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Flexible geothermal operations are the exception as of 2018 but have been demonstrated successfully by a few projects. The most notable example is the Puna Geothermal Venture facility (Hawaii), which generates 38 MWe and is contracted to operate flexibly between maximum and minimum limits of 38 MWe and 22 MWe, respectively. Puna is considered a first-of-its-kind project that could be expanded to other facilities given appropriate contracts and retrofits (Text Box 2-4) (Nordquist et al. 2013). Geothermal power plants at The Geysers in California historically operated in traditional baseload, peaking, and load-following modes. Flexible generation at The Geysers was also offered to meet the needs of one of the utilities that was purchasing power from The Geysers (Cooley 1996, Matek 2015b). Geothermal generation technology that can provide ancillary services is available for most operating geothermal power plants and examples such as Puna and The Geysers demonstrate utilization of those. However, market structures have not historically compensated most geothermal power plants to run as flexible, load-following generation. Although it is physically possible for a geothermal power plant to operate flexibly, doing so would not be cost effective under traditional power purchase agreements (PPAs). This economic barrier to widespread deployment of flexible geothermal power generation is elaborated in Section 2.4. Text Box 2-4. Operational Flexibility at the Puna Geothermal Venture Plant Power purchase agreements, or PPAs, are usually structured in a way that incentivizes geothermal power plants to run in a more traditional baseload configuration rather than providing flexible, load-following generation. In an exception, however, Hawaii Electric Light Company signed a PPA in 2011 with Puna Geothermal Venture for an 8-MWe expansion, representing the first agreement for a fully dispatchable geothermal power plant (Nordquist et al. 2013). Based on the agreement, Puna Geothermal Venture receives a capacity payment and energy payments, making flexibility possible from an economic standpoint. This structure allows geothermal energy to participate in the grid’s Automatic Generation Control, providing the utility with the unique ability to remotely direct the net output of the Puna Geothermal Venture facility and dispatch renewable generation, 24 hours a day. This functionality helps enable balancing of changing load and generation throughout the day, including variable generation and its uncertain output. Immediate benefits include lower energy rates to Hawaii Electric Light Company’s customers, reducing Hawaii’s dependency on imported fuels, maintaining reliability, and optimizing the geothermal resource (Nordquist et al. 2013). In 2018, eruptions of the Kilauea volcano on Hawaii’s Big Island affected Puna Geothermal Venture and forced a shut down. The plant operator was able to implement contingency plans that protected the geothermal steamfield and power plant from the worst effects; lava covered three of the plant’s 11 geothermal wells and burned a substation and adjacent warehouse. At the time of GeoVision report publication, Puna Geothermal Venture remained inoperable. The plant operator has indicated that work is underway to resume operation of the plant and estimates it will be ready for operation by year-end 2019 (Ormat Technologies 2019). The 60-MWe Krafla geothermal field in Iceland was similarly affected during a series of eruptions from 1975 to 1984 and eventually returned to full generation (B.M. Júlíusson et al. 2005). Chapter 2 | What is Geothermal Energy? 33 Chapter 2PDF Image | What is Geothermal Energy
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