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 Condensing steam turbine cycles, or hybrid combinations of steam turbine and binary units, are best-suited to high temperature geothermal resources. ORC units utilise the energy of both the steam and brine components of the total well fluid, and a significant portion of the heat supplied by the geothermal energy may be from the brine. The ORC may be better suited to medium temperature resources (< 240 oC), but a low pressure flash steam cycle (using a condensing steam turbine) is a technically viable option. In general, the ORC is more economically competitive for medium temperature resources, especially for small generating unit sizes. The most commonly used power cycle in New Zealand has historically been single and multiple flash steam condensing plant (Wairakei, Ohaaki, Kawerau and Nga Awa Purua), however, over the past 10 years GCCU’s have dominated with installations at Mokai and Rotokawa. Ormat ORC plants have been installed at Mokai (by Tuaropaki Trust), Rotokawa (by Mighty River Power in partnership with Tauhara North No. 2 Trust), Kawerau (by BOPE), Ngawha (by Top Energy) and at Wairakei (by Contact Energy). It is worth noting the role of New Zealand’s (Aotearoa’s) indigenous peoples (the Maori) in recent geothermal developments. At both Mokai and Rotokawa, the Crown has transferred its assets (the geothermal wells) to the local Maori landowners who have then been able leverage these assets in geothermal developments11,12. Projects at Ngawha and Kawerau also have Maori equity. 3.3.3 Second hand power plant Some geothermal developments worldwide have successfully made use of second hand plant including plant which was originally intended for other types of operations, such as marine steam turbines e.g. the back pressure set installed at Kawerau. Other examples of second hand plant use in New Zealand include the high pressure turbines at Ohaaki, the back pressure turbine at Wairakei replacing pressure reducing valves, and the Poihipi station. There can be time and cost savings in doing so. However for the present exercise it is assumed that all plant would be purchased new from the manufacturers. 11 http://www.tuaropaki.com/geothermal_power.asp 12 http://www.tauharano2.co.nz/projects.asp Sinclair Knight Merz SKM Cost of Geothermal Power Report (2007 Cost Basis)R1.doc PAGE 11

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