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Total feed-in allocations are limited for individual renewable energy technologies to prevent costly technologies from draining a disproportionate share of the overall feed-in funds to ensure that the ultimate objective of adding 5.4 TWh of renewable electricity by 2030 is not at risk. Almost 8,900 applications for feed-in tariffs have been submitted. In 2010, about 505 GWh of electricity have been produced from a cumulative 182 MW capacity installed. Wind contributed 13 GWh, solar 21 GWh, biomass 212 GWh and hydro 259 GWh – all from a total 1,960 power projects. The power production accounts for a total of 9.3% of the targeted 5,400 GWh by 2030. In addition to the feed-in tariffs, there exists a ―commitment to guarantee‖ subsurface risk for finding commercially viable geothermal resources. The purpose of this instrument is to encourage potential investors in geothermal projects by sharing the risk of finding suitable subsurface resources. If boreholes fail to deliver agreed targets, a maximum of up to 50% of the total subsurface costs may be reimbursed. The costs include, for example, well pad construction, drilling and completion for production, injection and observation wells, borehole geology, logging and instrumentation, production, injection and circulation tests, reservoir stimulation, chemical testing, etc. The process is described in detail in attachment 1.6 of the Swiss electricity supply ordinance (http://www.admin.ch/ch/d/sr/7/734.71.de.pdf). In 2010, two hydrothermal projects applied for the risk guarantee, but no decision has been taken yet. 20.5.3 Development Cost Trends As in prior years, the installation cost of geothermal systems did not significantly decrease in 2010. Geothermal systems are perceived to be local in nature, and thus contribute to energy supply security. Energy contracting for geothermal heat pump systems is increasingly popular (the local electric utility builds, owns, and operates the system and the building owner receives monthly bills for heating, cooling and warm water). There is a base price depending on the installation size and a variable price for heat, cooling and warm water delivery. Neither unit technical costs nor retail prices are known. 20.6 Status of Geothermal Industry In addition to standard fluctuations, market entry and exit of small (mostly consulting) geothermal companies, 2010 saw the arrival of two, on a local scale, significant players on the geothermal industry scene. Axpo Holding AG has set up a geothermal business unit within their subsidiary Axpo Neue Energien. Also 7 city and regional utilities (Azienda Elettrica Ticinese (AET), Elektra Baselland (EBL), Elektrizitätswerk der Stadt Zürich (ewz), EOS Holding SA (EOS), Energie Wasser Bern (ewb), Gasverbund Mittelland AG (GVM) and Industrielle Werke Basel IWB) have formed an incorporated joint venture, Geo-Energie Suisse AG to develop and operate engineered/enhanced geothermal systems. The lack of a domestic oil&gas and mining industry is most likely the principal contributing factor to this feature of Switzerland‘s geothermal industry; downstream actors in the geothermal energy value chain migrate upstream. Accordingly, barriers and risks are perceived and managed somewhat differently given prevailing business models. 20.7 Economics 20.7.1 TrendsinGeothermalInvestment A pick-up in investment towards project maturation is expected for 2011. 20.7.2 Turbine,Project,WellDrillingandO&MCosts As the first geothermal power projects are still in an early phases of development there are no reliable cost data available. 236PDF Image | Geothermal Research and Tech IEA
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