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Assessment of the Costs of Geothermal Power Generation in New Zealand 3. Components of a Geothermal Development The key components of a geothermal power project (GPP) are: the geothermal field or resource and the wells that tap it; the fluid collection and disposal system that take geothermal fluids from the wells, conditions them, delivers them to the power plant, and takes the waste fluids for disposal; the power plant (within the power plant fence); and the electricity transmission system (to deliver power to the interconnection point). The capital cost of a GPP is affected by factors such as the size of the project, the energy conversion process used, the size and number of individual generating units, and the character of the geothermal field (Mills, 2002). Since, to a significant extent, the character of the field affects the size and type of power plant, the capital cost of a GPP is greatly affected by the resource conditions. However, there is latitude for choice irrespective of the resource conditions, and these are matters for the developer to decide. The electricity tariff dictates the range of generation technologies which it is feasible to apply. For example, elsewhere in the world the use of lower temperature resources and pumped wells is the norm, but at current and reasonably foreseeable prices in New Zealand this is probably not competitive in the medium term and has not been considered as an option. Geothermal development costs are conventionally assessed on a greenfield basis – i.e. they take into account all costs incurred from initial surface exploration, exploration and development drilling, through to steamfield and power plant development, construction and commissioning. The New Zealand geothermal industry is somewhat unusual in that the Crown (the Government) has had an extensive historical involvement in resource exploration and proving and this has served to reduce development costs in New Zealand relative to true greenfield developments elsewhere. All of the recent geothermal developments in New Zealand have, to at least some extent, availed of this Crown legacy - Mokai, Poihipi, Rotokawa and Ngawha and the current development at Kawerau. Additionally, there are still unused productive Crown wells at Ngawha, Ngatamariki, Rotokawa and Tauhara. 3.1 The Geothermal Resource The character of a geothermal resource / field is dictated by the following fundamental factors: a) the area of the field (km2) b) the degree of recharge c) the power potential of the field (MW) (i.e. energy reserves or field capacity) Sinclair Knight Merz SKM Cost of Geothermal Power Report (2007 Cost Basis)R1.doc PAGE 6PDF Image | Current Costs of Geothermal Power Generation in New Zealand
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