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Assessment of the Costs of Geothermal Power Generation in New Zealand 2. Introduction SKM was commissioned in 2006 by the New Zealand Geothermal Association to prepare a report on the cost of geothermal power generation in New Zealand, this being task 7 in the NZGA’s Action Plan (see http://www.nzgeothermal.org.nz/publications/Reports/NZGAAction Plan2006.pdf). The NZGA Terms of Reference required that the report cover the following: provision of a band, or envelope, of unit costs for a number of development scenarios. clearly separate out offshore from local costs give a view on the currency that the offshore costs should be indexed to, and give a view on factors that have recently changed New Zealand geothermal generation costs and possible trends. The Terms of Reference also require SKM to consult with the NZGA Board members and the Executive Officer on the following during the course of the study: Programme Drilling/well costs Well performance Capital costs Operating and maintenance costs A view on well replacement rate, and Cash flow during construction. For various reasons this report did not get completed at the end of 2007, at which time the main author, Peter Barnett, moved from SKM to Hot Rock Limited. Paul Quinlivan picked up the authorship of the report in mid-2008, but final issue was delayed mainly due to the effort required to analyse the financial performance of the 32 options under study. For the past 2.5 years it has effectively been a labour of love, firstly by Peter Barnett (who wrote the majority of the text) and subsequently by Paul Quinlivan (who completed the financial modelling, wrote the financial section and updated the report text to reflect the report’s status as of October 2009). Sinclair Knight Merz SKM Cost of Geothermal Power Report (2007 Cost Basis)R1.doc PAGE 5PDF Image | Current Costs of Geothermal Power Generation in New Zealand
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