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 It is assumed that the power plant will be supplied under an EPC contract. Provision for major spare parts is included in the estimated EPC price. Estimated Costs for Double Pressure Condensing Power Plant (2007) Table 6-4 Plant Size 20 MW single unit 50 MW single unit Estimated Total Cost NZD per kW installed 2,450 2,100 Estimated Total Cost USD per kW installed (E/R 0.70) 1,720 1,470 Local Cost Component NZD M 9.8 21.0 Overseas Cost Component USD M (E/R 0.70) 27.5 58.8 6.4.3 Organic Rankine Cycle Plant Standalone ORC power plant units are commercially available in a range of sizes, typically 2 MW, 5 MW and 10 MW. Since the largest unit sizes are only about 10 MW at present, larger ORC plant projects use multiple units, and there are limited economies of scale when units are replicated because heat exchanger area increases with heat load (power output), and the air cooled condensers typically used on ORC plants are assemblages of individual air cooler “modules”, so the cost of condensers increases approximately pro-rata with output (and hence heat load rejected). Other parts of an ORC plant, such as turbines, generators, switchgear, transformers, and piping may have some economies of scale but, taken overall, the economies of scale on power plant costs are quite minor, and other factors are often of greater importance. These include competition between plant suppliers, current order status of suppliers, world-wide commodity prices, the particular commercial terms and/or scope of supply utilised (e.g. ex-works and/or FOB and/or CIF supply, through to full EPC or “turn-key” contract), and the actual contract interfaces at the project site (for geothermal fluid supply and/or electricity export). Published cost data on ORC power plant installed in New Zealand are limited to the Ngawha I power plant, described by Frederiksens (et. al., 2000) as follows. The Ngawha 1 plant is a 9.3 MW net pure ORC plant, commissioned in 1997 at a cost of USD 17 million which included supply and installation of both steamfield piping plus power plant. Assuming an annual average cost increase of 2.5% per annum from 1998 to 2007 and converting the adjusted USD to NZD at an exchange rate of 0.70 indicates that a similar size development in 2007 would cost about NZD 31M, representing an installed cost of about NZD 3,350 per kW. This value is believed to be similar to that for the Ngawha II plant which has recently been completed. Sinclair Knight Merz SKM Cost of Geothermal Power Report (2007 Cost Basis)R1.doc PAGE 30

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