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Chapter9 Energy-SectorFundamentals:EconomicAnalysis,Projections,andSupplyCurves Table 9.1 Stages of EGS development: costs and risk Geologic assessment and permits Category Duration Cost Risk Define areas of potential development 1-2 years Moderate Low Exclude areas of public protection, high environmental impact, or protected zones 1-2 years Moderate Low Determine regional high- to low-heat gradient zones 1-2 years Moderate Low Correlate with areas of forecast demand growth or base-load retirement 1 year Low Moderate Determine regional variations in drilling costs, labor costs, grid integration < 1 year Low Moderate Determine need for voltage and VARS14 support < 1 year Low Moderate Determine regulation constraints < 1 year Low Moderate Determine taxation policies < 1 year Low Moderate Estimate market or government subsidies < 1 year Low Moderate Estimate costs 1 year Low Moderate File for permit and mitigate environmental externalities 3+ years High High Apply for transmission interconnect < 1 year Moderate High Acquire permit and begin drilling 1 month Moderate Low Exploratory drilling Category Duration Cost Risk Site improvement 1 month Moderate Moderate Determine reservoir characteristics (rock type, gradient, stimulation properties, etc.) 6 months High High Performance/productivity (flow rate, temperature, fluid quality, etc.) 6 months High High Apply and test advances in drilling and fracturing technology 6 months High High Achieve cost reductions as function of recent research and past learning curve 6 months High High Production drilling and reservoir stimulation Category Duration Cost Risk Apply best practices and further develop site 1 year High Moderate Construct transmission interconnection 2 months Moderate Moderate Construct power transmission facility 2 months High Moderate Construct power conversion system 2 years High Low 9-8PDF Image | The Future of Geothermal Energy
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