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Current Costs of Geothermal Power Generation in New Zealand

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Current Costs of Geothermal Power Generation in New Zealand ( current-costs-geothermal-power-generation-new-zealand )

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Assessment of the Costs of Geothermal Power Generation in New Zealand 6.6.3 Total O&M Costs 6.7 Commercial Costs 6.8 Cost Sensitivities 6.8.1 Sensitivity to Drilling Success 6.8.2 Climatic Factors 6.8.3 Site Specific Factors (Terrain and Access) 6.8.4 Plant Capacity Factor 6.9 Timing of Costs 6.10 Other Cost Information 7. Assessed Capital Costs for Development Scenarios 7.1 Development Costs 7.2 Plant Performance 7.3 Offshore vs. Local Costs 7.4 Recent Changes and Future Trends in Power Sector Costs 7.4.1 Impact of fossil fuel price increases 7.4.2 Impact of increase in commodity prices 7.4.3 Update on impact of changes in commodity prices 8. Financial Modelling 8.1 Model Structure 8.2 Model Inputs and Assumptions 8.2.1 Capital Costs 8.2.2 Operations and Maintenance Costs 8.2.3 Electricity delivered at the grid transmission node 8.2.4 Debt Funding 8.2.5 Inflation 8.2.6 Cost of Carbon 8.2.7 Royalties 8.2.8 Corporate Tax 8.2.9 Depreciation 8.2.10 Discount Rate 8.2.11 Target Internal Rate of Return 8.3 Modelling Results 8.3.1 Model Outputs 8.3.2 Electricity Tariff 8.3.3 Applicability of the results in other markets 9. Summary and Conclusions 10. References Appendix A Example of Financial Model Input & Output Sinclair Knight Merz 35 35 35 35 36 36 36 37 38 40 40 46 47 48 48 49 51 54 54 55 55 55 55 56 56 56 56 56 56 56 56 57 57 58 58 62 66 67 SKM Cost of Geothermal Power Report (2007 Cost Basis)R1.doc PAGE ii

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