.
The findings suggest that humans are responsible forreleasing carbon about 10 times faster than during any
time in the past 66 million years.
The research team developed a new approach and wasable to determine the duration of the onset of animportant past climate event, the Paleocene-Eocene
Thermal Maximum (PETM), 56 million years ago,
which was thought to have the largest carbon releaseduring the past 66 million years. The team combined
analyses of chemical properties of sediment cores datingback to the PETM with numerical simulations ofEarth’s climate and carbon cycle. The new method
allowed them to extract rates of change from sedimentrecords. Applied to the PETM, they calculated how fast
the carbon was released, how fast Earth’s surface
warmed, and what constrained the time scale of theonset, which was across 4000 years.
The rate of carbon release during the PETM was muchsmaller than the current input of carbon to theatmosphere due to human activities. Carbon release
rates from human sources reached a record high in 2014of about 37 billion metric tons of CO2. The researchers
estimated that the maximum sustained carbon release
rate during the PETM was less than four billion metrictons of CO2 per year –about one-tenth the current rate.
Whereas large climate transitions in the past may havebeen relatively smooth, there is no guarantee that will
happen in the future, the scientists said. The climate
system is non-linear, which means that its response to
inputs, such as CO2 emissions, is a complex process
involving multiple components. Research suggests thatthe consequences of our massive burning of fossil fuels
will have much longer-lasting effects.
The scientists are continuing their work on the PETM
to study other aspects of the event -- for example,
determining how severe ocean acidification was duringthat time and what effect it had on calcifying organisms
in the ocean. The results will provide insights about
what to expect in the future as Earth’s climate likely
continues to warm and the acidity of oceans’ waters
keeps increasing.
www.geothermal-energy.org

30
Source:http://www.nsf.gov/news/news_summ.jsp?cntn_id=1
37908&WT.mc_id=USNSF_51&WT.mc_ev=click

Finance: Renewables
Attracted Record US$329
Billion of Investment in 2015
The slump in oil prices that has brought upheaval andcost-cutting to the traditional energy industry sparedrenewables such as solar and wind, which raked in arecord US$329.3 billion of investment last year. The
four percent increase in clean energy technology
spending from 2014 reflected tumbling prices for solar
PV and wind turbines, as well as a few big financings foroffshore wind farms on the drawing board for years,
according to research from Bloomberg New Energy
Finance (BNEF) released last January.
“These figures are a stunning riposte to all those who
expected clean energy investment to stall on falling oil
and gas prices,” said Michael Liebreich, founder of the
London-based research arm of Bloomberg LP. While oilcompanies such as Exxon Mobil Corp. and Royal Dutch
Shell Plc eliminate jobs and curb capital spending tocope with prices that have fallen two-thirds in 18
months, renewables are enjoying a renaissanceunderpinned by rules designed to curb fossil-fuelemissions damaging the atmosphere.
Fears that low oil prices will continue into 2016 haveknocked confidence among oil companies, delaying
US$380 billion worth of investment in upstream
projects, according to analysis by industry consultant
Wood Mackenzie Ltd. released on January. Companies
are “going into survival mode” this year with more
projects delayed and budgets cut, said Angus Rodger,
one of the report’s authors.
While BNEF has said lower prices may hurt funding for
efficiency projects and the spread of electric cars, themain clean energy technologies enjoyed record
installations in 2015.
Another “strong year” is in store for renewables in
2016, said Angus McCrone, chief editor at BNEF,
stopping short of saying another record will be reached.
Balancing that is a potential slip in funding for yieldcos,
which drew higher investment in 2015, and a clouded
outlook for offshore wind in its biggest market.
China remained the biggest market for renewables,
increasing investment 17% to US$110.5 billion. That is
almost double the US$56 billion invested in the US,
which was second in the BNEF rankings. The strengthof the dollar helped boost the value of investment. In
India, funding for clean energy rose 23% to US$10.9
billion, and new markets including Mexico, Chile andApril-June 2016

IGA News No. 103

31South Africa attracted tens of billions of dollars. Brazil
bucked the trend with a 10% drop to US$7.5 billion.
New wind and solar power accounted for about half of
all new generation last year. Around 64 GW of new
wind power and 57 GW of new solar PV was added,
representing an increase of 30% from to 2014.
Source:http://www.renewableenergyworld.com/articles/2016/01/as-oil-crashed-renewables-attracted-record-329billion.html?cmpid=renewable01202016&eid=29102197
8&bid=1284951

Finance: Renewable Energy
Would Increase Global GDP by
1.1% in 2030
Achieving a 36% share of renewable energy in the
global energy mix by 2030 would increase global grossdomestic product (GDP) by up to 1.1%, roughly US$
1.3 trillion, according to new analysis by theInternational Renewable Energy Agency (IRENA).
Renewable
EnergyBenefits:
Measuring the
Economics(available
here:
http://www.ir
ena.org/menu/index.aspx?mnu=Subcat&Pri
MenuID=36&C
atID=141&Sub
catID=690)
Renewable Energy Benefits: Measuring the Economics, released
at IRENA’s sixth Assembly, provides the first global
estimate of the macroeconomic impacts of renewableenergy deployment. Specifically, it outlines the benefits
that would be achieved under the scenario of doubling
the global share of renewable energy by 2030 from 2010
levels.
“The recent Paris Agreement sent a strong signal forcountries to move from negotiation to action andrapidly decarbonize the energy sector,” said Adnan Z.
Amin, IRENA Director-General. “This analysis
provides compelling evidence that achieving the neededenergy transition would not only mitigate climatechange, but also stimulate the economy, improve humanwelfare and boost employment worldwide.”
www.geothermal-energy.org

The report also analyses country-specific impact. Japan
would see the largest positive GDP impact (2.3%) but
Australia, Brazil, Germany, Mexico, South Africa andSouth Korea would also see growth of more than 1%
each.
According to the report, improvements in humanwelfare would go well beyond gains in GDP thanks to arange of social and environmental benefits. The impactof renewable energy deployment on welfare is estimatedto be three to four times larger than its impact on GDP,
with global welfare increasing as much as 3.7%.
Employment in the renewable energy sector would also
increase from 9.2 million global jobs today, to morethan 24 million by 2030.
“Mitigating climate change through the deployment of
renewable energy and achieving other socio-economic
targets is no longer an either or equation,” said Amin.
“Thanks to the growing business case for renewableenergy, an investment in one is an investment in both.
That is the definition of a win-win scenario.”
Source: http://futurenergyweb.es/36-renewables-by2030-will-boost-global-gdp-by-1-3-trillion/?lang=en

Finance: Investment Call fromBNEF
A whopping US$12.5 trillion is needed in the next 25
years to meet the goals outlined in the Paris climate deal,says a report from the Boston-based Ceres consultancy
and Bloomberg New Energy Finance (BNEF) releasedon late January (Mapping the Gap: The Road From Paris).
Of that, wind, solar, geothermal and other zeroemission power sources will need US$5.2 trillion of
backing, largely in emerging and developing economies.
The total is around 75% more than current predictionsof clean energy growth, but it is realistic if investment
funds and big business signal their support for thesector. “The clean energy industry could make a verysignificant contribution to achieving the lofty ambitions
expressed by the Paris Agreement,” BNEF Chairman
Michael Liebreich said.
Source:http://www.ceres.org/resources/reports/mapping-thegap-the-road-from-paris/view

Finance: Role of Public
Finance in Deploying
Geothermal Energy in
Developing Countries
Despite great potential, geothermal deployment indeveloping countries has been below expectations since2010. The major barrier is securing early-stage project
finance given the scarce public resources available toApril-June 2016

IGA News No. 103
invest in exploration and development. While somecountries are pursuing policies to liberalize energy andelectricity markets to attract private investment,
significant difficulties remain.
Recently, Climate Policy Initiative (CPI) analyzed threecase studies on behalf of the Climate Investment Funds,
with the aim of helping policymakers and development
finance institutions understand which policy andfinancing tools to use in order to enable rapid and costeffective deployment of geothermal for electricity.
The case studies (the Sarulla project, Indonesia, theOlkaria III project in Kenya, and the Gümüsköy in
Turkey) show that the increase in tariffs needed toprovide sufficient returns to incentivize private
investment can be entirely offset by public measures
addressing specific risks. This graphic illustrates how
these public risk mitigation measures (orange) combine
to result in a final levelized cost of electricity for a
privately developed project (dark grey) that is evenlower than what it would have been for the state todevelop it (light grey).

The CPI analysis shows that by implementing specificrisk mitigation measures governments achieved thesame amount of electricity generation while
appropriating only 15-35% of the resources they would
have spent had they built and operated the project
themselves.
Source:http://climatepolicyinitiative.org/2016/03/09/graphicspotlight-role-public-finance-geothermal/
www.geothermal-energy.org

32

IGA News
IGA News is published quarterly by the International
Geothermal Association. The function of IGA Newsis to disseminate timely information aboutgeothermal activities throughout the world. To thisend, a group of correspondents has agreed to supply
news for each issue. The core of this group consistsof the IGA Information Committee:
Luis C.A. Gutiérrez-Negrín, Mexico (Chairman)
Rolf Bracke, Germany
Paul Brophy, USA
Varun Chandrasekharam, India
Surya Darma, Indonesia
Lúdvík S. Georgsson, Iceland
José Luis Henríquez, El Salvador
Susan F. Hodgson, USA
Eduardo Iglesias, Mexico
Marcelo J. Lippmann, USA
Alfredo Mañón-Mercado, Mexico
Fernando (Ronnie) Peñarroyo, Philippines
Paul Quinlivan, New ZealandAlexander Richter, Iceland
Horst Rueter, Germany
Benedikt Steingrímsson, Iceland
Koichi Tagomori, Japan
Shigeto Yamada, JapanThe members of this group submit geothermal news
from their parts of the world, or relevant to theirareas of specialization. If you have some news, areport, or an article for IGA News, you can send it
to any of the above individuals, or directly to the
IGA Secretariat. Please help us to become essential
reading for anyone seeking the latest information on
geothermal worldwide.
While the editorial team makes every effort to ensure
accuracy, the opinions expressed in contributed
articles remain those of the authors and are notnecessarily those of the IGA. The editorial team does
not assume any liability for external content takenfrom public sources and websites, or endorse theproducts or services mentioned.
Send IGA News contributions to the editor(l.g.negrin@gmail.com) and/or:International Geothermal Association (IGA)
c/o Bochum University of Applied Sciences
Lennershofstr. 140, 44801 Bochum, Germany
Tel.: +49 (0)234 32 10712, Fax: +49 (0)234 3214809
E-mail: iga@hs-bochum.de
This issue of IGA News was edited by Luis C.A.
Gutiérrez-Negrín. Marcelo J. Lippmann & Susan
Hodgson proofread the articles. Distributed byMarietta Sander for the IGA Secretariat. Design
layout by François Vuataz.
April-June 2016

IGA News No. 103

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April-June 2016