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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 trends reasonably representative capital cost estimates can be developed for geothermal power plant. 6.4.1 Single pressure condensing power plant For condensing steam turbine generating units, there are significant economies of scale with specific capital cost ($.MW-1) decreasing with increasing unit size. Present day costs (as at 2007) are assessed in Table 6-3. These estimates cover all power plant-related works including site establishment, civil works, mechanical and electrical installation works (of main generating equipment and balance of plant supplied from overseas and / or locally where feasible), (11 kV) switchboard for main generator output, auxiliary loads supply (3.3 kV and 415 V), step-up transformer (11/110 or 11/220 kV) and 110 / 220 kV switchyard (single bay). The high voltage transmission line is not included in this price but is costed separately. It is assumed that the power plant will be supplied under an engineer, procure and construct (EPC) contract16. Provision for major spare parts is included in the EPC price. Estimated Costs for Single Pressure Condensing Power Plant (2007) Table 6-3 Plant Size 20 MW single unit 50 MW single unit Estimated Total Cost NZD per kW installed 2,200 1,900 Estimated Total Cost USD per kW installed (E/R17 0.70) 1,540 1,330 Local Cost Component NZD M 8.8 19.0 Overseas Cost Component USD M (E/R 0.70) 24.6 53.2 6.4.2 Double pressure condensing power plant Present day costs (as at 2007) for power plant with double pressure turbines of 20 and 50 MW capacity are assessed in Table 6-4. These estimates cover all power plant related works and items detailed in the section above for single pressure non condensing plant. 16 EPC Contract ‐ Engineer Procure Construct Contract. This is a contract arrangement in which a contractor assumes total responsibility, under contract to the project owner (developer), for the design, procurement, construction and commissioning of e.g. a power plant. The contract conditions will normally be based on a fixed contract sum and will specify a time for completion to which the contractor commits and a performance guarantee, beyond which liquidated damages may be claimed, reflecting the value of the loss that the owner faces due to the late completion or the off‐guarantee performance. These damages may include items such as the cost of financing, penalty costs the owner may be charged for performance shortfall under its power sales agreement (if any), additional charges for engineering supervision and the like. 17 E/R = exchange rate, NZD.USD‐1 Sinclair Knight Merz SKM Cost of Geothermal Power Report (2007 Cost Basis)R1.doc PAGE 29

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