THE ROLE OF AUC IN DEVELOPMENT OF GEOTHERMAL ENERGY IN EAST AFRICAN COUNTRIES

1. THE ROLE OF AUC IN DEVELOPMENT OF GEOTHERMAL ENERGY IN EAST AFRICAN COUNTRIES Regional Geothermal Working Group Meeting 19 - 23 September 2011, Kampala, Uganda

2. REGIONAL GEOTHERMAL PROGRAMME • WHY AUC IS INVOLVED IN REGIONAL GEOTHERMAL PROGRAMME? • Its mandate given by Ministers for Energy from the 11 countries of the EARS on the Addis Ababa Declaration on Geothermal Energy (June 2009); and • The outcome of the AUC regional Geothermal Stakeholders’ Workshop i.e. recommendation on the “Way forward” and “Road map” (March 2010).

3. Addis Ababa Declaration June 2009 • Recommended to launch a joint regional programme that will engage in the Promotion, Exploration, Development and Utilization of the geothermal energy resource of these signatory countries; • Recommended to convene a permanent Regional Forum with the participation of these countries • Mandated the AUC, to promote in cooperation with ICS-UNIDO a strategic, collective, regional geothermal project 3

4. THE AUC ORGANIZED REGIONAL GEOTHERMAL STAKEHOLDERS’ WORKSHOP In Collaboration with BGR And the Government of Kenya In Nairobi, Kenya March 15-17, 2010 ADOPTED “ACTION PLAN’ & “WAY FORWARD”

5. Recommendation of Regional Geothermal Stakeholder Workshop • Recommended to launch a joint regional programme that will engage in the Promotion, Exploration, Development and Utilization of the geothermal energy resource of these signatory countries; • Recommended to convene a permanent Regional Forum with the participation of these countries • Mandated the AUC, to promote in cooperation with ICS-UNIDO a strategic, collective, regional geothermal project 5

6. THE AUC ORGANIZED GEOTHERMAL TRAINING WORKSHOP In Collaboration with the Government of Rwanda In Kigali, Rwanda December 6-10, 2010 Kigali Recommendation on the “WAY FORWARD”

7. Kigali Recommendation on the Way Forward • Taking the lead in sensitizing national governments • Encouraging the active involvement and participation of the Regional Economic Communities • Assisting governments in the implementation of the foregoing recommendations by proposing guidelines, availing the required resources and technical assistance, • Soliciting support and mobilizing resources for assisting the geothermal resource exploration and development activities of countries which are not beneficiaries of current funding initiatives (Burundi, Comoros, DRC, Malawi, and Zambia); 7

8. MEETING AUC-KFW AUGUST 9-11, 2010 A.A, ETHIOPIA Geothermal Risk Mitigation Fund GEOTHERMAL RISK MITIGATION FUND FOR EASTERN AFRICA COUNTRIES

9. OBJECTIVE OF THE FUND “To encourage public and private sector investors to develop geothermal power generation by providing grants”. To SUPPORT ALL Countries of the EARSInitially the “ FUND” WILL FOCUS Ethiopia, Kenya, Rwanda, Tanzania and Uganda

10. SIZE AND TIME FRAME OF THE FUND • The initial size of the “Fund” is approximately €20m. • KfW will provide grant funding up to Euro € 20M. • Time frame of the fund is for 5 years starting • from 2012

11. ROLE OF AUC to the FUND • Establish Oversight Committee and Regional Geothermal Coordination Unit to manage and administer the fund • Open a Special Fund Account and disburse Money to recipient developers • Sign Grant agreement with recipient developers • Assisted by Technical Consultancy firm in: (i) evaluation application from developers and (ii) monitor as well as evaluate projects • Looking for other donors and financiers to the fund

12. DIE Thank you