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Energy­ Sector Fundamentals

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Energy­ Sector Fundamentals ( energy­-sector-fundamentals )

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Chapter 9 0 200 400 600 800 1000 1200 Energy­Sector Fundamentals: Economic Analysis, Projections, and Supply Curves 120 100 80 60 40 20 0 Flow Rate Technical Limits Figure 9.15 Learning curves for production well flow rates. e Cumulative EGS Capacity Installed (MW ) 100kg/s – Fast Growth 100kg/s – Slow Growth 80kg/s 60kg/s Flow Rate per Production Well (kg/s) 9­34 from focused research and development programs, which can significantly shorten the time of successful market penetration and adoption (Moore and Arent, 2006). Power generation is extremely capital­intensive at inception and tends to be fuel­ or variable­cost sensitive over time. Once a power system is organized around a suite of technologies, such as fossil­ based generation, it becomes difficult to shift or redesign the system. Key reasons for this can be found in the nature of the support facilities, including fuel acquisition and transformation, transportation pipes and wires, storage facilities, and delivery systems – which also entail long­lived capital­intensive facilities. As a consequence, improvements of existing systems tend to occur at the margin, in the form of advanced technologies for a particular fuel source. Geothermal power technologies are no exception to this trend. The learning curve involved in extending drilling capability, and in more efficient fracture and stimulation of rock, leads directly to higher rates of heat recovery. The three phases of expected improvement demonstrate the application of the learning curve thesis in terms of more efficient power generation and lower costs. The fact that the delivered cost of power remains effectively level over time after taking advantage of installation economies, e.g., larger­size plants, demonstrates the benefits of continuous improvement in techniques and technology. Renewable energy technologies, in particular, have shown great benefit

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