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					Utility Geothermal Working
       Group Findings

         Prepared for
    The GRC Annual Meeting

     September 10-13, 2006

 Guy Nelson, UGWG Team Leader
Utility Geothermal Working Group




         And the Geothermal Resources Council
               Guy Nelson, Team Leader
                   (541) 994-4670
                 Gnelson181@aol.com
 What is the Utility Geothermal
       Working Group?

The UGWG is a group of utilities and
 ancillary associations formed under the US
 Department of Energy’s (DOE)
 Geopowering the West (GPW) Initiative
           UGWG Support
UGWG is supported by a number of
 organizations, including:

Bonneville Power Administration (BPA)
DOE
Geothermal Resources Council (GRC)
Western Area Power Administration (Western)
          UGWG Mission

To accelerate the appropriate integration
  of three geothermal technologies into
  mainstream applications
• Power Generation
• Direct Use
• GeoExchange
      Some UGWG Members
Arizona Public Service   BPA
State Working Groups     GRC
Sandia National Lab      Western
Idaho National Lab       Ormat, Int’l
South San Joaquin ID     Palo Alto Utilities
Salt River Project       Redding Electric
Seattle City Light       Springfield UB
           Prior 2006 Webcasts
Power Generation – January 24
Direct Use – March 14
GeoExchange – April 18
Transmission Issues – June 7
Tale of Two Buildings – August 2

And monthly teleconference meetings (first Wednesday of the
  month 9-11am PDT
        GRC Annual Meeting

• UGWG Annual Meeting in conjunction
  with the GRC meeting
• UGWG Members encouraged to submit
  papers for the GRC meeting
• 2 sessions are designed to address Utility
  Issues (Monday and Wednesday)
  Major Finding (Affirmation)
Cost Effective Energy Efficiency is the first choice
Duct Loss and Testing
         Geothermal Power Production
UTILITY GRADE POWER
   Modular power plants are readily expanded as needs increase
   Power costs competitive with current fossil fuel technologies
   Base Load power produced 24/7 @ over 90% Capacity Factor
   Fuel Risk assumed by project operator not by consumer

SUSTAINABLE & ENVIRONMENTALLY SAFE
   Many projects operating for decades at 98%+ availability
   Geothermal is non-combustion - near zero emissions

MINIMAL SURFACE USE- INDEPENDENT OF WEATHER

FIELD PROVEN TECHNOLOGIES - 8,000 MW WORLD WIDE

STRAIGHT FORWARD TO INSTALL, OPERATE AND MAINTAIN
   Projects developed over 3 year period - O&M by local staff
Binary Cycle Power Plant
   Average Capital and Delivered Costs
22000
               Capital Cost
                (US$/kW)


                                                                       Solar Photovoltaic
4000


                                        Biomass - Energy           Solar Thermal Power
                                        Forestry Energy Crops
3000

                                      New Geothermal
                                      without PTC
2000

                                  Coal

1000                              Wind without PTC                                          Cost of delivered
                                                                                            energy (US$/kWh)
                                  Gas

       0

           0     0.02   0.04   0.06     0.08   0.10    0.12     0.14   0.16     0.18   0.20        0.86   0.88
                                  Source: International Energy Agency & Ormat
      PROJECT DEVELOPMENT 20 MW net
1. Exploration & resource assessment                     $ 5.0 M
  12 Months time frame
2. Well field drilling and development                       15.0
  12 Months time frame after completion of item 1
3. Power plant, surface facilities, & transmission            30.0
  18 Months time frame with overlap of item 2
4. Other costs:                                               10.0
   o Commitment fees
   o Legal & Accounting fees
   o Consultants,
   o Interest during construction, and
   o Debt service and operating reserve
   o Construction contingencies and Developers fee
   12 Month process which should begin after completion of item 1
5. TOTAL FINANCED COST FOR 20 MW PROJECT $ 60 M
  To be provided as construction phase financing
6. Total Average Development Period                      36 months
    GEOTHERMAL PAINS AND PLEASURES


   Lifetime supply of fuel capitalized – no fuel price risk.
   Only operating costs escalate – tied to inflation index.
   Best economics if power plants run full output.
   Base load operation – effective use of transmission lines.
   Purchasing utility can get energy + environmental attributes
   Commercial capacity may be more/less than predicted.
   PPAs should allow for long term changes in geo resource.
   Development permitting stringent – project delays common.
   Air cooled systems require no water consumption –
    but output may vary by +/- 20% winter/summer.
UGWG Draft Steps to Implementing a
Successful Geothermal Power Project
1. Delineated geothermal resource, with bankable
    report, defining probable long term performance.

2. Financible Power Purchase Agreement from a
   Creditworthy purchaser.

3. Defined permitting path without pitfalls.

4. Credible developer with proven track record and
   experienced supply/subcontract team.

5. Control of entire geothermal resource to preclude
   competing interests for same fluid/steam supply.

6. Use of Proven Technologies.
  Future 2006 UGWG Activities
 in conjunction with Western, UWIG, NREL, APPA,
                     and NRECA
• Intro to RECs – Oct 4
• REC Markets – Oct 11
• Project 25x25 – Nov 1
• Central Solar Option – Nov 17
• Power Generation – Dec 6
• CREBs – Dec 7
       Contact Information




Guy Nelson, UGWG Team Leader
(541) 994-4670
Gnelson181@aol.com

				
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