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EnergySector Fundamentals: Economic Analysis, Projections, and Supply Curves Pulverized Coal Advanced Gasification Supercritical Chapter 9 9.8.6 Geothermal supply curve characteristics Figure 9.4 Schematic of replacement technology supply curve for coal plants. Quantity Geothermal energy provides critical value to overall grid operations. While initial capital costs are 915 high, reliability and capacity factors are correspondingly high, with minimal downtime for maintenance and minimal fuel cost through replenishment of lost water in operations. The supply curve for energy from a geothermal system represents a combined range of production that is not By definition, the supply curve is a relation between each possible price of a given good and the quantity of that good that would be supplied for market sale at that price. This is typically represented as a graph showing the hypothetical supply of a product or service that would be available at different price points. The supply curve usually exhibits a positive slope, reflecting that higher prices give producers an incentive to supply more, in the hope of making greater revenue. The supply of a “good” such as energy, either in the form of direct heat output or electricity, is dependent on the quality and quantity of the resource available, the technology used to extract it, and the cost of transforming it into a consumable product. Thus, the delivered cost of energy becomes a combination of capital (fixed) and fuel (variable) costs. When levelized over a period assumed to cover fixed costs and increased costs of operation, these technologies vary in terms of characteristics and delivered cost of energy as shown in Table 9.3. traditional from the point of view of a normal economic good, where a price continuum represents the available supplies offered to the market. In this case, a singlewell complex represents a “system” of heat delivery and energy transformation. Essentially, the complex is “tuned” to “mine” a given heat resource through a range of depth represented by the well system, the fractured rock strata, and the amount of water that can be injected into the system to extract an optimal level of heat without degradation of the reservoir. Price and EfficiencyPDF Image | Energy Sector Fundamentals
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