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Assessment of the Costs of Geothermal Power Generation in New Zealand Where wells from each of the three resource options are flowed to a single flash condensing steam turbine, then the nominal MW ratings of the wells would be approximately as follows: Resource Type High temperature / highly productive Medium temperature / moderate productivity Lower temperature / moderate productivity 4.3 Power Development Size High Envelope Flow Rate 24 MW 14 MW 11 MW Low Envelope Flow Rate 8 MW 5 MW 4 MW There is a tension between the economies of scale of larger plants and the requirement of regulatory or investment plans to undertake development in smaller steps. This study did not look at greenfield developments greater than 50 MW. The main reason is that a greenfield developer would most likely not be able to attract the funds required for a larger development until some experience with the particular resource was gathered and the risks associated with a larger development were able to be well quantified. Furthermore a greenfield development of over 50 MW may struggle to obtain resource consents in New Zealand, given the conservatism of regulatory authorities and their preference for staged developments, for the same reasons. This contrasts with the current situation in New Zealand where large second stage developments of medium to high temperature resources are occurring at brownfield sites (100 MW at Kawerau and 132 MW at Nga Awa Purua (Rotokawa)). This implies that the anticipated returns on these investments within the current electricity market in New Zealand are attractive – and developers are on record as stating that “Geothermal is the lowest cost source of new generation for New Zealand14”. 4.4 Power plant cycle type Each of the four power cycle types described in Section 3.3 can be used for generating geothermal power from the three resource types described above, however, the single flash non-condensing steam plant and the hybrid steam / binary plant options are better suited to high temperature / high delivery pressure resource conditions. The efficiency of flash steam plant at lower temperature resource conditions (e.g. Option 3 at 230 oC) is much lower due to the limited steam flash from water at these temperatures. ORC power options using separated brine, with or without steam, are the most efficient option for utilising geothermal fluids at these conditions. 14 Baldwin, D. (2008). Chief Executive’s Review. http://www.contactenergy.co.nz/web/pdf/financial/ar_20080923_chairman_ceo_review.pdf Sinclair Knight Merz SKM Cost of Geothermal Power Report (2007 Cost Basis)R1.doc PAGE 15PDF Image | Current Costs of Geothermal Power Generation in New Zealand
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