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9.1 EGS in the Energy Sector EnergySector Fundamentals: Economic Analysis, Projections, and Supply Curves Chapter 9 Geothermal operations have been in place with varying degrees of complexity and use of technology since the turn of the previous century. These operations occupy a range of technologies from geothermal heat pumps through advanced binary and flash plant facilities that produce electric power. Costs of operation for existing plants are welldocumented (see references) and reflect the conditions of drilling and operation for primarily hydrothermal wells at depths that do not exceed 4 km for typically electric utilities that are commercially operated. Highgrade hydrothermal systems exist because natural permeability allows naturally present water to circulate to shallow depths. The circulating hot water heats surrounding rock to some distance away from the permeability anomaly, according to the length of time the system has been in existence. These systems rely primarily on convective heating rather than the conductive heating from the resource base. In hydrothermal systems, the thermal energy accessible for recovery is limited to the thermodynamic availability of the fluids in the natural system consisting of the convective cell. Such systems require (1) abnormally high heat flow, (2) significant permeability to compensate for the low thermal conductivity of rock, (3) the presence of significant storage porosity for containing the fluid, and (4) the fluid itself. The exploitation of hydrothermal systems requires the fortuitous collocation of these four conditions. Enhanced Geothermal Systems (EGS) differ fundamentally from these hydrothermal systems. EGS engineering technology provides means for mining heat from a portion of the universally present stored thermal energy contained in rock at depths of interest, by designing and stimulating a reservoir whose production characteristics would be similar to a commercial hydrothermal system. For highgrade EGS resources, the high heat flow requirement (1) is met, while lower EGS grades are also generally accessible using EGS technology, albeit at higher cost. EGS provides engineering options for satisfying the remaining requirements – (2)(4). Consequently, the number of potential sites suitable for EGS is significantly greater than for hydrothermal. Ultimately, the EGS approach may be universally applicable, assuming continued, longerterm R&D support for advanced exploration, reservoir stimulation and drilling, and technologies. Electric utilities are defined as either privately owned companies or publicly owned agencies that engage in the supply (including generation, transmission, and/or distribution) of electric power. Nonutilities are privately owned companies that generate power for their own use and/or for sale to utilities and others. The generating units operated by an electric utility vary by intended use, that is, by the three major types of load requirements the utility must meet, generally categorized as base, intermediate, and peak. A baseload generating unit is normally used to satisfy all or part of the minimum or base demand of the system and, as a consequence, produces electricity essentially at a constant rate and runs continuously. Baseload units are generally the largest of the three types of units, but they cannot be brought online or taken offline quickly. Peakload generating units can be brought online quickly and are used to meet requirements during the periods of greatest load on the system. They are normally smaller plants using gas turbines, and/or combined cycle steam and gas turbines. Intermediateload generating units meet system requirements that are greater than base load but less than peak load. Intermediateload units are used during the transition between baseload and peak load requirements (EIA, 2005; Stoft, 2002). 93PDF Image | Energy Sector Fundamentals
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