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(GP/GT) for Additional Water Supply in the Lower Rio Grande

(GP/GT) for Additional Water Supply in the Lower Rio Grande

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DESALINATION/AGRICULTURE/AQUACULTURE ECONOMIC RESULTS<br />

The study <strong>in</strong>cluded one more analysis, a geo<strong>the</strong>rmal turb<strong>in</strong>e unit was<br />

<strong>in</strong>stalled with desal<strong>in</strong>ation and an agriculture/aquaculture facility, tak<strong>in</strong>g<br />

advantage of <strong>the</strong> cascad<strong>in</strong>g energy values. Results suggest that this scenario<br />

becomes profitable only where <strong>the</strong> market price <strong>for</strong> electricity exceeds 5<br />

cents/kWH. Currently, many areas of <strong>the</strong> country that have geopressured<br />

resources also have a surplus electrical capacity and generation, thus power<br />

utilities have been offer<strong>in</strong>g less than 2 cents per kWH, well below <strong>the</strong><br />

reasonable breakeven value of 5 cents per KWH. However, when <strong>the</strong> energy<br />

demand of <strong>the</strong> <strong>in</strong>tegrated facility is large enough to <strong>in</strong>stall power generation<br />

equipment, sav<strong>in</strong>gs will be obta<strong>in</strong>ed by not hav<strong>in</strong>g to pay<strong>in</strong>g <strong>the</strong> 10 to 12 cents<br />

per kWH utility rate.<br />

This study <strong>in</strong>dicates that employment of o<strong>the</strong>r direct use technologies,<br />

specifically desal<strong>in</strong>ated water production, can contribute significantly to <strong>the</strong><br />

value added process and <strong>the</strong> overall economic viability <strong>in</strong> develop<strong>in</strong>g a<br />

geopressured resource. <strong>Additional</strong>ly, although agriculture and aquaculture<br />

applications are marg<strong>in</strong>al projects when <strong>the</strong>y are <strong>the</strong> only application with a<br />

geopressure well, <strong>the</strong> small marg<strong>in</strong> of profitability can contribute to<br />

improv<strong>in</strong>g <strong>the</strong> overall economics of additional direct use developments. The<br />

added complexity will have to be balanced with <strong>the</strong> <strong>in</strong>creased technical and<br />

management complexity and may add to <strong>the</strong> overall risk and unpredictability of<br />

<strong>the</strong> project.<br />

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