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Chapter 9 EnergySector Fundamentals: Economic Analysis, Projections, and Supply Curves 16. Supply curves for EGS power in selected specific states are given in Appendix A.9.4. An example of a state in an area with no operating hydrothermal geothermal plants is Texas, shown in Figure A.9.15. Hightemperature gradients in the Gulf Coast area have been discovered during drilling for oil and gas. The hot water coproduced with oil and gas production is discussed in Chapters 2 and 7. The EGS resource base for these fluids could also be developed on its own. While the costs for developing geothermal resources in Texas are currently higher than market, the amount of power available is significant and, with incremental improvements in cost, could represent a significant baseload resource. Colorado (Figure A.9.16) is a state with both identified hydrothermal resources and identified EGS resources at depths shallower than 3 km – there is also a significant EGS resource at depths greater than 3 km. About 42 GWe could be available by 2011 at a cost of less than 10¢/kWh based on the continued success of the Soultz project or other EGS field projects if drilling cost improvements and conversion technology improvements continue to be made. 17. For a normal distribution, 95.45% of the area is within two standard deviations. Therefore, after more than two standard deviations on both sides of the distribution (40 years), about 95% of the EGS capacity would be installed. 946 18. The technologies described in this paper are an extension of existing geothermal drilling and fracturing techniques, only to the extent that drilling and fracturing are taking place at depth. The techniques are assumed to be more precise and capable of delivering higher rates of power over longer periods of time than previous hydrothermal systems. Thus, although these systems may be collocated in existing geothermal fields, the depth and accessed heat resource are beyond current established technology and power conversion. 19. A 2% area utilization is a conservative estimate of potential resources at depth. We have chosen this level to find coincident breakeven points for the cost of capital, which is assumed to be borne by the private sector after the initial 6,000 MWe.PDF Image | Energy Sector Fundamentals
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