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Technology Status - NET Nowak Energie & Technologie AG

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140<br />

Large-scale applications (usually > 5 MW): As shown above, geothermal<br />

power can play a particularly significant role in the energy balance of some<br />

areas in developing countries (with rapidly increasing energy demand)<br />

because geothermal is competitive with conventional alternatives.<br />

Additionally there is a large technical potential in some areas in the<br />

industrialised world. Several dozen megawatts will be installed every year in<br />

Europe and the US over the next decades, due to energy security or<br />

environmental benefits of geothermal power.<br />

Developing countries and remote areas: Opportunities for small<br />

geothermal projects exist in many areas of the developing world, including<br />

Latin America, the Caribbean, Indonesia and the Philippines as outlined by<br />

Vimmerstedt. Small-scale geothermal power plants (< 5 MW) could supply<br />

electricity in remote areas. However, governmental support is needed for<br />

small geothermal projects because they face special financial and<br />

operational challenges, for instance, relatively high project finance costs and<br />

difficulty in establishing and supporting an operation and maintenance<br />

infrastructure for small plants in remote areas. These difficulties may be<br />

mitigated by bundling small projects. The widespread use of small<br />

geothermal units demonstrates the technological feasibility of small systems,<br />

but does not demonstrate operational or economic feasibility for remote<br />

applications.<br />

Small-scale plants (usually < 5 MW, sometimes < 1 MW): Despite their<br />

higher energy costs, small-scale plants offer a number of potential<br />

advantages. Skid-mounted, modular units can be built in a factory and<br />

shipped anywhere in the world. A plant owner can start with a small<br />

investment and add modules as needed. Small plants can be designed<br />

to operate automatically in order to reduce O&M costs. Small plants<br />

can become attractive in regions where low-cost shallow wells are<br />

possible and where the exit brine from the plant can be used for<br />

direct-heating applications. The advantage of small mobile plants is most<br />

evident for areas without ready access to conventional fuels or where<br />

alternative systems are costly. For example, a 300-kW geothermal binary<br />

plant at Fang, Thailand, supplies power at 6.3 to 8.6 USD cents per kWh, as<br />

reported by Lund, compared to the alternative of diesel-generated power at<br />

22 to 25 USD cents per kW. Another opportunity is for small communities<br />

that may be near a thermal reservoir, but are by-passed by high-voltage<br />

transmission lines. The expense involved in serving these communities is<br />

prohibitive, since the step-down transformers needed to tap electricity from<br />

high-voltage lines cost some USD 675,000 each, including installation, and<br />

GEOTHERMAL POWER X6

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