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Assessment of the Costs of Geothermal Power Generation in New Zealand heavy duty double circuit 220 kV transmission line is estimated at NZD 4 million and the associated transformer an additional NZD 2 million and 3 million for the 20 and 50 MW developments respectively. Switchyard, substation, consenting and easement costs are not included in these estimates. 6.6 Operating and Maintenance Costs Operating and Maintenance (O&M) costs for geothermal projects include the costs of operating and maintaining both the power plant and the steamfield fluid gathering and handling system. 6.6.1 Steamfield O&M Costs A typical steamfield O&M cost is about NZD 20.yr-1.kW-1 (gross) of steamfield plant capacity, equating to about NZD 400,000.yr-1 for a 20 MW plant and 1,000,000.yr-1 for a 50 MW plant. These figures include fixed costs for operating personnel and both planned and unplanned maintenance on the wells and the fluid collection and disposal systems, together with routine down well measurements as required for typical production field activities. This O&M figure does not include make-up and replacement well (“M&R”) drilling, testing, and connection that will be incurred at various times during the production life of a project to maintain geothermal fluid and energy supply to the power plant at the level required to maintain full turbine loading. Due allowance therefore needs to be made for the drilling of production and reinjection M&R wells, which at times will substantially exceed other O & M costs. The numbers of M&R wells required, and the timing for when they will be required, is initially determined by harmonic decline analysis, as discussed in detail in Section 5.2.2 and is then later assessed by detailed numerical simulation studies over the life of the field once production has commenced. The numbers of makeup wells and the years in which they are required have been determined in detail in the financial modelling undertaken in Section 8. From these data it can be generalised that for a typical 3% harmonic decline in the rate of geothermal production, the number of replacement production wells over a 30 year project life will be around 90% of the number of production wells required at the commencement of power generation (though the variation is from 50% to 150% across the 32 options considered here). It is further assessed that the number of replacement injection wells over 30 years will also be about 90% of the number required at start up (the variation is from 70% to 100% across the 32 options considered here). The M&R well costs are entered into the cash flow as an expense in the year in which they are drilled (refer to Section 6.9). Sinclair Knight Merz SKM Cost of Geothermal Power Report (2007 Cost Basis)R1.doc PAGE 33PDF Image | Current Costs of Geothermal Power Generation in New Zealand
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