Aditya Singh Project
Aditya Singh Project
Aditya Singh Project
SESSION – 2023-24
SEMESTER – V
Highlights
Process and Technology Status - Global geothermal power capacity by the end of 2016 totalled
12.7 gigawatts (GW), with annual electricity generation reaching 80.9 terawatt-hours (TWh) in 2015
(most recent data), amounting to approximately 0.3% of global electricity generation (IRENA,
2017a). Geothermal electricity generation relies mainly on technologies that exploit conventional
geothermal resources, such as: dry steam plants, flash plants (single, double and triple), binary
plants, and combined-cycle or hybrid plants. However, as high-quality conventional resources
become harder to access, deeper resources may become accessible in the future through the
development of enhanced geothermal systems.
Costs - Geothermal project costs are highly site-sensitive. Typical costs for geothermal power plants
range from USD 1 870 to USD 5 050 per kilowatt (kW), noting that binary plants are normally more
expensive than direct dry steam and flash plants. The levelized cost of electricity (LCOE) of a
geothermal power plant ranges from USD 0.04 to USD 0.14 per kilowatt-hour (kWh), assuming
maintenance costs of USD 110 per kW per year and a 25-year economic life (IRENA, 2017b). Costs
for geothermal technologies are expected to continue to drop through 2050, further improving their
business case and fostering their growth (Sigfusson and Uihlein, 2015).
Potential and barriers - Conservative estimates set the technical potential for geothermal power
production at 200 GW (IPCC, 2011). This potential will only be realised if emerging technologies such
as enhanced geothermal systems continue to mature and enable access to resources that previously
were inaccessible. Other promising opportunities for geothermal power production come from taking
advantage of what otherwise would be wasted heat. These include: retrofitting flash plants with low-
temperature bottoming cycles; coupling plants with heating applications that rely on waste heat; and
exploiting co-produced resources (i.e., fluids that are a by-product of other industrial processes). The
main barrier to further geothermal development lies in the difficult task of securing funding for surface
exploration and drilling operations. This can be addressed through public financing and the creation
of public companies to exploit geothermal resources. Other barriers include environmental, social and
administrative constraints. For instance, a project might be delayed due to lengthy administrative
procedures for the issuance of licences and permits, or due to delayed discussions and negotiations
(often of complex character) with local groups. Another difficulty is that different countries might have
different regulations for performing environmental and social impact assessments, which are
mandatory in most cases. Transparent government regulations which avoid causing unnecessary
project delays are needed.
The European Commission (EC) forecasts the installed costs for both flash and binary plants to
decrease through 2050 (Figure 9)
Figure 10 presents the estimated cost breakdown for the development of two 110 MW flash geothermal
power plants in Indonesia, with total installed costs of around USD 3 830 per kW. The power plant
and infrastructure costs amount to 49% of the total installed costs; drilling exploration, production and
injection wells account for around 24%; while the steam field development accounts for 14% (IRENA,
2014). The EC performed a similar assessment for flash and binary plants and found that roughly 55%
of total installed costs corresponds to the power plant and other infrastructure, while exploration,
drilling and field development costs amount to 20% for flash plants and 35% for binary plants. The
LCOE from a geothermal power plant is generally calculated by using the installed costs, operations
and maintenance (O&M) costs, economic lifetime, and weighted average cost of capital. Figure 11
presents the LCOE for geothermal projects assuming a 25-year economic life, O&M costs of USD 110
per kW per year, capacity factors based on project plans (or national averages if data are not available),
two sets of make-up and injection wells over the 25-year life and the capital costs outlined in Figure
8. The observed LCOE of geothermal plants ranged from USD 0.04 per kWh for second-stage
development of a field to USD 0.14 per kWh for a first-of-a-kind greenfield development (Figure 11).
The economics of geothermal power plants may be improved by exploiting by-products such as heat,
silica or carbon dioxide.
Figure 10: Total installed cost breakdown for two proposed 110 MW geothermal plants in
Indonesia
The LCOE from a geothermal power plant is generally calculated by using the installed costs,
operations and maintenance (O&M) costs, economic lifetime, and weighted average cost of capital.
Figure 11 presents the LCOE for geothermal projects assuming a 25-year economic life, O&M costs
of USD 110 per kW per year, capacity factors based on project plans (or national averages if data are
not available), two sets of make-up and injection wells over the 25-year life and the capital costs
outlined in Figure 8. The observed LCOE of geothermal plants ranged from USD 0.04 per kWh for
second-stage development of a field to USD 0.14 per kWh for a first-of-a-kind greenfield development
(Figure 11). The economics of geothermal power plants may be improved by exploiting by products
such as heat, silica or carbon dioxide.
Potential and Barriers
The global technical potential for electricity generation from hydrothermal resources is estimated to
be 240 GW (Stefansson, 2005), with a lower limit of 50 GW and an upper limit between 1 000 GW
and 2 000 GW, under the assumption that unidentified resources are likely five to ten times larger
than currently identified resources. According to the Geothermal Energy Association, the global
geothermal industry is expected to reach about 18.4 GW by 2021 (GEA, 2016). Table 2 and Figure
12 show planned capacity additions in the medium term.
Enhanced geothermal systems: A large part of the geothermal potential is heat stored at depths greater
than commonly drilled. Standard hydrothermal technologies depend on permeable aquifers, which
allow the flow of water through them, to produce hot water. However, at greater depths the ground
becomes less porous and water flow is restricted. Research and demonstration projects are being
developed to overcome this limitation. Instead, artificial fractures are created to connect production
and injection wells by hydraulic or chemical stimulation. Stimulation is accomplished by injecting
water and a small amount of chemicals at high pressure to create or re open fractures in the deep rock
(Figure 13). To prevent these fractures from closing again when the injection pressure is reduced,
special materials called proppants are added. This approach, known as enhanced geothermal (EGS),
uses binary plants to produce power from the hot brine. As there is no natural flow of water, all the
brine has to be re-injected into the reservoir to keep the pressure and production stable. This helps
prevent air emissions during the service life. Several pilot projects were performed in France, at Soultz-
sous-Forêts and in Strasbourg (Hébert et al., 2010; Renewable Energy World, 2016), as well as in the
US (DOE, n.d.a).
Exploiting untapped resources is not the only way to increase the geothermal installed capacity.
Additions also can be made through efficiency improvements, such as:
Low-temperature bottoming cycles: When dealing with high-enthalpy resources, it is common to use
a flash plant configuration to exploit them. In a traditional flash plant, the steam exiting the turbine is
re-injected into the ground, leaving it as waste heat. This steam, however, frequently exits the turbine
at temperatures that are suitable for power generation through a binary cycle turbine. This would
increase the overall efficiency of the plant by increasing the power output.
Co-generation: Geothermal energy has many potential uses besides power generation. The water
collected after separating the steam for generation is normally re-injected into the ground because the
temperature is too low for power generation. However, because it is frequently higher than 100ºC, by
exchanging the heat with a different water source before injection, this newly heated water can be used
for various direct-use applications such as domestic hot water supply and space heating.
Co-produced resources: The use of geothermal fluids that are a by product of other industrial
processes also provides a great opportunity to produce electricity at low cost and with virtually no
emissions. Hot geothermal fluids which are a by-product of oil and gas operations usually are
considered a nuisance, given that they need to be disposed of at a cost. Power actually can be produced
from these co produced resources, and this already has been successfully tested in the US (NREL,
2016).
Figure 13: Enhanced geothermal system
Supercritical geothermal systems: These are high-temperature systems located at depths where the
reservoir fluid is in supercritical state, e.g., 374ºC and 221 bar for water. These systems are the subject
of ongoing research and are not yet commercial; however, they are capable of attaining higher well
productivities than conventional systems given their high temperatures (Dobson et al., 2017). In 2009,
the IDDP 1 well in Iceland found magma and was capable of producing superheated steam at 450ºC,
effectively creating the first magma-EGS system. The well, however, had to be shut down in 2012 due
to a valve failure. While such a system could prove to be more economical by exploiting the steam
directly from the well, the possibility of applying a reverse procedure also has been explored. This
would mean using these types of wells for injection with the objective of enhancing the performance
of existing conventional systems (Fridleifsson et al., 2015). The main barriers to geothermal
development can be grouped into three broad categories: financial, environmental and administrative.
Financial barriers: Geothermal power plant development involves substantial capital requirements due
to exploration drilling costs, for which it can be difficult to obtain bank loans. Since geothermal
exploration is considered high risk, developers generally need to obtain some type of public financing.
This risk is derived from the fact that capital is required before confirmation of resource presence or
exploitability, and therefore before project profitability can be determined (Figure 14).
Governments can reduce this risk and the cost of capital for private developers in a number of ways.
For instance, they can create public companies that exploit geothermal resources and provide private
companies (that install power plants and supply electricity to their customers) with the steam. Other
risk mitigation instruments include cost-sharing for drilling and public-private risk insurance schemes.
With sufficient resource information, including seismic events/fractures and deep drilling data (which
national or local governments can make available to developers), and reliable conceptual models of
the underlying geothermal system and groundwater resources, risks could be reduced and financial
barriers could be further eased, thereby accelerating geothermal development (Gehringer and Loksha,
2012).
Environmental and social barriers: National regulations differ among countries; however, an
environmental and social impact assessment of some type is almost always mandatory. Furthermore,
apart from the assessment process, sufficient discussion with local groups may be needed before
development can commence. These issues can delay or lead to the cancellation of the geothermal
power project; however, if managed in a timely and efficient manner, they do not present an obstacle.
Administrative barriers: Administrative issues such as licensing, permitting and environmental
assessments are technically not barriers. However, they need to be tackled carefully by project
developers, as they might impact a geothermal project by causing unnecessary delays. On the other
hand, governments should ensure that their regulations establish a transparent and straightforward
process that will foster the deployment of new projects.
References
DiMarzo, G. et al. (2015). “The Stillwater Triple Hybrid Power Plant: Integrating Geothermal, Solar
Photovoltaic and Solar Thermal Power Generation”, Proceedings World Geothermal Congress,
Melbourne, Australia, 19-25 April 2015, https://www.geothermal-
energy.org/pdf/IGAstandard/WGC/2015/38001.pdf.
DiPippo, R. (1999). “Small Geothermal Power Plants: Design, Performance and Economics”, GHC
Bulletin, June 1999, pp. 1-8, http://geothermalcommunities.eu/assets/elearning/7.10.art1.pdf
DiPippo, R. (2015). “Geothermal Power Plants: Principles, Applications, Case Studies and
Environmental Impact”, Elsevier, Amsterdam, www.sciencedirect.com/science/book/9780081008799
(accessed 30 May 2017).
D obson, P. et al. (2017). “Supercritical Geothermal Systems – A Review of Past Studies and Ongoing
Research Activities”, Proceedings 41st Workshop on Geothermal Reservoir Engineering, Stanford
University, 13-15 February,
https://pangea.stanford.edu/ERE/db/GeoConf/papers/SGW/2017/Dobson.pdf.
TRI (Energy Technology Reference Indicator) (2014). “Energy Technology Reference Indicator
projections for 2010-2050”, European Commission,
http://publications.jrc.ec.europa.eu/repository/handle/JRC92496.
GTP (Geothermal Technology Programme) (2008). “Geothermal Tomorrow 2008”, GTP,
http://www.nrel. gov/docs/fy08osti/43504.pdf.