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governmental subsidies, amounting to 1,143 M ISK in 2010, to communities where there is no access to geothermal water for space heating (see Figure 12.3). The subsidies, although effective for regional development, can decrease interest in search for geothermal resources. 12.6 Economics Geothermal power is competitive with hydro in Iceland; providing reliable base load, green energy and favourable prices; 8,2 ISK/kWh + VAT for 3,5 MWh/a consumption, but can get considerably lower for the power intensive industry due to very high load factor. For residential heating see Figure 12.8. It is estimated that installation costs of a relatively large geothermal power plant is around US$ 2.5-3.0 M/MWe with about 2% annual maintenance and operation costs. 12.7 Research Activities 12.7.1 FocusAreas The Iceland Deep Drilling Project (IDDP) could start a new era in geothermal development. The main purpose is to find out if it is economically feasible to extract energy and chemicals out of hydrothermal systems at supercritical conditions. The drilling at Krafla was initiated in 2008, with intermediate casings set at 90 m, 300 m and 800 m. In March 2009 the largest drill rig in Iceland, Týr, continued drilling with a 12 1⁄4‖ bit with the aim of placing the next casing at 2,400 m. In the depth interval of 2,000 to 2,100 m the rig ran into repeated trouble which turned out to be due to veins of molten lava. Superheated steam rich in HCl entered the well and turned corrosive when mixed with liquid water. The well was then completed with a casing cemented down to 2,000 m. The well is now believed to be the hottest well in the world with a measured enthalpy of 3,400 kJ/kg. Table 12.3 Projects in the Master Plan for hydro and geothermal energy resources have been evaluated on the basis of the environmental, social and economical impact the projects will have and thus catagorized to be developed, protected or to be further considered. Fluid handling and evaluation along with pilot plant testing started in 2011. Wet scrubbing has been tested with good success. The measured temperature of the fluid in December of 2011 is around 441°C. The estimated possible power output after losses with wet scrubbing is in the order 134PDF Image | Geothermal Research and Tech IEA
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