UNELCO welcomes Geodynamics’ ESIA approval

While Takara landowners and chiefs initially raised questions about how UNELCO would take an announced agreement by the Acting Director of Environment of the company’s Environment Impact Assessment Report, the historical French power company has said it welcomes Geodynamics’ completion of the Geothermal Environmental and Social Impact Assessment (ESIA) of September 2014.

UNELCO says it also welcomes the approval granted by the Acting Director of the Department of Environmental Protection and Conservation early February 2015.

UNELCO says the approval opens the way for exploratory drilling to begin in Takara, with the objective of assessing the potential for geothermal electricity generation, once the developer and local community members have found a fair arrangement regarding land usage conditions.

In order to capitalize on this positive momentum, UNELCO says it has provided the developer with a document that frames the objectives, conditions and the expectations from this potential future supplier.

“This framework will ensure that the developer knows the requirements and pre-requisites that will make the potential project viable and aligned with the best interest of Efaté stakeholders,” a statement from the company says.

After many years of studies, discussions, and speculations regarding the Takara geothermal resource, some dating back to the 1970s, UNELCO is most eager to see a developer conduct a thorough evaluation of the resource’s technical and commercial exploitability.

The outcome of this exploration and evaluation is obviously very uncertain, but it will provide crucial information for the Government, the local community, the consumer and energy planners, regardless of the outcome.

Efaté now has many proven traditional and renewable energy generation options — thermal, wind, solar, biomass, coco-fuel, for example — and geothermal would be an interesting addition to the mix.

UNELCO’s must ensure that the addition of any new technology, project, and potential supplier are consistent with the best interests of the Efaté consumers; completion of this exploratory phase will go a long way towards confirming the local viability of the technology, the project scope and the level of commitment of the developer.

Over the years, prominent development agencies have endorsed the geothermal idea in consulting reports and policy recommendations to the Government of Vanuatu; it is now time for the developer to confirm or infirm the potential through prospection. UNELCO will ensure that exploratory phase results will be considered with great care and that continued development will only be endorsed if the project is beneficial to the Efaté consumers (e.g. safe, less expensive than current electricity generation, more competitive than alternative technologies, etc.)

In the past, Vanuatu has unfortunately witnessed over-promising and under-delivering from certain third party developers; as the long-term partner of Vanuatu, UNELCO believes that it is important to be upfront and properly manage public’s expectations: geothermal evaluation is still at a very early stage, most of the analysis, work, investments, diligences, costs, and technical and commercial viability tests still lie ahead, but UNELCO welcomes the launch of this next phase by the developer as it should provide much needed clarity to all the Vanuatu stakeholders.

In the final meeting with landowners and chiefs and people of Takara and Emau Island last month, Acting Director General for Climate Change, Jotham Napat explained that what it meant was that if the exploratory drillings proved fruitful, and Geodynamics proceeded to produce electricity through geothermal power, the company would prompt UNELCO to reduce its costs which would be enjoyed by all its consumers.