Technology Status - NET Nowak Energie & Technologie AG

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Technology Development
Geothermal power technology has been steadily improving. Although no
clear trend toward lower energy costs can be shown for the plants producing
electricity in the low-cost range of USD 0.02 per kWh, new approaches are
helping utilise resources that would have been uneconomic in the past. This
is true for both the power generation plant and the field development.
Drawing an experience curve for the whole geothermal power sector is
difficult, not only because of the many site-specific features having an impact
on the technology system, but also because of poor data availability. Despite
the fact that Larderello has the most experience with geothermal power
plants, no reliable, installation cost data are available covering the long term.
Geothermal technology development, related cost reductions and improved
performance depend on R&D and on a supportive market framework. In the late
1970s and 1980s, geothermal development was given special stimulus in the US
where DOE funding for geothermal research and development was for some
time over USD 1995 100 million per year. In addition, the Public Utility Regulatory
Policies Act (PURPA) mandated the purchase of electricity from facilities meeting
certain technical standards regarding energy source and efficiency. PURPA also
exempted qualifying facilities from both state and federal regulation under the
Federal Power Act and the Public Utility Holding Company Act. Furthermore,
California’s Standard Offer Contract system for PURPA-qualifying facilities provided
renewable electric energy systems with a relatively firm and stable market, allowing
the financing of capital-intensive geothermal energy facilities. When R&D funding
decreased and programmes were changed or halted, geothermal progress slowed.
Although the US is still the world leader in geothermal power, project
development stalled because geothermal could not compete with
conventional power, which became cheaper when fossil fuel prices declined.
Future technology development depends greatly on enhanced exploitation of
new resources and applications. R&D concerning the Kalina cycle and HDR
can help reduce costs of the binary-cycle power plant and exploit additional
resources. Up-scaling of the plant and the manufacturing process can also
help. However, the lowest energy costs already achieved are not likely to drop
dramatically in the future — only incremental improvements are foreseen.
Market Growth Factors
Geothermal power might be expected to grow at a steady pace between 5%
and 10% annually, thanks to competitive and attractive applications (mainly
large-scale in energy-driven markets and small-scale in remote areas).
Assuming an average growth rate of 6%, global cumulative geothermal
power capacity would reach 14 GW in 2010.
GEOTHERMAL POWER X6