EU Blue Book Geothermal 2000 PDF

EUROPEAN COMMISSION
Blue Book on
GEOTHERMAL
RESOURCES
This report has been prepared for the
European Commission by : \ ^
CESEN
B R G M ^
m \
ETSU
GTN
ORKUSTOFNUN
< 'S T
W f
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Luxembourg: Office for Official Publications of the European Communities, 1999
ISBN 92-828-5803-0
European Communities, 1999

Reproduction is authorised provided the source is acknowledged.
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P r in t e d o n w h it e c h l o r i n e - f r e e p a p e r
BLUE BOOK ON
GEOTHERMAL RESOURCES
A Strategic Plan for the Development
o f European Geothermal Sector
Executive Summary
Blue book on Geothermal Resources
Executive Summary
Geotherm al energy is one o f the indigenous and environm entally friendly energy
resources in use which the European Union intends to expand in order to reach its
established goals for RE contribution to gross energy consum ption in Europe, from the
present 6% to 12% by the year 2010.
A key aim o f the Blue book is to identify a series o f measures w hich could effectively
promote the use o f geothermal energy in the EU, EEA countries and Switzerland, as
well as countries that are likely to become associated with the EU in the near future
(Agenda 2000 countries).
This study describes the present world-wide status o f geothermal development, and the
availability o f geotherm al resources. The advantages and benefits that make geothermal
energy com petitive, environm entally beneficial, reliable and safe com pared to most
other energy sources are also presented.
A detailed analysis o f the global market conditions is also presented with short term
opportunities and medium term development prospects by 2010. Furtherm ore, the Blue
Book identifies a series o f actions to develop the geotherm al sector in the EU,
particularly measures to increase the presence o f European operators in the domestic
and world geotherm al markets.
GEO THERM AL RESOURCES
Geothermal resources are suitable for many different types o f uses but are commonly
divided into two categories, high and low enthalpy and according to their energy
content. High enthalpy resources (>150 C) are suitable for electrical generation with
conventional cycles, low enthalpy resources (<150 C) are em ployed for direct heat
uses and electricity generation using a binary fluids cycle.
In recent years, significant advances have been made in use o f ground source
(geothermal) heat pumps for extracting energy from very low temperature resources
(<20C) for both heating and cooling. O ther applications also use the seasonal energy
storage in shallow formations (>200 m) which make use o f the energy storage
capacities o f the rocks. These relatively recent uses have multiplied the num ber o f
countries and regions that can harness geothermal energy.
The present installed capacity and energy production from geothermal resources for
electricity generation and direct heat use in the world is summarised in the figures
below.
P lant in op eration 1997
4000
1.1
3000
I 2000
1000
0 aX-L
EU non E U N. C .& S . A sia A frica O c ea n ia
A m erica A m erica
Electricity G eneration Direct heat use
Electricity is presently produced from geothermal produced steam in 21 countries all

over the world. Geothermal electricity generation in Europe is about 4,300 GW h/y,
concentrated almost exclusively in three countries: Italy, Iceland and Turkey. The
generation o f the same am ount o f electricity from an average coal-fired plant would
displace the emission to the atmosphere o f 5 million tons o f carbon dioxide, 46
thousand tons o f sulphur dioxide, 18 thousand tons o f nitrogen oxides, and 25 thousand
tons o f particulate m atter every year.
All European countries exploit about 18,000 GW h/y o f geothermal energy for direct
heat uses such as space heating, greenhouses, balneology and processing industries
representing about 52% o f world production. EU countries represent only 11% o f this
total, whereas Iceland alone uses 17% o f the total. Alm ost all fifteen EU countries have
direct heat uses (most com monly for spas and bathing) while large space heating is
mainly used in France, G ermany and Italy.
COM PETITIVENESS OF G EO TH ERM AL ENERGY
Geotherm al energy has been produced com m ercially on the scale o f hundreds o f MW
for over three decades both for electricity generation and direct utilisation in many parts
o f the world. Geothermal energy has a num ber o f positive features which make it
com petitive with conventional energy sources and some reneweables sources. These
features include:
it is a local energy source that can reduce demand for im ported fossil fuels,
it has a large positive impact on the environm ent by displacing com bustion o f fossil
fuels,
it is efficient and com petitive with conventional sources o f energy,
geothermal plants can operate continuously, without constraints imposed by w eather
conditions, unlike other renewable sources,
it has an inherent storage capability and is best suited to base-load demand,
it is a reliable and safe energy source which does not require storage or transportation
o f fuels.
M oreover, pronouncem ents from the recent global conference held at Kyoto on climate
change and EU strategies on environm ent control, recently declared in the W hite Paper
from the Commission, include targets for the greater use o f renewable sources o f
energy. A greater use o f geothermal energy will have a large net positive impact on the
reduction o f carbon dioxide and other pollutants which clearly fits this strategy.
The more recent generation o f geothermal power plants, emits on average only
136g/kWh o f carbon dioxide per kilowatt-hour o f electricity generated compared to the
453g/kW h o f carbon dioxide for a power plant fuelled by natural gas or 1,042 g/kW h o f
carbon dioxide for a coal fired pow er plant.
At present the renew able energy sources with the greatest potential and the lowest
emissions in Europe, in the short to medium term, are hydropow er and geothermal
energy. In this respect, it should be noted that the capacity factors for hydro and
geothermal in Europe is now more than 70%, whereas 20-35% are typical values for
solar and wind.
The availability factor o f geotherm al energy, expressed as the percentage o f time the
rated energy may be produced, depends mainly on the nature o f the resource and
secondarily on the availability o f the equipment. Experience shows that this availability
is often over 90% for geothermoelectric pow er plants and even higher for direct use
plants. U nder these circumstances the plant factor expressed (as the percentage o f time
the plant actually produces energy) is almost equal to the availability factor. For direct
use, the plant factor is practically coincident with demand. Such factors are higher than
those for fossil fuel plants and far higher than other renewables.
Taking the above factors into consideration only an increase in the use o f biomass,
hydro and geotherm al energy can realistically influence the level o f greenhouse gas
emissions in Europe over the next 5-10 years for total energy use. These technologies
can displace considerably more greenhouse gas emissions than any contribution from
the foreseeable increase in utilisation levels from other renewables. W ind energy could
m ake a significant contribution by 2005 and is growing rapidly.
Both high and low enthalpy geothermal pow er plants, can be im plem ented in modular
units. This approach reduces the initial capital outlay and spreads investment, it also
enables the availability o f the resource to be evaluated before full-scale operation
com mences and allows revenue generation at the earliest possible opportunity, thereby
improving the overall scheme financial performance and reducing exposure to
geological or mining risk.
This study includes an exam ple o f a typical cost breakdown for a field and plant
investment based on a reference 55 M W geothermal power plant and then proceeds to
examine factors w hich can affect its economic performance. This reference or base case
is used purely as an illustrative example.
Costs, and therefore the economic viability o f geotherm al energy schemes, are in reality
strictly dependent on site-specific conditions and the type o f application. It should be
em phasised that the electricity generation cost is m ost sensitive to the specific cost o f
drilling wells and individual well productivity w hich varies considerably between
different countries.
The great variability o f technical and economic param eters involved in the
im plem entation o f geothermal projects (the specific field cost plus the plant cost) means
that each geothermal project will invariably have a unique production cost and no broad
generalisation is possible.
In the case o f direct heat uses the investm ent cost and heat production cost vary
considerably and reflect regional factors evident in different countries, and different
types o f application. The main factors which influence the production cost are the
characteristics o f the resources (depth, tem perature, flowrate etc.), local climatic
conditions, local heat dem and and the pattern o f heat consum ption (large district heating
systems, individual heating or cooling, geothermal heat pumps, others uses, etc.).
The overall com petitiveness o f geothermal energy is also determined by com parison
with both conventional and other renewable energy sources. U sually the cost o f energy
is based upon standard economic and financial analyses. The funding o f geothermal
projects by the main international financing agencies are currently based on strict
application o f a least-cost analysis as part o f their procedure for granting loans for
energy projects.
IV
It should be stressed that at present in Europe, the low cost o f fossil fuels, especially
natural gas, makes only the best geothermal resources com petitive from a strict
financial comparison.
Nevertheless, geothermal energy could becom e more com petitive compared with
conventional sources o f energy if the com parison is not limited exclusively to strict
financial criteria, but also takes account o f other factors such as shadow costs and their
econom ic consequences (the so-called externalities).
The related external costs o f conventional generation, (which in the case o f geothermal
resources is similar to other renewable sources) becom e external benefits, and are a
param eter that substantially changes the level o f the com petitiveness in favour o f
geothermal energy. These external benefits can be quantified in monetary term s and
should be an acknowledged factor for com parative purposes.
If externalities are included among the investment parameters, the full social and
economic benefits can be realised, however, this m ay require public incentives to ensure
successful investment in geothermal energy is possible. The acquaintance to the
investor o f this added value should not be regarded as a subsidy but looked on as a
realignm ent o f the economic benefits which arise from the project.
The external cost o f traditional fuels has been estim ated to be alm ost 10 times higher
than the corresponding cost o f renewables and alm ost 50% o f the overall economic cost
(against 1% for the renewable sources case).
The quantification o f externalities is a crucial aspect if geotherm al energy is to be fairly

evaluated, and also avoids penalising projects evaluated purely on the basis o f a cash
flow analysis.
M ARK ET SITUATION AND PERSPECTIVES
The Blue Book has identified a series o f measures that could be used to expand the
exploitation o f geothermal resources in M em ber States and increase the presence o f
European operators in the world geotherm al market. This market is rapidly expanding,
and European operators risk loosing their traditional dominance in the sector. This is
due at least in part to the aggressive policy o f the non-European industry which now
provides a wide range o f geothermal products and services, and a w eak
industrial/political lobby in Europe which favours decentralised geotherm al interests
founded in national bodies.
An average scenario up to the year 2010 for the world electricity generation m arket is
shown in the below figure.
The greatest expansion in electricity generation in Europe is predicted for Iceland,

Russia, Italy and Turkey.
Electricity generation market scenario to 2010
10
9
8
2010
7
2005
6
<D 11995
5
a
4
3
2
1
0
EU total E u ro p e N .A m e ric a
s y
L atin A sia A frica O c ea n ia
A m erica
The largest expanding markets are currently in South East Asia and Central-South
America where market conditions differ. In the first region two main producers
(Indonesia and the Philippines) have the same type o f free market conditions while in
Latin America a transition from state run m onopolies to a concession system is
currently in progress.
Private operators (mainly from the USA) are gradually dominating the South East Asian
markets for electricity production from geothermal energy and their presence appears to
be overwhelm ing the European competitors.
The Latin A m erican market still seems partially open to penetration from European
operators, which is generally positively received by local authorities on the continent.
Efforts should be made to steer the European industry in this direction because non-
European operators are presently moving to consolidate their presence in the Central
and South American markets.
American and Japanese operators represent serious competition for the European
geotherm al industry which has not been able to meet the strategic and financial risks
that are now dominating free-m arket economies w hich have been progressively
imposed on the world market for electricity production including geothermal energy.
VI
As a consequence European operators risk being push progressively to the fringe o f the
geothermal world m arket for electricity production and related businesses, or only
sustaining a presence as subcontractors o f services and components. The dominance and
management, as well as m ost o f the profits from projects, will consequently remain
outside the European industry.
In contrast, the m arket for direct uses o f geothermal energy has extensive potential in
European countries w here there are large resources to be exploited and a long tradition
o f using geotherm al heat use. Opportunities both to extend this usage and to develop
related businesses exist, especially in Eastern European countries and CIS countries,
where large centralised district heating systems already exist which mainly use
conventional fuels.
The m arket for direct use applications only exists when both resource and demand are
coincident. This is why geotherm al resources are only used where there is a large local
energy demand. It is conceivable that new direct heat markets could be opened up
where geothermal resources exist for example, horticulture, tourism and industrial
processing.
Carbon dioxide em ission reduction and energy saving aspects are becom ing
increasingly im portant in developed countries, and direct utilisation o f geothermal
resources could make a large contribution to this objective.
A m inim um case scenario o f the market for direct heat uses to the year 2010 in the EU,
and some others European countries, is shown in the figure below.
This scenario is expected to grow considerably if the developm ent o f geothermal heat
pumps in many European countries will be implemented. Referring to the rest o f the
world, the m arket for the direct heat uses is quite unforeseeable and its developm ent is
generally subordinate to the im plem entation o f national policies devoted to the
reduction o f pollutants emission.
vii
ACTIONS IN FAVOUR OF THE GEO THERM AL ENERGY
The EU action plan should have two goals:
to increase the exploitation o f geothermal energy in the EU and associated countries;

to support European firms within the sector to increase their share o f the world
market
Support for the spread o f exploitation and use o f geothermal energy will be directed
mainly within the EU and associated countries, while support to EU operators will be
directed at all other countries.
The recent White Paper Energy for the Future: Renewable Sources o f Energy
describes the EU strategy and objectives, but suggests that each M ember State should
decide its own strategy according to its own potential and resources.
This implies that an effective action plan will be outlined and decided at M em ber State
level. The EU would be responsible for the guidelines and pressing M em ber States and
Local Authorities to drive the im plem entation o f new geothermal initiatives and in some
cases to im plem ent direct actions in favour o f them, aiming at following:
1. To stim ulate the creation o f European consortia and joint ventures among
different subjects (engineering firms equipm ent m anufacturers, electric power
com panies, financing agencies) interested in investing in geotherm al projects in
Europe and abroad to cope with the com petition from non European
companies. This could be achieved by giving priority to program m es and
projects including co-financing o f European industrial partners for prelim inary
identification studies, prefeasibility studies (of the advance type, reim bursable
during execution o f the work) and plant im plem entation.
This action could be focused specifically at Latin Am erican and Chinese

markets which currently appear the most open and free to EU operators.
2. To favour National Geotherm al A ssociations, and the European Branch of IGA,

in their non-profit making activities for the prom otion, inform ation,
dissem ination and transfer o f experience and contacts within the world
geotherm al com m unity. These organisations, together with the EGEC, should
become the principal EU contact for geotherm al energy matters such as the EU
geotherm al program m es and statistics reference, inform ation for decision
makers, awareness com m unication, prom otion, contacts with other renewable
sources association and other European industrial association, etc.
3. To support the newly created EGEC (European Geotherm al Energy Council)

among the European geotherm al m anufacturers and service com panies which
operate within Europe and abroad in a sim ilar way to the G eotherm al Energy
Association in the USA. The EGEC would strengthen European consortia
among energy operators wanting to invest in geotherm al projects in Europe and
abroad, and assist European com panies in com petition with existing Japanese
and US consortia.
4. The maintenance and im provem ent o f the E U s existing research and financing
program m es, from DGI, DGXII, DGXIII, DGXVI and DGXVII dedicated to
energy projects including Alure, Phare, Tacis, Joule, Inco-Copernicus,
Structural Funds, Altener, Synergy and Therm ie. These program m es have in
the past positively influenced research, testing and prom otion o f new
geotherm al applications in recent years as the knowledge o f geotherm al
problems and opportunities has grown.
5. To prom ote the environm ental benefits o f geotherm al energy through

favourable financing condition such as:
tax exem ptions or reductions for RE products;

tax incentives to be addressed to geotherm al projects financing
financial incentives for end-users to buy equipm ent and services
loans and special interest rates devoted to investm ents in RE resources in
general.
6. G eotherm al energy should be included in specific "target projects" and

dem onstration projects such as the European Green Cities, which is supported
by the EU Therm ie program m e, both as an environm ental friendly resource
and as an indigenous energy supply for saving im ported fossil fuels. Examples
o f special target projects could be:
partial or total replacem ent o f fossil fuels by geotherm al energy for the
generation o f electricity in the Azores, the G reek islands, as well as Italys
small islands and the Canaries which would provide environm ental and
econom ic benefits to these com m unities. Both technical assistance and public
relations activities are needed to prom ote geotherm al electricity production
in these areas (see Cam paign for take-off, paragraph 3.2.4 o f integration of
RE in 100 Com m unities ');
technical and financial support for dem onstration projects in the use of
medium tem perature geotherm al water for electricity production using
binary fluids.
7. To establish an insurance system for EU countries in order to cover the

geological risk which is an effective m easure to stim ulate and re-launch the
geothermal European m arket and im prove the exploitation o f this renewable
resource. This system could also be dem onstrated within the EU and used as an
exam ple for analogous initiatives in other areas/countries o f the world.
Energy for the future: Renewable Sources o f Energy - White Paper for a Community Strategy and
Action Plan - 1997.
IX
8. Im plem ent proper actions devoted to the system atic integration o f geotherm al
energy into existing and new EU and national RE developm ent program m es.
This action should move in two directions:
integration o f geotherm al energy in national and regional New and Renewable

Energy developm ent program m es since in some EU countries geotherm al
energy is not included and in some cases is not even considered as a renewable
form o f energy.
integration o f geotherm al energy use in the developm ent o f new district heating
systems and the rehabilitation o f existing networks within EU countries and
especially in countries which could become associated in the near future. This
integration could start for rehabilitation and m odernisation projects o f large
diffused district heating system s in different European countries (Agenda 2000,
Russia and other European countries) financed by EU program m es (TACIS,
PHARE etc.) or international financing institutions (W B, EBRD etc.). The
integration o f geotherm al energy could becom e a com pulsory condition, when
applications are made for investm ent funds
Special attention should be paid to the possibilities offered by the rapid

expansion o f direct use applications for geotherm al energy in Central and
Eastern European countries and CIS countries, w here unexploited but plentiful
geotherm al resources have been identified. There is a long tradition o f using
geotherm al energy for direct applications (m ostly for balneology and
greenhouses) in many o f these countries, and most o f the towns have district
heating systems using w ater heated by hydrocarbons.
With education as well as financial and technical support, a significant

reduction could be made in carbon dioxide em issions through replacem ent of
coal and other hydrocarbons partly or totally with geotherm al and other non
polluting energy resources. There is wide scope for the integration o f indigenous
energy sources in the space heating m arket in these countries.
9. Prom ote directives in order to acknowledge RE investm ents (including

geotherm al) with an extra price or a contribution for the K W he/K W hj
produced which corresponds to the external benefit derived from the
substitution o f conventional energy sources. The relative funds could be
achieved by a tax (green tax) charged on the KW he/KWh^ produced through
conventional sources. (Considering the present prevailing contribution from
the latter the extra charge at the same should be negligeable in absolute terms).
X
10. Increase the use o f inform ation brochures and actions o f the M ulti-energy
type, with the objective o f increasing the level o f inform ation and confidence of
using geotherm al energy by decision-m akers, private and public operators,
town planners, designers, even within EU program m es. The establishm ent o f a
proper m ethodology for a cost evaluation o flo w enthalpy geotherm al projects,
possibly supported by software, would be a useful tool. M oreover, there is a
great need for dem onstration projects in individual countries to convince the
public and decision m akers o f the viability o f geotherm al energy, both alone,
and in integrated solutions with other locally available energy sources such as
waste burning and biomass.
11. Prom ote a detailed study for the evaluation, in quantitative terms o f the
external benefits from substitution by geotherm al applications. This evaluation
should be based on statistical data from specific applications (electricity
generation and direct uses) in EU countries and contrasted with com parable
conventional options.
12. Considering the good developm ent perspectives o f this application, special
attention could be devoted to the prom otion and support for the GHP market
via the followings steps:
decrease the cost for ground loop installation (standardised technologies

with drilling com panies, better access for the public to the drilling com pany
inform ation, etc.);
provide low interest loans for GHP installation;
provide better inform ation for the public (full and easy access to
inform ation related to GHP technologies) and better co-ordination between
active operators (drillings, com panies, main features, engineering, etc.). A
specific program m e should be im plem ented, or the EGEC (European
G eotherm al Energy Council) could establish and m anage a publicity
campaign (sim ilar to w hat has already been achieved in Switzerland and the
USA), which is aimed at dom estic users com m unities and even individual
countries.
The general public and decision makers should be inform ed o f the fact that
geotherm al resources exist in every country and that these can be used to
substitute environm entally degrading fossil fuels for every day activities such
as the heating and cooling o f buildings.
XI
European Commission
DIRECTORATE GENERAL for ENERGY
BLUE BOOK ON
A Strategie Plan fo r the Development

n
CESEN <s>
BRGM
ETSU
GTN
ORKUSTOFNUN
A cknow ledgem ents
Acknowledgem ents
This report has been prepared for the Commission o f the European Communities,
Directorate General for Energy (DG XVII), under contract N 4.1030/E96-005:
The Blue Book on Geothermal Resources by:
as Contractor.
CESEN S.P.A. Piazza della Vittoria 11 A /8 ,1 - 1612 Genova - Italy,
as Co-Contractors:
BRGM - Tour M irabeau, 39-43 Quai Andr Citroen, F - 75739 Paris Cedex 15 - France,
ETSU - Harwell, Didcot, Oxfordshire 0X 11 ORA, United Kingdom,
GTN - Geotherm ie N eubrandenburg GmbH, D - 17008 Neubrandenburg, Germany,
ORKUSTOFNUN - G rensasvegur 9, IS - 108 Reykjavik, Iceland,
The authors are particularly grateful to Mr. Um berto Tiberi, who has coordinated the
inputs from the Com m ission and effectively contributed with his recom m andations and
suggestions to the im plem entation o f the study.
The Blue Book has been produced with the assistance from a num ber o f European and
non-European Organizations, Institutions, Geothermal Associations and Agencies,
Industries, Consultants who have contributed with the collection and analysis o f the
data.
Genoa, M ay 1998
XV
Introduction
Introduction
Geotherm al energy has been produced com mercially on the scale o f hundreds o f MW
o f the world. Large scale developm ent o f geothermal energy began with electricity
generation in Italy and district heating in Iceland during 1930's. There is some direct
utilisation o f geothermal energy in 35 countries in Europe, and electricity is produced
com mercially in six European countries (France (Guadeloupe), Iceland, Italy, Portugal
(Azores), Russia and Turkey.
Geothermal energy is more firmly established as a commercial energy source in Europe

than m ost other new and renewable energy sources, such as solar, wind and wave
energy. In this sense, it is more com parable to hydropower. Unlike hydropower,
however, only a small fraction o f the geothermal resources o f Europe are harnessed at
present.
Following the United Nations conferences on the environm ent in Rio (1991) and Kyoto
(1997), the European Union has committed itself to reducing the overall emission o f
greenhouse gases by at least 8% below 1990 levels in the com m itm ent period 2008-
2012. Prior to year 2012, biomass, hydro and geothermal, and to a less extent wind
energy, are econom ically ready to make a significant contribution towards an overall
reduction in the C 0 2 emissions in Europe.
In recent years the European Comm ission has sponsored various initiatives to increase
the contribution from renewable energy sources to reach a target o f total energy
consumption from renewables o f 12% by the year 2010. This aim means that the
present renewables energy contribution for the EU o f less than 6% would need to
double during the next decade.
The two-fold increase in the current market penetration o f renewable energies by 2010
will also have additional positive benefits including a 17% reduction o f imported fossil
fuels and a drop o f 402 m illion tonnes/year in C 0 2 emissions. This ambitious target
will only be achieved with the adoption o f a Com m unity strategy to tackle the numerous
non-technical barriers which presently hinder the penetration o f renewable energy
technologies in energy markets.
For some tim e various Comm unity RTD and dem onstration programm es have helped in
creating European technological progress in the renewable energy sources sector.
Recently the Com m issions A LTENER 1 programm e has been used to develop specific
financial instruments for renewables promotion among its energy objectives. M oreover,
XVII
Introduction
the European Comm ission in its White Paper Energy for the Future: Renewable
Sources o f Energy has outlined its views with regards to Community strategy and
includes an action plan for renewables.
Geothermal energy is one o f a num ber o f indigenous and environm entally friendly
energy resources which the Comm ission o f the European Comm unities intends to
promote for use in Europe and to improve its com petitiveness, enhance security o f
supply and im prove environm ental protection.
The developm ent o f geothermal energy can also widen the business and em ployment
opportunities within the European geothermal sector (m anufacturing industry,
engineering and consulting com panies, drilling and equipm ent com panies,etc.), not only
in local and regional markets but also world-wide.
The present study describes the status o f geothermal developm ent and the availability o f
geothermal resources as well as the advantages and benefits that make geothermal
energy competitive, environm entally beneficial, reliable and safe com pared to most
other energy sources.
The Blue Book aims to identify a series o f measures which could be effective in the
promotion o f the technology. The main emphasis is placed on the EU and associated
countries as well as countries that are likely to becom e associated with the EU in the
near future ( Agenda 2000 countries).
This Blue Book, in com mon with com parable reports on other renewable energy
technologies, takes a global view o f current trends in the m arket and the resource. The
study encom passes a review o f the size o f the resource in 104 countries, the status o f the
technology, economic conditions which govern investment, the prospects for the market
within the EU and world-wide. This report includes recom m endations for the
developm ent and use o f geothermal energy in Europe up to 2005 and 2010.
The study has been organised in two sections:
1. A Main Report which summarises the key issues on geothermal energy. These
include the present nature and size o f the resource, technical and economic aspects o f
the technology, the environmental benefits, a m arket analysis and the relevant
actions and goals for the successful promotion o f the technology.
2. The Annexes include surveys o f geothermal resources in European countries and in

selected non European countries, technical data, an economic analysis and a market
assessm ent o f the global geothermal industry. This assessm ent could, in future,
serve as a database for further analyses and periodic revision.
XVU1
BLUE BOOK ON
A Strategic Plan fo r the Development

Chapter 1: Geothermal resources and their uses

Chapter 2: Technical issues
Chapter 3: The case for geothermal energy and acceptability
Chapter 4: Competitiveness of geothermal energy
Chapter 5: Market potential
Chapter 6: Actions in favour of the geothermal sector
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CESEN
BRGM
ETSU <c
GTN mWT
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ORKUSTOFNUN
xix
T able o f contents
TABLE OF CONTENTS
Acknowledgem ents xv
Introduction xvii
L GEO THERM AL RESOURCES AND THEIR USES 1

1.1. Introduction 1
1.2. Resources and present uses in Europe 5
1.3. Resources and present uses in non-European countries 7
2. TECH NICAL ISSUES 12

2.1. Equipm ent for electricity generation 13
2.1.1 Back-pressure units 13
2.1.2 Condensing units 14
2.1.3 Binary cycle 14
2.1.4 O ther cycles 15
2.2. Equipm ent for direct heat uses 16
2.3. Geothermal heat pumps 16
2.4. Technology developm ent 17
2.5. Seasonal storage o f hot w ater 18
2.6. Advanced geothermal technologies for the future 19
3. THE CASE FO R GEO THERM AL ENERG Y AND

ACC EPTA BILITY 20
3.1. Facts about geotherm al energy 20
3.2. Environm ental benefits 21
3.3. Visual im pact 24
3.4. H ealth benefits for the public 25
3.5. Job creation 25
3.6. Co-generation 26
4. C OM PETITIVENESS OF GEO THERM AL ENERG Y 28

4.1 Investm ent costs 29
4.2. Cost for electricity generation 31
4.3. Cost for heat production 37
4.4. A vailability o f geotherm al energy 40
4.5. Comparison with other energy sources 41
xxi
Table o f contents
5. MARKET PERSPECTIVES 48
5.1. Role o f geothermal energy 48
5.2. Electricity generation market 50
5.3. Direct heat uses market 57
5.4 Geothermal heat pump market 64
6. ACTIONS IN FAVOUR OF THE GEOTHERM AL SECTOR 66

6.1. Introduction 66
6.2. Constraints to the geothermal resources and market 67
6.3. Recommended actions 71
MAIN REFERENCES 75
ABBREVIATIONS, DEFINITIONS AND UNITS 77
FIST OF TABLES
Table 1.1 Geothermal utilisation for electricity generation and direct

heat uses in European countries 6
Table 1.2 Geothermal utilisation for electricity generation in non-

European Countries 8
Table 1.3 Geothermal utilisation for heat production in non-European

Countries 9
Table 2.1 Equipment and main components for electricity generation 15
Table 2.2 Equipment and components for thermal utilisation 16
Table 3.1 CO 2 emission in g/kWh from low-temperature geothermal

heating systems as compared to fossil fuels. 24
Table 4.1 Geothermal investment costs (estimated for the reference

projects) 34
Table 4.2 Main assumptions for the assessment o f 55MW geothermal

plant 34
Table 4.3 Operation & M aintenance costs (55Mw geothermal power

plant) 35
Table 4.4 Electricity generation: comparison between geothermal and

other RE resources 43
Table 4.5 Electricity generated in EU from five RE resources 44
Table 4.6 Electricity generation: comparison between geothermal and

conventional energy sources 44
xxii
Table o f contents
Table 4.7 Heat generation: com parison between geothermal and other
energy sources 45
Table 4.8 Comparison o f m ean values o f external costs for

conventional and renewable energy sources 46
Tabic 5.1 Installed capacity for period 1991-1995 and forecast to

2000 for the main power plant m anufacturers 52
Table 5.2 Total installed capacity and total electricity generated in the
world from geothermal energy at 1997 53
Table 5.3 Forecast for geothermal electricity generation market to

2005 and 2010 56
Tabic 5.4 Thermal capacity installed in the EU, Iceland, Switzerland

and Turkey for direct use o f geothermal energy and
foreseable growth to 2000/2005 and 2010 61
Table 5.5 G eotherm al capacity installed and energy production in

some Agenda 2000 countries, Russia and other European
countries from direct utilisation o f geotherm al energy and
foreseable growth o f to year 2005 and 2010 63
LIST OF FIGURES
Figure 1.1 The major uses o f geothermal resources at low-medium-

high Temperatures
Figure 1.2 Geothermal utilisation in the world for electricity

generation (M W e) and direct heat uses (MWt)
Figure 1.3 Electricity generation: geothermal potential (probable and

possible resources)
Figure 1.4 Direct heat uses: geotherm al potential (probable and

possible resources) 10
Figure 1.5 World distribution o f direct heat utilisation (1995)
Figure 3.1 Comparison o f CO 2 emissions as grams/kW h o f electricity

produced from geothermal and fossil fuel-fired electric
pow er stations 23
Figure 4.1 Plant Cost Typical Break down (55M W ) 30
X X ll l
Table o f content
Figure 4.2 Field Cost Typical Break down 30
Figure 4.3 Investm ent Cost o f Typical Phases 31
Figure 4.4 Project Phases and Risk M anagem ent 31
Figure 4.5 Generation Costs (ECU/M W h) between 15-30-55 MW unit

plants 35
Figure 4.6 Generation cost calculated versus well productivity

variation and pow er plant specific cost for each considered
unit size 36
Figure 4.7 Pay-back analysis 36
Figure 4.8 Drilling cost in Europe versus well depth (kECU/m) 37
ANNEXES
Annex 1. 1. GEOTHERMAL RESOURCES: COUNTRY PAPERS ................................. 8 9
Annex 2.1 t e c h n ic a l IS SU E S ...................................................................................................3 1 5
Annex 3.1 THE CASE FOR GEOTHERMAL ENERGY and ACCEPTABILITY .... 3 4 7
Annex 4.1 ECONOMY OF GEOTHERMOELETRIC G EN ER A TIO N ...................... 357
Appendix to Annex 4.1 INPUT OF THE FINANCIAL M O D E L .. 389
Annex 4 .2 c o m p a r i s o n w i t h o t h e r e n e r g y s o u r c e s ..................................... 4 0 1
Annex 5.1 th e sh a re of g e o th e r m a l en ergy: an a n a ly s is of th e

PRESENT SITUATION AND EXPECTED FUTURE DEVELOPMENT FOR
THE ELECTRICITY GENER ATIO N ..................................................................... 411
Annex 5.2 GEOTHERMAL OPERATORS ................................................................................ 4 6 3
Annex 5.3 CENSUS OF EU and NON-EU fin a n c in g a g e n c ie s to

GEOTHERMAL SECTOR ......................................................................................4 8 3
Annex 5.4 MARKET SITUATION FOR GEOTHERMAL ELECTRICITY

GENERATION A N D D IR EC T H E A T U S E S .................................................... 5 1 1
Annex 6.1 C O M PA R ISO N W IT H TH E W H IT E PAPER FO R A C O M M U N IT Y

ST R A T E G Y A N D A C T IO N PLA N . EN E R G Y FOR TH E FU TU R E:
R E N E W A B L E SO U R C E S OF E N E R G Y ........................................................... 5 2 5
XXIV
Table o f contents
LIST OF TABLES (ANNEXES)
Tabic 1.1.1 List o f the geothermal countries assessed by the Blue book 83
Table 1.1.2 Geothermal utilisation for electricity generation and direct

use in Europe 84
Table 1.1.3 Geotherm al utilisation for electricity generation and direct

use outside Europe 85
Table 3.1.1 Em issions data for geotherm al electricity generation and

thermal plant 353
Table 3.1.2 Comparison o f some emissions from different forms o f

thermal pow er generation 353
Table 4.2.1 Electricity generation: com parison between geothermal and

other RE resources. 407
Table 4.2.2 Investm ents costs for main geothermal district heating
systems in France 408
Table 4.2.3 Electricity generation: com parison between geothermal and

conventional energy sources *(1997 Figure include Iceland) 409
Table 5.1.1 Classification o f geothermal sources 416
Table 5.1.2 Synthesis o f the criteria and parameters assumed by each

scenario 417
Table 5.1.3 Energy Present Situation 419
Table 5.1.4 Reference Scenario (M W e) 420
Table 5.1.5 Tendency Scenario (M W e) 421
Table 5.1.6 M edium Profile Scenario (M W e) 422
Table 5.1.7 "Low Profile Scenario (M W e) 423
Table 5.1.8 High Profile Scenario (M W e) 424
Table 5.2.1 Distribution o f geothermal power (M W e) installed by

countries and continents by the five world leader turbine
and generator m anufacturers (1971-1997) 469
T able o f contents
Table 5.2.2 Geothermal power plants (M W e) installed in the world up to

1995 and 2000. 470
Table 5.2.3 Country distribution o f geothermal power plants installed

(M W e) by the five leader manufacturers up to 1995, under
construction (1997) and under commissioning 471
Table 5.2.4 Distribution o f geothermal power (M W e) installed by

countries and by the five leader turbine and generator
m anufacturers (1971-1997) 472
Table 5.3.1 Organizations and funds com mitted to support geothermal

activities from 1978 to 1997 and forecast to 2000 ( million
of ECU ) 488
LIST OF FIGURES (ANNEXES)
Figure 1.1.1. Study areas and investigated countries o f the study 88
Figure 2.1.1 Exploitation o f geothermal resources 321
Figure 2.1.2 Typical fluid temperature for direct applications (modified

from Lindal, 1973) 322
Figure 2.1.3 Schematic diagram o f a backpressure (a) and a condensing

unit (b) 323
Figure 2.1.4 Schematic diagram o f a superheated or saturated steam

plant. 325
Figure 2.1.5 Schematic diagram o f a single flash type geothermal plant. 325
Figure 2.1.6 Schematic diagram o f a multi-flash type geothermal plant. 326
Figure 2.1.7 Schematic diagram o f the m ost recent Organic Rankine

Cycle system. 326
Figure 2.1.8 Schematic diagram o f a binary cycle type geothermal

plant. 328
Figure 2.1.9 Schematic diagram o f a Kalina Plant cycle 329
Figure 2.1.10 Geotherm al district heating 333
Figure 2.1.11 Types o f pumps: a) electric submersible, b) shaft driven,

c) turbopump 335
Figure 2.1.11 Plate heat exchanger 336

Table o f contents
Figure 2.1.13 Down hole heat exchanger 336
Figure 2.1.14 Novel well concept 339
Figure 2.1.15 Closed cycle electric motor driven vapour compression

heat pump 340
Figure 2.1.16 Closed cycle, engine driven vapour compression heat

pump 341
Figure 2.1.17 Absorption heat pump 342
Figure 4.1.1 Investment Cost o f Typical Phases 366
Figure 4.1.2 Project Phases and Risk M anagem ent 367
Figure 4.1.3 M ining Risk versus Exploration Investment 369
Figure 4.1.4 Typical Implementation Plan 370
Figure 4.1.5 Specific investment costs 375
Figure 4.1.6 Geothermoelectric Project Generation costs 376
Figure 4.1.7 Generation costs and total tariff versus Plant load factor 378
Figure 4.1.8 Generation costs versus well productivity and drilling

costs 379
Figure 4.1.9 Generation costs versus well productivity and plant

specific costs 379
Figure 4.1.10 Generation costs versus discount rate 380
Figure 4 . 1.11 Generation Costs and Energy price 383
Figure 4.1.12 Pay-back period 383
Figure 4.1.13 Effect o f tax System on Energy Price 387
Figure 4.1.14 Energy total tariff versus tax rate 387
Figure 5.1.1 EUROPEAN UNION-Geothermal Energy Forecast

(MWe capacity) 425
Figure 5.1.2 EUROPE-Geothermal Energy Forecast (M W e capacity) 426
Figure 5.1.3 NORTH AM ERICA-Geothermal Energy Forecast

(MWe capacity) 427
xxvii
T able o f contents
Figure 5.1.4 CENTRAL AM ERICA-Geothermal Energy Forecast

(M W e capacity) 428
Figure. 5.1.5 SOUTH A M ERICA-G eotherm al Energy Forecast

(M W e capacity) 429
Figure 5.1.6 A SIA -G eothennal Energy Forecast (M W e capacity) 430
Figure 5.1.7 OCEA NlA-G eotherm al Energy Forecast (M W e capacity) 431
Figure 5.1.8 A FRICA-G eotherm al Energy Forecast (M W e capacity) 432
Figure 5.2.1 M ain m anufacturers m arket share 470
Figure 5.3.1 Total Funds com mitted from 1978 to 2000 487
Figure 5.3.2 International Financing Agencies and share o f the support

(1978-2000) 487
Figure 5.3.3 Total funds (1978-2000) as loans and grants 487
XXV111
BLUE BOOK ON
Chapter 1
C hapter 1: G eotherm al resources and their uses
Chapter 1
GEO THERM AL RESOURCES AND THEIR USES
1.1 Introduction
Geothermal energy is the natural heat o f the earth. Immense amounts o f thermal energy
are generated and stored in the earths core, mantle, and crust. The heat is transferred
from the interior towards the surface m ostly by conduction. This heat flow makes
tem peratures rise with increasing depth in the crust on average by between 25-30
C/km.
An average thermal gradient o f 30 C/km means that at a depth o f 2 km the temperature

in the rocks is around 70C in areas where there is no volcanic activity and where
ground w ater is not affecting the thermal gradient.
The exploitable geotherm al resources are generally related not to conductive systems
but to convective ones. This means that the heath is brought near the surface by fluids
(mainly waters) flowing vertically from depth toward the surface, so that sufficiently
high temperature may be reached by drilling at economical depth.
Geothermal resources are suitable for many different types o f uses and according to
their temperature are com monly divided into two categories, high and low enthalpy.
High enthalpy are suitable for electrical generation with conventional cycles, low
enthalpy resources are employed for direct uses.
Exploitable geotherm al systems occur in a number o f geological environments.
High tem perature resources, used for pow er generation (with tem peratures above
150 C) are confined to areas geologically active, that is w here movements o f the
earth crust bring the m agm a near the surface.
The most important and widespread o f these areas is the so called Pacific ring or
fire belt that encom passes the American and Asian continental borders around the
Pacific Ocean where a com pressional tectonic regim e often associated with
subducting crustal plates is active. This area includes all the Latin American
geothermal fields from Chile to M exico as well as the Californian ones, and those o f
Kamchatka, Japan and the Philippines. The same kind o f conditions exist in
Indonesia and in the central M editerranean area from Turkey to Greece and Italy.
C hapter 1 : G eotherm al resources and their uses
A nother kind o f geological environm ent which favours the existence o f geothermal
resources is w here continental spreading is active, the so called m id-oceanic rifts
(extensional tectonic regimes). These include Iceland and the Azores in the Atlantic
Ocean and Hawaii in the Pacific. Mid continental rifting such as the African rift
system also yields geothermal potential.
Conventional electric pow er production is limited to fluid temperatures above 150C,

but considerably lower temperatures are also used w ith the application o f binary
fluids.
The use o f cascade systems whereby high enthalpy fluid is used for electricity
generation and the lower temperature fluid is passed through a series o f different
uses is practised in many countries, e.g. Iceland, Italy and Japan. This increases the
overall energy efficiency significantly. In some cases a number o f valuable minerals
can also be extracted from the thermal fluids.
Low tem perature resources which are mainly used for heat production (with
temperatures below 150C) can, on the other hand, be found in most countries. These
are form ed by the deep circulation o f meteoric w ater along faults and fractures, and
by w ater residing in high porosity rocks, such as sandstone and limestone, at
sufficient depths for the w ater to be heated by the Earth's geothermal gradient.
Direct heat use is one o f the oldest, m ost versatile and also the most com mon form o f
utilization o f geothermal energy. Space and district heating, agricultural applications
and aquaculture are the best known and most widespread forms o f utilization.
Industrial applications are also wide spread and becom e typical for specific aims
where the geothermal resources meet local needs.
In recent years, significant advances have been made in application o f heat pumps
for extracting energy from very low temperature resources (<20 C) for heating and
cooling. Seasonal storage in shallow formations (< 200 m) makes use o f the energy
storage capacities o f the rocks. This adaptation has multiplied the num ber o f
countries and regions that can harness geothermal energy.
The major uses o f geothermal resources are summarized in the diagram o f Figure 1.1.
The major advantages o f geothermal energy use over conventional energy sources and
some o f the other renewables sources that will be discussed and presented in this report
are :
it is a local energy source that can lead to a reduction in imported fossil fuels
it has a large positive impact on the environm ent
it is efficient and competitive with conventional sources o f energy
it is a reliable and safe energy source which does not require storage or the
transportation o f inflamm able fuels.
W orld-wide geothermal utilisation for electricity generation and direct use is shown in
Figure 1.2.
2
0 20 40 60 80 100 120 140 150 350C
I spa treatm ent

BALNEO TH ER APY
ng pools
snow melting
fan colls radiators

DISTR IC T &
sdiant pane Is / slabs
SPAC E HEATING
(k m estic hot wa air conditioning
heat pum )s (heat & colc
cereals odder
stable & jreeding grour ds
greenhouse vegetable & fru it dehydration
AG R IC U LTU R E
______ _ fo
soli w arn ing
fish farm ng
coop er processi '9 he ap leac hing (gold)
sludge dig stion
concrete bl ocks curinc
oil recovery
cloth dryirfig
IN D USTRY
w ool washing
chemicap extraction
)peries
pulp & p aper m II
binary pow er pia its
PO W ER
GEN ER ATIO N
Figure 1.1 The m ajor uses o f geotherm al resources at low - medium - high
temperatures
Global electricity generation from geothermal resources is about 45 TW h/y and the
installed capacity is about 7,700 MWe. The total world thermal energy production is
about 35 TW h/y and the installed capacity is about 9,700 MWt. The data presented in
the following tables for the geothermal utilisation reflect the worldwide situation
updated in 1977 o f the installed capacity (M W e or MWt) and energy produced per year
(G W he/y or G W ht/y) o f the plants in operation. The estimated geothermal potential
assessed from the probable and possible resources, for both electricity generation and
direct heat uses, is shown in Figure 1.3 and Figure 1.4 respectively.
Detailed data on the nature and size o f the geothermal resource, plus details o f existing
geothermal plants and activities for each o f the 104 countries evaluated in this study, are
summarised in the Country Papers presented in Annex 1.1.
3
North America
MWe 3,601 Europe ' Asia
MWt 1,908 MWe 866 MWe 2,596
MWt 4,604 MWt 3,117
Chapter 1 : Geothermal resources and their uses

Central & South America
MWe 206 Africa Oceania
MWt 0 MWe 45 MWe 365
MWt 71 MWt 5
WORLD
MWe 7,679
MWt 9,705
Figure 1.2 Geothermal utilisation in the world for electricity generation ( MWe ) and direct heat uses (M W t)
C hapter 1: G eotherm al resources and their uses
1.2 Resources and present uses in Europe
Most European countries have some exploitable low-enthalpy geothermal energy

resources whereas high enthalpy resources, suitable for electricity production in
continental Europe, are only found at econom ic drilling depths in Italy, Greece and
Russia. High enthalpy resources are often present in European islands or those affiliated
with EU m em ber states. These localities include Iceland, the Azores (Portugal),
Guadeloupe (French TOM ) and the Canary Islands (Spain). Some o f these resources
are already exploited.
The geothermal utilisation o f 42 European countries has been evaluated in this study
(15 EU countries, 3 EEA countries, 11 Agenda 2000 countries, Russia, Switzerland,
Turkey, as well as 11 other European countries). A summary o f the installed capacity
and generation from geotherm al energy for both electricity and direct heat use
(including the geothermal heat pumps) is shown in Table 1.1.
Electricity is produced from geothermal resources in six European countries but only
two (Italy and Russia) in the continental Europe. The total installed capacity is 866
MWe and the total electricity produced is 4.3 TW h/y (equivalent to about 0.4 Mtoe).
Direct heat use o f geothermal energy is practised in 28 European countries. The
installed capacity is about 4600 M W t and the thermal energy production amounts to 18
TW h/y (equivalent to about 1.6 Mtoe ).
The direct use o f geothermal energy can involve a wide variety o f applications
including the geothermal heat pumps. In most industrialised countries, a significant
percentage o f the energy consumption is devoted to heat production at temperatures o f
50-100 C, which are common in low-enthalpy geotherm al areas. M ost o f this energy is
supplied by the burning o f oil, coal or gas at much higher temperatures. The scope for
using geothermal w ater alone as well as in combination with other local sources o f
energy is therefore very large.
The direct use o f geothermal energy is at a relatively advanced stage in European

countries compared with other parts o f the world. It supplies a wide range o f
applications and uses due to the versatility and demand for base-load heat demand plus
the availability o f the resource. European countries have been pioneers in the
exploitation o f geothermal resources. European experience and expertise in this sector
has been duplicated by other countries world-wide. However, European operators
should still be in a position to maintain their leading role in the developm ent and
utilisation o f geothermal energy for both direct use and for electricity production.
5
Chapter 1 : G eotherm al resources and their uses
E lectricity generation D irect utilisation

P lan t in o peration P lan t in o peration
1997 1997
(MWe) (GWh/y) (ktoe) (MWt) (GWh/y) (ktoe)
Austria - - - 21 84 5
Belgium - - - 4 19 1.6
Denmark - - - 3.5 15 1.3
Finland - - - 0.1 0.5 0
France11 4.2 24 2 309 1,359 117
Germany - - - 307 806 69
Greece - - - 23 37 3.2
Ireland - - - 0.7 1 0.1
Italy 742 3,762 324 314 1,026 . 88
Netherlands - - n.a. - -
Portugal ** 8 46 4 0.8 5 0.5
Spain - - - n.a. - -
Sweden - - - 47 351 30
UK - - - 2 15 1.3
EU countries 754 3,832 330 1,032 3,719 317
Iceland 80 375 32 1,443 5,878 506
Russia 11 25 2 210 673 58
Sw itzerland - - - 190 265 36
T urkey 21 71 6 160 800 69
Bulgaria - - - 95 346 30
Czech Rep. - - - 2 15 1.3
Hungary - - - 750 3,286 283
Poland - - - 44 144 12
Romania - - - 137 528 45
Slovakia - - - 75 375 32
Slovenia - - - 37 217 17
A gend a 2000 countries - - - 1,140 4,911 432
Croatia - - - 11 50 4.3
Georgia - - - 245 1,000 86
Macedonia - - - 75 151 13
Ukraine - - - 12 60 5.2
Yugoslavia, FR - - - 86 670 58
O ther E uropean countries - - - 429 1,931 213
N on EU countries 112 471 40 3,572 14,458 1,314
G rand total E urope 866 4,303 370 4,604 18,177 1,631

* Guadeloupe (for electricity generation), ** Azores n.a.: data not available
Table 1.1 G eotherm al utilisation for electricity generation and direct heat uses
in European countries*11
(l) * Plant in operation: installed capacity (MWe or MWt) and energy produced per year (GW he/y or GWht/y)
* 1 GWh = 860x 106 kcal 1 toe = 107 kcal
6
Chapter 1: G eotherm al resources and their uses
1.3 Resources and present uses in non-European countries
The utilisation o f geothermal energy for electricity production and direct use in some
non-European countries is presented in Tables 1.2 and 1.3.
Electricity is produced from geothermal resources in fifteen non-European countries:

four industrialised (about 3,700 MWe) whereas the remaining eleven developing
countries (about 3,100 MWe). The annual electricity production in these countries is
some 41 TWh. Out o f the total installed capacity in the non-European countries, about
53% is installed in USA and Mexico, about 38% in Asia (Japan, Philippines and
Indonesia), about 5% in New Zealand with a further 4% from three countries from
Central America.
Direct use o f geothennal resources is now established in nine non-European countries.

The total installed capacity is 5,100 MWt which produces about 17 TWh per year
(equivalent to about 1.5 Mtoe). In the USA the largest use is for geothermal heat pumps
(about 60% o f the total), while in China direct heat use is distributed mainly among
space heating, bathing, greenhouses heating and fish fanning and in Japan mainly
am ong bathing.
Geothermal electricity production is equally com mon in industrialised and developing

countries. However, it is noticeable from the share o f geotherm ally generated
electricity in individual countries that geothermal energy plays a much more significant
role in electricity production within individual developing countries than in
industrialised ones. Good examples o f this trend are El Salvador, Kenya and the
Philippines. In all o f these countries, 10-20% o f each countrys centrally generated
electricity originates from geothermal steam. Costa Rica is likely to join this group o f
countries shortly. It is expected that some 15% o f the countrys electricity will be
generated from geothermal energy by the year 2000. In M exico about 5% o f the
electricity generated in 1994 was from geothermal sources. Geothermal electricity in
Indonesia provides 4% o f the prim ary energy consumed.
Geothermal energy is very important to several developing countries whose economies

and energy demands are expanding rapidly. Electricity generated from geothermal
sources is unlikely to be o f com parable significance within the energy sector o f
individual industrialised countries due to the high electricity consum ption per capita in
these countries and the lack o f sufficient geothermal resources. The principal exception
to this statement is Iceland w here 5% o f the electricity is being produced from
geotherm al energy. By the year 2000, more than 15% o f the electricity in Iceland will
be generated from geothermal energy.
The pattern o f direct heat utilisation from geothermal sources across the world is
illustrated in Figure 1.5. Space heating and cooling is the dom inant type o f direct use
(33%), but other common types are swimming pools, bathing facilities and therapeutic
uses (19%), greenhouse heating (14%), heat pumps for both heating and cooling (13%),
aquaculture (11%) and industrial process (9%).
7
Chapter 1 : G eotherm al resources and their uses
E lectricity generation
Plant in operation
1997
(MWe) (GWh/y) (ktoe)
China 32 175 15
India - - -
Indonesia 589 4,385 377

Japan 300 3,530 304
Philippines 1,445 8,000 688
Thailand 0.3 2 0.2
Asia 2,596 16,090 1,384
Ethiopia - - -
Kenya 45 390 34
Zambia - - -
Africa 45 390 34
Canada - - -
Mexico 753 5,682 489

USA 2,848 14,660 1,261
North A m erica 3,601 20,342 1,750
Argentina 0.7 3.5 0.3

Bolivia - - -
Chile - - -
Costa Rica 60 447 38

Ecuador - - -
El Salvador 105 486 42

Guatemala - - -
Honduras - - -
Nicaragua 40 250 22
C entral-South A m erica 206 1,187 102
Australia 0.2 0.8 0.1

New Zealand 365 2,900 249
Papua New Guinea - - -
O ceania 365 2,900 249
G rand total non-Europe 6,813 40,909 3,519
Grand total W orld 7,679 45,212 3,889
Table 1.2 Geothermal utilisation for electricity generation in non-European

countries ( i )
(1) * 1 GWh = 860x106 kcal 1 toe = 107 kcal

High Potential
U Medium Potential
[_ Low Potential
Figure 1.3 Electricity generation: geothermal potential (probable and possible resources).
o

High Potential
Medium Potential
Low Potential
Figure 1.4 Electricity generation: geothermal potential (probable and possible resources).
Direct utilisation
Plant in operation
1997
(MWt) (GWh/y) (ktoe)
China 1,914 4,717 406
Israel 42 332 29
Japan 1,159 7,500 645
Thailand 2 8 0.7
Asia 3,117 12,557 1,080
Algeria 1 5 0.4
Tunisia 70 350 30
Africa 71 355 30
Canada 3 13 0.2
USA 1,905 3,971 342
North Am erica 1,908 3,984 342
New Zealand 5 25 2.2

Oceania 5 25 2.2
Grand total non-Europe 5,101 16,921 1,455
Grand total W orld 9,705 35,098 3,086
T able 1.3 G eotherm al u tilisation for heat production in non-E uropean countries'(l)
Industrial
processes Other
Aquaculture 9% 1% Space heating
11/, 33%
Heat pumps
13%
Greenhouses Bathing and
heating therapeutic
14% 19%
Fig. 1.5 World distribution o f direct heat utilisation (1995)
(1) * 1 GWh = 860x106 kcal 1 toe = 107 kcal
11
BLUE BOOK ON
Chapter 2
TECHNICAL ISSUES
The developm ent o f geothermal energy can be divided into four distinct phases:
surface exploration
deep exploration (drilling)
construction o f surface equipment (plant)
monitoring and reservoir management (operation)
In the initial surface exploration phase multidisciplinary studies are performed including
geological and vulcanological surveys, geophysical prospecting (electrical, gravimetric,
magnetic and sometimes seismic), as well as analyses to determine the geochem istry o f
waters and gases. Data from each o f these assessm ents are collated and used to locate
potential target reservoirs which can only be identified from drilling exploratory wells.
The main activity o f deep exploration is the drilling o f wells, but geoscientific activity
goes on in this phase too. It is necessary to define the geological stratigraphy o f the
wells by tying the geological profile from the borehole to data from earlier surveys.
The com position o f deep formation fluids is also analysed to determine the
therm odynam ic characteristics o f the wells and to measure the productivity o f the well
in terms o f mass flow and enthalpy. The final activity o f this phase is the assessm ent o f
the size o f the resource from a specific reservoir and its ability to sustain production
over a specified technical life time.
The results from deep exploration and the characteristics o f the natural fluids present
determine the type o f plant which needs to be chosen:
for electrical generation when high enthalpy fluids arc produced,

for heat exploitation with both high and low enthalpy resources.
The size o f the resource present will then determine the scale o f the appropriate
developm ent drilling programm e which is performed in parallel with the construction o f
the plant and the piping system. At the same time reinjection wells for the disposal o f
waste waters are also drilled.
Geothermal reservoirs are more dynamic than hydrocarbon reservoirs. Therefore,

continuous m onitoring and evaluation o f a specific reservoirs responses is required
throughout the whole exploration and development programme to ensure that the
resource is sufficiently adequate for the intended energy demand.
12
C hapter 2: Technical issues
An outline o f the three main sections o f a geothermal operation are depicted in Figure
2.1 and can be separated into the following sections:
A. Geothermal wells and fluid production equipm ent (extraction and reinjection)
B. The geothermal plant, where the fluid is hardenessed (transformation o f the raw fluid
into a utilisable product). This part can be reduced to its simplest expression (i.e hot
w ater directly through the heating installation o f a greenhouse) or can be highly
sophisticated (i.e condensing steam turbine plant) , depending on the type o f
utilisation and the characteristics o f the resource.
C. The distribution network towards the end-user. This indispensable network is not
specific to geothermal energy, although it does require some modifications.
Figure 2.1 - A scheme o f a geothermal operation
2.1 Equipm ent for electricity generation
According to the production characteristics o f the geothermal field, i.e. mass flow and
enthalpy, size and thermal cycle o f the pow er plant can be selected.
The size o f the plant, that is the power generation system which may be installed, is
determined on the basis o f the available market, the actual productivity generally based
on mathematical simulation model o f the reservoir. The thermal cycle is chosen
depending on the characteristics o f the fluids but also on econom ics o f the project.
Three cycles are norm ally available:
2.1.1 Back-pressure units

High enthalpy fluids may be dry steam or a mixture o f steam and water. In this case
steam and w ater are divided in cyclone separators, the steam sent to the turbine, the
w ater to reinjection.
These turbines are low-cost and low-efficiency. Their size is small, generally between 1
and 5 MW and are generally installed near the well-heads. The steam consumption is in
the order o f 15 kg/kW h, which is about double the quantity required by efficient
condensing turbines.
This cycle, in which steam is discharged to atmosphere after its expansion in the
13
turbine, is used in fields with high gas content (over 10% o f the weight o f the steam) as
gas extraction for condensing plants becomes relatively expensive for gas concentration
in this range. The use o f binary plants m ight also be feasible for high gas fields.
Back pressure units may be installed and implemented in a few months and may be
moved from one site to another. They are, therefore, suitable for timely and provisional
installation in an early phase o f the fields development. This practice is recommended
because it is anticipated that the income from exploitation o f the field allows an
efficient monitoring o f the field behaviour before the installation o f larger power plants.
2.1.2. Condensing units

In this cycle the steam is condensed at the output o f the turbine, lowering the exhaust
pressure to around 0.10 0.12 bar, which increases the enthalpy differential and
therefore the efficiency o f the cycle. The steam consumption is in the order o f 7-8
kg/kW h when the gas content is lower than 1% and in mild climate conditions.
Production from w ater dominated fields requires the use o f steam /water separators with
either single or double flash cycles. In the single [should this be double?] flash systems
the separation pressure is chosen so that the inlet pressure in the turbine can be
optimised (generally between 5 and 7 bar). In these conditions the separated w ater still
has a high enough temperature (in the order o f 150-170C. This w ater can therefore be
flashed again at a lower pressure o f 2-2.5 bar and fed to the turbine at a proper stage.
A double cycle is not always recom mended for two reasons. Firstly, the final
temperature o f the separated w ater (~120C) often increases scaling in the reinjection
wells. Secondly, the cost o f the equipm ent for the second flash does not necessarily
result in a com mensurate increase in energy production relative to the additional
investment required, especially when the w ater content in geothermal fluid decreases
with time, as often happens in high enthalpy reservoirs.
2.1.3 Binary cycle

In this cycle the geothermal fluid flows through a heath exchanger, evaporates a
secondary fluid with a low boiling point (chloro-fluoro carbons, ammonia, isobutane)
which drives a turbine is condensed and recycled within a closed system. These units
are used to generate electricity from low-to-medium temperature resources. By selecting
the appropriate secondary fluid, binary systems can be designed to operate with inlet
temperature as low as 90C.
These units have higher costs per unit o f installed capacity by comparison with
conventional condensing units, but are in many cases, the m ost suitable alternative for
geothermal development. High conversion efficicncy can be obtained, especially when
the gas content o f the fluid is high. In such cases, binary plants can be more economical
than conventional condensing plants with gas extraction equipment. For medium
enthalpy fluid (100-200C) binary plants are usually the most economical alternative
regardless o f gas content.
14
Binary cycle units provide a high degree o f flexibility for optim ising the use o f
geothermal resources which can be further enhanced when used in combination with
cascade systems.
2.1.4. Other cycles

There is another system, the total flow cycle, or biphase rotary separator. This cycle
was developed to extract power from a two-phase steam /water mixture which is
transform ed into a two-phase je t with high kinetic energy. A rotary separator separates
the liquid phase which is then used to drive a turbine separately from the steam. The
biphase unit is generally used in conjunction with a conventional turbine driven by
steam that is discharged from the biphase rotary separator. This type o f plant has little
potential for further technical developments
PRODUCTION GEO THERM AL PLANT
Field surface eq u ip m en ts) Back pressure units

well-head and valves turbine and generator
silencer
separators (in w et fields) Condensing units
steam and w ater pipes steam scrubbers
reinjection pumps (if necessary) turbine and generator
chemical treatm ent systems condenser
gas extraction system
cooling towers
Binary plants
heath exchanger
turbine and generator
condenser
cooling towers
circulation pumps
Biphase rotary plants

chemical treatment
two-phase nozzles
rotary separator
liquid turbine
_____________ liquid recovery rotor
Table 2.1 Equipment and main com ponents for electricity generation.
15
2.2 Equipm ent for direct heat uses
Geothermal energy has a wide range o f applications which require direct heat use. The
broad range o f temperature o f geothermally derived fluids, w hether steam or water, can
be utilised in various processes.
The main direct uses o f thermal energy are space and district heating, industrial process
heating , agricultural applications (greenhouses and fishfarming), balneological
purposes, recreational activities and spas where there is a prerequisite for large base
load demand.
M ost direct use applications require equipm ent to transfer heat from the often highly
saline and therefore corrosive geothermal fluid to fresh w ater that can be used to
distribute heat towards the end-users and equipment for treating the fluid.
Every use obviously requires equipm ent which is specifically designed for the
com position and tem perature o f the formation fluid and its eventual application, but in
principle the following tabic summarises the main components.
A more detailed description o f equipm ent used is described in the Annex 2.1.
P R O D U C T IO N G E O TH E R M A L PLANT
P roduction and rein jectio n welH s) D irect uses

w ellh ead and valves heat ex changers (if necessary)
clean in g d evices filters
p ip in g system d egassing system s
pum p(s) reinjection pum ps (surface pum ps)
chem ical treatm ent
heat pum ps
G ro u n d coil: horizo n tal and vertical
(ground probe)
Table 2.2 Equipment and com ponents for thermal utilisation.
2.3 Geotherm al heat pumps
In recent years the exploitation o f shallow geothermal resources (within a m aximum

depth o f 100m) has been developed in many countries.
Two circulation systems are used: the open loop system which exploits ground water
through shallow ground w ater wells (<100m), while the closed loop system only
exploits the heat within the ground. The heat exchange devices are usually pipes laid
horizontally or vertically in the ground (horizontal/vertical ground coil), borehole heat
extraction systems (BHE).
Heat Pumps are the essential com ponents o f such systems com monly callcd Geothermal
16
Heat Pumps (GHP). There is a wide range o f applications o f GHP like combined heat
extraction/storage, space heating/cooling.
The typical GHP systems include three m ajor components: a ground loop, the heat
pump itself and the heating and/or cooling distribution system (including also the
domestic hot water).
A nother application o f GHP in direct use systems refers to the deeper cooling-down o f
the thermal w ater after the direct heat exchange, or the perm anent integration o f the
GHP when the temperature o f the thermal w ater is around 40. Both com pression and
absorption heat pumps are used
All these schemes need further optimisat ion to develop the awareness o f developers, the
geothermal industry and governments to the potential offered by this new technology.
It is also necessary to compare and optimise this technological solution under widely
different site-specific and climatic conditions.
2.4 Technology developm ent
Geothermal energy has been produced com mercially on the scale o f hundreds o f MW
for over three decades both for electricity generation and for direct utilisation. M ost o f
the technology is conventional and adopted from other fields o f energy use and mining.
Technical improvements, research and developm ent activities are how ever needed just
as in the case o f other energy sources to improve and enhance energy output and reduce
technical and financial risk.
Geotherm al developm ent started with geothermal w ater with very low mineralisation.
Gradually, the technology has been developed to extract heat out o f highly mineralised
brines that are common in the sedim entary basins o f Europe.
Important fields o f technological developm ent in Europe include:
Inhibitors to prevent or delay scaling and corrosion
Scaling inhibitors to limit calcium carbonate scaling are successfully used in

different geothermal fields, but improvements in research for other scaling factors
should be beneficial.
The evolution o f new coating material to protect conventional pipes/equipm ent that
come in contact with the corrosive fluids and new materials (metal alloys, plastic,
etc.) that can withstand the effect o f corrosive fluids, may allow the developm ent o f
geothermal fields not yet exploited.
Patch-flex tubing is the most recently developed material to create a tough

impermeable lining on casing walls that is self-sealing and pressure resistant along
its entire lenght. Therm o-setting resins, fibres and elastomers can be used as efficient
and econom ical tool to repair perforated or badly corroded casing and to reduce
scaling.
17
Down-hole pum ps that can operate at high temperatures and in highly m ineralised
water
Reinjection and long term reservoir m anagem ent to sustain form ation flu id pressure
and flow into sandstone.
H orizontal drilling along productive aquifers. This can greatly increase production
fro m a well and reduce total drilling cost at a project.
For heating purposes, thermal energy is better suited to higher temperatures.

Consequently, storage systems require temperature levels in excess o f 50C, but
require further research and developm ent support.
H eat pum ps both fo r heating and air conditioning (cooling).
Deep down-hole heat exchangers.
The present BHE technology has been developed for use at shallow depths but could
be extended to deeper BHE systems (> 1000m).
Parts and components o f geotherm al pow er plants.
Research in design and engineering is continuing to improve the cost-effectiveness

o f parts and com ponents for geothermal power plants, minim ising the use o f
expensive materials, for example, by reducing the use o f external plating where
possible. Improvements in turbine efficiency and output could reduce attrition which
modifies the cross-sectional profile o f turbine blades.
2.5 Seasonal storage o f hot water
Underground heat storage has been under consideration since the early 1970s and has
subsequently been practically demonstrated at low temperature levels for space cooling
or for combined heating and cooling (mainly associated with heat pumps). It is still not
widely used but might have further applications, for example, in district heating, in
waste heat recovery or with solar heating.
Storage periods may be only for short term duration (diurnal) to long term (seasonal).
The latter option requires energy recovery at least three months after the end o f the
loading period.
18
2.6 Advanced geotherm al technologies for the future
Research programm es presently carried on several new technologies that in the future
could increase geothermal potential.
H ot D iy Rock system s (HDR)
Geothermal industry today uses hot aquifers for production o f energy.
The principle o f HDR is the extraction o f energy from hot artificially-fractured

rocks. A pair o f wells is drilled into the rock, term inating several hundred meters
apart. W ater is circulated down the injection well and trough the H DR reservoir,
which acts as a heat exchanger. The fluid then returns to the surface through the
production well, and thus transfers the heat to the surface as steam or hot water.
Various HDR experiments had been carried out in USA, United Kingdom, Japan,
Germany. An European scientific project, initiated by the European Union in Soultz-
sous-Forets in 1987 is under progress; if it successes, industrial developm ent could
start in the future (2020). O ther major programs are running in Japan, or under
preparation such as in Australia and Switzerland.
It is, in principle, a simple concept. In practise experimental results have revealed

that artificially induced circulation is often hard to sustain without major loss o f
water. Nevertheless more prom ising results have recently been observed from the
European programme.
G eopressured reservoirs
Geopressured reservoirs are deep reservoirs (4-6 km) in large sedim entary basins
which contain pressurised hot w ater that has rem ained trapped at very high pressures
due to specific geological conditions. Geopressured fields could produce: 1) the
therm al energy o f the pressurised hot water, 2) hydraulic energy by virtue o f the very
high pressure, 3) methane gas.
Geopressured resources have been investigated extensively in the US but major

uncertainties remain in the ability to exploit this resource and the technology that
would be required to m anage and control it.
Some geopressured resources could exist in Europe (Panonian basin in Hungary), but
no investigation or research programmes currently exist.
M agm a energy
The thermal energy stored in magma bodies represents a huge potential resource.
The goal o f the US M agma Energy Extraction Programme is to determine the
feasibility o f locating and utilising m agm a as a viable resource. This programme is
in progress but many technical problems remain.
19
BLUE BOOK ON
C hapter 3: The case for geotherm al energy and acceptability
Chapter 3
THE CASE FOR GEO THERM AL ENERG Y AND ACCEPTABILITY
3.1 Facts about geotherm al energy
Geothermal springs have been used for bathing, washing and cooking for thousands o f
years in many countries. There are ruins o f baths dating from the Roman empire at
numerous localities in Europe from as far a field as England and Syria. Similarly, there
arc over two thousand year old records o f geothermal usage in China. Health spas have
been operated for m ost o f this century at numerous hot spring localities in Europe, in
particular in Central and Eastern Europe.
Large scale utilization o f geothermal w ater for heating houses and greenhouses started
in several European countries between the two world wars. The largest district heating
systems were built in Iceland and the most extensive geothermal greenhouses were
constructed in Hungary. The oil crises in the early 1970's caused a new wave o f interest
in Europe for heating o f houses with geothermal w ater pumped from large sedimentary
basins such as the Paris basin. The significant fall in oil and gas prices in 1986 has made
district heating schemes less economical than before and the incremental use in space
heating from geothermal energy has consequently been slow over the last decade.
At present, all European countries utilise about 18,000 GW h/y (1,6 Mtoe) o f geothermal
energy for direct heat uses such as spacc heating, greenhouses, balneology and industry
representing about 60% o f the world production. The EU countries represent only
11%, and Iceland alone 17% o f this total. Practically all fifteen EU countries have direct
heat uses (most com monly spas and balneology) while large space heating is mainly
used in France, Germany and Italy.
Recent developments in the application o f geothermal heat pumps, using the earth as a
heat source for heating or as a heat sink for cooling, have made it possible for all
countries in Europe to use the heat o f the earth for heating and/or cooling, as
appropriate.
In the US more than 250,000 units have been installed in rccent years and in 1994 they
extracted about 8 PJ/y from the ground.
Sweden and Switzerland have pioneered the use o f this technology in Europe where
more than 4,000 small size units are presently operating. The latter country is currently
producing some 420 GW h/y o f thermal energy from warm groundw ater using
geothermal heat pumps even though it is a country not renown for geothermal energy.
20
In 1994 this country, with only 7 Million inhabitants, used heat pumps to extract 0.82
PJ/y for heating (or 228 GW h/y). If a sim ilar growth in utilisation were achieved in all
countries in the northern part o f Europe where climatic conditions demand longer
periods o f utilisation (north o f the Alps and west o f the Urals, about 350 Million o f
inhabitants), the thermal energy produced through geothermal heat pumps alone would
am ount to some 11.4 TWh/y. This figure is in addition to the conventional direct use o f
geothermal energy at 1995 levels.
Geothermal heat pumps have been officially rated am ong the most energy efficient
space conditioning equipment available. They reduce the need for new generating
capacity and are found to perform at greater efficiencies than conventional air
conditioning systems.
Some units are now present in almost all EU countries and their use could rapidly
increase.
Electricity was first generated from geothermal steam in 1904 at Larderello in Italy. A
250 kW pow er station was put into service in 1913; thereafter a steady expansion in the
sizes and the numbers o f generating units took place until, by the early 1940s some 130
MW o f geothermal power generated in Tuscany were feeding the electrified Italian
railway system. The second country in the world to produce electricity on a large scale
from geothermal sources was New Zealand in 1958.
Electricity is presently produced with geothermal steam in 21 countries all over the
world. The geothermal electricity production in Europe is about 4,300 GW h/y. This
displaces the emission to the atmosphere o f 5 million tons o f carbon dioxide, 46
thousand tons o f sulphur dioxide, 18 thousand tons o f nitrogen oxides, and 25 thousand
tons o f particulate m atter every year, com pared with the production o f the same amount
o f electricity from an average coal-fired plant.
Electricity has been generated by geothermal steam in the USA since 1960 and is the
second largest renewable energy source connected to the electricity distribution system
after hydropower. Electricity produced from geothermal resources in the USA displaces
the emission to the atmosphere o f 22 million tons o f carbon dioxide, 200 thousand tons
o f sulphur dioxide, 80 thousand tons o f nitrogen oxides, and 110 thousand tons o f
particulate m atter every year, compared with the production o f the same amount o f
electricity from an average coal-fired plant.
The utilization o f geothermal energy requires mostly established technology and

reliable engineering that can be adapted to specific conditions imposed by geothermal
fluids. The technology, reliability, economics, and environmental acceptability o f
geothermal steam and w ater has been dem onstrated throughout the world.
3.2 Environm ental benefits
It is not possible to maintain an increase in the present standard o f living in Europe and
the rest o f the world without an adequate supply o f energy at reasonable cost. The
environmental impacts associated with present energy production rates are, however,
becom ing increasingly unacceptable. The negative consequences arc also becoming
more widely evident. Above all the com bustion o f fossil energy sources such as coal, oil
and gas release large am ounts o f carbon dioxide and other air pollutants leading to
21
C hapter 3: T he case for geotherm al energy and acceptability
detrimental effects such as acid rain, respiratory diseases as well as contributing to the
global greenhouse effect.
Until recently decision makers in Europe have largely neglected the im portant role that
geothermal energy can play in reducing the emission o f carbon dioxide and other
greenhouse gases in Europe. Geothermal energy is available for direct use in all
European countries and the resources arc enormous. Gas emissions are minute in the
case o f direct use o f geothermal, and only a fraction o f that from fossil fuels in the case
o f electricity production from geothermal sources.
In order to reduce these emissions different strategies at a global level have to be

adopted and pursued in parallel. These measures include:
energy conservation
improvements in com bustion efficiency o f conventional boilers and power stations
combustion o f fuels with lower carbon contents for example natural gas
integration o f renewable sources o f energy in energy supply systems
According to the E U s Green Book on energy, the electricity generated from

renewable energy sources in Europe was 180 TWh in the year 1991. The break-down
was the following:
Hydro 94.3%
Geothermal 1.6%
Biomass 3.5%
Wind and solar 0 .6%
Both geothermal energy and hydropower are reliable and widely applicable sources o f
energy with known environm ental impacts. The em ission o f greenhouse gases are
negligible from both geothermal and hydro. The use o f biomass for electricity
generation is associated with considerable emission o f carbon dioxide although this is
mostly com pensated for by increased vegetation.
The reduction o f carbon dioxide and other greenhouse gases is o f m ajor importance for
the selection o f suitable renewable energy sources. At present the energy types with the
greatest potential in this respect in Europe in the short and medium term are
hydropower and geothermal energy.
The increase in deployment o f geothermal energy will have a large net positive effect
on the environm ent in com parison with the developm ent o f fossil fuels, which is in
accordance with recent pronouncem ents at the Kyoto conference on global climate
change and EU strategies on environmental protection.
As an example, according to present situation in USA, the present electrical generation

from a fossil fuel mix creates about the 70% o f SOx emissions (the main cause o f acid
precipitation), 33% o f NOx emissions, the 20% o f carbon dioxide emissions (linked to
the atmospheric greenhouse effect) and 50 % o f nuclear waste.
22
In com parison geothermal power plants have sulfur-emissions rates that average only a
few percent o f those from fossil-fuel alternatives. The newest generation o f geothermal
power plants, emits as average o f only 0.136 Kg o f carbon dioxide per kilowatt-hour o f
electricity generated compared to the 128 Kg/kWh o f carbon dioxide for a power plant
fuelled by natural gas or 225 Kg/kWh o f carbon dioxide for a coal fired power plant, as
shown in Figure 3.1.
Geothermal fluids contain a variable quantity o f chem icals and dissolved gas, largely
nitrogen and carbon dioxide with some hydrogen sulphide and sm aller proportions o f
ammonia, and boron. These com ponents how ever are partially used and partially
condensed and so the rem aining gas quantities released in the atmosphere represent only
a fraction o f that emitted from fossil fuel fired thermal plants.
The am ount o f com ponents depend on the geological conditions o f different geothermal
fields and, in case o f reinjection o f the fluids in the subsurface, pollution is almost
absent. The removal o f hydrogen sulphide from geothermal steam is a routine m atter in
geothermal power stations where the gas content is high.
COz Kg/M Wh
C oal Oil Gas G eotherm al
Figure 3.1 Comparison o f carbon dioxide em issions as

grams/kW h o f electricity produced from
geothermal and fossil fuel-fired electric power
stations
Table 3.1 com pares the carbon dioxide emissions in g/kW h from district heating
systems using low-tem peraturc geothermal resources and fossil fuels. The gas content
o f low-tempcrature w ater is in many cases insignificant, like in Reykjavik (Iceland),
where the carbon dioxide content is lower than that o f the cold groundwater.
In sedim entary basins, such as the Paris basin, the gas content may be too high to be
released, and in such cases the geothermal fluid is kept at pressure within a closed
circuit (the geothermal loop) and reinjected into the reservoir without any degassing
taking place. Conventional geothermal schemes in sedim entary basins commonly
produce brines which are generally reinjected into the reservoir and thus never released
into the environment.
23
ENERGY SOURCE kg o f C 0 2/M W h

Coal 310
Oil 250
Natural gas 176
Geothermal ca. 0
Table 3.1 Carbon dioxide em ission in g/kW h from low-

tem perature geothermal heating systems as
compared to fossil fuels.
G eotherm al H eat Pump (GHP) Systems have very low im pact on the environment.
Becausc GHP systems move heat that already exists rather than burning a fuel to create
heat, they reduce the amount o f toxic emissions in the atmosphere.
GHP systems use around 35% less total energy, and generate no combustion or indoor
air pollutants. These systems produce no air pollution (or reduce total emissions if the
fuel used to generate electricity needed for operating the GHP is included).
GHPs systems are generally 2.5 to 4 or more times more efficient than resistance
heating and w ater heating alone.
In addition to energy saving, GHPs have additional benefits such as reduced

m aintenance costs, the opportunity to eliminate boilers and cooling towers and lower
noise as there is no outdoor condenser unit unlike conventional cooling systems.
M oreover, new buildings can be designed without any o f these features if GHP is used
as part o f the temperature control system.
3.3 Visual im pact
Some direct use installations have no visual impact. Thermal heating plants can be
integrated within the urban landscape since all equipment including the pipes o f large
district heating systems can be concealed underground. O ther uses o f geothermal energy
such as horticulture and fish farming tend to have relatively minor visual appearance,
depending on the scale o f developm ent and the nature o f the terrain in which these
activities occur.
No visual impact is produced by geothermal heat pumps.
Electrical generation plant can have relatively m inor visual impact and certainly no
greater than the conventional fossil fuel burning plants; m oreover these plants are
located outside urban areas and require little land, taking up only a fraction o f that
needed by other energy sources.
The maximum efficiency in using the steam/water, however, implies not releasing any
w aste steam to the environm ent but to use the energy. Separated and condensed thermal
w ater from the plants is furthermore routinely reinjected to the ground m inim izing the
release o f steam and therm al w ater to the environment.
24
Environmental and visual impacts and land use will be most prevalent during drilling,
testing and construction o f geothermal schemes, mostly in the form o f noise, traffic
m ovement and dust. These effects are obviously temporary but national environmental
legislation may demand im plem entation o f am eliorative measures to comply with
regulations.
The operation o f geothermal plant is largely governed by local and national

environmental legislation and regulation.
3.4 Health benefits for the public
Geothermal energy offers indirect benefits to the public, such the reduction o f global
emissions from the com bustion o f fossil fuels and the reduction o f local atmospheric
pollution.
A nother great indirect advantage o f geothermal power plants is the fact that they do not
need storage or transportation facilities for fuel which would be necessary for
conventional pow er plants, nor is there a necessity for w aste disposal.
Direct benefits are numerous particularly for recreational purposes. The widespread
occurrence o f natural hot springs have for centuries been associated with health and
recreation often leading to the developm ent o f resorts with spas. This historic
association has not only led to the establishment o f long term tourism , but also
therapeutic uses, notably balneology.
Although other energy sources could be used for this type o f treatment, geothermal
energy is extremely well suited to large baseload heating applications such as
swimming pools. M oreover, the relative abundance o f energy often allows spas to be
heated to higher tem peratures than other conventionally heated facilities, which
enhances their attraction for swimming and their suitability for clinic treatm ent o f
diseases.
3.5 Job creation
The num ber o f individuals directly em ployed in geothermal energy is difficult to

quantify with any degree o f accuracy. Firstly, many service and specialist development
com panies as well as consultancies which work in this field also w ork in related
industries notably oil and gas exploration and ground w ater management. The demand
for specific services also tends to be cyclical. Equipment suppliers, such as turbine and
pump manufacturers, pipe fabricators and control hardware companies will also supply
items for geothermal schemes but only as part o f their product range. However, a crude
estimate o f the global turnover related to geothermal energy, assuming an annual
installation rate o f 600 MWe, is between 1,360 and 1,600 MECU.
Assum ing current deployment rates for geothermal energy used for direct heating
schemes o f 600 MWth per year, global turnover could reach between 180 and 510
MECU per year in this sector. These figures exclude routine operation, maintenance and
refurbishm ent activities.
25
For power generation plant annual turnover for these activities is estimated to be
between 1,800-2,300 MECU per year assuming -6 ,8 0 0 MW o f operational plant w orld
wide.
Direct uses, estimated to be -1 0 ,0 0 0 MW, require operation and maintenance work

valued at between 120-1,100 MECU.
Extrapolation to numbers o f individuals employed can only be broadly estimated as

these figures included the cost o f capital equipment, materials and energy to operate
schemes.
Collectively annual global turnover directly related to the installation and operation o f
geothermal plant for both electricity generation and direct uses ranges from 3,400 to
5,100 MECU.
Assuming that 30% o f these costs is attributed to salaries, approxim ately 28,000 to
40,000 people could be employed in the geothermal industry world-wide. These
estimates exclude people employed in activities such as recreating facilities, tourism,
spas, greenhouses horticulture, processing industries and fish farming which use
geotherm al energy. These activities tend to be labour-intensive and therefore it can be
said that geothermal development could be highly beneficial to the local economics and
a tool for jo b creation.
3.6 Co-generation
Geothermal plants are characterised by a low operating cost but a relatively high
investment cost. The price o f the heat/energy therefore implies a high fixed cost which
has to be taken into consideration when integrating geothermal into an energy supply
system using two or more energy sources. The developm ent o f geothermal energy
requires I to 3 km deep wells, the drilling o f which is relatively expensive. Once a
geothermal plant is installed the operating cost is very low as w ater is used as the
energy carrier. Most o f the cost is required as initial capital investment for drilling and
generation plant. Geothermal production wells have in several countries been operated
for several decades with only minor servicing. A significant part o f the operation cost is
for the use o f electricity to drive pumps in wells and distribution systems.
Geothermal energy is best suited to base-load operation and can therefore be in direct
competition with other base-load plants. The decision to invest in a geothermal option
will always depend on the actual location, resource, the importance that local people
place on a clean environm ent and investment criteria.
Geothermal plants can be operated as co-generation plants when they produce both
electricity and heat as happens in Iceland and Italy (Larderello area).
Geothermal heating plant could be associated with a gas-fired co-generation plant to

produce both heat and power as for example in France w here one plant is already
operating and another is under construction.
Another key advantage o f geothermal plants is their capacity factor which is am ongst
the highest for all types o f power plant. It is notably higher than capacity factors for
other forms o f renewable energy (that is the actual num ber o f kilowatt-hours produced
26
com pared with the am ount that could be produced if the plant operated continuously at
full capacity).
With due consideration o f the above econom ic constraints, geothermal heating plants
can be integrated favourably with conventional peak-load plants. The latter have a low
investment cost, high operation cost and high pollution. Therefore, they are kept in
operation for as short periods as possible. It has becom e common practice in Europe
that such peak load plants are able to cover at least 50% o f the peak load, but produce
only 10-20% o f the am ount o f heat required annually. Thus, the above economic
constraints have only little influence on the environmental advantages o f geothermal
energy.
In cases where the temperature o f the geothermal reservoir is not sufficient for district
heating systems, heat pumps or auxiliary boilers can be used. Compared to conventional
plants, even these systems produce significantly less em issions than conventional
thermal plants using fossil fuels.
27
BLUE BOOK ON
C hapter 4: C om petitiveness o f G eotherm al E nergy
Chapter 4
COM PETITIVENESS OF GEO THERM AL ENERGY
The sharp fall in fossil fuel prices during the mid eighties made geothermal energy, in
certain cases, less com petitive from a purely financial standpoint. However, from a
w ider economic perspective, geothermal energy remains com petitive in com parison
with conventional sources. The need to strengthen and diversify energy supply, whilst
m inimising gaseous emissions which contribute to the greenhouse effect, make the
adoption o f renew able forms o f energy an urgent priority. Future European energy
supplies will also need to become more dependent on indigenous sources to provide a
sustainable future. The progressive substitution o f fossil fuels will also reduce emissions
which contribute to acid rain.
The future com petitiveness o f different energy sources can not be limited to strict
financial comparisons. Other param eters such as detrimental or positive environm ental
effects, and their economic consequences must also be considered. The minimisation
o f other emissions, including dust, reduction o f fuel and related transportation activity
and space requirem ents as well as the reduction in expenditure on the disposal o f by
products such ash from coal combustion, need to be accounted for.
Any comparison o f different energy sources should, therefore, adopt a methodological

approach which uses financial-based evaluations that can be properly integrated and
balanced with econom ic-oriented ones so that a com prehensive Full social costs
model can be developed. This approach can provide a broader perspective for decision
makers.
The actual com petitiveness o f geothermal energy, and hence its short-term prospects in
energy markets, can not be properly appreciated if some o f the relevant variables still
remain either substantially excluded or underestimated within a reference scenario.
The adverse environmental impacts o f different energy technologies vary widely

depending on the type o f exploited resource, however, these effects could be regarded
as key param eters if broader economic models are applied.
Conventional econom ic com parisons between different technologies exclude the cost o f
externalities such as damage caused by pollution. If this approach were adopted the
external costs associated with alternative methods o f energy production could
com pensate if not counterbalance the existing gap in terms o f financial value and
com pletely reverse the order o f different technologies measured from a purely economic
comparison.
28
C hapter 4: C om petitiveness o f G eotherm al Energy
4.1 Investm ent costs
The com petitiveness o f different power generation technologies should, initially, be

based on a simple econom ic analysis based on a discounted cash flow o f a reference
project. Essentially this approach is a m easure o f the am ount o f energy produced by a
system over its technical life relative to the initial capital costs and any operation,
maintenance or refurbishm ent costs which are required to sustain energy production.
M ost forms o f power generation plant have a technical life o f up to 20 years and in
some cases longer. In order to determine the unit cost o f generation in present day
money future costs and revenue from energy sales m ust be discounted back to present
day values. A reference discount rate needs to be used to reflect the rates o f return
which m ight be expected for a project. The rate used will reflect investment conditions
in the country in question.
For a geothermal project all the initial feasibility and developm ent costs as well as the
capital investment required should be used. Some assumptions about the amount o f
energy that is anticipated from a scheme also need to be made. It is then possible to
calculate the unit cost o f generation that would be required for the scheme to break
even.
The following section outlines a typical cost break down for a reference 55 MW pow er
plant and then proceeds to examine factors which can effect the economic performance
o f geothermal pow er generation plant.
A geothermal project is developed in a sequence o f well established phases as described

in Chapter 2. The investment costs o f a geothermal project can be separated into two
main categories:
field costs, including surface exploration, drilling, field developm ent and reservoir
management;
plant costs, including machinery, equipment, design, engineering and civil works.
The specific break down o f field and plant investment costs is strictly dependent on site-
specific conditions and the type o f application particularly for direct use applications.
Figures 4.1 and 4.2 show the typical breakdown o f a 55 MW electrical generation plant.
29
C hapter 4: Com petitiveness o f G eotherm al Energy
Turboalternator 21 %
Condenser 7%
Gas extraction system 6%
Cooling system 8%
Auxiliary systems 15%
instrumentation & control system 6%
IS Substation 4%
Engineering 11%
D Transport 3%
H Erection 9%
Civil works 10%
Figure 4.1 Plant Cost Typical Break down (55M W )
Investigation and studies 13%
8% 13%
L and and access 3%
D rilling cost 68%
A dm inistraction & Engineering

8%
C ontingencies 8%
Figure 4.2 Field Cost Typical Break down
30
4.2 Costs for Electricity Generation
In the case o f investment in an electricity generation plant, the proportion o f investment

in each phase can be strongly influenced by site-specific conditions. A critical break
even point can be reached where initial investment has to be weighed against the
magnitude o f the risk that the project will not reach its anticipated production targets.
(Figure 4.3 and Figure 4.4)
Reconnaissance r ----------- -1
---------1
Prefeasibility r r t i
Resource feasibility [] d m in
r ............ ... ......... .1
m ax
Plant feasibility r ............t t i
Field developm ent 1 .................. - r ---------------------------- d
Plant construction 1 1 !
................... 111 " jr
............. ..................... 1 ................ 'y .............. y ^
0 .0 0.1 1.0 1 0.0 1 0 0 .0 1 0 0 0 .0
MECU
Figure 4.3 Investment Cost o f Typical Phases
R e c o n n a is sa n c e
P r e fe a s ib ility
R e so u rc e fe a sib ility m a i n l y m i n i n g r is k
m i n i n g r i s k & f i n a n c i a l r is k
P la n t fe a sib ility B l f i n a n c i a l r is k
F ie ld d e v e lo p m e n t
P la n t c o n stru c tio n
L ow H ig h V e ry H igh
Figure 4.4 Project Phases and Risk M anagement
Preliminary surveys, exploration activities and associated feasibility studies drastically

reduce the mining or geological risk as well as the financial risk; however, a residual
risk will always exist because o f natural geological variability. Substantially increasing
invest costs will not necessarily diminish this risk.
Delays in production can lead to reduced rates o f return because less energy is produced
over the investment loan repayment period. Additional costs at the exploration stage
have a negligible effect in comparison. The cost o f geothermal energy, and therefore its
economic viability, is most sensitive to drilling costs and well productivity.
31
The depth o f geothermal wells in producing fields is between 500 and 3,000m with an
average depth o f around 1,500m. The cost o f drilling wells (the drilling specific cost -
ECU/m-) increases disproportionately with depth.
Well productivity is certainly the param eter that most affects the final cost o f
geothermal energy and varies from less than 2 to more than 30 MWe. The world
average for productive wells is about 5-6 MW. Under these conditions and considering
also the possible variation in well cost, the specific drilling cost may change from 1 to
15 or even more.
Such a potential variation, in com parison with the uncertainties o f some tens o f percent
o f the other com ponent costs, make this param eter the m ost critical one. In a general
assessm ent o f geothermal generation costs, the well productivity has to be considered as
a variable and the final cost as a function o f this parameter.
Finally, market conditions may also have a considerable affect on the typical costs o f a
geothermal project. For example, drilling contracts may increase when there is high
demand induced by the oil market. The cost is notably lower in countries or areas
where drilling activity for oil also exists.
M arket conditions may also partially affect the price o f geotherm al equipment.
Although this influence may be great as an absolute value, it is low in terms o f the
overall cost o f a scheme, possibly less than 10%. The economics o f scale o f the
generation units have a much stronger influence on cost. The thermal cycle includes
three kinds o f geothermal turbines (as shown in paragraph 2.1):
back pressure
- condensing
- organic cycle
The low cost, but low efficiency, back pressure turbines are econom ically justified only
in an initial stage o f a geothermal developm ent or when the incondensable gas content
o f the steam is higher than 10%.
Binary plants arc the most economical option for formation fluid tem peratures between
100 to 200 C and for all fluids with a high gas content.
The cycle used for the reference projects cost calculation, is based on single flash
condensing turbines. Even if an intermediate size o f condensing unit were
theorectically available, the units normally used can be grouped, for sake o f simplicity,
into three categories according to their size, with the following estimated costs per unit:
10-15 MW 1200-1300 ECU/kW

2 5 -3 0 MW 875-1050
55 MW 6 0 0 - 850
The 55 MW size is generally regarded as the market standard o f the upper size available
although turbines around 65 MW or more can now be built.
32
These prices are relevant to single unit plants. In a m odular strategy, further units o f the
same size may have a cost reduction o f up to 20% o f these average values.
With such a wide range o f variability between the different param eters o f geothermal
projects (the specific field cost plus the plant cost) it is practically im possible to define a
generic cost for geothermal energy.
It is possible, however, to use the param eters o f an average, or reference project, and
analyse the influence o f the variation o f each param eter on the final cost. The
characteristics o f such a reference projects are described in Annex 4.1.
It should be reiterated that, as explained in greater detail in Annex 4.1, the cost data
shown in this chapter are pertinent to the same reference projects. Actual projects will
obviously have different cost figures, due to the high degree o f variability caused by
local conditions, especially those related to the drilling o f production wells and their
productivity. For instance, in Iceland, the electrical generation cost, in a 20 MW co
generation plant, is as low as 21 ECU/M W h. In contrast, in Italy, some remote
controlled highly sophisticated plants o f the same size may have a production cost
higher than those o f the reference project, but even this cost is lower than alternatives in
the local energy market.
Table 4.1 and Table 4.2 show the geothermal capital and field developm ent costs as
well as the main assumptions applied to analyse the reference schemes, nam ely 15MW,
30M W and 55M W single unit plants. The 55M W plant can be assumed to be a typical
geothermal project and has been used to calculate the unit cost o f generation and price
and as a base case for a sensitivity analysis (as provided in Annex 4.1).
The production co st1 calculated using the assumed reference parameters, produces
results equal to the weighted average o f the known generation cost o f the m ajor world
producers, within the expected range o f error o f 3%.
The typical operating and maintenance costs and other assumptions for a 55MW
geothermal power plant are given in Table 4.3. However, an acceptable estimate for the
operating and maintenance costs for all equipm ent (field and plant) for power plants at
lower sizes (10-15 MW and 25-30 MW) is a yearly expenditure o f between 2 and 3% o f
the investment costs.
The drilling cost o f replacem ent wells also has to be added. This cost can not be
assessed generically bccause it is subject to the same uncertainties that occur w ith field
development. The cost also depends on the rate o f fluid flow decline from the
production wells.
As a rough evaluation the cost for drilling a replacem ent well is at least double the
operating and maintenance expenditure for the surface equipment.
C alcu latio n s are based on th e D isco u n te d C ash F lo w M ethod
33
Based on the assumptions for a typical case using a single unit 55M W , a generation
cost2 o f 37ECU/M W h has been calculated. A comparison between the generation costs
o f the three different plant sizes, is presented in Figure 4.5.
The econom y o f scale correlated to turbine size produces significant differences in

project performances. The cost per M W h relative to 15MW and 30MW plants is
respectively 44% and 25% higher than for the 55 MW example.
15 MW 30 MW 55 MW
Investments MECU % MECU % MECU %

Surface Prospection 0.5 1 0.5 1 0.5 1
Deep Exploration 5 15 5 9 8 10
Field Development 7 20 11 19 18 22
Gathering System 3 8 5 9 10 12
Plant 20 56 33,5 62 45 55
Total 35.5 55 81.5
Specific Costs ECU/KW ECU/KW ECU/KW

on Total investment 2300-2400 1800-1900 1400-1500
on Plant investment 1200-1300 875-1050 600-850
Terms Years Years Years

Surface prospecting1 1 1 1
Deep exploration 2 2 3
Construction2 2 2 3
1 In clu d in g the t i m e jo r co n tractin g a d rillin g c o m p any
2 T h e term fo r d ev elo p m en t is assu m ed to b e th e sam e as plant c o n struction. P lant tim e includes 6 m o n th s fo r b id d in g and
co n tractin g .
Table 4.1 Geothermal investment costs (estimated for the reference projects)
Description Unit Quantity

Economic life time o f plant Years 25
Contingencies % 10
(on project investment cost)
Discount rate % 10
Yearly disbursements H om ogeneously distributed on each phase
Delivery point At the high tension side o f the plant substation1
1T ran sm issio n line co st an d its o p eratio n are not included.
Table 4.2 Main assumptions for the assessm ent o f 55M W geothermal plant
2 N o taxes o r ro y alties are included.
34
Description Unit Value Size

% (yearly) 3.5 55 MW
Total Operation & M aintenance cost1
(as percentage o f investment cost) % (yearly) 3 25/30 MW
% (yearly) 2 10-15 MW
- Production / injection wells decline % (yearly) 3

- N um ber o f make-up wells2 15
- Piping and separation for make up production, MECU 0.35
wells
- Piping and separation for make up reinjection, MECU 0.26
wells
1 Including Administration and Engineering
2 T o k eep the steam p ro d u c tio n an d rein jectio n cap a c ity c o n sta n t p e r 25 years
Table 4.3 Operation & M aintenance costs (55M W geothermal pow er plant)
A more detailed analysis o f generation costs, as a function o f technical and economic

characteristics is presented in Annex 4.1.
This analysis shows that fluctuations in plant load factor and well productivity have a
more critical impact on production costs com pared with variations in drilling.
M oreover, the specific cost o f a power plant is a function o f the size o f the single units
and o f the plant as a whole. Figure 4.6 illustrates how variations in well productivity
change relative to the installed capacity o f the plant. The lowest cost analysed (740
ECU/kW ) is that o f a single 55 MW plant, the largest cost approxim ately corresponds to
a 10 MW unit.
35
65 P la n t s p e c ific c o s t p er w e ll (E C U /w e ll)
60
55
50
1 ,5
U N IT S IZ E
10 MW
| 40
15 MW
35 25 MW
30
30 MW
55 MW
25
4 6 8 10 12
W ell p r o d u c t i v i t y (M W e)
Figure 4.6 Generation cost calculated versus well productivity variation and power
plant specific cost for each considered unit size.
3 t
The Fay-back period is contingent not only on the generation cost but also on the
selling price o f energy and therefore on the local market conditions. It is therefore
impossible to define a generic pay-back for geothcrmoelectric generation.
Nevertheless, a rough evaluation o f this parameter, based on the 55 MW reference
project exam ined in the previous chapter, offers a useful guide. If the selling price, for
example, guaranteed an expected IRR o f 15% to the developer on his investment in the
plant, and 20% for the investment in field development, as is usually requested by
private investors, the pay back period would be in the range o f 5-6 years from the
beginning o f production (Figure 4.7).
Further economic analysis, including the effects o f pay back time, sensitivity and
financial analysis including pricing criteria, are set out in Annex 4.1.
350
300 r-i
250 r~ I
200 r-
D 150
1________ 1
^
ZZI
100
1=]
E=l
50

0

1
1
I
-50
-100 Cum. Cash flow
-150
1 2 3 4 5 6 7 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Y ears
Figure 4.7 Pay-back analysis
Pay -b ack p erio d is th e tim e b e tw ee n th e b e g in n in g o f the prod u ctio n and the m o m e n t w h en the cu m u lated cash flow becom e
p o sitiv e
36
4.3 Costs for Heat Production
Investment cost and operating costs vary considerably between countries and the type o f
use, which depends on the characteristics o f the resource (local geological conditions),
the local heat demand and heat consumption pattern (district heating systems, individual
or building geothermal heat pumps systems, etc.)
Data have been collected and analysed in two main cases:

district heating system (several hundred or thousand o f end users)
Geothermal heat pumps (individual houses and building)
District Heatimi systems
Investm ent costs can be broken down into:

well costs (drilling and well equipm ent costs)
geothermal plant costs, i.e. investments related to exploiting the geothermal fluid
(including the building)
heat-distribution network costs
Well costs vary considerably between countries depending on the characteristics o f the
resource and the m arket for drilling. In Figure 4.8 drilling cost (kECU/m ) variability is
illustrated versus well depth. The drilling cost together with other capital costs for
infrastructure items influences the cost o f production and distribution o f geothermal
energy for direct uses in the different countries.
Due to these variabilities it would be valuable to make a com parative study in selected
countries o f how drilling costs and other infrastructure conditions affect the cost o f
geothermal energy in different countries.
Figure 4.8 Drilling cost in Europe versus well depth ( kECU/m).
37
Geothermal plant costs are determined by the site-specific characteristics o f the

resource and the local heat demand as well as the pattern o f heat consumption. The
installed capacity should have a high load factor related to the climatic conditions o f the
region. Moreover, the plant needs to be located in close proximity to the final end users
to m inim ise heat loss and should have a technical life o f 20 years to warrant the size o f
investment and heat productivity.
Heat-distribution network costs strongly depend on whether a form er network exists or

not. The total investment is several times higher where a new network needs to be
installed.
Investm ent and production costs which correspond to the major use o f low enthalpy
geothermal energy, i.e. district heating systems, have been collected and analysed. The
following cost variation for the capital investment and production o f the geothermal
energy for heating purposes is representative o f European countries:
the investment cost vary from 0.200 to 1.2 million ECU/M W .

the production cost vary from 5 to 45 ECl J/MWh.
The general characteristics for geothermal district heating systems is a high investment
cost and low operating cost (which is independent o f the market price for oil and gas).
With an average plant life o f approxim ately 20-25 years and a long repaym ent period
the investments are profitable. Profitability is also important from an environmental
point o f view, by saving o f imported fuel, and stimulating local business and
employment.
The variability o f costs depends on site-specific conditions (resource, climatic

conditions, users etc.). The cost varies according to the resource (depth, temperature and
flow rate) and the presence and condition or the existence o f distribution infrastructure
(mainly the pipeline distribution network). The pay-back time therefore varies
according to these different criteria, and on the type o f investor. In most countries (i.e.
France, Italy etc.) district heating operators are local authorities which can accept
repaym ent periods o f 15-20 years.
Some comments are given below:
Germany
In Germany, the specific investment cost for a geothermal heating plant without a
distribution network ranges from 0.7 to 1.2 million ECU/MW.
France
The type o f operation developed in the Paris basin (Dogger aquifer), includes more
than 35 geothermal district heating systems operating with one or several doublets.
The investment for geothermal energy production from this system (including the
drilling o f 2 wells o f 2,000m depth, geothermal plant and equipment) is about 0.2
million ECU/M W geothermal capacity. This value has to be compared with the
investment for an oil-fired boiler system o f 0.108 million ECU/M W for the same
power capacity.
38
W here a form er heating network exists the investment for heat thermal production is
more profitable (shorter repaym ent period). The production cost is around 12
ECU/M W h. This cost includes refunding the investment required to drill the wells,
and the geotherm al plant operating and maintenance costs, excluding heating
network costs. This value can be com pared with the cost o f fossil-fuel alternatives:
gas 26.3 ECU/M W h, fuel oil 34 ECU/M W h.
In France the cost for the heating network varies considerably depending on whether
there is a former network. It is important to note that the maxim um installed
geotherm al capacity is never more than 50% o f the total capacity needed for the
district heating system; but geothermal energy produces more than 80% (from 80 to
100%) o f the total heat needed for the district heating network. For this reason the
total investment cost for a geotherm al district heating system (including geothermal
energy production system + heating network with back up system) is from 0.2
million ECU/M W to 0.6 million ECU/M W . That represents a total investment o f
1,300 to 3,100 ECU per dwelling in Paris area (for heating and domestic hot water).
The final production cost per unit o f heat in a new geothermal district heating
system is 20 to 30 ECU /M W h including the loan repayment, operation and
maintenance costs for both the geothermal and heating network, and fuel costs for
the back up systems.
Italy
The two main large geothermal district heating systems operating in Italy (Ferrara
and Vicenza) run with doublet systems at around 2,000 m depth. The average
investm ent cost in Italy is about 1,500 ECU per dwelling. Due to the climate
conditions, the average hours/year , in the Po Valley region are about 2,200. The
average investment cost is about 0.600 million ECU/M W including drilling,
geothermal plant and heating network costs. The production cost is 15 to 20
ECU/M W h.
Iceland
In Iceland the heating network is always built at the same time the geothermal
system is developed. All the heat needed is produced with geothermal energy (i.e.
the district heating capacity equals the geothermal resource capacity). Due to the
climatic conditions in Iceland the heating period is longer (6000 hours/year),
com paring to an average o f 4500 hours/year in France and average o f 2500 h/y in
Italy.
The average investment is about 0.915 million ECU/M W for a geothermal district
heating system.
The production cost is 5 to 10 ECU/M W h.
Geothermal Heat Pumps (GHP)
The GHP systems include three m ajor components: a ground loop (or borehole heat
exchanger), the heat pump itself and the heating and / or cooling distribution system
(they
39
can also provide domestic hot water). GHP systems are o f two m ajor types: earth
coupled (close-loop) and ground w ater source (open-loop).
In 1993, a study by the US Environmental Protection Agency o f all residential heating

and cooling systems, concluded that GHPs could reduce energy consumption and
related emissions by 23-44% com pared to air-source heat pumps, GHPs generally have
low er emissions com pared with other equipment, and GHPs have the lowest annual
operating cost o f all technologies, as well as com petitive life-cycle costs.
GHPs system investment cost is, how ever 20-40% higher than for a conventional
heating system. A residential GHP system is also more expensive to install than a
conventional heating (due to the requirem ent for an underground connection) and is
most effective when operated year round for both heating and cooling. In such cases the
incremental payback period can be as short as 3 to 5 years.
GHPs system installation-costs should be com petitive (and can be lowest option) with a
central combustion furnace/central air conditioner combination.
The specific investment cost for a ground loop (for a GHP system) is estimated to be
from 3,000 to 6,000 ECU in Europe for a 100m2 individual home and a <100 m deep
well (depending on the geological situation, the ground system, and the drilling cost in
different countries).
In most situations, GHP systems have lower life-cycle costs when considering energy
and maintenance cost (from US studies).
GHP systems operate by moving or transferring heat rather than converting it from
another energy source. Much less electricity is used to move heat rather than convert it.
4.4 Availability o f geotherm al energy
The availability factor o f geothermal energy is the percentage o f time (generally

referred to a reference year) and the rated energy which can be produced. This factor
depends on the availability o f the equipm ent and the resource.
To assess the availability o f the equipment, the time for programm ed maintenance and
accidental break down have to be considered. Experience shows that availability is
often over 90% for geothermoelectric power plants and even higher for direct use
plants.
To evaluate the availability o f the resource, low and high enthalpy resources have to be
exam ined separately. While low enthalpy resources may be generally regarded as totally
renewable and constant in time (if properly m anaged), high enthalpy resources are in
most cases only partially renewable within a technical tim e-scale.4
M oreover, most o f the exploited high enthalpy geothermal fields show a decline in well
yields. Therefore the availability o f the field-plant system as a whole may be lower as a
result.
4 T h e y are fu lly ren ew ab le fro m a g e o lo g ic al stan d p o int.
40
Chapter 4: C om petitiveness o f G eotherm al Energy
The m ajority o f the fields may, however, reach availabilities which are com parable to
those o f the equipment. Nevertheless, over-exploitation in some cases (not minor ones)
has resulted in drastic decreases in availability. Good field m anagem ent is therefore
necessary to keep the availability constant throughout the technical life o f the plant.
A part from these cases an availability o f around 90% may be regarded as normal.
Availability o f the plant includes com bined aspects o f safety, maintainability

(promptness maintenance actions) and maintenance. Availability indicators are time
availability (capacity to respond to a solicitation), power availability (capacity to
ensure, by request, a certain level o f power), energy availability (capacity to satisfy the
energy demand for a time period).
The strongest com petitive points for geothermal energy are that geothermal plants can
operate continuously, without constraint imposed by w eather conditions, as is the case
with some other renewable sources. They are not dependent on fossil fuel supply,
transportation or storage which has a concom itant risk o f explosion and pollution.
Geothermal energy has an inherent storage capability and' is best suited to the supply o f
base-load demand.
The plant factor (that is the percentage o f time the plant actually produces energy) is
therefore almost equal to the availability factor. For direct use, the plant factor is
practically a direct function o f the demand. Such factors are higher than those o f fossil-
fuel plants and far higher than m ost other renewables.
Geothermal power plants, both high and low enthalpy ones, can be installed in modular
units. This approach reduces the initial capital investment, anticipates the availability o f
the resource, allows revenue generation at the earliest possible opportunity thereby
improving the overall financial performance o f schemes and reducing exposure to risk.
GHPs operate in all climates. They are most cost effective in colder regions (because
ground tem perature is constant over the entire year even when the external temperature
is cold). Typical loop installations for GHP (ground loop) are expected to work for than
30 years.
In US, nearly all GHP system manufacturers offer a w arranty for m ajor com ponents that
is equivalent to the warranties for conventional heating and cooling systems.
M anufactures o f plastic pipe used for ground loop warrant their products for 25-50
years.
4.5 Com parison with other energy sources
Direct com parison between geothermal energy and other energy sources needs to be
given careful consideration, partly because both capital and operation and m aintenance
costs vary widely for geothermal schemes and some other technologies; and partly
because some new and renewable energy technologies are still undergoing technical
developm ent which will lead to further cost reductions.
Other technologies such as wave energy are still at an early research and development
stage. Cost projections are therefore best estimates which assume that perform ance o f
designs conceived at the present time will achieve their rated energy outputs for the
41
estimated capital costs. Comparisons between electricity generating technologies and

those used for direct heat are treated separately.
A discounted unit cost has been estimated to com pare different technologies. Annual
operating and maintenance costs also include any fuel required to operate the plant, but
not m ajor refurbishment. The comparison presented in Table 4.4 is based in ECU at
1995 cost; but for geothermal plants the figures are those presented in paragraph 4.1
according to the assessm ent o f Annex 4.1. Clearly, due to the com plexities o f each
renewable source the figures presented must therefore be regarded as a broad
generalisation.
Current figures for the unit cost o f electricity from geothermal sources indicate that it is
com petitive with some forms o f renewable and conventional energy sources, notably
waste combustion. Other technologies including small hydropower, landfill gas and
onshore wind are more com petitive, despite having lower load factors with the
exception o f land fill gas. The figures also reveal that geothermal energy is more
com petitive than photovoltaics or near-shore wave.
Operating and maintenance cost for photovoltaics could be generally considered

negligible if batteries are not included in the plant.
A key feature o f all forms o f renewable energy is the nature and availability o f the
resource which ultim ately governs the unit cost o f generation. However, it is useful to
recall here that other renewables, such wind and solar energy have a limited resource
availability ( i.e. avg. maximum solar radiation are only about 4-5 equiv. hours) and are
therefore not reliable as base load sources for consumers.
Development and operational costs for power generation from geothermal sources are
highly sensitive to site-specific conditions. The unit cost o f generation for onshore wind
will depend on the annual mean wind speed as energy capture increases in proportion to
the cube o f the wind speed. Similarly the unit cost o f electricity produced from
hydropower schemes will vary depending on the permitted am ount o f mean annual flow
which can be abstracted. Often this is restricted by environmental legislation and
seasonal fluctuations in flow.
Variations in unit costs o f generation from waste com bustion are mainly due to the
variation in disposal charges or "gate fee" paid to the incinerator operator for
incinerating the refuse. Since this form o f power generation is primarily regarded as a
form o f waste disposal, with energy recovery as a benefit, high pow er generation costs
may reflect other priorities which out weigh direct com petitiveness with other forms o f
electricity generation.
GHP systems are o f importance for the production o f heat for space heating and warm
w ater preparation at any time o f the year and day. For example, the share o f primary
energy consumption for heat production is more than 50% in Germany. The increasing
use o f geothermal low-enthalpy resources for heat production can significantly
contribute to the saving o f fossil fuels, thus reducing pollutant emissions.
42
Anaerobic
Geothermal Small Hydro W ind Urban Solid Land Digestion Photo Tidal Wave
(onshore) Waste Fill Gas (agricultural Voltaics Barrage (near-shore)
Combustion waste)
Typical unit size (MWe) 10-55 0.001-10 0.41 10-27 1 1 1-100 kW 240 2
Availability factor % 95 >95 98 90 90 90 70-99 90 94
Load Factor (%) 65-85 15-95 18%-35% 90 80 27 3-15 26 25
(Time plant generates at rated power) (24%)
Construction time (years) 1-3 1-2 0.25 2-3 1 1 10-180 days 7 < 1
Economic lifetime (years) 25 40 15 20 15 20 15-25 >40 30
Investment cost (ECU/kW) 2,300-1,400 970-3,600 850-1,100 5,000-6,400 1,200 7,260-8,470 24,200-5,500 2,100-2,800 -
Fixed operating and maintenance 49-46 18-30 24-36 379-429 67-202 600-726 Negligible 109-145 -
cost (ECU/kW)
Generation cost for energy 5 5 -3 0 22 - 140 3 6 -8 4 2 4 -1 6 0 42 1 2 0 -1 6 0 1,250-620 1 2 0 - 160 110
(ECU/M Wh)
EU installed capacity (MWe) 834* 9,000 3,500 1,437 298 150 60 240 0
World installed capacity (MWe) 7,679 27,900 4,821 3,069 1,385 5,300-6,300 376 261 0
Table 4.4 Electricity generation: com parison betw een geothermal and other RE resources.
For geothermal data:* include Iceland, generation cost derived using 10% discount rate
For other RE resources data: published information; EU figures exclude Iceland; generation cost derived using 8% discount rate
Cost values at 1995.
Table 4.5 shows the installed capacity (M W e) and the electricity production (GW h/y) in
EU (including Iceland) for geothermal, wind, small hydro, solar and tidal energy.
Data are updated to 1997 from different published information.
1997 Installed capacity Production per year
Energy Source (MWe) (%) (GW h/y) (%)

Geothermal 834 6.1 4,207 9.1
Wind 3,500 25.7 3,833 8.3
Small hydro (< 10 MW) 9,000 66.0 37,800 81.4
Solar PV 60 0.4 65 0.1
Tidal 240 1.8 540 1.1
Total 13,634 100 46,445 100
Table 4.5 Electricity generated in EU from five RE resources.
In Table 4.6 geothermal energy is com pared with other conventional energy sources for
electricity generation. All costs have been updated to 1997, data o f geothermal EU
installed capacity include Iceland. Generation cost data derived using 10% discount
rate. For further data see Annex 4.2.
The low unit cost o f electricity produced from new CHP plant is cheaper than almost all
other forms o f power generation if the availability and load factors are higher than 80%.
As far as the conventional power plants are concerned, the economic lifetime, the
operating and maintenance cost and therefore the unit generation costs have been based
on relevant average values. For further data see Annex 4.2.
Moreover, the fuel source allows minimal pollution abatement. The use o f natural gas is
generally more com petitive where a com prehensive pipeline distribution networks exist.
However, a comparison based solely on the unit cost o f energy can not take account o f
local demands for energy which might be well suited to geothermal sources.
G eotherm al Coal Natural Fuel oil N uclear

gas
Average unit size (M W e) 10-55 600 225 600 2,000

Availability factor (%) 95 90 80 95 95
Load Factor (%) 65-85 85 80 85 75
(Time plant generates at rated power)
Construction time (years) 1 -3 4 2.5 3 3
Economic lifetime (years) 25 35 30 40 30
Investment cost average (ECU / kW) 2,300-1,400 950 550 900 3,080
Fixed operating and maintenance cost 4 6 -4 9 48 33 27 92
(ECU / KW / yr)
Fuel cost (ECU cents / kWh) 0 1.53 1.65 2.02 0.05
Unit generation cost (ECU/MWh) 5 5 -3 0 37 30 39 74
EU installed capacity (MWe) 834* 315,000 120,000
Table 4.6 Electricity generation: com parison between geothermal and conventional
energy sources. (* 1997, including Iceland).
44
In contrast, new coal fired plant now requires flue gas treatm ent to meet emission
abatement requirements in some countries which is partly responsible for higher capital
investment than gas, increasing the unit costs o f electricity, as well as the fuel costs
includes transport costs.
The relatively higher unit costs o f generation from nuclear power reflect higher capital
investment, despite cheaper fuel costs, making the technology less com petitive than gas
and com parable to new coal and geothermal.
Finally two other key factors should be stressed when the com petitiveness o f
geothermal energy is considered. This energy source offers the lowest effective cost for
final users and, with the use o f cascade systems, enables the use o f heat to be
rationalised.
A simple com parison between geothermal energy and other energy sources for district
heating indicates that it is broadly com petitive with biomass and solar heating (see
Table 4.7), while the use o f natural gas can be competitive where a com prehensive
pipeline distribution network exist.
However, broad com parisons can not take account o f local factors which often tend to
favour a particular energy source because o f local circumstances. For example, solar
heating is likely to be more appropriate in southern Europe where insolation levels are
high. Gas-fired heating systems are highly com petitive where com prehensive
distribution networks exist and w here deregulated, com petitive energy markets have
been introduced such as in the UK.
In central and eastern Europe, Italy and Iceland, where there are good geothermal
resources and a strong acquaintance with the resource, geothermal energy is not only
com petitive but is widely developed, particularly for base-load applications where
alternatives would be less competitive. Moreover, by developing a more sophisticated
approach, such as the cascade concept, geothermal resources can be developed for new
commercial ventures.
E n e r g y so u r c e G e n e r a tio n co st
E C U /M W h
Geothermal 5-20
Biomass 48-60
Solar 48-360
Fuel oil 14
Natural gas 9
Table 4.7 Heat generation: comparison between

geothermal and other energy sources.
Indeed geothermal energy is suited to large base load heat demands which are
coincident with the resource. The most suitable markets are therefore district heating
applications, horticulture, fish farming or recreational pursuits such as spas and
swimming pools in regions o f the world, such as continental Europe which have both
45
abundant supplies o f natural gas and geothermal resources, heating schemes have been
developed since the early 1980s. There has been a change in emphasis towards
extending or improving existing district heating networks .
The use o f cascade systems which optimise heat from geothermal sources, and the use
o f gas or oil fired boilers to supply peak demand can improved the prospects for
geothermal energy, without additional major capital investm ent or risk. In areas where
natural gas supplies are absent, geothermal resources can offer a viable alternative
particularly if there arc opportunities for new industries or activities such as horticulture
which could be designed to optimise the geothermal resource available.
All the conditions which relate to the com petitiveness o f geothermal resources outlined
above exclude the external costs associated with power generation from conventional
fossil fuel and nuclear sources. These shadow costs can be almost exclusively
avoided by using geothermal plants where external costs are very low. A com parison o f
different energy sources which incorporates external sources is presented in Table 4.8.
Energy source External Generation cost Total cost

cost
ECU cents / KWh
Conventional
Oil 2-6 4 -6 6 - 12
Coal 2 - 13 3 -7 5-20
Clean coal 1 -3 3 -7 4 - 10
Natural gas 0,5 - 1 3 -5 3,5-6
N uclcar 2 3-8 5 - 10
Renewable
Solar PV
1
w
43 - 59 43 - 60
0
o
Wind 0-0, 1 4-11 4-11

o
o'
vo
Biomass/Energy crops/ 5-8 5 -9

1
/Forest residues
W aste to energy (M SW /IW ) 2 1 - 10 3-12
Geothermal 3-5.5
Table 4.8 Comparison o f mean values o f external costs for conventional and
renewable energy sources.1
The external costs o f conventional generation, which in the case o f geothermal

resources (sim ilar to other renewable sources) became external benefits, are a
param eter that substantially changes the level o f the com petitiveness in favour o f
geothermal energy. These external benefits can actually be considered in monetary
terms and acknowledged as an investment in the geothermal plant.
Generally speaking because financial accounting systems include only the direct costs
o f the geothermal project as well as their monetary benefits, their true social costs and
i .
i.e. E n v iro n m en tal c o sts o f E lectricity , P A C E U n iv ersity C entre fo r E n v iro n m e n tal Legal S tudies, O c ea n a P u b licatio n s, N .Y . ,
1990 - a n d C E S E N estim ates.
46
benefits are not reflected in the full valuation system. Some benefits and costs are
external to the valuation system (i.e. environmental impact) which creates a
discrepancy that excludes externalities between private sector (short term financial
investments) and social (longer term) costs and benefits.
The main externalities directly linked to a geothermal project are:

an increase in the indigenous energy resource production and a concom itant decrease
in the share o f imported energy supply.
can help to upgrade the efficiency o f the overall final energy system
environm entally positive im pact which avoids pollution
It should be em phasised that if the financial evaluation excludes the above externalities,
the projected financial performance for individual schemes could, in many cases, appear
to offer a poor return on investm ent when compared with traditional energy sources,
even if public and institutional bodies try to push for initiatives to increase the
proportion o f renewable energy. Consequently, private investors could be reticent and
might be dissuaded from investment in geothermal schemes.
If externalities are included, the full social and economic benefits can be realised but
this may require public sector incentives or insurance to mitigate against risk to ensure
successful investment.
An investors acquaintance o f this added value should not be regarded as a subsidy

but a realignment o f the economic benefits that arise from the project.
The quantification o f externalities is a crucial aspect if geothermal energy is to be

evaluated fairly. The approach also avoids the risk o f penalising this technology purely
on the basis o f a specific projects cash flow.
Some studies1 have attempted to quantify the external cost o f conventional fossil fuels
suggesting costs are alm ost ten times greater than costs related to energy production
from renewable sources and almost 50% o f the overall economic cost compared with
1% for most renewable sources. Nevertheless, the external costs o f geothermal sources
are inevitably excluded from most comparisons, however, the value o f these extenalities
are com parable to other renewable energy sources.
i.e. E n v iro n m e n tal co sts o f E lectricity , P A C E U n iv e rsity C entre fo r E n v iro n m en tal L egal S tudies, O c ea n a P u blications, N .Y . ,
1990 - and C E S E N estim ates.
47
BLUE BOOK ON
C hapter 5: M arket Perspectives
Chapter 5
M ARKET PERSPECTIVES
5.1 Role o f geotherm al energy
The geothermal energy market is determined by the availability o f the resources for
electricity generation and direct heat use, and the com petitiveness and profitability o f
them.
Chapter 1 indicates the extensive development possibilities within and outside the EU;
generally heat use in Europe, heat and electricity world-wide (depending on the
country). In addition the developm ent o f G eotherm al Heat Pumps (GHP) enables
optim isation o f the use o f electricity for heating/air conditioning; here again both the
internal and export markets show large opportunities.
Geothermal energy is com petitive, reliable and is based upon sound experience acquired
in Europe in different fields (electricity generation, direct use, geothermal heat pumps
and consultancy).
The growth rate o f geotherm al development has in the past been significantly affected
by the prices o f the com peting fuels on the world market, especially oil and natural gas.
The growth rate is, however, quite high due to the fact that geothermal energy is the
lowest cost option for many countries. It is, furthermore, generally acknowledged that
geothermal energy is one o f the cleanest energy sources available on the market.
During 1975-1995, the world average growth rate in geothermal utilisation for
electricity generation was 9% per year, which is one o f the highest growth rates that has
been experienced for a single energy source. The average growth rate in the direct heat
use o f geothermal energy is about 6% per year over the last decade.
For the direct heat applications, the growth rate conditions are less clear at present, but
again are highly affected by competition from oil and gas on the world market. The
large potential and the growing interest for the developm ent o f direct applications in
various countries gives rise to optim ism for the growth o f direct applications. The
growth rate should perhaps be expected to be higher than that for electric generation,
both because low temperature geothermal resources are available in a much greater
num ber o f countries and because direct application projects tend to be less capital
intensive than the electric ones.
48
The m ost im portant developments are in industrialised countries, no doubt because a

well-organised economy and fiscal system - and a firm developm ent policy - are
essential. Nevertheless, considering that this energy represents a development factor, it
could be more widely exploited in developing countries.
Recent scenarios for a num ber o f leading geothermal countries indicate a prospective
growth rate in the use o f geotherm al energy for electricity production in the range o f 6%
to 30% per year in the period 1994-2000 and up to 20% per year for the period 1994-
2020 .
It is, therefore, not unreasonable to assume an average growth rate o f aggregate
geothermal energy will be some 10-15% per year over the next three decades, if
favourable conditions o f the energy market prevail or improve (prices, regulations,
environmental incentives).
The participation o f private operators in steam field developments for electricity

production through project financing tools such as BOT, BOO and B O O T1 have
significantly increased the speed o f geothermal developm ent in countries like the
Philippines and Indonesia which presently are am ongst the countries with the highest
growth rates. This recent approach to the market economy expansion will be
extensively applied also in other countries.
One reason for a continued high growth rate in the direct use o f geothermal energy is
that in recent years significant developm ent and interest have been made in the use o f
geothermal heat pumps for optimizing energy use for heating and cooling. This type o f
application multiplies the number o f countries and regions that can harness geothermal
energy.
The wide application o f the geothermal heat pumps for space heating in countries such
as Switzerland, Germany and Sweden, none o f which has active volcanoes or evident
geothermal m anifestations on the surface, dem onstrates that good opportunities for
geothermal resources exploitation exist even in countries not formerly associated with
geothermal energy.
If the environm ental aspects were given a higher priority geothermal energy would
become more com petitive and there would be a com mensurate increase in potential
growth rates.
If world policy moves towards an integrated-resource planning with all environmental

and other hidden costs explicity accounted for, it would be possible to use more
renewable energy resources econom ically; total energy costs would decrease and a
much cleaner environm ent could be realised.
A nother advantage o f geothermal energy is that it is a local resource which provides

both economic and strategic benefits allowing many countries to reduce dependence on
imported fuels.
1 BOT (Build, O perate, Transfer); BOO (Build, O w n and O perate); BOOT (Build, O w n, O perate, and
Transfer).
49
The present status and m arket prospectives for geothermal energy for electricity
generation, direct heat uses and geothermal heat pumps are presented with forecast to
2005 and 2010.
5.2 Electricity generation market
The market for geothermally generated electricity is strictly governed by economic

considerations which are largely determined by the com petitiveness o f other energy
sources.
At present day oil prices only the best geothermal reservoirs are profitable to develop,
especially where private sector investors are involved. Private sector investment is
generally averse to high risk schemes unless there are com mensurate high rates o f
return as in the oil industry. Investors will therefore seek lower risk investment options
offered by conventional fossil fuel. However, this approach to investment excludes the
value o f externalities.
The market conditions for investment are different in each country and are dependent
on legislation, the availability o f an indigenous industry and the availability o f
investment capital. Electricity markets can be broadly summarised into three
categories.
1. countries where electrical generation is restricted to state owned agencies.

2. countries where electrical generation is under state control but private investors may
operate under concessions or special contracts.
3. countries where legislation allows the private investors to operate in the energy
market.
In the first case the market is limited to supply o f engineering consulting services,
drilling, equipment supply and power plant construction to the state owned public
utility.
In the third case, w here private operators have been working for several years and there
is a strictly exclusive private sector market, private sector investment criteria will
prevail. The market therefore grows or declines depending on the cost o f alternative
energy sources. In this kind o f market only a few private operators are present in the
geothermal sector.
In the second case the trend is now growing so that the countries within the first group
are now changing their laws to allow private sector investment in energy supply. This
evolution is typical in Latin America. Constraints, opportunities and goals for this type
of market are examined later on.
50
Present status o f market

The developm ent o f geotherm al energy for electrical generation purposes has been
pursued at different paces and paths according to the specific institutional and market
conditions o f each country.
In the countries w here there was indigenous technical expertise and financial
institutions with com parable investment which existed before the beginning o f the
geothermal developm ent (United States, Italy, Japan, Iceland and N ew Zealand):
geothermal exploration and plant im plem entation have been mainly regulated by free
m arket conditions or where there was a state monopoly an exclusive m arket developed.
In this case the decision to im plem ent a geothermal project is determined m ainly by
financial considerations and operations may be carried out by two different ways:
-) With two operators: One is a mining com pany which is exclusively involved with
geothermal field exploitation and steam production, and a public utility which is solely
responsible for the im plem entation and operation o f the geotherm oelectric plant;
In this case the mining com pany gets the lease or concession from land owner, produces
and sells the steam to the public utility w hich produces and sells the electric energy
into the market.
-) with a single operator, a single com pany develops the field, owns and operatores the
pow er plant and sells the power.
In all countries, with the exception o f the USA, electricity generation used to be in the
hands o f public utilities. It is only recently that the trend to open up the electricity
market to private enterprises has developed.
U nder these new conditions the developm ent policies for geothermal energy will be
regulated mostly by private sector investment criteria. However, in the interests o f its
national energy policy a government, may be prepared to pay a private investor a price
higher than the least cost alternative, taking into account shadow prices, or strategic
convenience to develop indigenous resources, or weighting the opportunity to diversify
the energy resources.
At present the market in South East Asia is ripe and self regulating, and can be difficult
a company to enter in the market if it is not yet established in the area. In contrast, the
changes now occurring in the Latin American m arket may offer challenging
opportunities to European operators particularly equipm ent manufacturers.
An analysis o f the geotherm al turbines and generators m arket in Annex 5.2 shows that it
is dominated by five main companies (three Japanese, one Italian and one Israeli) which
during period 1971-1995 installed about 6,771 MW in the world, about the 88% o f the
total (7,668 MW). The European presence represents only the 16% o f the market, the
Japanese manufactures dominate the 73% o f the market, and Israeli manufactures
represents about 3% o f the market.
51
Chapter 5: M arket Perspectives
The survey results for geothermal electricity generation equipm ent that will be installed
or replaced by the year 2000 are presented in Table 5.1. The capacity which is likely to
be installed by that date is split between five main manufacturers. The figures represent
plant that is either under construction or will be completed by the year 2000.
M anufacturer / Area MWe

1991-1995 2000
Ansaldo( 1) 150 396

Fuji 30
M itsubishi 60
Ormat 10 6.6
Toshiba
Europe 160 492.6
Ansaldo 35
Fuji
Mitsubishi
Ormat 73
Toshiba
N. America 108
Ansaldo 55 60
Fuji 50
Mitsubishi 5
Ormat 25
Toshiba 55
C.America 115 135
Ansaldo 220 115
Fuji 80 406.5
M itsubishi 255
Ormat 32
Toshiba 123 232
Asia 678 785.5
Total 1,060 1,413.1

( 1) Including Plants Substitutions
Table 5.1 Installed capacity for period 1991-1995

and forecast to 2000 for the m ain power plant m anufacturers
The European m anufacturers in particular, even with a long presence in the sector, have
little expertise in resource exploration and exploitation and only limited experience in
the operation o f geothermal systems. This sector o f the industry is almost exclusively
devoted to the supply o f com ponents and power plant assembly
52
Engineering firms with experience in exploration, exploitation and m anagem ent o f

geothermal fields, including design and project management, have no financial
resources to invest in capital intensive projects like geothermal ones.
The few public utilities existing in Europe with both the capability and financial pow er
to enter this market successfully show little interest in these opportunities as they
consider the geotherm al market a minor one or perhaps lack incentive to invest in new
projects outside national boundaries.
EU is quite limited and is dominated by Italy, (Tuscany/Latium area, volcanic islands).

G reece could present a new market, and the volcanic archipelagos as the Azores, the
Canaries and DOM French territories offer promising opportunities.
The M arket outside EU is mainly in Iceland, Russia and Turkey.
The m arket outside Europe remains the most important and has the attraction o f high
growth rates. In the last few years the fastest growing markets have been located in SE
Asia (Philippines and Indonesia) where there are further possibilities for new local
markets in Thailand and China. Central and South America have good geothermal
resources which could offer better prospects for European operators rather than in SE
Asia where the com petition is dominated by established Japanese and American
companies.
1997 % o f w orld 1997 % o f w orld

A R E A / C ountry (M W e) capacity (G W h/yr) generation
European Union 754 9.8 3,832 8.5
Iccland 80 1.0 375 0.8
Russia 11 0.1 25 0.1
T urkey 21 0.3 71 0.2
N orth A m erica 3,601 46.9 20,342 44.9
C entral A m erica 205 2.7 1,184 2.6
South A m erica 0.7 0.0 3.5 0.0
Asia 2,596 33.8 16,090 35.6
O ceania 365 4.8 2,900 6.4
Africa 45 0.6 390 0.9
Total 7,679 45,212
Table 5.2 Total installed capacity and total electricity generated in the world
from geothermal energy at 1997.
Market Perspectives
It is advisable to look at the possible development o f geothermal market from different
standpoints. There are three kinds o f actors are present in the market:
1. The consulting engineering firms for exploration, field development, plant design,
project analysis and management.
53
2. The power plant suppliers (mainly turbogenerators manufacturers) which usually act
as general contractors concem cd with civil works, field equipment, installation o f
plant, substation, fluid collection and disposal systems.
3. The investors and operators o f the field and/or the power plant
As already mentioned, the geothermal market has particular characteristics in distinct

parts o f the world. Different countries in different parts o f the w orld can have similar
market conditions. This especially true for USA and South East Asia where two main
geothermal producers (Indonesia and the Philippines) have the same type o f free market
situation and Latin America where a transition from state property to a concession
system is currently in progress.
The South East Asia market has changed in the last decade. In the seventies and the
eighties the concessions were related to field developm ent and the private investor sold
the steam to a pow er plant owned by the state public utility.
In the last ten years there has been a tendency to lease a concession to operate field and
power plant together, so that the investor sells electricity rather than steam.
In the past governments and state owned public utilities were clients for each one o f the
actors listed above. In the new privatised markets the only sector dealing with the
primary client (the G overnm ents Agencies) are the investors who now deal directly
with engineering contractors and equipm ent suppliers.
The operators now involved in this market are a few companies, generally connected
with oil or m ining firms, with sound experience in geothermal exploitation and
accustomed to dealing with mining risk or geological risk during the early phases o f the
development.
No European com pany which operates in this market has followed this tendency.
Within the EU the combination o f developm ent expertise, operational experience and
investment capability may exist, but no single com pany has adopted this approach or
shown a w illingness to enter new markets in this manner. For EU operators to be
successful a consortium which includes a project financing package would need to be
implemented (see Annex 4.1, paragraph 4).
The potential perspectives and the possible future opportunities for the Central and
South America market are more detailed in Annex 5.5.
An analysis o f the expected future share o f the geothermal electricity generation market
in a selected num ber o f countries under five future market scenarios have been created
with various forecasts ranging from high developm ent to low development o f the
geothermal market. Projections are presented in Annex 5.1.
One o f these, the so called M edium Profile Scenario, has been taken to build up a
reliable market forecast in terms o f power capacity increase (M W e) at 2005 and at
2010. This scenario foresees that all planned resources, as indicated by the official
national authorities, will be implemented by the year 2005, and is based on the
following assumptions:
54
- by the year 2005 all under construction and planned plants will be installed together
with a capacity corresponding to the 35% o f the proven resources not yet exploited;
- by the year 2010 the additional 65% o f the proven resources will be com pletely
exploited. Proven resources, in this study, are those evaluated and defined through
surface and deep exploration up to the plant feasibility.
H owever due to the lack o f flexibility o f this scenarios model analysis some
adjustments on the m egawatts installed for certain countries have been made based to
the below considerations.
-) for the countries having no data available for proven resources, a certain share o f
probable and possible geothermal resources ( estimated through reconnaissance and
prefeasibility studies, as reported by the questionnaires and official published data).),
have been regarded as potentially proven resources and partially exploited in 2010;
-) for countries were high enthalpy resources are fully exploited and proven resources
well identified, low growth rates are foreseen only in connection with power plant
substitution or exploitation o f marginal geotherm al areas.
Estimated increases (M W e) o f the geothermal electricity generation by 2005 and 2010

for the EU m arket and world-wide markets, as defined by the M edium Profile Scenario,
are presented in Table 5.3.
55
Installed capacity (M W e)
A R E A / C ountry
1995 1996-2005 2006-2010 1996-2010 Total at 2010
Italy 742 80 90 170 912
G reece 0 80 130 210 210
P ortugal (A zores) 9 5 10 15 24
France (G uadeloupe) 4 0 5 5 9
total EU 755 165 235 400 1,155
Iceland 50 150 150 300 350
Russia 11 130 80 210 221
T urkey 21 260 200 460 481
total Europe 837 705 665 1,370 2,207
USA 2,848 130 0 130 2,978

M exico 753 100 335 435 1,188
Costa Rica 60 140 640 780 840
El Salvador 118 80 70 150 268
G uatem ala 0 35 50 85 85
N icaragua 70 105 360 465 505
C entral A m erica 248 360 1,120 1,480 1,728
A rgentina 1 10 20 30 31
Bolivia 0 50 50 100 100
Chile 0 50 50 100 100
Ecuador 0 150 295 445 445
South A m erica 1 260 415 675 676
total A m erica 3,850 850 1,870 2,720 6,570
China 32 80 150 230 262

India 0 0 30 30 30
Indonesia 309 990 1,060 2,050 2,359
Japan 300 1,200 1,600 2,800 3,100
Philippines 1,445 455 1,000 1,455 2,900
T hailand 0 2 5 7 7
total Asia 2,086 2,727 3,845 6,572 8,658
A ustralia 1 0 50 50 51
N ew Zealand 286 160 0 160 446
Papua N ew G uinea 0 105 195 300 300
total O ceania 287 265 245 510 797
Ethiopia 7 5 100 105 112

K enya 45 65 290 355 400
M ozam bique 0 8 15 23 23
total A frica 52 78 405 483 535
Total capacity per period 7,112 4,625 7,030 11,655 18,767

A c c u m u l a t e d c a p a c ity 7,112 11,737 18,767
Table 5.3 - Forecast for geothermal electricity generation m arket to 2005 and 2010
56
The estimate o f new capacity that could be installed by 2005 and 2010 has been used as
a basis to calculate the market value in terms o f millions o f ECU. For each market area
an average cost for each K.We installed has been considered according to the optimal
size o f the plant that could be installed in that specific country.
The total value o f the potential market (M illions o f ECU (M ECU)) for geothermal
energy electricity production by 2005 is estimated to be about 7,300 MECU comprised
o f 1,500 MECU for the European market, 1,400 MECU for all the American market and
about 3,850 M ECU for the Asian market, while Oceania and Africa are w orth 250
MECU and 400 MECU, respectively.
By the year 2010 the total world market is estimated to be worth about 11,100 MECU
o f which 1,200 MECU would come from Europe, 2,900 MECU from America and
5,700 MECU from Asia, with a further 350 MECU form Oceania and about 950 MECU
from Africa.
Some Asian countries (i.e. India and Thailand) could offer attractive new markets by
about the year 2010.
5.3 Direct heat uses market

Some estimate o f the market for direct uses are presented country by country, on the
basis o f planned projects reflected in the recent forecasts outlined in the Country Papers
in Annex 1.1.
These data are subject to significant m odifications in the event o f energy policy changes
in the EU and other parts o f the world and the estimates are heterogeneous: certain
countries have indicated the num ber o f projects that they wish to launch, others the total
capacities that could conceivably be installed on their territory.
Estimates o f investment forecasts in the direct uses within the geothermal sector could
only be made for European countries. Reliable data on the size o f potential markets is
difficult to quantify because applications are spread across a num ber o f different
industrial sectors and no associations exist which cover the sector comprehensively.
Other than resource evaluations and feasibility studies specific to geothermal energy, all
the other phases related to production and distribution o f heat make use o f existing
technologies used in other sectors.
The market for direct use only exists when both resource and users are coincident. This
is why geothermal resources are only used where there is a large local energy demand.
It is conceivable that new direct heat markets could be opened up where geothermal
resources exist, for example, horticulture.
Among the economic characteristics o f geothermal energy are the high capital
investments required (at the level o f a private investor) and the long period required to
am ortise the debt.
57
Environment and energy saving aspects are becom ing more and more important in
developed countries, and geothermal energy could contribute largely to this objective.
Present status o f the market
Direct utilisation o f geothermal resources represent more than 31,000 GW h/year.

(1997). The leading countries for installed thermal capacity arc respectively USA
(20%), China (20%), Iceland (15%) and Japan (12%). EU countries represent only the
11% o f the total world thermal capacity installed and energy. Japan is however the
leading country for annual thermal energy use, about the 21% o f the world total.
As for the other continents, (Central and South America, Africa and Oceania) the
developm ent o f direct heat use is m odest and represents a limited part o f the energy
market. As indicated in the country papers in Annex 1.1, low-enthalpy geothermal
energy is presently mostly exploited in developed countries.
European countries
France is the one o f the main heat producer in the European Union. Geothermal district
heating systems are highly developed, notably in the Paris basin region which
represents 10% o f heating energy sold by district heating networks and 4% in France.
Presently geothermal district heating serve more than 170,000 dwellings, but it remain
small % com pared with the total population.
Figures for France highlight the fact that, whilst geothermal energy is not a common
energy source at continental scale, it can have considerable economic, socio-economic
and environmental impacts at a local level. These exam ples also show the importance o f
the support o f governments or local authorities; major geothermal energy development
happened in France during the 1970s, following the two oil crises.
At this time, vigorous governm ent support for new forms o f energy as substitutes for oil
contributed considerably to geothermal developm ent in the Paris area. Inversely, the
development o f geothermal projects stopped in the 1980s with the return to relatively
cheap and available conventional energies. But the situation could move, taking into
consideration the environmental aspects (geothermal contribute significantly to decrease
air pollution in urban areas).
In Germany, there are favourable geological conditions, particularly in the south, in the
area o f the Rhine grabcn and in the north German graben , for thermic utilisation o f the
hydrogeothcrmal potential. The total installable potential capacity in the above regions
with due consideration o f the infrastructural conditions and their development, is about
40,000 M W lh.
The total installed capacity o f 307 MW, include 50 M W t o f the 18 hydrogeothcrmal
plants which are in operation at present in Germany with 39 MWt being contributed by
the geothermal heating plants in the Federal Land o f M ecklenburg-W est Pomerania and
the rem anent 257 MW, come from installed geothermal heat pumps.
58
Italy, main applications o f geothermal energy include greenhouses (geothermal heat

provides 1% o f the total energy consumed) and spas/curative/heating plants in the
Abano district. Here about 5 millions o f m 3 o f buildings (mostly hotels) are heated by
means o f the geothermal waters extracted from about 240 small wells. The total power
equivalent is around 200 MW t. But this figure generally is ignored by the statistics,
because the exploitation is fragmented between more that 100 enterprises.
District heating with geothermal exist in two towns in northern Italy, Ferrara and
Vicenza.
Nevertheless Geothermal energy covers only 1% o f district heating needs and suffers
from competition from traditional energy sources, gas in particular.
Iceland is the largest producer in terms o f installed capacity and energy produced; 85%
o f space heating is provided by geothermal energy. Today it serves about 150,000
people or 99.8% o f the population in Reykjavik and five neighbouring communities.
O ther uses such as greenhouses, industrial processes or bathing and swimming have
also been developed, and represent 20% o f geothermal energy consumption.
About 50% o f the prim ary energy consumption in Iceland is geothermal energy: the
highest ratio in the world. Hydro has also reached advanced stage o f development and
about 94% o f the electricity generation in Iceland originates from it. This country is
therefore in the unique situation that about 67% o f the primary energy national
consumption comes from renewable energy sources. The benefits from geothermal
heating can be expressed as saving o f about 85 MECU annually in imported oil. This is
an annual saving corresponding to 340 ECU pro capita, and has therefore a large
economical influence in the country.
Switzerland is a small user o f low-enthalpy geothermal energy but makes extensive use
o f geothermal heat pumps.
Agenda 2000 and other Eastern European countries
The development o f existing reserves is still small and em ploys older technologies.
There are some installations dating from after 1980 and the recent m ajor upheavals in
terms o f econom ic development and property rights have destabilised existing
operations. The main sectors o f developm ent are district heating, agricultural uses and
balneology.
Africa (Mediterranean area). Tunisia and Algeria currently use geothermal energy for
greenhouses. Turkey uses it essentially for district heating (87% o f the total GW ht
produced) and has an appreciable installed capacity o f 160 MWt.
United States. Although the quantity o f geothermal energy produced is relatively large
in absolute terms, it is very small when compared with total energy consumption. The
geothermal energy breakdown o f usage is as follows: 24% space heating, 12%
greenhouses, 26% aquaculture, 11% industrial, 27% spas.
Asia. Low-to-interm ediate temperature waters are widely used in China and Japan. The
main direct uses are space heating (mainly in northern China), greenhouses near
59
Beijing, fish farming and bathing. In Japan, the main direct uses o f thermal waters are
space heating, greenhouses, fish farming and snow melting. The main operations are
concentrated in Hokkaido and Tohoku where heat demand is strong during winter, and
in Kyushu where resources are abundant. A very large part (about 75%) o f the annual
thermal energy use indicated for 1997 (7,500 GW ht/y) is allocated to bathing facilities.
Oceania. Low-enthalpy geothermal energy is little developed in Australia; New Zealand

exploits mainly high-enthalpy geothermal energy with some industrial uses in cascade,
the residual low-enthalpy w ater being used in balneology and tourist establishments.
Market Perspectives
There is considerable experience and expertise in European Union countries in the

application o f direct use geothermal energy, including engineering, management, and
manufacturing. This ability is a positive factor for geothermal developm ent both in and
outside Europe.
An estimate o f the market for direct heat uses as presented on the basis o f expected
planned projects up year 2005 (marketable resources) in the table 1.1.1 o f Annex 1.1 are
summarized in table 5.4 for the EU countries Iceland, Switzerland and Turkey, and in
table 5.5. for some Agenda 2000 Countries, Russia and other European countries.
In Table 5.4 is estimated the geothermal capacity (heat production including geothermal
heat pumps) that could be installed by the 2000/2005 in the indicated countries. This
represent the minimum growth rate o f the therm al power under the current world
situation, with low price for oil and gas, no support and appropriate incentives in many
countries and excluding the environmental benefits o f geothermal energy over
conventional energy sources.
In the same table the foreseable growth is given also for the period 2005/2010. The
figures have been estimated considering an annual growth rate ranging from 5 to 10%
depending on the local development considerations.
These values are expected to grow if the development o f geothermal heat pumps in
some countries is also considered. Geothermal heat pumps in some countries is also
considered. Geothermal heat pumps use norm al-tcm pcrature earth or groundw ater for
heating during the winter, cooling during the sum m er and supplying hot w ater year
round. Since GIIP systems deliver three to four times more energy than they consume
their growing use will contribute to the decrease o f energy demand.
However, the m ajor issues that could enhance the growth o f the geothermal market are
energy policy decisions focusing on the reducing o f energy demand and hence CO 2
emissions that EU and the rest o f the world must build up and encourage in a near
future.
The above metioned issues, together with the local energy policy development, are
therefore the factors for the growing o f the geothermal market in Europe, the figures
here indicated are only a possible broad scenario foreseable up to year 2010.
60
C ountry Therm al C apacity (M W t)

1997 1998/2005 2006/2010 1998/2010 Total at 2010
A ustria 21 70 70 140 161
Belgium 4 0 2 2 6
D enm ark 3.5 4 2 6 9
Finland 0.1 4 2 6 6
France 309 90 200 290 599
G erm any 307 144 230 374 681
G reece 23 10 10 20 43
Ireland 0.7 0 2 2 3
Italy 314 50 140 190 504
Luxem bourg 0 0 - - -
The N etherlands 0 20 10 30 30
Portugal 0.8 1 1 2 2.8
Spain 0 1 1 2 2
Sweden 47 10 25 35 82
UK 2 10 3 13 15
EU T O TA L 1,032 414 698 1,112 2,144
Iceland 1,443 290 210 500 1,943
Sw itzerland 190 100 50 150 340
T urkey 160 120 560 680 840
T O TA L 2,825 924 1,518 2,442 5,267
Table 5.4 Therm al capacity installed in the EU, Iceland, Switzerland and Turkey
for direct heat use o f geothermal energy and foreseable growth to
2000/2005 and 2010.
European countries
A ccording to the study European Insurance scheme to cover Geological Risk related to
Geothermal Operations, 1997 developm ent o f low-enthalpy geothermal operation for
the next ten years can be broadly separated into three groups:
a high development group concerning countries having good resources and

potential o f operation: Austria, France, Germany, Greece, Italy and Iceland. Each o f
five countries should have from 1 to 4 operations per year, and Iceland has forecast
from 10 to 15 small-scale operations by the year 2002. The market is mainly for
district heating, greenhouses (Greece), spa and balneology (even associated with
space heating).
These countries can easily develop their geothermal potential, with some support.
In Germany, the process o f developm ent o f geotherm al energy is underway. Various
projects com bining space heating, thermal use and sauna applications are ongoing
and three district heating projects are running in the new landers.
In Austria, commercial exploitation o f geothermal energy has not yet really begun.
Only balneological applications are already developed and more are expected.
61
In France, the forecasts for new wells correspond to redrillings, some mixed
therm al/industrial projects and some small operations such as greenhouses and fish
farming.
a very low potential group including countries such as Finland, Ireland, Luxembourg,
Norway and Sweden where there are no major low-enthalpy geothermal reservoirs.
H owever this group o f countries have a good potential for geothermal heat pumps.
A group faced with dilemmas concerning countries with geothermal resources, but
having marginal projects because o f competition from other energy sources
(Belgium, Denmark, the Netherlands, United Kingdom), reluctance by users and/or
Authorities (Spain), or conflicts o f interest with the balneology industry (Portugal).
Incentives are necessary to boost operations in these countries (financial support,
environmental considerations, information,...)
The main investments are concentrated 011 district heating, representing 76% o f total
investment. The balneological sector is also a m ajor end user some EU countries did not
include this use in their production and consumption statistics). Finally, the
developm ent o f geothermal energy for horticultural use appears promising, mainly in
M editerranean countries such as Greece (especially since financial incentives exist for
energy savings in greenhouses).
The analysis o f geothermal energy markets should therefore be developed by sector in

order to assure an approach that corresponds to the energy developm ent plans, since
these are themselves sectorial.
Agenda 2000 and other European countries.
Several Eastern countries have good geothermal resources. Hungary, Poland, Romania,
Slovakia, Slovenia, Bulgaria; have a tradition for the direct use o f geothermal (mostly
for balneology and horticultural) and most o f the towns in these countries have district
heating systems using w ater heated by coal or other fossil fuels. All these countries
represent a large potential market for the future. The main obstacle is the lack o f money
for investments. With specific financial tools EU operators could participate and help to
develop the market.
The Baltic countries have only medium to low geothermal resources. The exploitation
o f reserves located near urban areas is also to be expected in the next years; a num ber o f
preliminary explorations and feasibility studies are in progress.
Macedonia, Georgia and other CIS countries have good resources and have used them
from many years; M acedonia in particular has a long tradition o f using heat for
agricultural applications such as greenhouses. The market could focus on m odernisation
and increasing the geothermal contribution, how ever there is a lack o f financial
available for longer-term investment.
Some parts o f Russia, the Ukraine, Belarus and others have large medium to high
enthalpy geothermal resources but they remain virtually unused. Preliminary
62
exploration and feasibility studies would be necessary. With a dedicated financing

mechanism and organisation the geothermal energy in these countries could be
integrated as part o f their energy supply modernisation.
In most o f these countries the cost price o f geothermal energy is considered to be

attractive, two to four times cheaper than fossil fuel energies which one often imported.
In table 5.5 a possible forecast up to 2005 and 2010 is given for a selection o f Agenda
2000 countries and other European countries mainly based on the information and data
provided by the questionnaires received and also by published data from Authoritative
local sources and Energy Agencies.
C ountry Therm al C apacity (M W t)

1997 1998/2005 2006/2010 1998/2010 T O TA L
A t 2010
Russia 210 500 800 1,300 1,510
Bulgaria 95 448 500 948 1,043
Hungary 750 200 400 600 1,350
Poland 44 150 400 550 594
Rom ania 137 320 600 920 1,057
Slovakia 75 184 450 634 709
Slovenia 37 64 150 214 251
A genda 2000 1,138 1,366 2,500 3,866 5,004
G eorgia 245 300 400 700 945
M acedonia 75 220 350 570 645
Y ugoslavia 80 156 250 406 486
Ukraine 12 238 500 738 750
O ther European countries 412 914 1,500 2,414 2,826
G R A N TO TA L 1,760 2,780 4,800 7,580 9,340
Table 5.5 Geothermal capacity installed and energy production in some Agenda
2000 countries, Russia and other European countries from direct
utilisation o f geothermal energy and foreseablc growth o f to year 2005
and 2010.
Several Mediterranean countries have geothermal potential which could be developed

for agricultural purposes (greenhouses or open field). Turkey has a very high
geothermal potential that is currently being developed. At present it is planned to install
about 680 M W t (120 M W t were under construction in July 1994 and feasibility studies
are completed for an additional 560 M W t capacity) for district heating, air-conditioning
and hot w ater supply.
North America: Canada, despite its good resources, does not appear to envisage any
large-scale development o f geothermal energy. The United States also has very good
resources. The forecasts for the year 2010 indicate a significant reinforcem ent o f space
heating which will represent 48% o f the installed capacity (total forecast o f 3070 MWt).
63
Asia: The reserves are large but, with the exception o f China, the use o f geothermal
energy is generally concentratcd on high-enthalpy resources. The available data from
these countries are insufficient. All we know is that in Japan further developm ent would
com bine direct uses o f thermal waters with small-scale, binary cycle electric power
generation.
Central and South America: Despite large reserves in these regions, little development
is expected. Some investments in district heating and greenhouse projects are possible.
5.4 Geotherm al Heat Pumps market
GHP resources are available in all countries.
The market for geothermal heat pumps (GHP) covers a large market spectrum from
individual house owners ( few kilowatts ) to large public building complexes. This
m arket sector is less influenced by political factors. The market is therefore
characterised by a large num ber o f potential investors and by a rapid decision-making
process and low costs investments.
Since the double function o f geothermal heat pumps (heating and air-conditioning)
corresponds well to modern com fort demands, numerous promotional groups arc
appearing (in Switzerland, the Netherlands, France and the United States) and strong
developm ent in the heat pump market is expected in next future. GHP arc presently in
operation in all EU countries.
Present status o f the market
The GHP market is quite different. The United States makes extensive use o f heat
pumps (1,444 MWt installed) for heating and air conditioning, while in Europe the
m arket is growing rapidly in different countries.
In Europe, the market for geothermal heat pumps has developed mostly in areas such as
Switzerland, Germany and Austria. In Sweden 3,000 GHP were installed in 1995. This
market mainly concerns space heating and with 12% o f installations in the residential
sector.
It is particularly important in Switzerland where GHP are promoted by a Promotional

Grouping that works on techniques, marketing, labels, training and m onitoring o f
installations. The result today is that Switzerland has the most active geothermal heat
pump market in Europe. In 1995 more than 4,000 GHP (ground w ater or ground
sources) were installed mainly in new housing.
In USA there is a long tradition for the use o f geothermal heat pumps and the m arket is
highly developed. Air-conditioning needs generate sales o f 20,000 geothermal heat
pumps annually (compared with 2 million gas boilers), and the market share has been
increasing since 1980.
In Japan the geothermal heat pum p market is highly developed owing to the climatic
conditions.
64
Market perspectives
Geothermal Heat Pumps can be developed in all the countries (taking in consideration
the resources). Presently the m arket offers a great potential (on going market) mainly in
EU countries and North America.
In several EU countries, the geothermal heat pump market is booming. In the

Netherlands, the National Energy Agency, electricity producers and distributors,
builders and designers are working together, following the example o f Switzerland and
Sweden to promote the use o f GHP. In fact in these two countries are respectively
planned by the year 2000 about 40,000 GHP and more than 3,000 GHP per year for the
next years. For both countries the positive environmental impact and energy saving
aspect o f the GHP are the reason for the buoyant market.
The main motivation o f the Swiss home owners is that the units (borehole heat
exchange + heat pump) provide CO 2 free heating and that there is no risk o f
groundw ater contamination as with oil boilers7tanks and transportation risks and cost
fluctuations as with oil gas solutions. Furthermore, the local electrical utilities provided
electricity rebates for environm entally favourable options, and there is a
governem cnt/local subsidy (up tp 4,400 ECU) when replacing and old oil furnace by a
GHP unit. The environm entally favourable GHP solution is only slightly more
expensive. (180-260 ECU/year, including annuity) than a conventional (oil based)
system at present oil prices.
France, Germany are also potential markets, United Kingdom, Austria could develop
GHP in a near future. A potential market are also the South European countries where
air conditioning is needed : Italy, Spain and Portugal.
GHP are also developed in other EU countries (at a smaller scale). To boos the market a
better organisation o f the main operators is needed such the N etherlands and the USA.
Promotion and developm ent programm e could be planned at European level following
the exam ple seen.
In the USA an ambitious promotion and developm ent programm e for geothermal heat
pumps was started in 1995. The Geothermal Heat Pump Consortium , which includes the
Department o f Energy, the American Environmental Agency, m ajor electricity
producers and other energy professionals, has taken up the challenge o f increasing
pump sales from the present figure o f 20,000 units annually to 400,000 by the year
2000. To achieve this target, financial assistance schemes have been created, the costs
o f wells and installations have been subsequently reduced by the use o f new
technologies. The sector has been reinforced by a major com munication and
dem onstration campaign.
The prim ary markets for GHPs include new homes and buildings (apartments, schools,
commercial buildings,..) with both heating and cooling needs.
For exhisting buildings GHP could replace with high efficiency heating / cooling and
domestic hot w ater electric systems, mainly in EU countries and North America.
65
BLUE BOOK ON
C hapter 6: A ctions in favour o f the G eotherm al Sector
Chapter 6
ACTIONS IN FAVOUR OF THE GEOTHERM AL SECTOR
6.1 Introduction
The investigation and analysis o f Geothermal energy carried out in the Blue Book, has
reviewed the status o f technical development and the availability o f geothermal
resources as well as the advantages and benefits that make geothermal energy
competitive, environmentally beneficial, reliable and safe compared to most other
energy sources.
Geothermal energy has been produced commercially on the scale o f hundreds o f MW

o f the world.
A key aim o f the Blue Book is to highlight what measures can be considered most
effective to significantly increase the exploitation o f this environmentally benign energy
source, including its export potential, and its contribution to the overall reduction in the
C 0 2 emissions in Europe. Most emphasis is placed on the EU and associated countries
as well as countries that are likely to become associated with the EU in the near future
(Agenda 2000 countries).
The exploitation o f geothermal energy, especially for direct heat uses, is at a relatively
more advanced stage in European countries than in other parts o f the world and offers a
wide range o f potential applications, both in terms o f use and size o f operation.
Large scale development o f geothermal energy had already started in the 1930's in Italy
for electricity production and in Iceland for district heating. There is now some direct
utilisation o f geothermal energy in more than 30 countries in Europe, and electricity is
produced commercially in France (Guadeloupe), Iceland, Italy, Portugal (Azores),
Russia and Turkey, and experimentally in Austria, Greece and Romania. Europe has
been the pioneer in geothermics, and European operators, with sound experience and
expertise, should maintain a leading role or at least strengthen their presence within
Europe and world-wide.
Geothermal energy is in general commercially competitive with fossil fuels, hydro and
nuclear and contributes to the protection o f the environment. It should be strongly
considered as one o f the primary protagonist technologies in the EU s strategy to
promote renewable energy.
66
Furthermore, the Blue Book identifies measures to increase the presence o f European
operators in the world market for geothermal energy. This global market is rapidly
expanding (Chapter 5), however, European operators have lagged behind. This is at
least partly due to essential aspects such as: the aggressive policy o f the non-European
industry which now provides a wide range o f geothermal products and services and a
weak industrial/political lobby in favour o f geothermal in the national bodies.
The European Community could, however, play an active role to improve the presence
and competitiveness o f the European industry in all geothermal market sectors around
the world, both for electricity production and direct uses.
6.2 Constraints to the geothermal resources and market
To support the development o f geothermal resources in Europe and the presence o f

geothermal European operators, clear ideas are needed to tackle the main constraints
that at present ham per the sector. A series o f potential initiatives are outlined below.
A) Approach to the market
Important changes have occurred in recent years in electricity generation markets and
the electricity utility companies. There has been a world-wide tendency to adopt a free
market, with a shift to privatisation and liberalisation o f energy markets. This change
has affected many geothermal electrical power stations both in developing countries and
industrialised countries. In fact about 50% o f the electrical generation capacity in the
world is now in private ownership. The role o f the public sector is controlled through
national utilities and governmental agencies, which in the past constituted both the
promoter and developer o f most geothermal projects. Public sector involvement has
substantially decreased and the trend appears to have continued.
Private operators approach geothermal projects as a normal business venture in which

the investment (and the risk) is strictly conditioned by the profit, the pay back time, and
the internal rate o f return from a project. The main incentives which attract private
operators are suitable financial conditions and geothermal schemes which perform to
productivity targets.
It is important to note that international financing institutions such as the World Bank,
IFC, EBRD, ADB etc. strongly favour the direct presence and involvement o f private
sector operators in energy projects. Private companies and consortia (including
financiers and technical operational partners) invest their own money in geothermal
concessions and are successfully operating in many o f the most attractive geothermal
fields and in the most promising new geothermal areas.
Private operators (mainly from the USA) are gradually dominating the SE Asian
markets for electricity production from geothermal energy and their presence appears to
be overwhelming European competitors.
67
The Latin American market still seems partially open to penetration from European
operators, which is generally positively received by local authorities.
Efforts should be made in this direction because non-European operators are presently
moving to consolidate their presence in the Central and South American markets.
In Annex 5.4 some short to medium term opportunities are illustrated in this latter
market.
Japanese operators are also applying the same approach together with other important
economic inducements such as:
systematic agreements and collaboration among national firms facing external
competition in international tenders
strong governmental support for credits as exemplified by the Overseas Economic
Co-operation Fund (OECF)
commercial support from national agencies and institutions.
These actors represent serious competition for the European geothermal operators. The
European operators (manufacturers, engineering companies, utilities, etc.) have not
been able to meet the strategic and financial risks that have been progressively imposed
on the geothermal world market for electricity production.
As a consequence they risk being push progressively to the fringe o f the geothermal
world market for electricity production and related businesses, or remaining present
only as subcontractors o f services and components (with exasperate price competition).
The leadership and management as well as most o f the profits from projects will
consequently remain in other hands.
The market for direct uses o f geothermal energy is extensive in European countries
where there are large resources to be exploited and a long tradition o f using geothermal
heat use. Opportunities both to extend this usage and to develop the related businesses
exist, especially in Eastern European countries and in China, where large centralised
district heating systems already exist which mainly use conventional fuels.
B) M ining risk
The concept and the economic assessment o f mining risk has been fully discussed in
Chapter 4 and Annex 4.1.
The European Commission has already paid attention to this issue, and a special study
on the feasibility o f an insurance system to solve the problem was produced in 1997.1
The sound and deep analysis performed in this study is exhaustive. Such a scheme
would enable easier access to both national and international financing for geothermal
projects. The establishment o f such an insurance system could be an effective measure
to push and expand the geothermal market in Europe and to improve the exploitation o f
this renewable resource. This system could also be used as an example for similar
initiatives in other parts o f the world.
1 Report on Insurance schem e to cover G eological Risk related to G eotherm al O perations - Final report -
1977
68
C) Economic constraints
The overall competitiveness o f geothermal energy is also determined by the comparison

with other conventional and renewable energy sources. The cost o f the alternatives has
been based upon standard economic and financial analyses with geothermal projects.
The main international financing agencies are currently applying a least-cost analysis as
part o f their procedure to grant loans for projects.
It should be stressed that at present in Europe, the low cost o f fossil fuels, especially
natural gas, make only the best geothermal resources competitive from a strict financial
viewpoint. Nevertheless, geothermal energy could become much more competitive
from an economical standpoint if the following criteria were considered:
renewable (especially the low enthalpy resources)

clean
indigenous
highly reliable
Each one o f these factors results in a shadow price that may substantially, and
positively, affect the economical evaluation o f geothermal energy. This aspect has been
based on a specific study2 the argument for which has been presented in paragraph 4.5.
The external cost o f traditional fuels has been estimated to be almost 10 times higher
than the comparable cost o f renewable energy sources and almost 50% o f the overall
economic cost (against 1% o f the renewable sources case). Geothermal energy was
unfortunately left out o f this study and can not consequently be compared directly with
other renewables and conventional fossil fuels. If, however, the external costs o f
geothermal energy were included they would be o f the same order as other clean
energy sources. Moreover, if external costs where included as part o f an economic
comparison between geothermal energy and conventional alternatives, geothermal
energy would be regarded far more competitively favourable.
The characteristics o f this energy source not only positively affect its economic value,
but also fit the EU strategic targets in terms o f environmental and energy supply policy.
D) Constraints from lack o f information/confidence
Geothermal energy could be more widely developed, but often there is a lack o f
awareness particularly amongst small utilities who are unfamiliar with the technology.
This lack o f information has multiple effects on the development o f geothermal energy:
the economic value o f this energy is underestimated and misunderstood;

the potential o f existing resources is often unknown and not evaluated by local
Authorities or appreciated by decision makers;
planners and decision makers at local levels do not integrate this energy source into
their development plans even when the resource is available and known about;
2 Environmental costs o f electricity. Pace University centre for Environmental Legal Studies, Oceana
Publications, N.Y., 1990; and CESEN estimates.
69
projects submitted to Financing Agencies often lack sufficiently detailed information

which makes it difficult to raise funds for project implementation;
Moreover, as geothermal energy is a non-tradable product it has to be developed at a

local level. Apart from large high enthalpy fields, where institutional and traditional
investors j deal directly with large operators, the exploitation o f other resources,
especially for district heating or heat supply, strongly depends on the involvement o f
local authorities. Other smaller scale projects and the GHP sector tends to involve
individuals or small investors.
Local decision makers and individual investors are not, generally, geothermal
specialists. ,/ A suitable and sound information support system is therefore an essential
tool to promote the development o f geothermal energy in the EU.
Extreme variability in production costs in different sites can also present a misleading
picture to planners. A sound methodology based on the assessment and evaluation o f
the real cos/t o f low enthalpy geothermal energy is crucial to support decision makers
and therefore the spread o f the technology.
In Europe there are National Geothermal Associations in ten countries and eight o f
these are affiliated with the International Geothermal Association (IGA). The European
Branch o f the IGA was established in 1992 as a scientific, educational, non-political and
non-profit m aking organisation. These associations could play a very important role in
technical co-operation between countries, the transfer o f technology, and in maintaining
a database for geothermal potential and development in individual countries. They
could act collectively through the European Branch o f IGA to conduct information
campaigns, promote geothermal energy, assemble national data and identified
promising geothermal projects in different countries. The European Branch o f IGA
would vpt, however, deal directly with industrial and commercial projects or the
marketing o f geothermal business.
Both in Japan and the USA other more commercially oriented geothermal energy
associations have been established to consolidate and strengthen the market position o f
their /geotherm al manufacturers, consulting agencies, drilling contractors, logging
companies ai|id geothermal developers. These associations operate for the promotion o f
the rhember eompanies both on the home front and internationally.
// I /
A European Geothermal Energy Council (EGEC) operating within Europe and abroad,
in a similar way to the Geothermal Energy Association in the USA, has been
established with a key objective to strengthen the international market position o f
European geothermal manufacturers and service companies. The EGEC could offer
/incentives 'to European consortia amongst energy operators who want to invest in
geothermal projects in Europe and abroad, and assist European companies in
competition,with existing Japanese and US consortia
70
Given their different roles, the European Branch o f the IGA and the EGEC could serve
as the principal EU contacts for EU geothermal data and statistical references, provide
sound information for decision makers, organise promotional activities at different
venues, provide contacts with other renewable technology associations and other
European industrial associations.
6.3 Recommended actions
The former chapters have shown the complexity o f the geothermal scene. Before
defining further actions, it is advisable to outline different areas in which EU
involvment could be carried out.
The EU action plan should have two goals:
to increase the exploitation o f geothermal energy in the EU and associated countries;

to support European firms within the sector to increase their share o f the world
market
M oreover, future actions for the EU have to be established according to geographical

and political criteria which cover:
a) EU countries
b) EU associated countries
c) Countries benefiting from specific EU aid programmes
d) Other regions
Support for the spread o f exploitation and use o f geothermal energy will be directed
mainly within the EU and associated countries, while support to EU operators will be
directed at all other countries.
The recent White Paper Energy for the Future: Renewable Sources o f Energy
describes the EU strategy and objectives, but suggests that each M ember State should
decide its own strategy according to its own potential and resources.
This implies that an effective action plan will be outlined and decided at Member State
level. The EU would be responsible for the guidelines and pressing M ember States and
Local Authorities to drive the implementation o f new geothermal initiatives and in some
cases to implement direct actions in favour o f them, aiming at the followings
1. To stimulate the creation o f European consortia and joint ventures among different
subjects (engineering firm s equipment manufacturers, electric power companies,
financing agencies) interested in investing in geothermal projects in Europe and
abroad to cope with the competition from non European companies. This could be
achieved by giving priority to programmes and projects including co-financing o f
European industrial partners fo r preliminary identification studies, prefeasibility
studies (o f the advance type, reimbursable during execution o f the work) and plant
implementation.
71
This action could be focused specifically at Latin American and Chinese markets
which currently appear the most open and fr e e to EU operators.
2. To favour National Geothermal Associations, and the European Branch o f IGA, in

their non-profit making activities for the promotion, information, dissemination and
transfer o f experience and contacts within the world geothermal community. These
organisations, together with the EGEC, should become the principal EU contact for
geothermal energy matters such as the EU geothermal programmes and statistics
reference, information fo r decision makers, awareness communication, promotion,
contacts with other renewable sources association and other European industrial
association, etc.
3. To support the newly created EGEC (European Geothermal Energy Council) among
the European geothermal manufacturers and service companies which operate
within Europe and abroad in a similar way to the Geothermal Energy Association in
the USA. The EGEC would strengthen European consortia among energy operators
wanting to invest in geothermal projects in Europe and abroad, and assist European
companies in competition with existing Japanese and US consortia.
4. The maintenance and improvement o f the E U s existing research and financing

programmes, from DGI, DGXII, DGXIII, DGXVI and DGXVII dedicated to energy
projects including Alure, Phare, Tacis, Joule, Inco-Copernicus, Structural Funds,
Altener, Synergy and Thermie. These programmes have in the past positively
influenced research, testing and promotion o f new geothermal applications in recent
years as the knowledge o f geothermal problems and opportunities has grown.
5. To promote the environmental benefits o f geothermal energy through favourable

financing condition such as:
tax exemptions or reductions for RE products;

tax incentives to be addressed to geothermal projects financing
financial incentives fo r end-users to buy equipment and services
loans and special interest rates devoted to investments in RE resources in general.
6. Geothermal energy should be included in specific "target projects" and

demonstration projects such as the European Green Cities, which is supported by the
EU Thermie programme, both as an environmental friendly resource and as an
indigenous energy supply for saving imported fossil fuels. Examples o f special
target projects could be:
partial or total replacement o f fossil fuels by geothermal energy fo r the

generation o f electricity in the Azores, the Greek islands, as well as Ita ly s small
islands and the Canaries which would provide environmental and economic
benefits to these communities. Both technical assistance and public relations
activities are needed to promote geothermal electricity production in these areas
72
Chapter 6: A ctions in favour o f the G eotherm al Sector
(see Campaign fo r take-off, paragraph 3.2.4 o f integration o f RE in 100

Communities 3);
technical and financial support fo r demonstration projects in the use o f medium

temperature geothermal water fo r electricity production using binary fluids.
7. To establish an insurance system fo r EU countries in order to cover the geological

risk which is an effective measure to stimulate and re-launch the geothermal
European market and improve the exploitation o f this renewable resource. This
system could also be demonstrated within the EU and used as an example fo r
analogous initiatives in other areas/countries o f the world.
8. Implement proper actions devoted to the systematic integration o f geothermal energy

into existing and new EU and national RE development programmes. This action
should move in two directions:
integration o f geothermal energy in national and regional New and Renewable

Energy development programmes since in some EU countries geothermal energy
is not included and in some cases is not even considered as a renewable form o f
energy.
integration o f geothermal energy use in the development o f new district heating

systems and the rehabilitation o f existing networks within EU countries and
especially in countries which could become associated in the near future. This
integration could start fo r rehabilitation and modernisation projects o f large
diffused district heating systems in different European countries (Agenda 2000,
Russia and other European countries) financed by E U programmes (TACIS,
PHARE etc.) or international financing institutions (WB, EBRD etc.). The
integration o f geothermal energy could become a compulsory condition, when
applications are made fo r investment funds.
Special attention should be paid to the possibilities offered by the rapid expansion o f
direct use applications fo r geothermal energy in Central and Eastern European
countries and CIS countries, where unexploited but plentiful geothermal resources
have been identified. There is a long tradition o f using geothermal energy fo r direct
applications (mostly fo r balneology and greenhouses) in many o f these countries,
and most o f the towns have district heating systems using water heated by
hydrocarbons.
With education as well as financial and technical support, a significant reduction

could be made in carbon dioxide emissions through replacement o f coal and other
hydrocarbons partly or totally with geothermal and other non-polluting energy>
resources. There is wide scope fo r the integration o f indigenous energy sources in
the space heating market in these countries.
Energy for the future: Renewable Sources o f Energy - White Paper for a Community Strategy and
Action Plan - 1997.
73
9. Promote directives in order to acknowledge RE investments (including geothermal)

with an extra price or a contribution fo r the KW hJKW hf produced which
corresponds to the external benefit derived from the substitution o f conventional
energy sources. The relative funds could be achieved by a tax (green tax) charged
on the KW hJKW h( produced through conventional sources. (Considering the
present prevailing contribution from the latter the extra charge at the same should
be ngligeable in absolute terms).
10. Increase the use o f information brochures and actions o f the M ulti-energy" type,
with the objective o f increasing the level o f information and confidence o f using
geothermal energy by decision-makers, private and public operators, town
planners, designers, even within EU programmes. The establishment o f a proper
methodology fo r a cost evaluation o f low enthalpy geothermal projects, possibly
supported by software, would be a useful tool. Moreover, there is a great need fo r
demonstration projects in individual countries to convince the public and decision
makers o f the viability o f geothermal energy, both alone, and in integrated
solutions with other locally available energy sources such as waste burning and
biomass.
11. Promote a detailed study fo r the evaluation, in quantitative terms o f the external
benefits from substitution by geothermal applications. This evaluation should be
based on statistical data from specific applications (electricity generation and
direct uses) in EU countries and contrasted with comparable conventional options.
12. Considering the good development perspectives o f this application, special

attention could be devoted to the promotion and support for the GHP market via
the followings steps:
decrease the cost fo r ground loop installation (standardised technologies with

drilling companies, better access fo r the public to the drilling company
information, etc.);
provide low interest loans for GHP installation;
provide better information fo r the public (full and easy access to information
related to GHP technologies) and better co-ordination between active operators
(drillings, companies, main features, engineering, etc.). A specific programme
should be implemented, or the EGEC (European Geothermal Energy Council)
could establish and manage a publicity campaign (similar to what has already
been achieved in Switzerland and the USA), which is aimed at domestic users
communities and even individual countries.
The generaI public and decision makers should be informed o f the fa c t that
geothermal resources exist in every country and that these can be used to substitute
en vironmentally degrading fossil fuels for every day activities such as the heating
and cooling o f buildings.
74
Main References
MAIN REFERENCES
THE EUROPEAN RENEW ABLE ENERGY STUDY - Prospects for renewable energy
in the European Comm unity and eastern Europe up to 2010 - EC-DGXVI 1-Energy-
Main Report- 1994
PROCEEDINGS OF THE W ORLD G EOTHERM AL CONGRESS, IGA - Florence,

Italy, 18-31 May 1995
TERES II - The Prospects for Renewable Energy in 30 European Countries from 1995-
2020 ESD - /D G XV II - Energy - 1995
THE A LTEN ER PROGRAM M E: Renewable Energy entering the 21st Century:

Proceedings - EC-DGXVII - SITGES, Barcelona 25-27 N ovem ber 1996 Spain
REN EW A BLE EN ERG Y - Sources in the internal European m arket - EC - Milan

Conference - June 1996
1993-94 - Energy Balances o f OECD countries IEA/Paris 1996
1993-94 - Energy Balances o f NON OECD countries IEA/Paris 1996
1994-95 - Energy Balances o f OECD countries IEA/Paris 1997
ENERGY IN EUROPE- European Energy to 2020 - A scenario Approach - EG

DGXVII - Energy/Special Issue- Spring 1996
ENERGY FOR THE FUTURE: RENEW ABLE SOURCES OF ENERGY - Green

Paper for a Comm unity Strategy - Office for Official Publications o f EC - 1996
PROCEEDINGS OF NEDO INTERNATIONAL G EOTHERM AL SYM POSIUM

NEDO - Sendai (Japan) 11-12 M arch 1996
1994-95 - Energy Balances o f NON OECD countries IEA/Paris 1997
EUROPEAN INSURANCE SCHEM E TO COVER GEOLOGICAL RISK RELATED

TO GEOTHERM AL OPERATIONS - EC/DGXVII Energy - Final Report - June 1997
75
M ain R eferences
ENERGY FOR THE FUTURE: RENEW ABLE SOURCES OF ENERGY - White

Paper for a Comm unity Strategy and action Plan - Office for Official Publications o f
EC - 1997
GEOTHERM AL POW ER IN ASIA 97 - National Power Strategies: Carving a niche

for geothermal- IBC ASIA Lim ited - 25-26 February 1997 - Bali (Indonesia).
76
A bbreviations, D efinitions and U nits
ABBREVIATIO NS, DEFINITIONS AND UNITS
Availability Time share o f a pow er plant when it is ready and available

to operate.
BLT (Built, Lease and Transfer) is an alternative type o f BOT

(see below), but the running period phase is not m anaged by
the prom oter o f the project but by the beneficiary local
com pany to which the property o f the new plant will be
transferred after the full investment cost has been recovered.
BOO (Build, Own and Operate) is a version o f project financing

w here the plant is not transferred after the operating period
normally used to repay the capital investment but remains
the property o f the JVC (see below) established in the
beneficiary country, as a local company.
BOOT (Build Own, Operate and Transfer) is a version o f project

financing which starts in a similar fashion to a BOO scheme
but after a given period o f tim e the property is re-transferred
to the com m issioner (host government, or other public
authority, state owned enterprise).
BOT (Build, Operate and Transfer) is a form o f concession

usually involving totally new projects. Typically in a BOT,
a private party (or consortium, nam ely the JVC Joint
venture com pany) agrees to finance for a specified period
and then transfer the facility to the commissioner.
Capacity factor Characteristic o f any generating installation which is a

m easure o f its intended capability to supply electrical power
or heat. This is norm ally expressed as a percentage
calculated by dividing the actual operating time over one
year by the theoretical output for that plant as if it were
operating continuously for one year.
Coefficient o f The ratio o f the energy output to operating energy input,

perform ance (COP) The basic m easure o f the efficiency o f a heat pump.
77
A bbreviations, D efinitions and Units
Exploitation The useful application o f geothermal resources obtained by

extraction o f geothermal energy from the subsurface by any
technology, such as boreholes, borehole pumps, flashing
etc.
Exploration The search for geothermal energy in a broad sense covering

several (tens of) square kilometres. It includes both
generalised and concentrated prospecting for target
reservoirs.
External cost or The cost o f generating electricity which is not normally

externalities included in the cash cost . The external cost accounts for
dam age caused by pollution, dam age to health, protection o f
oil supply routes etc.
Installed capacity The installed geothermal capacity in m egawatts for

(M W e, MW t) electricity (M W e) or direct use, heat (MWf). Installed
capacity for electricity generation is usually specified in
terms o f the plate-rated capacity o f the turbo-generators in a
system rather than the more correct definition o f the amount
o f electricity which can be generated from the available
geothermal fluid. The installed capacity for direct use,
however, is determined both by production from the well
and by the temperature difference between inlet and outlet
for each system, and hence depends on the particular
application.
JOC (Joint Operating Contracts) to be addressed to the different

operators o f the financing projects.
Kilowatt (kW) A m easure o f power.
Kilowatt hour (kW h) The energy consumed by using 1 kW for one hour
Load factor The ratio o f the average electricity/heat load over the year
to the maximum demand or peak electricity/heat load o f the
year.
M egawatt (MW ) 1000 kilowatt
M egawatt hour The energy consumed by using 1 MW for one hour
Pay-back time The time between the beginning o f production and the
moment when the cumulated cash flow becomes positive.
78
A bbreviations, D efinitions and U nits
Plant factor Average yearly percentage o f time plant generates at rated

power, during the whole economic lifetime.
Probable and Possible Geothermal resources evaluated through surface surveys

resources only (geochemistry, geophysics, etc.) or through simple
reconnaissance studies such as geological evidence.
Proven resources Geotherm al resources evaluated through surface surveys

and wells, both exploratory or developm ent wells, and
feasibility studies.
Tem perature gradient The rate o f increase in temperature T, with depth z, usually
expressed in degree Celsius per metre (C/m). For a given
system o f co-ordinates the symbol is grad (T). In practice,
only the vertical com ponent is considered: T= gradzT =
dT/dz and, if the tem perature gradient is constant , T= A
T/Az = (T 2-Ti)/(z 2 ~z]). The tem perature gradient is a
function o f depth (z). It is therefore necessary to refer
always to the considered depth interval, otherwise
extrapolation could lead to incorrect values. Sometimes it is
also called geothermal gradient or thermal gradient.
tonne o f oil equivalent 1toe = 41,868 GJ or 1toe= 107 Kcal
79
BLUE BOOK ON
Annexes
CESEN
BRGM
ETSU
GTN
ORKUSTOFNUN
_______
A nnex 1.1
Annex 1.1
GEO THERM AL RESOURCES: COUNTRY PAPERS
81
A nnex 1.1
Introduction
An initial selection has been made from all the w orlds countries w here geothermal
resources are known to exist was made, and as a result, about 104 countries have been
investigated. The countries investigated are grouped according to geographical and
organisational areas and ordered alphabetically.
The study has incorporated information from bibliographical data collection, mailing o f
specific questionnaires with local and international institutional and non-institutional
entities, and interviews to local and international experts in the field; this knowledge has
been used to update the status o f the geothermal potential for each country and the level
o f geothermal exploration and exploitation.
As a consequence, a second selection o f the countries has been made in accordance with
the aim o f the present study.
Many countries have been excluded because o f the following criteria:
countries with negligible geothermal potential for either electricity generation and
direct uses
countries with limited available data on geotherm al investigation
countries with a proven geothermal potential but with little or no realistic prospects
o f developm ent activity within the time period under consideration in this study (up
to 2010)
The 104 countries where geothermal resources are known to exist and considered in the
Blue Book are listed in Table 1.1.1 and shown in Figure 1. Some countries (30) marked
with a star (*), are those which have a high proven geothermal potential and/or have a
high probability o f im plem enting geothermal projects for electricity generation within
2010 (see also Annex 5.5).
In this appendix the available data on nature, size o f the geothermal resources for each
country investigated by the study and on present geothermal plants and activity are
summarized in individual Country Papers. Some general data on economics and
total electricity production are given where available
Figures o f installed capacity and energy produced for plants in operation, as indicated in
the received questionnaires, referred mainly to 1995 as a reference year for the above
electricity generation scenarios. For most o f countries, in particular EU countries and
m ajor geothermal countries, data on installed capacity and energy produced have been
updated to 1997 and presented in Table 1.1.2 and Table 1.1.3. as also in Chapter 1.
The label M arketable resources includes geothermal resources evaluated from wells
or even exploratory and feasibility studies (proven resources). It also includes resources
that will be exploited in plants and facilities under construction or planned.
82
A nnex 1.1
E U R O P E A N C O U N T R IE S N O N - E U R O P E A N C O U N T R IE S
E U m em b er co u n tries A sia
1 A u stria 1 B urm a
2 B elg iu m 2 C hina*
3 D en m ark 3 India*
4 F in lan d 4 Indonesia*
5 France* 5 Iran
6 G erm any* 6 Israel
7 G reece* 7 Japan*
8 Irelan d 8 Jordan
9 Italy* 9 L aos
10 L u x em b o u rg 10 L ebanon
11 N eth erlan d s 11 N epal
12 Portugal* 12 K azak h stan
13 Spain 13 K orea, N o rth & S outh
14 S w eden 14 K yrg y zstan
15 U n ited K in g d o m 15 P akistan
16 P hilippines*
EEA 17 Sri Lanka
16 Iceland* 18 T aiw an
17 L iech ten stein 19 T hailand*
18 N o rw ay 20 T u rk m e n ista n
21 U zb ek istan
A g en d a 2 0 0 0 co u n tries 22 V ietnam
19 B ulgaria
20 C zech R ep. A frica
21 E sto n ia 23 A lg eria
22 H u n g ary 24 B urundi
23 L atvia 25 D jibouti
24 L ith u an ia 26 E gy p t
25 P o lan d 27 E ritrea
26 R o m an ia 28 E thiopia*
27 S lo v ak ia 29 K enya*
28 S lo v en ia 30 M ad a g a sc a r
29 C yprus 31 M alaw i
32 M o ro cco
30 R ussia* 33 M ozam bique*
34 R w anda
31 S w itzerlan d 35 T a nzania
36 T u n isia
32 T urkey* 37 U ganda
38 Z am b ia
O th er E u ro p ea n co u n tries 39 Z im b ab w e
33 A lb an ia
34 A rm en ia N orth A m erica
35 A zerb aijan 40 C anada
36 B elarus 41 M exico*
37 B o sn ia & H ereg o v in a 42 U SA *
38 C ro atia
39 G eo rg ia C en tra l-S o u th A m erica
40 M aced o n ia, F Y R 43 A rgentina*
41 M o ld o v a 44 B olivia*
42 U kraine 45 B razil
43 Y u g o slav ia , FR 46 C hile*
47 C o lo m b ia
48 C osta R ica*
49 E cuador*
50 El Salvador*
51 G uatem ala*
52 H onduras
53 N icaragua*
54 Panam a
55 Peru
56 V enezuela
O cean ia
57 A ustralia*
58 Fiji
59 N e w Z ealand*
60 P apua N e w G uinea*
61 O th e r P acific islands
Table .1.1- List of the geothermal countries assessed by the Blue book.
83
A nnex 1.1
E lectricity generation D irect utilisation

Plant in operation M arketable Plant in operation M arketable
1997 resources 1997 resources
(M W e) (G W h/y) (ktoe) (M W e) (M W t) (GW h/y) (ktoe) (M W t)
A ustria - - - - 21 84 5 140
Belgium - - - 4 19 1.6 n.a.
D enm ark - - - - 3.5 15 1.3 4
Finland - - - 0.1. 0.5 - n.a.
France* 4.2 24 2 8 309 1,359 117 90
G erm any - - - 307 806 69 144
G reece - - - 210 23 37 3.2 10
Ireland - - - - 0.7 1 0.1 n.a.
Italy 742 3,762 324 228 314 1,026 88 50
Luxem bourg - - - - - - -
N etherlands - - - - n.a. - - 20
Portugal** 8 46 4 n.a. 0.8 5 0.5 n.a.
Spain - - - - - n.a.
Sw eden - - - - 47 351 30 10
UK - - - - 2 15 1.3 10
EU m em ber countries 754 3,832 330 1,032 3,719 317 478
Iceland 80 375 32 120 1,443 5,878 506
Russia 11 25 2 210 210 673 58 n.a.
Switzerland - - 190 265 36 100
Turkey 21 71 6 358 160 800 69 2,264
Bulgaria - - 95 346 30 448
C zech Rep. - - - 2 15 1.3 n.a.
Estonia - - - 0 0 - 0
H ungary - - - - 750 3,286 283 200
Latvia - - - - n.a. - - 16
Lithuania - - - - n.a. - - 70
Poland - - - 44 144 12 n.a.
R om ania - - 1 137 528 45 320
Slovakia - - - - 75 375 32 184
Slovenia - - - 1 37 217 17 64
Cyprus - - - - n.a. - - n.a.
A genda 2000 countries - - - 2 1,140 4,911 432 1,302
A rm enia - - - - n.a. - - 16
B osnia & Heregovina - - - - - 33
C roatia - - - 11 50 4.3 815
G eorgia - - - - 245 1,000 86 n.a.
M acedonia - - - - 75 151 13 220
U kraine - - - 12 60 5.2 238
Y ugoslavia, FR - - - 86 670 58 156
Other European countries - - - - 429 1,931 213 1,478
Non EU countries 112 471 40 690 3,572 14,458 1,314 5,144
Grand total Europe 866 4,303 370 1,136 4,604 18,177 1,631 5,622
* Guadeloupe (for electricity generation) ** Azores

Table 1.1.2 - G eotherm al utilisation for electricity generation and direct use in Europe.'
() * M arketable resources: includes resources that w ill be exploited in plants and facilities under
construction and resources evaluated through feasibility studies (proven resources)
1 G W h = 860x106 kcal - 1 toe = 107 kcal
84
A nnex 1.1
E le c tr ic ity g e n e r a tio n D ir e ct u tilisa tio n
P la n t in o p e r a tio n M a r k e ta b le P la n t in o p e r a tio n M a r k e ta b le
1997 r e so u rc e s 1997 r e so u rc e s
(M W e) (G W h/y) (ktoe) (M W e) (M W t) (G W h/y) (ktoe) (M W t)
C hina 32 175 15 n.a. 1,914 4,717 406 n.a.
India - - - 21 - - -
Indonesia 589 4,385 377 1,769 - - -
Israel - - - - 42 332 29 n.a.
Japan 530 3,530 304 2,870 1,159 7,500 645 672
Korea, N & S - - - - - - -
Philippines 1,445 8,000 688 1,455 - - -
Thailand 0,3 2 0.2 5 2 8 0.7 n.a.

Vietnam - - - 0,3 - - -
A sia 2,596 16.090 1,384 6,120 3,117 12,557 1,080 672
A lgeria - - - - 1 5 0.4 640
Ethiopia 0 - - 23 - - -
K enya 45 390 34 514 - - 0
Mozambique - - - 25 n.a. - n.a.

Tunisia - - - - 70 350 30 n.a.
Zambia 0 - - 0,2 - - -
A fr ic a 45 390 34 562 71 355 30 640
Canada - - - 70 3 13 0.2 n.a.

M exico 753 5,682 489 435 n.a. - n.a.
USA 2,848 14,660 1,261 130 1,905 3,971 342 -
N o r th A m e r ic a 3,601 20,342 1,750 635 1,908 3,984 342 -
A rgentina 0,7 3,5 0.3 30 n.a. - -

B olivia - - - 36 - - -
Chile - - - 100 - - -
C osta Rica 60 447 38 918 - - -
Ecuador - - - 534 - -
El Salvador 105 486 42 178 - -
Guatemala - - - 164 - - -
Honduras - - - 7 - - -
Nicaragua 40 250 22 465 - -
Panama - - - - - - -
Peru - - - n.a. - - n.a.
C entral-South 206 1,187 102 2,432 - - -

A m e r ic a
A ustralia 0.2 0.8 0.1 50 - - -
Fiji - - - 25 - - -
N ew Zealand 365 2,900 249 78 5 25 2.2 n.a.

Papua N ew - - - 300 - - -
G uinea
O ce a n ia 365 2 ,9 0 0 249 532 5 25 2.2 -
G ra n d total 6,813 4 0 ,9 0 9 3,519 10,281 5,101 16,921 1,455 2,152

n o n -E u r o p e
G ra n d total 7,679 45,212 3 ,8 8 9 11,417 9,705 3 5 ,0 9 8 3 ,0 8 6 7,774
W o r ld
Table 1.1.3(1) - Geothermal utilisation for electricity generation and direct use outside Europe
(l) * Marketable resources: includes resources that will be exploited in plants and facilities under
construction and resources evaluated through feasibility studies (proven resources)
* 1 G W h = 860x106 kcal - 1 toe = 107 kcal
85
Annex 1.1
COUNTRY PAPERS
EU COUNTRIES 89
EEA COUNTRIES 127
AGENDA 2000 COUNTRIES 143
OTHER EUROPEAN COUNTRIES 193
NORTH AMERICA 217
CENTRAL AND SOUTH AMERICA 225
ASIA 255
AFRICA 297
OCEANIA 325
00
00
EU & EEA
_ Agenda 2000 & Others European countries
North America
I Central & South America
J Asia
I Oceania
I Africa
Figure 1.1.1. Study Areas and investigated countries o f the study

Annex 1.1
EU Countries
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Luxembourg
Netherlands
Portugal
Spain
Sweden
United Kingdom
A ustria
AUSTRIA
Size 83,853 km2

Population 7.968 million
Annual population growth rate (1985-95) 0.6 %
GNP per capita (1995) 26,890 USD per year
Average annual growth rate o f GNP 1.9 %
Average annual inflation (1985-1995) 3.2 %
Annual energy use (1994) oil equivalent 3,301 kg
Average annual growth rate o f energy use (199-9 ) %
Annual C02 emission per capita (1992) 7.2 tonnes
Production o f electricity (1994) 53,259 GWh
Geothermal 0 GWh
Fossil fuels 14,880 GWh
Hydro 36,894 GWh
Nuclear 0 GWh
Wind GWh
Due to geological conditions large parts o f Austria are unsuitable for hydrogeothermal
development. Most regions which have been strongly influenced by Alpine orogen are
unsuitable.
However good conditions exist in the Tertiary sediment basins in the north and the east
o f the country. These are the M olasse Basin, the Vienna Basin, and the Styrian Basin.
The reservoirs within these basins may be even older than M esozoic (e.g., Devonian
limestones in the Styrian Basin).
1. The M olasse Basin: Predominantly in the western part, the so called Upper Austrian
Molasse Basin, is located in front o f the Alpine deformation front and is suitable for the
development o f deeper reservoir horizons. The regional geological conditions are well
known, from hydrocarbon exploration however, the extent to which these results could
be used for geothermal development is unclear. More than 700 wells have been drilled
in the Molasse Basin.
90
A ustria
The Upper Austrian Molasse Basin is about 130km long and limited in the north and
northwest by the Bohemian M assif crystalline. Towards south, the molasse plunges
beneath the Alpine orogenic belt. The regional dip is heightened by synthetic and
antithetic downthrowns. The basin comprises sediments from the Eocene to the
Pliocene; the strongest orogenetic phase was in the Oligocene.
The most important reservoirs for geothermal heat recovery are located in the Pre
Tertiary basin, namely the limestones and dolomites o f the M alm which may well be up
to 500 m thick. These formations were karstified during a phase o f emergence.
Moreover, they comprise zones o f high porosity along NNW -SSE and W-E striking pre-
Tertiary faults. Locally, Upper Cretaceous sediments can form highly localised
reservoirs. The Tertiary successions are the main target o f hydrocarbon exploration,
therefore in case o f geothermal utilisation there could be a conflicts o f interest.
In contrast to the Tertiary formation waters, the Malm waters are weakly mineralised
with about l-1.5mg/l. This younger formation probably occurs in the northeast, and the
direction o f groundwater flow is W-E or NW-SE.
The Styrian Basin is a marginal basin o f the Hungarian Basin, where subsidence
occurred earlier than in the Pannonian Basin. There is no morphological separation
between the two basins. The Styrian Basin has hardly explored by drilling. For this
reason knowledge is far from comprehensive. About 30 wells have now been drilled.
The exploration o f the waters suitable for geothermal utilisation may be possible in the
3000m thick Tertiary series and in the Paleozoic (Devonian) carbonates. Generally, the
high C 0 2 concentration in the formation waters form a problem which makes their use
difficult due to increased corrosion o f the pipes and precipitation o f carbonates. The
main production target are the carbonates which have been locally sheared or fractured
due to stress.
The Vienna Basin is filled with Tertiary series which may reach a thickness o f 5500m.
Hot w ater at loose was produced from the first well a depth o f 3000m. Possible
utilisation could be a problem due to existing hydrocarbon production wells.
E l e c t r ic it y G e n e r a t io n
There is no electricity generated from geothermal resources.
D ir e c t U ses
The major part o f the developed thermal w ater occurrences are for balneological
purposes only. Thermal use is mainly restricted to the supply o f spas but this is a minor
order o f magnitude. More detailed data on the thermal utilisation o f the water has been
obtain from this wells in the M olasse Basin. According to these results the overall
thermal capacity amounts to 16.3MW which could be increased in case o f the Altheim
well where the return temperature is as high as 60C. During recent years the capacity
has been increased significantly which can be seen from the great number o f wells,
although this has not been fully documented yet.
In the Styrian Basin, fewer wells are being used for geoothermal heat recovery but
amount to an overall capacity o f 4.8MW. Here, also, capacity may be increased up to
91
A ustria
about 40MW. In the technical literature, 140MW o f thermal capacity which could
potentially be developed in the short to medium term from other wells.
Sum m ary of R esources
Exploited - plant in operation 21.1 M W t

Unexploited - plant under construction or planned -
Unexploited - proven resources 140 M W t

Unexploited - probable and possible resources -
92
Belgium
BELGIUM
Size 30,513 km2

Population (1994) 10.08 millions
Annual population growth rate (1994) 0.3 %
Average annual growth rate o f GNP (1994) +2.3 %
Annual inflation (1994) 22.2 %
Average annual inflation %
Consumption o f energy (1994) oil equivalent 50.8 millions t
Average annual growth rate o f energy use %
Annual CO2 emission per capita tonnes
Production o f electricity 69,560 GWh
Geothermal 0 GWh
Hydro 335 GWh
Nuclear 39,288 GWh
Wind 0 GWh
LEGEND
A E xploited high e nth alp yI rresource
^ E xploited lo w e n th alp y' resource

r
^ U nexplolted high e nth alp y resource
U ne xp loite d lo w e nth alp y resource
GEOTHERMAL SITES
1- St Ghislaln
2- Douvrain
3 -T u rn h o u t
4- H erentals
5- Dessel
I
t 200 km
I
LOCATION OF THE
GEOTHERMAL RESOURCES OF
BELGIUM
The Geology o f Belgium is dominated by partially metamorphosed, clastic to carbonate

formations o f Palaeozoic age related to the Caledonian Brabant M assif which are
covered by clastic and carbonate rocks o f Devonian to Triassic age. In the southern part
o f the country, these formations are overlain by Mesozoic rocks which form the rim o f
the Paris Basin. Late Cretaceous and Tertiary clastic and chalk formations are found in
the Campine Basin, North Belgium, which was affected by pronounced subsidence
related to the Roermont (Lower Rhine) Graben formation.
Geological conditions allow the occurrence o f low enthalpy geothermal resources only.
Dinantian anhydrite rocks in the Hainaut Basin (S Belgium ), Triassic sandstone and
Dinantian limestone in the Campine and Liege Basin (NE and E Belgium) contain
aquifers which represent the highest potential for the exploitation o f geothermal
resources. The main information about these basins are listed below.
93
Belgium
D ir e c t U ses
The use o f geothermal energy in Belgium was promoted in the 1970's when energy
prices climbed steeply, due to the international energy situation. Public organisations
like the Belgian National Geological Survey, the Directorate-General for Science and
Research and development o f the European Community, initiate researches to acquire
further fundamental knowledge in order to implement low enthalpy geothermal energy
production. This led to the development o f low enthalpy exploration and limited
exploitation, the geological conditions do not allow high enthalpy geothermal energy to
be developed. The low energy prices today is a limitation to further development.
Nine wells (5 in production, 4 shut down) have been drilled for geothermal purposes
tapping either the Dinantian or the Cretaceous reservoirs. At the end o f 1995, 5
geothermal exploitations are operating. Their total operating capacity is 3,89MWt,
including 2,14M W t for space heating, l,18M W t for fish farming, 0,5M W t for waste
sludge heating and 0,07M W t for bathing and swimming.
Estimated resources have been assessed based on: a maximum aquifer depth o f 2500m,
a minimum reservoir temperature o f 25C and a recovery rate o f 0,33 :
8
Campine Basin'. Dinantian reservoir 44,5x10 GJ
Neeroeteren reservoir 1,23 x 10s GJ
Triassic reservoir 50,8x10 GJ
g
Cretaceous reservoir 17,7x10 GJ
Liege Basin: Dinantian reservoir 18,5x106 GJ
Hainaut Basin
Dinantian reservoir 29,Ox 10x GJ
Campine Basin
The main aquifer is located within Dinantian limestone affected by fracturing and
subsequent dissolution leading to karstification. Its main characteristics are: extent
2096km ; depth: 700-2500m; thickness o f the karstified reservoir: 5-60m; water
temperature: 30-125C; salinity: 100-135g/l; porosity: between 4% - 20%.
A small-scale reservoir is developed within the Neeroeten Upper Carboniferous
9
Sandstones. Its main characteristics are: extent: 50km ; depth: 620-730m; thickness: up
to 400m; w ater temperature: 30-40C; permeability: 35-200md; porosity: 15-20%.
Triassic Buntsandstein sandstones also present a potential reservoir. Its main
characteristic are: extent: 530km ; depth: 700-2500m; thickness: 200m; water
temperature: 40-130C; low salinity; porosity: 10%.
At least, one upper aquifer occurs within the Cretaceous chalk arenite formations. Its
main characteristics are: extent: 2155km2; depth: 500-900m; thickness: 80m; water
temperature: 30-37C; salinity: 10-30g/l; porosity: 20-40%; permeability: 35-300md;
flow rate: 0,5 to 0 ,lm 3/h..
Campine Basin (Cretaceous Chalk reservoir)

Turnhout: swimming pool heating;
Herentals'. "
Dessel : fish farming.
94
Belgium
Liege Basin
A small-scale reservoir is known within the Dinantian limestones: extent: 113km;
depth: 500-1500m; w ater temperature: 30-50C; low salinity; high permeability.
Hainaut Basin
Karsic horizons within Dinantian anhydrite rocks represent the main reservoir. Its main
characteristics are: extent: 373km2; depth: 500-2500m; thickness: 50-250m; water
temperature: 30-90C; salinity: 2g/l; very high permeability; artesian flow rate: 90-
lOOm^/h. Due to the high permeability, cold w ater entry has lowered the temperature in
the eastern part o f the reservoir.
Hainaut Basin (Dinantian reservoir)

St Ghislain : multipurpose exploitation o f 70C waters produced by one well
(650,000m '/yr.) for space heating, swimming, greenhouses, waste heating; this
exploitation is run by the local company IDEA.
Douvrain : air conditioning for an hospital (75 OOOmVyr).
Summary of R esources
Exploited - plant in operation 3.9MWt

Unexploited - plant under construction or planned
Unexploited - proven resources
Unexploited - probable and possible resources
95
D enm ark
DENM ARK
Size 43,077 km2

Population 5.181 millions
Average annual growth rate o f GNP (1985-1995) 1.5 %
Annual energy use per capita (1994)oil equivalent 3,977 kg
Average annual growth rate o f energy use (1992) %
Annual COj emission per capita (1992) 10.4 tonnes
Geothermal 0 GWh
Hydro 33 GWh
Nuclear 0 GWh
Wind 1,137 GWh
The geological conditions in Denmark are characterised by two basins which are
separated by a barrier. In the southern part o f Denmark, which is located along the
northern rim o f the NW German Basin, and in the Norwegian-Danish Basin in the
northern part o f Denmark, there are good conditions for the exploration o f geothermal
resources. Only on the sill, the Ringkobing-Fyn High, are conditions unsuitable.
The Danish Basin strikes from W NW to ESE and covers an area o f about 400 x 150km2.
In the north, it is separated from the Baltic Shield by the Fennoscandic marginal zone,
i.e. the northern extension o f the Tornqvi.st-Tei.sse.yre zone. The com plicated fracture
pattern o f this boundary can be found in the base and is expressed in the superstructure
o f the Danish Basin. Another factor with strong influence on bedding and structural
geology is the occurrence o f Zechstein salt in the sedim entary succession. In particular
in Jutland the bedding conditions were influenced by halokinesis, whereas in the more
northern parts o f the basin, there is no salt.
96
D enm ark
The M esozoie-Perm ian sediments in the Danish Basin have a m aximum thickness o f
6000m. In the section towards the eastern Fennoscandic marginal zone, this succession
is reduced to 3000m.
Potential reservoir horizons were formed predom inantly in the Triassic-Jurassic period.
These sandstones are at depths from 500-3500m and have an effective thickness
exceeding 100m.
D ir e c t U ses
At present, there is only a dem onstration plant in Thisted / N orth Jutland where brine
with a salt content o f 15 % is extracted from the U pper Triassic Gassum formation. It
can be assumed that the deep w ater in the Danish Basin is generally saline. The wells
there were drilled in 1982 and 1983 and produce geothermal w ater from the Gassum
formation at 1250 m. The plant was re-designed in 1988 and equipped with an
absorption heat pump which was removed again in 1994. The plant is working
temporarily at a rate o f 145 m 3/h at a temperature o f 46C. A capacity o f 3.5 M W could
be installed, although there are already plans to construct another plant by 2005; no
implementation has taken place. However, the relevant M inistries stress that the
recovery o f geothermal energy shall be continued in future.
In Denmark, the climatic conditions with an annual mean temperature from 7.5 to 10C
are suitable for the utilisation o f geothermal energy.
Likewise, the geological conditions allow for the exploration o f the geothermal potential
with a few exceptions. The reservoirs under consideration are porous aquifers and
whose properties are known quite well thanks to data obtained from a certain num ber o f
wells and seismic profdes. Due to conditions existing in Denmark the utilisation o f
geothermal energy will always be restricted to district heat supply.
In spite o f these favourable conditions it has to be assumed that in Denmark geothermal
energy will not be utilised in extensively w ay in the near future. All the present district
heat supply concepts are based on co-generation plants and it is planned to extend these.
This developm ent is supported by national reserves o f hydrocarbons which make energy
supply possible at reasonable costs. In order to make the costs o f utilising geothermal
energy com parable, the support would have to be substantial making a balanced cost
benefit ratio unlikely. Compared with other renewable sources o f energy at a national
level, geothermal energy is competed mainly with wind power which is well established
for small-scale users, at low risk and is relatively com prehensible to them.
Exploited - plant in operation 3.5M W t

Unexploited - plant under construction or planned 4.0 MW t
97
Finland
FINLAND
Size 338,145 km2

Population (1994) 5 .0 9 9 millions
Annual population growth rate (1993-94) %
GNP per capita (1993) USD per year
Average annual growth rate o f GNP (1990-93) %
Average annual inflation (1994) %
Annual energy use per capita (199 )oil equivalent kg
Average annual growth rate o f energy use (199 -9 ) %
Annual C 0 2 emission per capita (199 ) tonnes
Geothermal 0 GWh
Fossil fuels GWh
Hydro 12.67 GWh
Nuclear 18.13 GWh
Wind 0 GWh
1000' 20 00' 3000'

LEGEND
E x p lo ite d h ig h e n th a lp y re s o u rc e
'V E x p lo ite d lo w e n th a lp y re s o u rc e
U n e x p lo ite d h ig h e n th a lp y re s o u rc e
V U n e x p lo ite d lo w e n th a lp y re s o u rc e
G E O T H E R M A L S IT E S
1-O u lu
0 200km
LOCATION OF THE
FINLAND
There is a very low geothermal potential in Finland for economic exploitable resources
due to the very low temperature o f the w ater and low rock porosity. Tem peratures are
usually below 20C at I km depth.
No drilling have been made for geothermal purposes.
There are 16 sites where Vertical Heat Exchangers (VHE) have been installed in shallow bore
holes with depths ranging from 120 to 200m with a heat power output typically of the order of
50W/m. The total number of VHE applications in use is not known exactly, but it is estimated to
be between 50 to 100. The use o f this technology seems to be the only practicable way to
develop geothermal energy uses in Finland in the near future.
Prospects for producing electricity in Finland are obviously not evident.
98
Finland
D ir e c t uses
In southern Finland, where the tem peratures are highest, shallow depth ground w ater in
Quaternary deposits has a temperature o f about 3-6C. In this area a few VHEs have
been installed in shallow bore holes for heating purposes in family-houses, agriculture
and industry for a total capacity o f about 0.1 MWt.
The M uhos formation in northern Finland, near the city o f Oulu, have temperatures
from 5 to 10C higher in the sedim entary rocks in com parison to the surrounding
crystalline basement. This formation may have potential for hot dry rocks applications.
Prospecting for other hot dry rock formation should be preferably directed in southern
Finland. Thermal models suggest that 40C temperature would be encountered at a
depth between 2 and 3km but will depend on the success o f this experimental approach
at other localities, notably at Soultz w here the European HDR programm e is centred.
99
France
FRANCE
Size 549,000 km2

Population (1994) 58 millions
Average annual growth rate o f GNP (1993-94) +2.2 %
Production o f electricity (1993) GWh
Geothermal 4.2 GWh
Fossil fuels 23.5 GWh
Hydro (1992) 25 GWh
Nuclcar (1994) 57.2 GWh
Wind GWh
LEGEND
Exploited high enthalpy resource
^ Exploited low enthalpy resource
Unexploited high enthalpy rocourco
V Unexploited low enthalpy resource
GEOTHERMAL SITES
1-Paris basin
2-Aquitain basin
3-Aigueperse
4-Chaleauroux
5-Dieuze
6-Soultz
7-Bouillante, Guadeloupe
t
0 100km
LOCATION OF THE
FRANCE
Both national and regional inventories have been carried out for the geothermal
resources o f France. In France geothermal energy am ounts to 4% o f the total energy
produced for district heating; in the Ile de France region it accounts for the 10% and in
Val de Marne departm ent it provides more than 10%. The low temperature (low-
enthalpy) and high enthalpy geothermal resources o f France are fairly well known. In
addition, local inventories o f potential end users were prepared in the 1980s, mainly for
resources destined for district heating.
Potential high temperature geothermal resources are restricted to the French Overseas
Territories (G uadeloupe and M artinique in the W est Indies; La Reunion in Indian
Ocean) in connection with active volcanism. Drilling in the 1970's at Bouillante,
Guadeloupe, evidenced a 240C shallow reservoir.
100
France
Low temperature resources are developed principally in the two main sedimentary
basins: The Paris Basin and the Aquitaine Basin.
At least, the use o f the geothermal potential o f the Rhine Graben, Alsace, is under
investigation at the Soultz Hot Dry Rock experimental site.
A 4.2M W e double flash power plant was built at Bouillante, Guadeloupe in 1984 by
EDF, the French Electricity Company. The power plant has been back on line since
1996 after a few years o f operation and a period o f suspension.
Exploited - plant in operation 4.2M W e

Unexploited - proven resources 8 MWe
D ir e c t U ses
Geothermal energy in France is used mainly for urban heating, for more than 150,000
dwelling equivalents, with the owners m ainly being local communities. Various
operations however, mainly located in Aquitaine, show the diversification o f potential
uses for geothermal energy: agriculture, fish farming, tourism , etc.. About 55
geothermal operations are at present active in France, there is also an unknown number
o f operations that use heat pumps to exploit shallow aquifers (resource temperature
generally less than 30C).
Total geothermal heat production represents more than 220,OOOTOE saved every year.
Paris Basin
The most exploited geothermal resource o f the Paris region is the D ogger (oolitic
limestone) aquifer w here a large concentration o f geothermal operations exist in the
urban outskirts o f Paris (37 active operations at the end o f 1996). This is in part due to
the characteristics o f the resource and in part to the density o f end-users which led to a
developm ent focused entirely on urban heating. The Paris Basin also contains other
exploitable aquifers (Neocomian and Albian) that are subject to limited developm ent (2
heat pump operations for the Albian and 2 operations, one still in the development
stage, for the Neocomian). Although the Albian aquifer is subject to regulatory
restrictions, exploitation o f the Neocomian aquifer for heat and/or industrial purposes
could expand over the next few years.
A total o f 37 geothermal operations tap the Dogger aquifer in the Paris region with
w ater temperatures ranging between 58 to 83C. M ost o f these were developed in the
1980s and are all connected to urban heating networks, providing heat for about
180,000 housing equivalents. The oldest geothermal operation, which came into service
in 1971 at Melun VAlmont, now uses three wells. They all run on the doublet system, i.e.
a reinjection well associated with the production well.
101
France
Aquitaine Basin
The second m ajor geotherm al zone o f France is the Aquitaine region with a dozen active
operations and several others projected for existing boreholes. Three aquifers are tapped
for geothermal waters in Aquitaine'.
The M iddle Eocene aquifer, which has long been used for drinking w ater supplies and is
thus strictly protected; only a few very specific geothermal projects have been
authorised for this aquifer.
The U pper Cretaceous aquifer, which is the m ost tapped by the geothermal wells,
The Dogger aquifer, which is also tapped, but less so, for geothermal purposes.
There are 12 active operations in the Aquitaine Basin tapping different aquifers with
temperatures ranging from 20 to 60C. The high quality o f the geothermal waters makes
it possible to use a single well since there is neither the necessity nor the obligation to
reinject in Aquitaine.
They provide heating for housing, fish farms and swimming pools. In certain cases, the
energy factor o f the geothermal fluid can by completed through a direct use o f the w ater
(possibly after cooling) such as for thermal spas or drinking w ater supplies. The
exploitations are sm aller than those tapping the D ogger aquifer o f the Paris Basin.
Other areas
Shallow aquifers disseminated in France are used for heating and/or cooling buildings
with heat pumps. Operations based on rehabilitating old oil wells for geothermal
purposes are also possible (one is now operating in Aquitaine Basin).
Five operations within three different regions tap resources with temperatures between
30 and 55C. These all function with a production well only and are used for
greenhouses, fish farms and heating.
Although France has large exploitable geothermal resources and different types o f
utilisation, this energy source has seen little increase in France since 1985. The drop in
prices for fossil fuel and the establishment o f a new national economic and energy
policy have restricted its development.
It would appear that the immediate future for geothermal energy in France is the use o f
lower temperature and shallower resources using heat pumps to supply heating and air
conditioning needs. These operations, which are sm aller than those required for urban
heating, can be set up by independent private operators. The operations potential to year
2010 is about 40 MWt for conventional geothermal heating plants and about 50 M W t
more if considering geothermal heat pump development.
Exploited - plant in operation 309 MWt

Unexploited - proven resources 90 MWt
102
G erm any
GERM ANY
Size 356 978 km2

Population 81.539 Millions
GNP per capita (1995) 27, 510 USD per year
Average annual growth rate o f GNP %
Average annual inflation (1984-1994) %
Annual energy use (1994) oil equivalent 4,128 Kg
Average annual growth rate o f energy use (199-9 ) %
Annual C02 emission per capita (1992) 10.9 Tonnes
Geothermal GWh
Hydro 22,461 GWh
Nuclear 151,203 GWh
Wind 1,420 GWh
LEGEND
B A L T IC SEA
A E x p lo ite d h ig h e n th a lp y re s o u rc e
T E x p lo ite d lo w e n th a lp y re s o u rc e
N O R TH SEA
A U n e x p lo ite d h ig h e n th a lp y re s o u rc e
V U n e x p lo ite d low e n th a lp y re s o u rc e
V
T
1
= " , 6 GEOTHERMAL SITES
P O LA N D 1 - N e ustadt-Q ew e 13 - Waldsee
B e rli 17^
2 - Neubrandenburg 14 - Baden-Baden
THE 3 - W aren (M ritz) 15 - Fssing
N ETH ER 4 - Wiesbaden 16 - Prenzlau
5 - S taffelstein 17 - Gladbeck
LAN D S T17 6 - Birnbach 18 - Kochel am See
7 - Biberach 19 - Griesbach
8 - Buchau 20 - W eiden
9 - Urach 21 - Ems
V 21 TT 10 - Aachen 22 - Dsseldorf
V 4' 12 11 - Konstanz
23 v 12 - Frankfurt-Hoechst
23
24
- Rodach
- Saulqau
5 C ZEC H REPUBLIC
14 -f
?
FRANCE
1 iy 13 ,18 LOCATION OF THE
S W IT Z E R r A U S T R IA GEOTHERMAL RESOURCES OF
LAND _ J _ GERMANY
The geological conditions in Germany are characterised by big regional differences and
vary from Proterozoic crystalline basem ent to Pleistocene glacial sediments resulting in
a range o f possibilities for using geothermal resources. These include the utilisation o f
shallow glacial deposits for heat storage to HDR technology in the crystalline basement.
At present, work is concentrated in Germany on the utilisation o f hydrogeothermal
resources, for which there are three prospective areas:
1. the North German Basin (east and west), characterised by porous permeable beds;
2. the Upper Rhine Graben, where the development o f thermal waters is directed at
zones o f fractures and faults, predominantly);
3. the South German M olasse Basin, characterised by aquifers and only low-
mineralised thermal water.
103
Germ any
At present, there is no electricity produced from geothermal resources in Germany.
The introduction o f ORC units for the generation o f electric energy from cooler
geothermal waters compared to HDR technology is rather uncertain. Another positive
impulse for the generation o f electric power may be given by the Soultz-sous-Forets
HDR demonstration project.
D ir e c t U ses
By the end o f 1995, direct thermal use o f geothermal energy in Germany amounted to
an installed thermal power o f roughly 307M W t. O f this sum, approximately 39M W t are
generated in 22 major centralised installations. These are geothermal heating stations,
thermal baths with residual heat recovery and greenhouses as well as major ground
source heat pump units for the heating o f buildings. Small, decentralised earth-coupled
heat pumps and groundwater heat pumps are estimated to contribute an additional
285M W t. The water or brine temperature is less than 110C, respectively. M ultiple and
cascade-type utilisation increases the economic profitability and the acceptance o f
geothermal heat recovery under present economic and political framework conditions.
Based on present knowledge, 13 more plants will be completed by the year 2000. An
increase in total installed capacity o f about 144MWt is expected, with 115MWt from
major central systems and 29MW t from small, decentralised installations. This would
bring direct thermal use in Germany close to an installed thermal power o f 467MW
whose annual final energy consumption at present amounts to about 9,200PJ. Final
energy is defined as the fraction o f primary energy which is supplied to the consumer. It
is less than the corresponding primary energy because o f losses, mainly due to
conversion and distribution. W ithin one year this is equivalent to a total consumption
power o f approximately 90,000MW. Almost 6% o f this energy is required as heat.
The maximum technical potential for direct thermal use o f geothermal energy in
Germany is estimated to be 2,580PJyr_l from hydrothermal applications and shallow
heat exchanger systems; this is equivalent to a maximum thermal power generation o f
about 81,800MW t. This corresponds to about 29% o f the countrys annual final energy
consumption, or roughly 49% o f its demand for heat. However, at present only about
4%o o f the existing m aximum technical potential for direct thermal use o f geothermal
energy meets the demand for heat. If the vast potential o f geothermal energy for direct
thermal use was utilised to substitute fossil fuels, roughly 110 million tonnes less o f
CO 2 would be released to the atmosphere annually, equivalent to about 12% o f
G erm anys CO 2 output in 1994 (C. Clauser, 1997).
Exploited - plant in operation 307MW,

Unexploited - plant under construction or planned 144MWt
104
Greece
GREECE
Size 131,944 km2

Average annual growth rate o f GNP (1993-94) + 1.5 %
Consumption o f energy (1994) oil equivalent 22.88 t
Production o f electricity (1995) 343.6 GWh
Geothermal GWh
Hydro 2.519 GWh
Nuclear GWh
Wind GWh
LEGEND
^ Exploited high enthalpy resource
Unexploited high enthalpy resource
Unexploited low enthalpy resource
GEOTHERMAL SITES
1-Trianoupolis 26- Thermopyles
2- Aristino 27- Kamena Vourla
3- Nea Kessani 28- Gialtra
4- Echinos 29- Airiipsos
5- Magana 30- Lilantio
6- Erati no 31- Loutraki
7- Eleftheres 32- Soussaki
8- Nigrita 33- Methana
9- Agistro 34- Kyllini
10- Sidirikastro 35- Andravida
11- Iraklia 36- Kaiafa
12- Langadas 37- Kithnos
13- Nimfopetra 38- Milos
14- Nea Appolonia 39- Santorini
15- Thessaloniki 40- Nysiros
16- Anthem ountas 41- Kos
17- Eleochoria 42- Icaria
18- Agia Paraskevi 43- Samos
19- Aridea 44- Nerita
20- Konitsa 45- Polychnitos.
21- Kavassila 46- Ye ras. Lisvori
22- Preveza 47- Thermi
23- Smokovo 48- Mithimna
24-"Platystom o 49- Limnos
2 5 -Ypati 50- Samothraki
LOCATION OF THE
GREECE
Favourable conditions for the development o f geothermal resources prevail in Greece.

The Volcanic islands o f the South Aegean volcanic arc {Milos, Nysiros ) have high
enthalpy geothermal resources while low to medium enthalpy geothermal fields are
widespread across the Greek mainland and North Aegean Islands.
105
G reece
Two high temperature geothermal fields have been explored and drilled on Milos and
Nysiros Islands. Results highlighted elevated temperature conditions (320-325C) and
promising potential for electricity generation (200M W Cexpected on Milos).
A small 2M W C pilot plant was operating on Milos between 1986-88. Now, there is no
electricity generation either on Milos or Nysiros Islands, due to strong opposition from
local inhabitants and organisations quoting environmental problems.
Drilling activity is foreseen in Lesvos Island for testing high temperature geothermal
field in the NE section o f the island where surface investigations indicate promising
potential for electricity generation.
Sum m ary o f R eso u rces

Exploited - plant in operation
Unexploited - plant under construction or planned 10MWC
Unexploited - proven resources 200M W e
D ir e c t U ses
About 40 low to medium temperature geothermal systems have been evidenced. The
depth o f investigated reservoirs varies between 100 and 500m. W ater temperatures
range from 30 to 90C and salinity is 1 to 50 g/1. They are mainly concentrated in the
largest graben structures filled with sediments located in Northern Greece (.Macedonia ,
Thrace) and Central Greece (Sterea Hellas)', other fields are disseminated throughout
the territory and Aegean islands
Thrace (Aristino, Nea Kessani, Magana, Eratino), Macedonia (Sidirikastro, Nigrita,

Langadas, Nimfopetra, Nea Apollonia, Iraklia, Aridea), Thessalonique (Anthemountas,
Eleochoria), Sterea Hellas (Soussaki, Thermopyles), Peloponese (Andravida), Eubee
(Aidipsos, Gialta, Kamena Vourla, Lilantio), Lesbos (Polichnitos, Lisvori, Argenos,
Stipsi-Napi, Kalloni, Thermi Yera, Thermi, Mytilini, Petra-Mythimna), Chios (Nerita),
Milos, Santorini, Nysiros.
These well-documented geothermal resources are not extensively exploited for various
reasons.
Despite the large existing potential, direct uses o f geothermal waters are limited to
greenhouses (160 acres), space heating (1 site) and balneology (38 sites recorded). Total
installed capacity is estimated to be 22,6M W t with energy utilisation o f 133TJ/yr (load
factor 0,18). The geothermal exploitations currently operating are:
Greenhouses Sidirikastro, Nigrita, Nea Appolonia, Langadas, Lisvori, Yeras,

Polychnitos, Milos.
Space heating Aidipsos
Balneology most o f the geothermal localities listed above.
106
G reece
The most promising use seems to be geothermally heated greenhouses. This application
will be supported by public (Greek and European) funds in the framework o f a 1994-
1999 incentive plan. The most promising geothermal fields for development o f direct
uses are Magana, Nea Kessani, Aristino, Nigrita, Langadas, Nymfopetra, Appolonia,
Soussaki.
Su m m a ry of R esources
Exploited - plant in operation 22.6MW,

Unexploited - plant under construction or planned 10.0 M W t
107
Ireland
IRELAND
Size 70,285 km2

Geothermal GWh
Fossil fuels GWh
Hydro 0.709 GWh
N uclear 0 GWh
Wind GWh
900' 6 " 00 '

LEGEND
'A
E x p lo ite d h ig h e n th a lp y re s o u rc e
0
& E x p lo ite d lo w e n th a lp y re s o u rc e
U n e x p lo lte d h ig h e n th a lp y re s o u rc e
U n e x p lo ite d lo w e n th a lp y re s o u rc e
% D ub lin
ui

Q
1-D u b lin
2 -M a llo w
3 -G a lw a y
i
N
U N IT E D
K IN G D O M
LOCATION OF THE
900' 6 00 ' IRELAND
While Ireland has very abundant ground w ater resources, knowledge o f deeper aquifers
is poor, due to the limited oil & gas exploratory effort and due the fact that there is no
need to prospect for w ater at depth.
Tem peratures measured in the few oil wells drilled indicate a low geothermal gradient.
At a depth o f 1500m values o f 35-45C are given for southern Ireland and 45 and 56C
for the northern part.
Shallow geothermal drilling was carried out in the Eighties: a 500m slim well was
drilled at Mallow and produced a fresh w ater flow with a temperature o f 19.8 C which
feed a swimming pool and a lOOkW heat pump to heat the pool installation. Two other
wells (61m and 100m depth) have been abandoned; another well (94m and w ater at
I 1C) is used in M allow hospital.
109
Ireland
A 500m well was drilled at Ballynagoul spring and another 510m at Enfield, W est o f
Dublin which encountered the presence o f permeable limestones and a maximum
temperature o f 21 C.
G eotherm al activity in Ireland is steady. In the short to medium term no geothermal

drilling or developm ent is likely to occur except for the possibility o f drilling one well
(depth ~2000m) before the year 2001.
D ir e c t uses
Using geothermal w ater with tem peratures o f 10-19C, two small dem onstration
projects were carried out at Mallow (swimming pool heating).
The installed geothermal pow er at M allow hospital is 0.7M W t and total energy saving is
estimated less than 80TOE/yr.
Two similar small plants at the Dublin Trinity College with the support o f heat pumps
and in Galway were operational (Tuam swimming pool).

U nexploited - probable and possible resources
110
Italy
ITALY
Size 301,302 km2

GNP per capita (1993) 19840 USD per year
Average annual inflation (1995) 5.3 %
Geothermal 3,762 GWh
Hydro 44,483 GWh
Nuclear 0 GWh
Wind 225 GWh
Solar 5 GWh
1000'
LEGEND
A Exploited high enthalpy resource
V Exploited low enthalpy resource
A Unexpioited high enthalpy resource
V U nexploited low enthalpy resource
G E O TH E R M A L SITES
1-Larderello-Lustlgnano-R io Secco
2-T ravale-R adicondoli
3-M t.A m lata-P iancastagnaio-B agnore
4-A lfina-Latera-M arta
5-P antelleria
6-Aqui Terme
TYRR ENIAN
jv 7-S .D onato M ilanese
SEA
^ 8-R odigo
q 9-Vicenza
10-Colli Euganei
11-Ferrara
12-Bagno di Rom agna
13-Pisa
14-G rosseto
15-C anino-C esano-P antani
100 200km
LOCATION OF THE
M ED ITE R R ANE AN GEOTHERMAL RESOURCES OF
SEA
10 0 0 ' ITALY
Since the beginning o f the century a substantial num ber o f geothermal sites have been
explored and exploited in Italy, the main targets being Tuscany and Latium areas.
E l e c t r ic it y g e n e r a t io n
Electric power capacity from geothermal resources has grown from 459M W
(production 2840GW h/yr) in 1985, to 545M W (production 3150GW h/yr) in 1989, to
681.7M W in 1995 to 742.2M W in 1996 with yearly generation am ounting to
3,762GW h, equivalent to 1.6% o f the total electricity produced in Italy.
In Italy 39 pow er plants are now operating with a total capacity o f 742.2M W o f which
149.7MW are reserve.
Ill
Italy
The construction o f additional units, with a total capacity o f 87.5MW, is underway and
another 140MW are planned to be installed.
If decom missioned plants are included, by the year 2000, a total o f about 830M W will
be generated by geothermal.
The m ain geothermal areas are Larderello with 315M W installed, Radicondoli with
90M W installed, Lago (a few kms south o f Larderello) with 247.7MW installed.
1x20M W unit in Lago area, 1x20M W in the Mt.Amiata area, 2><20MW and 3><2.5MW
in Later a are under construction.
4*20M W units in Lago area, and 3><20MW in Mt.Amiata area are planned to be
constructed.
All plants use dry steam condensing units. The plants under construction will also be o f
this type except in Latera w here there will be 2><20MW double flash and 3 X2M W
binary cycle plants.
Surface exploration has been extensively carried out which has included geophysical
(gravity, seismic, magnetotelluric and electricity surveys) and thermal gradient wells.
Drilling has been aimed exclusively at the research and developm ent o f high enthalpy
geothermal resources for electricity generation. M ost wells were drilled inside or at the
margins o f the areas already under exploitation, to find fluids with better
therm odynamic characteristic or to improve field optimisation.
74 wells were drilled between 1985 and 1989 with depths from 800m to 2500m.
A total o f 108 wells were drilled from 1990-1995: 40 exploratory wells (45%
successful, average depth o f 2573m) and 68 for field development (75% successful,
average depth o f 2831 m).
A total o f 958 wells were drilled up to 1995 with a total metrage o f over 300,000m.

Unexploited - plant under construction or planned 227.5M W e
Unexploited - proven resources -
D ir e c t uses
Direct uses represent a total capacity o f 313.6M W with a direct energy use o f
3666.9TJ/yr.
Utilisation o f heat pumps has been moderate up to now and mostly in the private sector.
Space and greenhouse heating is the most common utilisation in Italy. In most instances
steam or double phase flow is used. Inlet temperatures range 60-120C (in Larderello
area are much higher reaching 200C) and output temperature range 20-100C.
Installed thermal pow er is as follows: 49.73M W for space heating in 15 localities;
63.79M W for greenhouses in 7 localities; 10.86MW for industrial process in 3
localities; 2.58M W for fish/animal farming in 2 localities and 186.65MW for
bathing/swimming.
112
Italy
One district heating system is under construction in Grosseto and 3 are planned in
S.Flora, Piancastagnaio and Pisa.
Three greenhouse heating systems are under construction in Latera, Alfina and Travale
and one is planned in Ferrara.
A couple o f industrial plants utilizing geothermal heat are under construction in the
Travale-Radicondoli area while one is planned in Cesano. Increased use o f the
uncondensable gas associated w ith geothermal fluid capacity for CO 2 recovery is
foreseen (one plant is already operating in Torre Alfina with a capacity o f over 30,000
tonnes/yr) together with the exploitation o f Cesano hypersaline brine for the extraction
o f potassium salts.
Sum m a ry of R esources

Unexploited - plant under construction or planned 50.0 M W t (1)
Planned unexploited resources
113
L uxem bourg
LUXEMBOURG
Size 2,586 km2

Population (1994) 0.4 0 7 millions
Annual population growth rate (1993-94) /
Average annual growth rate o f GNP (1990-93) /
Average annual inflation (1995) /
Average annual growth rate o f energy use (199 -9 ) /
Annual C 0 2 emission per capita (199) tonnes
Geothermal 0 GWh
Fossil fuels GWh
Hydro 0.083 GWh
N uclear 0 GWh
W ind 0 GWh
6"00'
LEGEND
Exploited low enthalpy resource

BELGIUM
A U nexploited high enthalpy resource
V U nexploited low enthalpy resource
G E O TH E R M A L SITES
8O Ol
o
1-M ondorf ^
LO
GERMANY oo
A *
\ \ ,
L u x e m D O u rg

/ 1
N
__ 1
S I o _ ^ ^
FRANCE
LOCATION OF THE
600' L U A C IV ID U U K U
G eotherm al resources are not very well known in Luxem bourg and the potential for
geothermal operations in the short to m edium term can be considered as non-existent.
D ir e c t uses
The M ondorf thermal station taps groundw ater with a tem perature o f almost 30C and is
highly charged with chlorides. This is the only known example o f geothermal utilisation
in the country.
There are almost certainly, small private operations that use heat pum ps to exploit low-
temperature (<20C) groundwater, but no register exists o f these operations or users.
114
The N etherlands
THE NETHERLANDS
Size 40,844 km2

Annual C 0 2 emission per capita (1992) 9.2 tonnes
Geothermal 0 GWh
Hydro 101 GWh
Nuclear 3,967 GWh
Wind, Solar 239 GWh
LEGEND

NORTH SEA A Unexploited high enthalpy resoura
GEOTHERMAL SITES
1 - Alkmaar
2 - Asten
3 -Spijkernisse
4 - 's Gravenzande
5 - De Lier
6 - Delfland
7 - Marknesse-Luttelgeest
GERMANY
A
LOCATION OF THE
N
THE NETHERLANDS
The geological structure o f the Netherlands is characterised by three basins - the

Western Netherlands, the Central Netherlands and the Broad Fourteens Basin which are
limited in the south by the strongly folded Paleozoic o f the Brabant m assif The basins
subsided in the M esozoic (Jurassic and Cretaceous), caused by motions along pre-
Variscan faults. The basins were inverted in the upper most Cretaceous and the Tertiary,
and a horst-trench structure was formed. The Zechstein evaporites were deposited with
only a limited thickness in the north and the east o f the Netherlands. The overlying
sediments, however, were not overprinted later by halokinesis. A potential reservoir
rocks formed in three periods which cannot be assigned to the individual basins. These
reservoirs have formed in series o f the Rotliegendes, Lower Triassic and Lower
Cretaceous.
Only in the southern part o f the country does the Lower Triassic series form reservoirs
and is sim ilar to the Buntsandstein, which consists o f continental sands facies which are
subdivided into various cycles. According to their characteristics, different sandstones
are suitable for reservoir use. In the area concerned, the sandstones lie at dcphts o f
400m-1500m . Their deposition was also influenced by Cretaceous tectonics.
The N etherlands
Only within a small area to the west, around Amsterdam, are Creataceous sands suitable
for geothermal utilisation. These are marine sandstones structured cyclically by
alternating regressions and transgressions. They are characterised, partly, by outstanding
reservoir properties and occur at a depth o f about 2,000m with minimal deformation.
The knowledge o f individual reservoir horizons from wells differs. The Slochteren
formation which is also important for hydrocarbon exploration, drilling activities in
extensive in the north o f the Netherlands and around the Ijsselmeer. More than 200
wells have been drilled. In the southern part o f the country, considerably less drilling
has been done (there are <100 wells). Major parts o f the country have been covered by
recent 3D seismic investigations into hydrocarbon exploration; moreover, this data has
been compiled with data from production activities since the 1950s which includes the
behaviour o f different reservoirs during re-injection o f oil field waters.
D ir e c t U ses
At present, geothermal energy is not recovered from deep reservoirs. However, there are
plans to put a doublet into operation in 1997 for greenhouse heating and pre-heating o f
natural gas. On the other hand, shallow geothcrmics are being applied successfully in
some m inor projects. It is planned to com mission other doublets before 2010.
There is political support for these which stimulates interest from potential investors.
In the Netherlands, the conditions for the utilisation o f geothermal energy are relatively
favourable. The annual mean temperature is low, there are potential porous aquifers
located beneath about 30% o f the country, with prospects for good recovery.
The geological knowledge o f the reservoirs is good.

Unexploited - plant under construction or planned 20M W t
Unexploitcd - probable and possible resources
116
Portugal
PORTUGAL
Size 92,082 km2
Production o f electricity (199 ) 109,347 GWh
Geothermal 42 GWh
Hydro 84,54 GWh
Nuclear 0 GWh
Wind 0 GWh
10 00
LEGEND
jkk E xploited high e n th alp y re source
E xp lo ite d low e n th alp y re source
/S. U ne xp loite d high e n th alp y resource
V U ne xp loite d low e n th a lp y re source
1-S ao M iguel 6 -Lisb o a
2-Terceira 7-C h a ve s
3 -G ra cio sa 8 -S .P e d ro do Sul
4 -P ico
5-Faial
50 100km
LOCATION OF THE
PORTUGAL
Geothermal projects for pow er generation are underw ay in the Azores islands, in the
Atlantic Ocean at around 2000km west o f the country, aligned along a N W -SE tensional
axis.
Low enthalpy fluids are exploited mostly on the mainland.
At Sdo Miguel tem peratures o f 200C were encountered at around 600m depth. Four
deep wells were drilled. A 3M W power plant was installed at Pico V. and a 2x3M W
units were installed at Riberia Grande rift valley (north o f Sdo Miguel). A nother 4MW
are planned to be installed in the Azores.
1 17
Portugal
Su m m a ry o f R esources
Exploited - plant in operation 8 MWe

Unexploited - plant under construction or planned 4 MWe
D ir e c t uses
At Sao Miguel the w aste from the geothermal station already operating will provide
sufficient therm al energy for direct heat usage (each 10" production well produces 100-
200t/h o f fluid which provides 9-19M W t). The project proposes six futuristic fam ily
sized greenhouses for pineapple, cape gooseberry and melon production.
At Lisboa hot tap w ater and district heating are provided by geothermal energy at the
A ir Force Hospital which uses 3.3TJ/yr and district heating at the A rm y Social
Installations (Oeiras) which uses 3.2TJ/yr by heat pumps.
At Chaves bathing/swim m ing, space heating and greenhouses total 6.7TJ/yr.
At S.Pedro do Sul geothermal energy use is 3.2TJ/yr for greenhouses.
Total installed therm al pow er is 0.84MW .
Exploited - plant in operation 0.84 M W t

118
Spain
SPAIN
Size 504,750 km2

Production o f electricity (199 ) GWh
Geothermal GWh
Fossil fuels GWh
Hydro GWh
N uclear GWh
Wind GWh
0000
LEGEND
. E xploited high e nth alp y re sou rce
^ E xploited low e n th alp y re source
U ne xp loite d high e nth alp y re sou rce
V U nexploited low e n th alp y re source
1-O re n se
2 -M urcia
3-AI b acete
4 -G ra na d a
0_______ 150 300km
LO C ATIO N O F TH E
G E O T H E R M A L R E S O U R C E S OF
00 00 '
SPAIN
In the years 1974 to 1979 an evaluation o f the geotherm al resources was perform ed and
in 1979 the exploration o f the most prom ising resources started.
M ost resources are low enthalpy type but only a few o f them are utilised for direct uses
because o f technical problem s, reluctance and lack o f users.
D ir e c t uses
Spanish potential for low-to-m edium resources is quite attractive, in particular the most
interesting areas are:
Duero Basin: in Burgos one geothermal well was drilled in 1982 to the depth o f 2543m
and 85C w ater with high flow rate was encountered. The well was abandoned because
o f the lack o f nearby customers, although the results were interesting.
Ebro Valley margins', in Lerida one geothermal well was drilled in 1987 and found a
reservoir at 54C. This well was abandoned as well.
119
Spain
Basque country : near Victoria (Antezana ) a form er oil well was recom pleted with
geothermal purposes and a new geothermal well was drilled ( Gatzelu ) to a depth o f
2123m. Both well were unsuccessful. At Jafre another oil well was rccomplcted in 1988
and found high flow rate fluid at 48C. No use is made o f the resource.
In the Jaca-Seeralbo gas field drilling a fluid at 160C was found.
Pyrenees', in Andorra there is at least one productive well (Escaldes ) with a temperature
o f 70C at 125m o f depth. A shallow well is planned to be drilled shortly at Tresds spa.
Catalua', geothermal exploration was performed in this area from 1981 to 1986.
In the Valles graben, an 80C fluid at a depth o f 5 0 0 -1000m was found in several wells
located fractured granite in Samalus. Two other wells produce over 360m /h o f 58C
fluid in San Cugat, and a 55C fluid with over 100m3/h was encountered in a well at
Mula.
In Montbui 4 wells were drilled near a thermal spring with w ater at 70C.
The Montbrio well was drilled in 1989 to a depth o f 603m and produced a fluid at 70C.
Non these resources has been exploited.
Orense-. 7 shallow wells (<300m) were drilled before 1984 and produced good flow
from a fluid at 70-80C. These resources are partially used for greenhouses and
granaries.
Madrid area : from 1982 and 1990 three successful geothermal wells were drilled at
Tres Cantos (2417m), San Sebastian (2130m), Madrid (2000m). These resources
yielded up to 250m 3/h and a temperature ranging from 70 to 80C, but institutional
problem s and the reluctance o f the potential users has frozen further activities.
A nother developm ent well in Madrid was abandoned due to technical failure without
reaching the target reservoir.
A geothermal project for greenhouses is scheduled in Albacete.
Betic chain graben : this area is located in the quadrangle Granada-Cartagena-Murcia-

Mallorca island were several hot springs occur. The main reservoir is shallow with fluid
at 40-50C.
In Murcia area the fluid is used for heating greenhouses or for osmosis desalination.
A geothermal well is scheduled to be drilled in Granada to heat greenhouses.
Canary islands : in the Gran Canaria island an aquifer with 40-50C w ater has been
located at about 1500m in depth.
120
Sweden
SWEDEN
Size 449,964 km2

Annual energy use per capita (199 )oil equivalent Kg
Annual CO2 emission per capita (199 ) Tonnes
Geothermal GWh
Fossil fuels GWh
Hydro 67.1 GWh
Nuclear 66.47 GWh
Wind GWh
10 00 20 00 ' 3000'
LEGEND
A E x p lo ite d h ig h e n th a lp y re s o u rc e
V E x p lo ite d lo w e n th a lp y re so u rce
U n e x p lo lte d lo w e n th a lp y re s o u rc e
1-Lund
2 -G o tla n d Island
I
N
I
0____ ____ 300km
LOCATION OF THE
SWEDEN
The geothermal potential o f Sweden, excluding resources at tem perature lower than
30C, is negligible.
Very low temperature aquifers which are exploitable only with the support o f heat
pumps arc how ever abundant.
Geothermal prospecting in Sweden has focused on the Malm area since 1977. Here
several wells have been drilled for oil exploration and temperatures up to 81C at
2280m have been recorded (Ljunghusen 1 well).Som e potential is believed to exist in
Gotland Island in the Baltic Sea
D IR E C T U SES
Only one geothermal application has been developed, the large 47M W t geothermal
district heating plant o f Lund.
121
Sweden
A detailed study in the outskirts o f Lund (M alm area, Scania region) led in 1982-83 to
the drilling o f two shallow geothermal wells (depth 684m and 764m). Campanian sands
were extensively tested in a doublet configuration (producer-reinjector). Saline (6g/l)
water with a temperature o f 23C and a stabilised flow-rate (on pumping) o f 400m 3/h
was produced.
In 1984, a geothermal plant was developed to feed the tow ns existing conventional
district heating system. Two production and two injection wells (average depth 700m)
were drilled and the geothermal plant, including electric heat pumps, went into
operation in 1985.In 1986, the plant was enlarged and operated with 4 production, 4
reinjection and 2 observation wells. In 1993, one o f the observation wells was converted
into an injection well. W ater is produced at 20-23C and reinjected at 4-8C.Geothermal
heat capacity is 47M W t and the associated heat production was 351GW h in 1993,
covering about 45% o f the total heat demand for the district heating system (the rest
being provided by gas, oil and sewage).
The probability o f additional geothermal plants in Scania region with resources at the
same or higher temperatures (especially in Cretaceous and Jurassic aquifers) is
dependent on energy prices and on the Swedish fiscal policy for electricity and fuels.
Lund experts, however, consider new geothermal projects highly unlikely in the
foreseeable future.
Exploited - plant in operation 47M W t

122
The U nited K ingdom
THE UNITED KINGDOM
Size 241,800 km2

Annual Population growth rate (1994) 0.3 %
Annual energy use per capita (oil equivalent) 3916 kg
Average annual growth rate o f energy use 1.6 %
Annual CO2 emission per capita 11.7 tonnes
Geothermal 0 GWh
Hydro 5,686 GWh
Nuclear 89,353 GWh
Wind 342 GWh
Biomass 922 GWh
W astes 1,525 GWh
LEGEND
yf Exploited low enthalpy resource
/ \ Unexploited high enthalpy resource
\7 Unexploited low enthalpy resource
GEOTHERMAL SITES
1. Southampton
LOCATION OF GEOTHERMAL
RESOURCES IN THE UNITED
KINGDOM
UK geothermal gradients are generally less than 30C/km. Despite this, two rock
formation types have been assessed for their geothermal energy potential; sandstone
formations o f Perm o-Triassic age and Carboniferous limestone o f Palaeozoic age. The
latter supplies the famous Roman baths with w ater from hot springs in the Bath/Bristol
area.
Studies by the British Geological Survey (BGS) identified five potential aquifers:
The west o f the Wessex Basin appeared to offer the UK's best geotherm al aquifer
resource, but most o f the aquifer underlies a rural area offering few opportunities to use
the heat apart from in the Bournemouth-Poole and Southampton areas.
123
The United Kingdom
The Sherwood sandstone in the East Yorkshire and Lincolnshire Basin also contains a
potential aquifer at 40-60C, in an area extending from Scarborough down to the Wash.
In the Worcester Basin, thick layers o f Sherwood sandstones (about 2000m) underlie
Cirencester, Cheltenham and Gloucester but tem perature gradients are low resulting at
best, in the possibility o f a considerable resource at 40-60C under Cirencester.
Permo-Triassic sandstones are thick in the West Lancashire and Cheshire Basin and
extend down to 4000m. Unfortunately, heat flow is particularly low so that aquifers
only reach 80C at depths greater than 2500m. Once again, much o f the area is rural
apart from Crewe.
In the Northern Ireland Basin, assessm ent was limited to the Sherwood sandstone but
aquifers may exist in the deeper Permian sandstones although there are major
uncertainties about their thickness and hydrological characteristics.
In the UK, it is unlikely that aquifers with very low-grade heat, i.e. below 40C, would
ever be exploited. Although the heat resource at 40C, estimated to be equivalent to
8,300TW h (llOOM tce) appears large, the coincidence o f the resource with likely heat
loads is poor; it is uneconomical to transport the hot fluids over a significant distance.
Based on a detailed assessm ent o f the heat requirements o f several urban centres, the
highest theoretical projection for new schemes is unlikely to exceed more than 50
geothermal schemes across the UK. A more realistic estimate, which assumes one
scheme producing 26 GW hj/yr could be developed within each geothermal field by the
year 2005 followed by a further twenty by the year 2025, reveals a maximum
practicable resource o f 650 GWh^/yr.
There are no high enthalpy resources.
D ir e c t uses
Currently the only operating UK geothermal plant is at Southampton. Several municipal
buildings are linked by a 2km hot w ater main running to and from a heat station
located close to the wellhead o f the Southampton borehole.
The UK Government financed drilling and testing o f the borehole. The City Council
had intended to develop the group heating scheme, but early test pumping o f the aquifer
fell short o f the specified targets. It was concluded that pumping should not exceed 12
1/s to ensure a 20-year life. As a result, the original plan for a large-scale scheme was
abandoned. A more limited scheme was developed
Low grade geothermal heat is not sufficient to supply all the heat requirements to the
buildings. The central plant and equipm ent are located in a heat station about 200m
south o f the geotherm al wellhead. By cooling the borehole brine from 70C to 30C,
geothermal energy provides approxim ately 2M W o f heat, achieved by use o f a heat
pump which enables more heat to be extracted from the brine. The scheme cost 1.24M
to construct and costs 46k per year to operate. Heat is supplied to approxim ately 5000
people for a unit cost o f 1.4p/kWh.
124
T he U nited K ingdom
The geothermal com ponent represents approxim ately 10% o f the power produced by the
scheme, which includes a combination o f boilers and generators.
Further geothermal developm ent in the UK is unlikely during the foreseeable future.

Uncxploitcd - plant under construction or planned 0
Unexploited - proven resources 10MWt
Unexploited - probable and possible resources 70MW,
125
Annex 1.1
EEA Countries
Iceland
Liechtenstein
Norway
Russia
Switzerland
Turkey
Iceland
ICELAND
Size 103 000 km2

Population 0.268 million
GNP per capita (1994) 24 630 USD per year
Annual energy use per capita (oil equivalent) 8 800 kg
Average annual growth rate o f energy use (1990-1994) 0.9 %
Annual C 0 2 emmission per capita 9.6 tonnes
Production o f electricity (1995) 5,58 lGW li
Geothermal 375 GWh
Fossil fuels 3 GWh
Hydro 5,203 GWh
Nuclear 0
Wind 0
LEGEND
GEOTHERMAL HIGH TEMPERATURE SITES

1 Reykjavik 18 Grim svtn
2 Eldvrp 19 Kldukvislarbotnar
3 Svartsengi 20 Vonarskar
4 Krisuvik 21 Kverkfjll
5 Brennisteinsfjll 22 Askja
6 Nesjavellir 23 Hrthalsar
7 Hverageri 24 Fremri Nmar
8 Prestahnjukur 25 Namafjall
9 Geysir 26 Krafla
10 Hveravellir 27 Gjastykki
11 Kerlingarfjll 28 Peistareykir
12 Hofsjkull 29 xarfjrur
13 Tindafjallajkull
14 Myrdalsjkull
15 Torfajkull
16 Porarhyrna
17 Jkulskalar
LOCATION OF THE
G EOTHERM AL RESOURCES OF
ICELAND
2 0 00 '
G eo th er m a l potential
Iceland is located astride the M id-Atlantic Ridge and has therefore large geothermal
potential. The following table gives a summary o f the geothermal potential o f Iceland.
Geothermal potential of Iceland

TW h/year
Type o f energy 1018 joule TWh
for 50 years
Technically exploitable thermal energy at wellhead (T>5C) 3,500 972,000 19,400
Usable thermal energy from plants (T>40C) 1,700 486,000 9,500
Usable thermal energy for electricity generation (T>130C) 540 150,000 3,000
Usable electrical energy from high-temperature fields 5.6 1,550 31
Harnessed in 1995 14
G e o t h e r m a l u tiliza tio n
The annual primary energy supply in Iceland (1997) is 106,000 TJ or 387 GJ per capita,
which is among the highest value in the world. In the year 1997, geothermal energy
provided 48% o f the total prim ary energy supply, hydropower 18%, and fossil fuels
34%. N uclear energy and wind energy are not utilized in Iceland. The exceptional
conditions o f the energy balance in Iceland are that geothermal energy provides higher
share (about 50%) o f the primary energy supply than in any other country in the world,
128
Iceland
and that renewable energy sources (geothermal and hydro) provides 66% o f the primary
energy in the country, which is also the highest ratio in the world.
The main use o f geothermal energy is for space heating. About 85% o f all houses in
Iceland are heated with geothermal energy and the rem aining 15% are mostly heated by
electricity. Electricity is mainly generated from hydro (94%) and only 6% from
geothermal energy. This ratio is expected to change in the future, and the installed
geothermal power will increase from about 80 MW Cin 1997 to 170 MW cby 2000.
Electricity is generated in four high-tem perature geothermal fields, Krafla, Nmafjall,

Svartsengi, and Reykjanes, and a 60 MW0 pow er plant is under construction at
Nesjavellir. In addition to electricity generation, the geothermal energy is used for
industrial purposes in N m afjall, and hot w ater production for district heating is the
main utilization in Svartsengi and Nesjavellir. The high-tem perature field at Reykjanes
has also been utilized for salt production.
Electricity generation Installed capacity Production Average load Under construction

(1997) MWe GWh/a % MW e
Krafla 60 228 48
Nmafjall 3 22 93
Svartsengi 16.4 122 95 30
Reykjanes 0.5 2 47
Nesjavellir 60
Total 80 374 90
Average 60
There are more than 30 public district heating services in Iceland utilizing geothermal
energy. The amount o f geothermal heat for different categories is given in the
following table.
Direct uses Installed power N et energy use Average load

(1997) MW, GW h/year %
Space heating 1,150 4,528 45
Bathing and swimming 60 278 53
Greenhouses 45 231 59
Fish and animal farming 25 175 80
Industrial process heat 105 556 60
Snow melting 55 106 22
H eat pumps 3 5 19
Total 1,443 5,878 47
At present, about 1% o f the most econom ical geothermal resources for electricity
generation have been developed in Iceland. If the total geothermal potential for
electricity generation is regarded, the present development is only 0.1% o f the total.
Present utilization o f geothermal energy for direct use is about 0.1% o f the estimated
useable geothermal energy above 40 KC.
Summary of the resources
Electricity Direct Use

In operation 80 MWe 374 GWh/y 1,443 MW, 5,878 GWh/y
Planned or under construction 90 MWe 720 GWh/y
Estimated potential 4,000 MW e 31,000 GWh/y 1,900,000 MW, 9,500.000 GWh/y
129
Liechtenstein
LIECHTENSTEIN
Size 160 km2

Population (1994) 0,031 millions
Geothermal GWh
Fossil fuels GWh
Hydro GWh
N uclear GWh
Wind GWh
No data are available.
130
N orw ay
NORW AY
Size km2
Population (1994) millions
Geothermal 0 GWh
Fossil fuels GWh
Hydro 120.71 GWh
N uclear 0 GWh
Wind GWh
Geothermal energy is not being used in Norway at present.
The geological setting o f the country means that geothermal reservoirs worthy o f
geothermal developm ent do not exist.
For the general geological and energy situation it has to be assumed that geothermal
heat recovery is neither being implem ented nor planned in Norway.
Russia
RUSSIA
Size 17,075,400 km2

Annual population growth rate (1994) 0 %
GN P per capita (1994) 1,927 USD per year
Average annual growth rate o f GNP (1993-94) -15 %
Annual inflation (1994) 302 %
Average annual inflation
Annual energy use per capita (199 ) oil equivalent kg
Annual CO? emission per capita tonnes
Production o f electricity (1995) 912 GWh
Geothermal 0.028 GWh
Fossil fuels 622 GWh
Hydro 165 GWh
Nuclear 125 GWh
Wind GWh
LEGEND
E xploited high e nth alp y resource
...c
Exploited lo w e nth alp y resource
U nexploited high e n th alp y resource

Y
U ne xp lolte d lo w e n th alp y resource
Y GEOTHERMAL SITES
1- Kamchtaka
2- Kurils
3- Baikal-Am ur
4- Pacific co ast
5- W e ste rn Siberia
6- Krasnordarsk
7- Stravropol
8- Dagestan
9- C hechene, Kabardlno-Balkariya
AV
A 1
V
v 1 5000 km
I

0
1
km 500
-- 1
y LOCATION OF THE
R U SSIA
In Russia, geothermal resources are widely distributed throughout the country. Low to
intermediate temperature aquifers (50-200C) are found within the Scythian and W est
Siberian, sedim entary platforms, as well as in regions o f recent tectonic activity and
young foredeep and inner depressions o f the Alpine Belt (i.e. the Caucasus, the Baikal
rift zone). The East-European and Siberian Pre-Cambrian platforms also contain
aquifers with lower tem perature conditions (50-100C).
High temperature geothermal systems (>200C) occur in regions o f recent volcanism

(.Kamchatka , Kuril Islands), as well as in regions o f recent tectonic activity ( Caucasus ,
Baikal rift zone).
132
Russia
The Kamchatka and Kuril Regions show a very high potential for high enthalpy
geothermal resources, related to active volcanism. Moreover, their distance promotes
the developm ent o f local resources. There are a total o f 9 fields in Kuril-Kamchatka
with high enthalpy resources and an estim ated capacity o f 380-550M W e .
The only operating geothermal plant in 1995 is the llM W e Pauzhetsky single flash
plant in Kamchatka , built in 1966 and enlarged in 1980, which produces about
28.3GW h/year. This installation comprises three units o f 2.5, 2.5 and 6.0M W e
respectively. 79 wells have been drilled on this field. 11 production wells produce fluids
with low TDS (3-4g/l) and 210C m aximum temperature at a depth o f 300-500m. By
the year 2010, the installed capacity o f Pauzhetsky is planned to be 18MWe-
Other 15MWe plant is under construction at Mutnovsky. 58 wells were drilled in this
field, within a depth range from 255 -2100m. O f special interest is the presence o f a
2100-2700 kJ/kg steam resource sandwiched between two liquid-dominated reservoirs
o f low er enthalpy. W ater tem perature range is 250-310C.The installation o f 2x20 Mwe
plant is planned for 1999 and other 40+5M w e .in 2002. Other 80 M w e could be
implemented up to 2010. By the year 2010, the installed capacity at Mutnovsky is
planned to be 21 OMWe-
Other sites in Kamchatka where high enthalpy geothermal resources have been
evidenced are :
Nizhne Koshelevskoe (220-240C); Khodutkinskaya (200C); Bolshe-Bannoe (171-
200C); Karimskaya (200C); Apapelskaya (200C); Kireunskaya (200C).
On Iturup Island in the Kurils, a 5x6M W e pow er plant is planned for 1996-1999. To
date, 9 wells have been drilled there and are ready for exploitation.
Other sites in Kurils w here high enthalpy geothermal resources have been evidenced are
Kunashir Island ( Gorjachij Pljazh and Golovnina volcano) and Paramushir Island
(Ebeko site).
In the Northern Caucasus, a 3M W e pilot plant is planned at Kayasulinskaya. However,

high TDS (>100g/kg), relatively low temperatures (150-170C) and injection pressures
o f up to 7 M Pa make this project problematic.
Exploited - plant in operation llM W e

Unexploited - plant under construction or planned 13 0M W e
Unexploited - probable and possible resources 380-550M W e
133
Russia
D ir e c t Uses
Direct uses o f thermal waters are mainly developed within 6 towns and 8 big
settlements. There are also a lot o f small-scale geothermal exploitation scattered
throughout the Russian Federation. Total installed capacity at the end o f 1994 was
210M W t, producing 673GW h/yr. Total heat flow was 1,40 leg/s, producing 8.80TJ/yr.
Thermal waters are mainly used for space and district heating (45%) and greenhouses
(48%); industrial process heat, animal farming and bathing are secondary. By the end o f
1994, 367 geothermal wells had been drilled, 185 for production, 10 for re-injection and
86 for observation. The total number o f inhabitants using thermal waters for heating was
220,000. The total area o f greenhouses heated by thermal waters was about 340,000m 2.
About 150 bathing resorts and 40 bottling factories were operating.
Kamchatka'.
Thermal waters with TDS 5g/l and temperature o f 80-100C are used for greenhouses,
space heating and bathing, in rank order. Main sites are Paratunka (60,000m 2
greenhouses), Pauzhetka, Esso, Anavgay and Nachikin.
Baikal-Amur:
The occurrence o f several hydrothermal systems is related to recent volcamsm and
tectonic activity in the Baikal Rift Zone and surroundings (Bouriates and Tuva
Regions). Thermal waters are used for resort and building space heating near the Baikal
Lake and along the Baikal-Amur Railway. The main sites o f geothermal exploitation are
Il'inka near Ulan-Ude, for greenhouses (67-74C waters at 300-400m.depth, with TDS
2g/l, flow rate 121/s);
Pitatelev, for greenhouses;
Bouriates Republic ( Gorjachinskoe, Okusidan ), for greenhouses and space heating;
Tuva Region (Ush Beldyrskoe), for greenhouses and space heating;
Tunka for balneotherapy and heating (41C waters);
Along the Baikal-Amur Railway (.Baunt, Barguzin , Severomysk, Kul'dur), for space
heating.
The Pacific coast:

Direct uses o f therm al waters are developed for space heating mainly. Main sites o f
exploitation are:
Chaplinsk ( Chukches Peninsula) w here 80C waters [TDS: 18g/l; flow rate: 151/s] are
used for farming heating, greenhouses and swimming;
Magadan area (.Talaja, Motyklej, Til'minlinejskij) where 85-91C waters are used for
balneotherapy, heating and greenhouses;
Sakhaline Island where extensional Neogene Basins show elevated thermal gradients.
Deep wells (2000-3000 m) in Nekrasov area produce 80-90C waters with TDS 8-23g/l.
W estern Siberia:
It is the biggest artesian basin in the world (3x10 km 2), and can be considered as a huge,
low to intermediate temperature, geothermal reservoir. Hydrothermal resources are
estimated about 180,0001/s o f 40-80C waters (TDS 10-25g/l) at depth o f 2000-3000m.
Oil and gas drilling has provided much information. The main aquifers are Aptian-
Cenom anian and N eocom ian Formations.
Direct uses are mostly for space heating. Several geothermal exploitation are
mentioned:
134
Russia
Omsk : a 2000-2500m .deep aquifer produces 75-80C waters (TDS: 27g/l; flow rate:
301/s) for space heating and fish farming;
Tjumen : oil well and reservoir heating;
Tobolks, Cherkashin : a m ultipurpose geothermal project uses 81C waters (TDS: 18g/l))
for space heating, domestic hot water, greenhouses, swimming and fish farming. These
waters also contain lm 3 gas/m 3 water;
Malyj-Atlyn: 142C waters at 2700m.depth contain about 2m 3 m ethane/m 3 water;
Kospashevo: 65C waters (flow rate: 101/s) are used for greenhouses;
Tara : 40C waters produced by 1200 m-deep wells are used for wool washing.
Precaucasus :
The Krasnodarsk and Stravropol Territories and the Karatchais-Tcherkesses Republic
(Southern Russia) have large geothermal resources related to the occurrence o f low to
intermediate temperature (40-200C) waters in sedim entary aquifers o f the Kuban'
Plain. High tem perature systems are expected at great depths around the Temrjuk G olf
(220C at 6320m.depth). Developm ent o f geothermal resources was promoted by the
abundance o f large aquifers with low salinity waters. Extensive oil exploration also
provided a lot o f data.
Geothermal exploitations mainly concern heating for agricultural purposes
(greenhouses, fish farming), space heating and balneotherapy.
The main sites in Krasnodarsk Territory arc : Mostovskoy, Abadzekh, Alexandrovsk-

Rovnensk, Shirvan, Gorjachij-Kljuch, Brjukhoveckij, Novo Titarovsk, Novo-Dimitrievsk,
Belorechensk. 70-130C waters are produced from Low er Cretaceous and Majkop
aquifers mainly, located between 1000-4000m.depth. Flow rates range from 2 to 401/s.
In the Mostovskoy Region, 75C waters are used for m ultipurpose utilisation:
greenhouses (180,000m 2), space heating, farm heating, concrete block fabrication, wood
drying. Residual temperature waters (20-30C) are used form swimming pools and fish
farming.
The main sites in Stravropol Territory are: Georgievsk, Praskove, Cherkessk,

Nevinnomysk, Kajasula, Neftekumsk, Majkop, Labinsk. 70-200C waters are produced
from aquifers at a depth o f 1500-4500m. located within Cretaceous and Majkop
Formations. Flow rates range from 3 to 601/s and fluid salinity from 1 to 100g/l. In some
places, high tem perature conditions could allow the installation o f electricity power
plants {Praskove, Kajasula, Neftekumsk).
N orthern Caucasus:
Dagestan Republic
This region bordering the Caspian Sea has large geothermal resources which have been
exploited since 1950. Their assessm ent has largely benefited from oil and gas
exploration drilling. M any abandoned oil wells have been used for therm al w ater
production.
In the 7ere-Caspian Trough, the top o f the basement is 3000 to 11,000m deep and
large aquifers have developed within the sedim entary pile. The main thermal water
reservoirs are: M ezosoic sandstones and limestones (160- 240C; 60-210g/l), M iocene
sandstones (600-4000m.deep; 85-125C; flow rates: 2-51/s; salinity: 3-10g/l; pressure:
10-30 bars), Pliocene sandstones (5 0 0 -1000m.deep; 25-55C).
In the Caucasus Foothills, three main aquifers are developed: Jurassic Formations (700-
2500m.deep; 10-70g/l), Cretaceous Formations (600-2000m.deep; 40-70C; 10-70g/l;
135
Russia
5-121/s; 25-30 bars), Middle Miocene Formations (55-106C; 3-10g/l; 6-401/s). Highest
temperature conditions and flow rates are observed along the Kuma River, in North
Dagestan and South Kalmuk Republic.
Thermal waters are widely used for space heating (200,000 inhabitants), greenhouses
2
(60,00m at Ternair), industrial process heat (oil reservoir heating), mineral extraction
(I,Br), balneotherapy.
Main sites o f geothermal exploitation are: Makhach-Kala, Ternair , Izberbash, Terekly-
Mekhteb, Chervleny-Buruny, Tarumovka, Kizlyar, Kayakent, Berikej, Sukhokumsk.
Chechene Republic, Kabardino-Ba/kariya Republic

These two republics are located on the Caucasus Foothills. The same aquifers as those
described above in Dagestan (Cretaceous and M iddle M iocene Formations) are
exploited for thermal waters. They are mainly used for space heating and greenhouses.
Main sites o f geothermal exploitation are: Grozni, Datykhskij, Gudernes, Nal'Chik. At

Grozni, 80-90C waters with TDS 5g/l provide district heating for 5,000 inhabitants.

136
Sw itzerland
SWITZERLAND
Size 41,293 km2

Geothermal 0 GWh
Hydro 39,946 GWh
Nuclear 24,363 GWh
Wind 5 GWh
The early 1990s m arked a turning point in Swiss geothermal development. Deep drilling
projects gave mom entum to countrywide borehole heat exchanger (BHE) installations
(the so called geothermal heat pumps). Since 1990 significant steps have been taken in
energy policy developm ent towards the utilisation o f indigenous and environm entally
benign forms o f energy. A governmental risk coverage system for deep drilling
(>400m) introduced in 1987 is still effective; 15million Swiss francs were awarded by
the federal governm ent to cover activities in the period 1987-1997; six wells have been
drilled to depths o f between 650 and 2550m since 1991. As a generalisation flow rates
have been too low for sensible utilisation.
137
Sw itzerland
D ir e c t Uses
Wells drilled in the late 1980s were more successful and resulted in the start o f a
geothermal doublet system o f 4.7M W t in 1993 at Riehen. Shallow geothermal surveys
(15-400m deep bores) have resulted in BHEs and their derivations (energy piles,
m ultiple BHE, com bined heat extraction/storage, etc.) providing a new impetus to
geothermal developm ent in this country. More than 6000 such systems have now been
installed, representing heating am ounting to 820TJ/yr (Switzerland used 346,000TJ for
space heating in 1993). In addition to the extensive use o f BHEs, Alpine tunnel waters
are also used in heat pump installations. In 1997 total installed rated capacity is
190MWt. Seven professional person-years o f effort in 1994 were expended and the total
investment in the past was US$ 177M, o f which 85% was from private funds.
Exploited - plant in operation 190 MW t

Unexploited - plant under construction or planned 10 M W t
Unexploitcd - proven resources
Unexploitcd - probable and possible resources
138
Turkey
TURKEY
Size 780,576 km2

Population (1994) 61. 6 millions
Average annual growth rate o f GNP (1993-94) -3.9 %
Consumption o f energy (1993) oil equivalent 59.16 million t
Geothermal GWh
Fossil fuels GWh
Hydro 33.93 GWh
Nuclear 0 GWh
Wind GWh
^E x p lo ite d high enthalpy resource

^E x p lo ite d low enthalpy resource
/VlJnexploited high enthalpy resource
VU nexploited low enthalpy resource
GEOTHERMAL SITES
1-Kisildere-Denlzli
2-Germencik-Aydin
3-Canakkale-Tuzla
4-lzmir-Seferihiser
5-Salvatli
6-Simav-Eynal
7-Diklli-Bergama
8-Gonen
9-Baliseklr-Pamukai
10-Balcova-lzmir
11 -Kia'lcahaman
12- Gediz-Kutahya-Yoncali
13-Havza
14-Afyon-Bolvadin-Omer-Orucuglu-
-Gazligol
15-Haymana
16-Salihli
17-Kirsehir
18-Rize-Hayder
19-Slvas-Sicak-Cermik
20-Canakkale- Ezine-Kestanbol
21-Resadiye
22-Kozakli
23-Sakarya-Kuzjlu k
LOCATION OF THE
TURKEY
In Turkey, recent volcanism and active faulting related to the Alpine tectonic Belt have
created highly favourable conditions for the developm ent o f geothermal systems. More
than 1000 hot springs are known. 140 geothermal localities have w ater tem perature in
excess o f 40C. At least 7 sites are suitable for electricity generation.
High enthalpy geothermal systems are mainly located in graben structures in W estern
Anatolia whereas low to intermediate temperature resources are disseminated in M iddle
and Eastern Anatolia, along fault zones (Northern Anatolian Fault) and in volcanic
areas.
Only one high tem perature geothermal field is currently exploited (Kisildere-Denizli ).
Two other sites have been drilled and their potential estimated ( Germencik-Aydin and
Canakkale-Tuzla). Four other sites with electric pow er generating potential have been
investigated (Izmir-Seferihiser , Salvatli, Simav and Dikili-Bergama ).
139
T urkey
Installed capacity is 20.9M W e. Plans are in place to exploit 125M W e from Germencik,
Kisildere and Canakkcile (and possibly other fields) by the year 2000, 150MWe by 2005
and 258M W e by 2010.
Kisildere-Denizli Field: a 0.5M W e pilot plant was built in 1975, followed by a

20.4M W e single flash power plant in 1984. They are fuelled by 9 production wells.
Reservoir temperature ranges between 198-212C. Extensive Calcium -carbonate scalc
deposition require frequent cleaning, until the use o f the scale inhibitor Dequest 2066;
Germencik-Aydin Field: 9 wells ranging in depth from between 285 and 1500m. have
encountered a 216-232C w ater reservoir within metamorphic rocks. Its potential
capacity is estimated to be 100MWe and a 30M W e plant is planned;
Canakka/e-Tuzla Field: 2 exploratory wells up to 1020m deep have located a 174C

w ater reservoir, but permeability is low. Further drilling will be devoted to the
identification o f deep resources.
Su m m a r y o f R e so u r c e s

U nexploited - plant under construction or planned 258M W e
Unexploited - proven resources lOOMWe
Unexploitcd - probable and possible resources 200-300M W e
D ir e c t U ses
In Turkey, geothermal energy is mostly used for heating (87%). The installed capacity
is 160MWt and 121 MWt are under construction (July 1994). Feasibility studies have
been com pleted on an additional 563MWt capacity. Total proven capacity for direct
uses in Turkey is 2,264MW t. The geothermal heat production capacity is expected to be
increased to 2,520M W t by the year 2000, and 6,500M W t by the year 2010.
Over 30 geothermal district heating systems exist and, with a few exceptions, use
geothermal waters through heat exchangers due to their chem ical composition. Also,
scaling and corrosion problems have been solved by fluid treatments and suitable
equipm ent designs.
The largest geothermal heating districts are:
Gonen, operating since 1987 (16.MWt capacity) for space heating (dwelling, hotel),
greenhouses, industrial heat process (tanneries). Average flowrate and w ater
temperatures are 801/s and 80C, respectively;
Simav (33-66M W t), operating since 1992 for space heating and balneology. It is fed
from a 720m deep well producing 143C geothermal fluids at a 70 1/s flow rate;
Kirsehir (18,25M W t) operating since 1994 for space heating and domestic hot w ater
supply. The average flow rate o f geothermal fluids is 240 1/s;
140
Turkey
Balcova (17,80M W t) operating since 1983 for space heating and domestic hot water
supply.
Other geothermal district heating systems on operation are: Kizilcahaman (0.6M W t),
Gediz (O.IMWt), Havza (0.7M W t), Afyon-Bolvadin (1.5M W t), Haymana (0.9M W t)
lihli (0.6M W t) yon-Omer (2.M W t), Afyon-Orucuglu (2.3M W t), Simav-Eynal (2.M W t),
Rize-Ayder (0.4M W t), Sivas-Sicak Cermik (0.7MWt).
Geothermal district heating systems under construction are : Canakkale-Ezine-

Kestanbol (3.7M W t), Balikesir-Pamuka (lM W t), Kutahya-Yoncali (0.3M W t), Dikili
(56M W t), Kutahya-Simav (12M W t), Salihli (47M W t).
Feasibility studies are completed for the following systems which will be mostly used
for space heating, air conditioning and domestic hot w ater supply: Izmir (168M W t),
Aydin (174M W t), Resadiye (7.6M W t), Kozakli (llM W t), Afyon (107M W t), Kirsehir
(65M W t), Simav (20M W t), Sakarya-Kuzulik (1 lM W t).
Exploited - plant in operation 160MWt

Unexploited - proven resources 2,264M W t
Unexploited - probable and possible resources 6,500M W t
141
Annex 1.1
AGENDA 2000
Countries
Bulgaria
Czech Rep.
Estonia
Hungary
Latvia
Lithuania
Poland
Romania
Slovakia
Slovenia
Bulgaria
BULGARIA
Size 110,912 km2

Annual population growth rate (1985-95) -0. 6 %
Average annual growth rate o f energy use (1992) 6.4 %
Geothermal 0 GWh
Hydro 1,468 GWh
Nuclear 15,335 GWh
W ind GWh
_______________ LEGEND
ROMANIA Exploited low enthalpy resource
A Unexploited high enthalpy resource
GEOTHERMAL SITES ~
1 - Varshec 18 - Pavel Bania
2 - Dolni Dabek 19 - Ovoshtnik
3 - Ovcha Moglia 20 - Simili
4 - Marash 21 - Bania
5 - Konstantin 22 - (Eleshnica
6 - Zlatni Pias.(Golden sands) 23 - Draginovo
7 - Bankia 24 - Varvara
8 - Chiflik 25 - Velingrad
9 - Kustendil 26 - Konstandovo
10 - B. Bania 27 - Rupite
11 - S. Bania 28 - Sandanski
12 - Pchelin 29 - l.enunovo
13 - Momin 30 - Marikostinovo
14 - D. Bania 31 - 'Dgnianovo
15-S trelcha 3 2 -D evin
16 - Bania 33 - -laskovksi Bani
17 - Hisar 34 - Simeonovgrad
LOCATION OF THE
BULGARIA
Bulgaria is rich in low-enthalpy geothermal energy. About 1000 thermal aquifers and
therm al springs have been discovered. The total dynamic resources o f thermal and sub-
thermal waters reach about 5100 1/s. The temperature o f artesian thermal waters varies
between 20C - 100C, 2/3 o f which are within the 42C - 50C range. W ater
m ineralisation in Bulgaria varies from 0.1 to 100g/l; in southern Bulgaria the thermal
waters are o f the nitrogenous type with less than lg/1 TDS.
The heat potential estimated for thermal waters discovered in Bulgaria amounts to
448MW t, a third o f which could be obtained by heat exchangers, while the remaining
two thirds are produced by heat pumps. W aters with temperatures from 32C to 42C
are not included, as according to the Bulgarian legislation, these waters are reserved for
balneological use.
144
Bulgaria
E l e c t r ic it y G en e r a t io n
There is no electricity produced from geothermal resources in Bulgaria which is due to
the low temperature o f the geotherm al water.
D ir e c t U ses
Until 1980 therm al waters were used only for medical treatm ent needs in the big resort
centres, swimming pools, for flax and hemp processing, derivative production, bottling,
bathing, etc. Their com plex utilisation both for heating and m edical treatm ent was
limited to only a few sites. The thermal waters were directly used for the heating o f
buildings and greenhouses.
A fter 1980 the number o f spas increased to 70, and com plex therm al utilisation was
extended. The total capacity o f the systems for direct geothermal energy uses in
Bulgaria which are o f simple design amounts to 62M W t, with one half being used for
space heating and the other h alf for greenhouses.
A fter 1990 several simple systems for direct application were installed at two sites
(Dolnci Bania and Maritza). At present, for space heating only 20 % o f the country's
488M W t heat capacity is used.
W ithin the same period no progress was observed in the geothermal w ater utilisation for
balneological purposes, swimming pools and baths.
The mineral w ater consum ption per capita doubled compared to 1985. A part o f the
natural mineral w ater production is exported.
The thermal w ater utilisation in Bulgaria is related mainly to balneological needs (15%
o f the total), space heating (9.4%) and greenhouses (4.9%), bottling o f potable w ater
and soft drinks (1.4%), swimming pools (4.5%), and some industrial uses (7.6%); the
rest (49.5%) is labelled as free capacity, suggesting that the estimated full potential o f
488M W t is not utilised. The average duration o f the heating season in Bulgaria is 180
days, so load factors are moderate and many systems have heating and ventilating
capability.
The results o f feasibility studies and estimations based on all the projects which have
been conducted in Bulgaria show that the price o f 1GJ o f produced energy from
geotherm al resources is two to four times lower than from fossil fuels. The pay back
period for the capital investments is 2.5-8 years. Drilling cost are not included in the
analysis as all sites use existing wells.
The Struma rift valley (graben system) is one o f the m ost interesting areas on the
Balkan Peninsula and rich in thermal waters. The geothermal activity is manifested
from nearly 100 natural and borehole thermal sources, and many tem perature and
hydrogeochem ical anomalies produced from concealed thermal in the basem ent and in
sedim entary successions w ithin the grabens.
The hydrogeothermal activity o f the Struma Valley is evident from 39 autonomous or
conjugate deposits o f therm al waters. Seventeen o f them are still not exposed, although
they have been identified from temperature and geochemical indicators. A significant
num ber o f unidentified sources occur in the granite-metamorphic basement and along
the sides o f grabens. Considerable studies are needed to outline and evaluate the
stratified hydrogeothermal reservoirs within the Neogenic sedimentary successions o f
the Sandanski and Serres graben.
The total reproducible potential o f the non-stratified (fault- and fracture-bound) deposits
is estimated at 14501/s o f thermal waters with temperatures between 50C and 115C
145
Bulgaria
and a total thermal capacity o f about 350M W t. At present, only 3221/s o f thermal
waters with temperatures from 21C to 101 C and a total capacity o f about 60M W t have
been quantified.
There are a number o f basic problems with the use o f thermal waters and thermal
energy application in Bulgaria. These include:
Old equipment
M ost o f the existing production wells were drilled in the sixties have deteriorated. The
organisations responsible for their m aintenance, nam ely the M inistry o f Health and the
M unicipalities do not have the funds required for their improvement. There are also
cases o f com plete geothermal w ater loss due to technical reasons.
Laws and regulations in the country

In accordance with existing laws and regulations, the regim es o f geothermal reservoir
utilisation are determined by the M inistry o f Health if the reservoirs are o f national
importance, and otherwise the M unicipalities are responsible. This is determined by
m eans o f resolutions issued by the Council o f M inisters, and not by special laws.
National energy policy

There is still no national policy for preferential pricing o f products and materials,
needed for the developm ent o f non traditional systems to provide econom ically efficient
energy. High interest rates exist on credits for the construction o f renewable energy
systems.
Land ownership
The economic and social changes in Bulgaria include restoration o f private land
ownership. Because legal claims are still pending there are many unsolved problem s
consequently, the process o f greenhouse construction has practically stopped.
Fifteen wells have been drilled since 1990, ranging in depth from 300 to 2000m with 24
person-years o f effort in 1994 and US$ 0.82M, o f m ainly public money, spent on
geothermal research and developm ent during the last 10 years.
S um m ary of R esources

Unexploited - plant under construction or planned 0
U nexploited - proven resources 448M W t
U nexploited - probable and possible resources 1800MW,
146
Czech Republic
CZECH REPUBLIC
Size 78,864 km2

Annual population growth rate (1985-95) 0 %
Geothermal 0 GWh
Hydro 1,460 GWh
Nuclear 12,977 GWh
Wind Gwh
Due the com plicated geological conditions in the Czech Republic the value o f the heat
resources has not been calculated. However, reasonable estimates have been made for
three potential reservoirs: Krusne Hory foreland rift zone, Bohemian Cretaceous Basin,
West Carpathian Foredeep which covered about 25 % o f the overall territory.
The w annest and most important geothermal natural spring with a tradition that has
been lasting for centuries is Karlovy Vary in the Krusne Hory foreland rift zone. Its
temperature is 72C, the total yield o f 12 springs is 40 1/see with total dissolved solids
(TDS) o f 6g/l. This mineral w ater is o f the N a-H C 0 3-S 0 4-Cl-type. These springs rise on
the crossing o f a three-fault system: the transversal, north-south and west-east faults
confining the Krusne Hory foreland rift zone.
147
Czech Republic
Electricity is not generated from geothermal resources.
D ir e c t U ses
The Teplice spa with its thermal springs is situated in the same rift structure. Thermal
w ater circulates in the fractured system o f carboniferous quartz porphyry. There are
many small springs with differing temperatures. Actually the thermal w ater is captured
in a deep well (900m), its yield is about 25 1/sec with a temperature o f 42.0 to 45.8C.
The Pravridlo spring has a m ineralisation o f about lg/1 o f the Na-HCC>3-type. Some o f
the small mineral springs are radioactive.
In the same tectonic structure, there are radioactive thermal springs in Jachymov , but
their temperature is only 32C. These thermal waters have accumulated in a 600m deep
old silver and uranium mine.
The spa Janske Lazne with thermal springs o f 18 to 32C is on the S-W -E border o f the
Krkonose granit massif.
There are also several springs in Moravia such as: Teplice and Becvou (22.5C, 16 1/sec
yield), Slatinice (21C, 10 1/sec yield), Velke Losiny 36C, 15 1/sec yield) and Bludov
Lazne (28C, 7 1/sec yield).
The geothermal low-enthalpy heat is used for domestic and swimming pool heating, and
for some small industries. More than 1,000 localities were assessed for use with heat
pumps. About 100 heat pumps have been installed with a total heat capacity o f 2MW.
Sum m ary o f R esources

Uncxploited - plant under construction or planned
Unexploited - probable and possible resources 3,300MW,
148
Estonia
ESTONIA
Size 45,215 km2

Annual population growth rate (1985-95) -0.3 %
Geothermal 0 GWh
Hydro 3 GWh
Nuclear 0 GWh
Wind GWh
Estonia is situated on the Northern Slope o f the Baltic Shield which has been described
as a relatively low heat flow area. The thickness o f the Phanerozoic sedim entary rocks
that cover the Early Proterozoic basement increases from 150m in the north to 600-
700m in the south. The sedim entary cover is represented by Vendian, Cambrian,
Ordovician, Silurian and Devonian sediments. Geothcrm ally, the most interesting
aquifers are in Cambrian and Vendian sandstones and siltstones. Due to com paratively
low heat flow from the Precambrian basement, and the small thickness o f sedimentary
rocks, the groundw ater temperatures in the Phanerozoic aquifers are below 15C and do
not represent useful geothermal resources in terms o f typical geothermal aquifer
techniques. However, these formations could well be used for producing geothermal
energy for space heating with heat exchanger techniques. Potential targets can also be
found in the basem ent for hot dry rock applications.
The limited thickness o f the sedim entary cover and the relatively low heat flow density
are responsible for the lack o f geothermally useful aquifers. For HDR technique,
northeastern Estonia is the most potential area and tem peratures o f 30C can be
149
Estonia
expectcd at depths o f about 1km. The origin o f increased heat flow density in the area is
not yet well understood. Since there is no therm ally important regional groundwater
flow, the anomaly can be more likely attributed to crustal heat sources in the basement.
150
H ungary
HUNGARY
Size 93,032 km2

Annual population growth rate (1985-95) -0 .3 %
Geothermal 0 GWh
Hydro 161 GWh
Nuclear 14.049 GWh
Wind GWh
LEGEND
Exploited high en thalpy resource
Exploited low en thalpy resource
U nexploited high en thalpy resource
U nexploited low en thalpy resource
GEOTHERMAL SITES
G reat H ungarian Plain
Lake Balaton A rea
A
M
100 2 0 0 km
LOCATION OF THE
HUNGARY
Hungary has one o f the largest geotherm al energy potentials for low and medium
enthalpy in Europe. As a consequence o f the abnorm ally thin lithosphere the heat flux
o f 80-100m W /irf is above the average for the continent and the mean geothermal
gradient o f 20C/Km is steeper than the normal 30-33C/Km value.
The highest surface temperature o f low enthalpy therm al waters is 97C and geothermal
brine from geopressured reservoirs 171C, the highest aquifer temperature registered
140C and 220C, respectively.
The utilisation o f geotherm al energy in Hungary has to be in harm ony with a wide range
o f demands for supplies o f thermal water, protection o f hydrological reserves and the
requirements for environmental protection. The utilisation o f geothermal energy in
Hungary could be profitable in cases o f multistage utilisation using an energy-cascading
system, with electric power generation for direct use. There is also an increase in the
efficiency o f heat conversion from abandoned hydrocarbons wells.
Most o f the thermal w ater resources occur in the Upper Pannonian as high temperature
water-dom inated systems which consists o f sand and sandstone and to a minor extent
clays and silts.
151
Hungary
In the basem ent o f G reat Hungarian Plain, geopressured reservoirs have been found.
These systems are characterised by high reservoir dissolved natural gas (3 to 12 grams
per litre in liquid phases).
ELECTRICITY G I . NI.RAT ION

The is no electricity generated from geothermal resources.
D ir e c t U ses
The former and present conditions o f domestic therm al w ater utilisation, show that the
greatest demand for geothermal energy are direct heat and balneology
Balneological applications are seasonal covering up to 180 days per year. Hot w ater for
direct heat applications is not recirculated but discharged to surface w ater reservoirs.
Heat pumps have not be used in Hungary to increase utilisation efficiency.
The number o f active thermal wells reported (1995) was 810, with 342 closed wells as
at 31 December 1993, i.e. a total o f 1152. A total o f 1045 were reported in 1990, 138 o f
which were closed (1995). The current extraction rate is 6032kg/s (9533kg/s in 1990),
nearly h alf o f which has a temperature in the range 30-40C. The drinking w ater supply
utilises 29.9 % o f the total, balneology 27.3 %, agriculture 26 %, and space heating 1.3
%, with typical load factors o f 0.5 for space heating o f buildings, 0.4 for greenhouses
and 0.4 for hot w ater supply. Thermal w ater production in recent years has declined
from 493 MmVyr in 1989 to 190 Mm3/yr in 1993. Geothermal energy accounts for
0.25% o f the total energy consumption o f Hungary but only one system was
com missioned in the period 1990-1994. Since 1990 there have been no funds injected
into geothermal developments.
To date, total installed thermal power amounts to 750MW.

i
'R esources unexploited (probable and possible) am ount to 380m illion m 3/a
152
L atvia
LATVIA
Size 64,589 km2

Geothermal 0 GWh
Hydro 3,305 GWh
Nuclear 0 GWh
Wind 0.02 GWh
LE G E N D
E xploited high e n th a lp y resource

T E xploited low e n th a lp y resource
A U nexp loited high e n th a lp y resource
V U nexp loited low en th a lp y resource
G E O T H E R M A L SITES
1 - Liepaja
2 - Dobele
0 50 100 150 km
LO C ATIO N OF THE
LATVIA
Geothermal aquifer zones o f prim ary interest are in the M iddle Cambrian Deimena
Formation (Cm 2 dm) and in the Low er Devonian Kemeri Formation (Dikm).
The Devonian aquifers lie in a depth o f 400 - 1100m, the Cambrian aquifers lie at a
depth between 960 - 2000m. In com parison with the Devonian aquifers the Cambrian
aquifers have attracted interest for geothermal energy use, because the average
temperature in the Devonian layer is only 24 - 28C .
Geothermal heat-in-place
Parameter Lower Devonian Dj km Cambrian Cm? dm
Geothermal area 25C,km2 1,000 12,000
Gross aquifer rock volume, 109m3 150 1,260
N et aquifer rock volume, 109m3 99 604
W ater volume, 109m3 22 85
Average aquifer temperature,C 24 44
Technical heat resource, 1018 J 5.4 46.4
Economic heat resource, 1018 J 3.4 35.4
153
Latvia
Lower Devonian:
Position o f depth: 400 to 1100m
Thickness: 90- 175m
Reservoir rocks are sandstones and siltstones
Reservoir temperature up to 30C
Thermal w ater mineralisation up to 40g/l (Na, CL, Mg, Cl)
Cambrian:
Position o f depth: 960 to 2000m
Reservoir rocks are sandstones and siltstones
Thickness ranging from 40 to 90m
Storage temperature up to 55C
Thermal w ater mineralisation 100-130g/l (Na, CL, Mg, Cl)
Present state o f work:

Regional geological assessm ent
Pre- and feasibility studies at different sites (e.g., Liepaja , Dobele, Eleja, Jelgawa )
E le ctricity G eneration
D ir ec t U ses
Evaluations com piled so far show that there are good geological, technical, economic
and political conditions for the installation o f a geothermal heating plant for municipal
heat supply in Latvia. Preferred locations are Dobele and Liepaja.
M oreover, spas and recreational resorts and tourism could develop along the coast o f the
Baltic Sea ( Kurland) to a m ajor extent. Therm al waters could be used for balneological
purposes and thermal swimming pools to stimulated tourism along the Baltic coast.
More possible fields o f application are fish-breeding and agriculture.
Exploited - plant in operation 0

Uncxploited - plant under construction or planned 16MW,
2
2Resources unexploited (probable and possible) am ount to 51.8-10 IX J
154
Lithuania
LITHUANIA
Size 65,300 km2

Geothermal 0 GWh
Hydro 716 GWh
Nuclear 7,706 GWh
W ind GWh
LEGEND
v E x p lo ite d low e n th a lp y re s o u rc e
A Unexploitea high entnalpy resource
1 - Gargzdai 10 J onisklis
2 - J oniskis 11 Kraks
3 - Klaipda 12 K ret inga
4 - Palanga (V ydm antai)
5 - Radviliskis 13 Lauksargiai
6 - Siauliai 14 Nida
7 - Silal 15 Plung
8 - Silut 16 V ilkav is kis
9 - Baisogala 17 Virbalis
0 100 2 0 0 km
LOCATION OF THE
L IT H U A N IA
Lithuania is located at the w estern margin o f the East European fore-reef platform
which is characterised by a high geothermal potential. Optim um conditions for the
utilisation o f geothermal energy exist in the w estern regions o f Lithuania in the coastal
area o f the Baltic Sea. In W est Lithuania maxim um values o f the geothermal gradient
exceed 4 K per 100m, and heat flow density reaches 108m W /m 2.
In the geothermally optimum area o f the W est Lithuanian Geothermal Field (anomaly),
several cities and towns (Klaipeda , Pa/anga, P/unge, Gargzdai, Nida, dilute, Silale) and
numerous settlements are situated.
In W est Lithuania hot ground w ater can be used for municipal heating systems from
three hydrothermal complexes: U pper and M iddle Devonian, M iddle and Lower
Devonian, and Cambrian. These com plexes are separated from each other by practically
im permeable aquicludes and make up independent, hydraulically separate aquifers.
M oreover, heat can be extracted from hot dry rocks o f the crystalline basement.
155
Lithuania
Geothermal potential:
Upper/M iddle Devonian - 36.45 million t o f CF (conventional fuel) covering an area o f
13284km2
M iddle/Low er Devonian - 120.1 million t o f CF covering an area o f 22626km
Cambrian - 122.2 million t o f CF covering an area o f 42444km
Crystalline - 298-103 million t o f CF covering an area o f 65200km 2
Upper/M iddle Devonian - therm al w ater complex:

Position o f depth: 100 to 600m dipping SW
Overall thickness: 170-200m
Reservoir rocks are aleurites and sandstones
Reservoir thickness ranging from 1 to 25m - inter-stratified by im permeable beds
Thermal w ater flow from the wells partly artesian
Thermal w ater mineralisation 15-35g/l (Na, CL, Mg, Cl)
M iddle/Upper Devonian - thermal w ater complex

Position o f depth ranging from 200 to 900m, dipping SW
Overall thickness 200-300m
Reservoir rocks are sandstones inter-stratified by schluff, clayey stones
Reservoir thickness 14m - inter-stratified by impermeable beds
Permeability in the reservoir often exceeding lOOOmD
Thermal w ater mineralisation up to 85g/l (Na, CL, Cl)
Cambrian - therm al w ater complex

Position o f depth ranging from 600 to 2100m dipping SW
Overall thickness 40 to 170m
Reservoir rocks are sandstones with schluff and argillites
Reservoir thickness 13 to 67m
Porosity 6.5 to 19 %
Thermal w ater m ineralisation up to 200g/l (Na, CL, Mg, Cl)
D ir e c t U ses
So far, direct uses are being developed:
Regional geological assessment
2 geothermal wells (1991/1993) were drilled for the installation o f a geothermal loop
( Vidmantai)
Preliminary investigations and feasibility studies into geothermal heat supply systems at
different sites ( Vidmantai, Klaipeda , Palanga, Vilkaviskis , dilute etc.)
Investigations concerning the utilisation o f the thermal w ater for balneological purposes
( Vilkaviskis )
The construction o f the Klaipeda geothermal heating station funded by the World Bank
is in its initial stage (January 1997).
156
Lithuania
At present, funds are being raised for a balneological-geotherm al project at the site o f
Vilkaviskis. W ithin the framework o f a research project into the usability o f dual
porosity reservoirs, the two existing geothermal wells shall be used in a circulation
system at the site o f Vidmantai.
Exploited - plant in operation n.a.

3
'R esources unexploited (probable and possible) am ount to 8.19-1018 J
157
Poland
POLAND
Size 323,250 km2

Geothermal 0 GW h
1lydro 1,733 GWh
Nuclear 0 GWh
Wind GWh
Geotherm al waters for balneology purposes have been known and utilised since
historical times. The interest in the geothermal w ater utilisation for heating purposes
started in the 1980s. A series o f investigations haven been carried out since that time.
The estimation o f resources and reserves shows that Poland has one o f the largest
potentials o f geothermal energy in Central Europe.
It is estimated that the recoverable geothermal energy resources am ount to over 30x109
toe and w ater tem perature is from 35 to I30C at 1000-3000m depth.
On the basis o f data obtained during oil and gas exploration, the following geothermal
provinces in Polish territory were distinguished:
Carpathian Province with an area o f 13,000km

Fore-Carpathian Province with an area o f 16,000km2
Lowland Province (Central European) with an area o f 222,000km
Sudetic-Swietokrzyski Province with an area o f 61,000km2.
158
Poland
Data analyses from wells located in the geothermal regions allow the estimation o f
geothermal energy resources:
Carpathian Province
G eotherm al w ater occurs in the M iocene and Cretaceous. Five sub-basins exist, the
most important is the Podhale sub-basin. This sub-basin has an area o f about 475km
and contains geothermal waters with temperatures from 35 to 86C, they have artesian
pressure and a very low mineralisation. The 16 wells are in existence reaching the levels
o f geothermal waters. Most o f these wells are located in the Tatra zone and only Banska
IG-1, Bialy Dunajec, Chocholow are situated in the deeper zone o f the sub-basin.
The experimental geothermal plant in Poland was built in Banska-Bialy Dunajec in
1987-1990. After a three-year trial exploitation period it was used in a geothermal
heating netw ork for Banska Nizna and Bialy Dunajec.
Fore-Carpathian Province
Geothermal waters can be found and used from specific tectonic units within the
Carpathian Mts. The productivity o f wells in the units o f the O uter Carpathians ranges
from several to tens o f m 3/h. More favourable conditions have been found in the
Wisniowa 1 well, where the self-flow o f a brine with the m ineralisation o f about 10g/dm
and the productivity o f 60m3/h were received from the Polonica layer in the Skolska
unit.
In the Carpathian Foreland, geothermal waters occur in the Palaeozoic and Mesozoic
formations o f the Miechow Basin which are covered by the M iocene formations. The
rocks o f this basin contain geothermal waters with mineralisation o f severalg/dm3 and
with the tem peratures from 35 to 100C. The productivity reaches tens o f m 3/h.
Lowland Province
Geotherm al w ater resources occur mainly in Grudziadz-Warsaw and Szczecin-Lodz sub
basins.
Grudziadz- Warsaw sub-basin

The artesian and sub-artesian thermal waters occurred in Cretaceous and Jurassic
reservoirs.
The following projects o f geothermal w ater utilisation for heating purposes have been
elaborated for the Central area o f Grudziadz-Warsaw sub-basin:
Skierniewice where the project o f drillings has been prepared and the Skierniewice GT-1
well was constructed in the vicinity o f the greenhouse and the district heating network.
In this well geothermal waters have been found in the Liassic formations. They have the
tem peratures o f about 65C and productivities from 70 to 170m3/h.
Zyrardow where geothermal w ater utilization for heating purposes has been designed.
G eotherm al waters under Zyrardow exist at about 2800m depth in the Liassic
formations. Their tem perature ranges from 65 to 70C.
Mszczonow, this town is located about 25km to the east from Zyrardow. There exist two
exploratory wells: Mszczonow 1 and Mszczonow 2. Geotherm al waters were found in
the Lower Cretaceous, M almian, Dogger and Lias formation.
For the Praga-Poludnie district which is located in the south-east part o f Warsaw, the
prelim inary project o f the geothermal waters utilisation has been evalutated. Geothermal
energy resources were found in the Low er Cretaceous, Jurassic, Triassic and Lower
Palaeozoic formation.
159
Poland
Central area o f Mogilno-Lodz sub-basin

The following projects o f geothermal w ater utilisation for heating purposes were tested
in the central and northern part o f the Mogilno-Lodz sub-basin:
Kolo. In the wells o f Kolo IG-3, Przybylow 1, Ponetow 1, geothermal waters were found
in the Low er Cretaceous, M almian and Dogger formations. Geothermal waters with a
low m ineralisation (6.5-9.lg/dm ) exist in the Albian Low er Cretaceous formations.
They have a temperature o f about 60C. W aters with a temperature o f 74C and
mineralisation o f 113.5g/dm3 exist in M almian formations at a depth o f 2250m.
Gnienzo. The preliminary project o f geothermal w ater utilisation was prepared on the
basis o f the wells Myslecin 1, Waliszewo 1, Trzemzal 2. In the Gniezno region there is a
very favourable geothermal gradient. It is possible to receive geothermal w ater with
temperatures from 60 to 80C from the rocks o f D ogger and Liassic formations at a
depth from 1500 to 2000m.
Uniejow. The Institute o f Energetic resources o f the Academ y o f Mining and
M etallurgy and the National Geological Institute in Warsaw initiated a project which
included drilling programm e in the Uniejow region. However results from the research
across the whole area o f the Polish Lowland have not led to further development
because o f the lack o f investors and financial funds.
Western part o f Szczecin-Wagrowiec sub-basin
The following preliminary project o f geothermal w ater utilization for energetic purposes
were elaborated for the western part o f the Szczecin-Wagrowiec sub-basin:
Pyrzyce. The construction o f the geothermal heating plant in Pyrzyce was started in
1992. Two doublets o f wells were drilled in 1993 (1700m depth). The two doublets
supply about 360m /h o f geothermal w ater with a temperature o f about 65C and a
mineralisation o f 120g/l. The peak capacity o f the geothermal plant is about 55 Mwt,
Stargard Szczecinski. It is planned to establish a geothermal heating plant on the basis
o f the high w ater temperatures in the Jurassic (Liassic) reservoirs which have good
properties in a porous sandstone horizon (100C at 2500m depth).
Szczecin. The Formation temperatures at a depth from 1600 to 2200 range from 65 to
85C.
Sudetic-Swietokrzyski Province
In the Sudety M ountains geothermal waters have been exploited since the 10th century.
At present, exploratory works to utilise geothermal waters for heating purposes in Ladek
Zdroj and Cieplice regions have been performed. The Fore-Sudctes contains the North-
Sudetes Basin, Zar Periclinc, Fore-Sudets M onocline and the Fore-Sudetes Block.
Geothermal waters with low and moderate tem peratures occur in the Triassic formations
in the North-Sudetes Basin, Zar Pericline, a southern part o f the Fore-sudetes M onocline
and the Opole region. No projects to utilise geothermal w ater have proceeded.
160
Poland

Unexploitcd - plant under construction or planned
4
R e so u rc e s unexploited (probable and possible) am ount to 30-109 toe
161
Rom ania
ROMANIA
Size 238,391 km2

Geothermal 0 GWh
Hydro 13,046 GWh
Nuclear 0 GWh
Wind GWh
LEGEND
UKRAINE Exploited high enthalpy resource
T Exploited low enthalpy resource
H UNG AR
GEOTHERMAL SITES
1 - Satu Mare 12 - Arad
2 - Acas 13 - Nad lac
3 - Tasnad 14 - Sanicolau
4 - Sacuieni 15 - Saravale
5 - M arghita 16 - Tom natec
6 - Bors 17 - Lovrin
7 - Livada 18 - J im bolia
8 Q a d e a 19 - Timisoara
9 - Salonta 20 - Olt-Tal
10 - C iu m e g h iu 21 - N -B u k a re s t
Y U G O S L A V IA LOCATION CF THE
GEOTHERMAL RESOURCES CF
R O M A N IA
The exploration and research for geothermal resources began in Romania in 1962-1965.
The first geothermal wells were drilled in the W estern Plain ( Oradea , Felix, Calacea
and Timisoara areas). At present over 200 wells have been drilled which show the
presence o f geothermal resources. The drilling o f most o f these wells was funded by the
Romanian government as part o f the Geological Research Program. The completion and
experimental exploitation o f over 100 wells in the past 15 years had enabled exploitable
heat resources from geothermal reservoirs to be evaluated. The proven reserves (with
already drilled wells and exploited by downhole pumps) are about 200,000TJ for 20
years.
The total installed capacity o f the existing wells for energetic uses is 320M W t (for a
reference tem perature o f 30C). At present, only 137MWt are used from 60 wells that
produced hot w ater in the temperature range o f 55 to 115C. The annual energy
utilisation from these wells was about 1,900TJ (45,000 toe), with a load factor o f 63 %
in 1994. More than 80 % o f the wells are discharged in artesian flow and 18 wells
require anti-scaling chemical inhibition.
162
Rom ania
D ir e c t U ses
The main energetic uses o f geothermal energy are:
space heating and hot w ater preparation for domestic use 53%
greenhouse heating 34%
industrial process heat (wood drying, milk pasteurisation, flax and hemp processing)
11%
fish fanning 2%.
The total num ber o f wells drilled is 122 but only 61 are active. Depth range between
0.8 and 3.2km (average 2.2km). W ellhead temperature is in the 50 -1 15C range.
A bout 30 wells are used for balneological and recreational purposes. The total flow rate
from these wells is over 3601/s and the w ater temperatures are in the range o f 35 to
65C. In 1993, the average flow rate was 2751/s, with an annual utilisation o f 870TJ.
Geothermal w ater is currently used in 16 thermal spas that have a treatment capacity o f
over 550,000 people per year. Geothermal w ater is also used in 24 open pools and 7
indoor swimming pools. In 1993, the total energy savings in balneology was about
21,000toe.
The main geothermal systems discovered on the Romanian ten ito ry are found in porous
perm eable formations such as sandstones and Pannonian siltstones, interbedded with
clays and shales specific for the W estern Plain and Senonian specific for the Olt Valley
or in carbonate formations o f Triassic age in the basem ent o f the Pannonian Basin and
o f M alm-Aptian age in the M oesian Platform.
The Pannonian geothermal aquifer is multilayered, confined and located in the

sandstones at the basement o f the U pper Pannonian on an area o f approxim ately
2500km 2 along the western border o f Romania from Satu Mare in the north to
Timisoara and Jimblia in the south. The aquifer is situated at a depth o f 800 to 2100m.
The thermal gradient is 45-55 C/km. The w ater tem perature at surface varies between
50 to 85C. The m ineralisation o f the geothermal waters is 4-5g/l (sodium-bicarbonate-
chloride type) and most o f the waters show carbonate scaling.
The Oradea geothermal reservoir is located in the Triassic limestone and dolomites at
depths o f 2200-3200m on an area o f about 75km 2 and is exploited by 12 wells with a
total flow rate o f 1401/s geothermal w ater with temperatures at the well head o f 70-
105C. There are no dissolved gases and the m ineralisation is lower then 0.9-1.2g/l.
Both aquifers, the Triassic aquifer Oradea and the Cretaceous aquifer Felix spa, are
hydrodynam ically connected and are part o f the active natural circuit o f water. Although
there is a significant recharge o f the geothermal system, the exploitation with a total
flow rate o f 300 1/s generates pressure draw down in the system, that is prevented by
reinjection. Reinjection is the result o f successful com pletion and beginning the
operation with the first doublet in the Nafural district in Oradea city, in October 1992.
A t present, the total installed capacity is over 30M W t but by changing the exploitation,
the downhole pumping and reinjection by operating 4 more doublets, the capacity could
be doubled. The Felix spa reservoir is currently exploited by 6 wells, with depth
163
R om ania
between 50 and 450m. The total flow rate available from these wells is 210 1/s. The
geothermal w ater has a well head temperature o f 36-48C and is potable.
The Bors geotherm al reservoir is situated about 6 km north-w est o f Oradea. The
geological framework is com pletely different from the Oradea geothermal reservoir
although the reservoir is in the same fissured carbonate formations. This is a tectonic
closed aquifer with a small surface area o f 12km2. The thermal w ater has a
m ineralisation o f 13g/l. The dissolved gasses are 70% CO 2 and 30% CH 4. The reservoir
tem perature is higher than 130C at the average depth at 2500m. The artesian
production o f the wells can be maintained only by reinjecting the whole am ount o f
extracted geothermal water. At present, 3 wells are exploited, with a total flow rate o f
501/s and 2 other wells are used for reinjection, at a pressure that does not exceed 6 bar.
The geothermal w ater is used for the heating o f 6 ha o f greenhouses.
The Ciumeghiu geothermal reservoir is located in the W estern Plain, south o f Oradea.
Geothermal w ater is produced by artesian flow with a well head temperature o f 105C
and a mineralisation o f 5-6g/l with strong carbonate scaling. The reservoir was
investigated by 4 wells, but only one is currently in use, with a capacity o f 5MWt
(lM W t from gasses).
The Otopeni geothermal reservoir is located north to Bucharest. It is only partially

delimited (about 300km2). The 12 wells that were drilled show a huge aquifer located in
fissured limestone and dolomites. The aquifer, situated at a depth o f 1900-2600m.
belongs to the M oesic Platform. The geothermal w ater has temperatures o f 58-72C and
a mineralisation o f 1.5-2.2g/l, with a high content o f H 2S (over 25ppm). The production
is carried out using downhole pumps, because the w ater level is at 80m below the
surface. The total flow rate is 25-301/s. At present, there are only 3 wells in production
(5M W t) for heating 1900 dwellings (annual savings 1900toe) and 2 wells are used for
reinjection.
The Cozia-Calimanesti geothermal reservoir (Olt Valley) produces artesian geothermal

water, with a flow rate o f 20-25 1/s and well head pressure o f 16-20 bar, from fissured
siltstones o f Senonian age. The reservoir depth is 1900-2200m, the well head
temperature is 90-95C, the w ater mineralisation is 14g/l. The gas w ater ratio (GW R) is
3 3
2 N n r/m (90% methane). Although the reservoir has been exploited for over 10 years,
there is no interference between the wells and no pressure draw down. The thermal
potential that is possible to be achieved from 3 wells is 18M W t (3.5M W t from gas), but
at present, only 8 M W t is used. The utilisation is mainly for space heating, but also for
balneology and recreational purposes.
The main param eters o f Romanian geothermal systems:
A num ber o f new projects are underway. New wells arc being drilled in the Santandrei
area where it is hoped that the tem peratures will be sufficiently high to supply fluid to
ORC generators for electricity, at Olanesti it is expected that an artesian flow rate o f
200m 3/h at a temperature o f about 90-92C will provide heating for a hotel complex,
and north o f Bucharest a doublet giving 80-85C will provide heat to tourist dwellings.
Investment in geothermal energy over the past two decades was US$ 259M with US$
60M being spent in the last 10 years, all from public funds. Currently 27 professional
person-years o f effort have been allocated to these projects.
164
Rom ania

Unexploited - proven resources 320M W t
165
Slovakia
SLOVAKIA
Size: 49,012 km2

Population (1995): 5.353 million
Annual population growth rate (1985-1995): 0.3 %
GNP per capita (1995): 2,950 USD
Average annual growth rate o f GNP (1985-1995): -2 .6 %
Average annual inflation (1985-1995):
Average annual growth rate o f energy use (199 )
Annual C02 emissions per capita: 7.0 t
Geothermal
Hydro 4,601 GWh
N uclear (1993) 12,139 GWh
W ind
,2 0
s v L tZ U C IN IU
POLAND Exploited high enthalpy resource

A Unexplolted high enthalpy resource
CZECH REPUBLIC - / V r -/ " \
49 1 ' V1 T 13 '- f ' 49' GEOTHERMAL SITES

1 - Komarno 8 - Dunajska Streda
/
-1 4
/
J 2 - Banovce n. Bebravou 9 - Calovo
3 - Sturovo 10 - Diakovce
4 - Topolniky 11 - Nove Zamky
T2 ^ ....; j
5 - Galanta 12 - Podhajska
\ J 6 - Tvrdosovce 13-V rbov
7 - Gabcikovo 14 - Kosice
/ / \
\ Bratislava j
>
v i r a r
/N m D V J7 .
A U S T R IA ^ 9 V 0 100 200 km
/ HUNGARY
L O C A T IO N O F T H E
/ G EO THER M AL RESO UR CES OF
120
I SLOVAKIA
The geological structure o f the W est Carpathians in Slovakia and favourable geothermal
conditions create a suitable setting for the occurrence o f geothermal energy sources. The
distribution o f aquifers with geothermal waters and the thermal manifestation o f
geothermal fields in Slovakia have made it possible to define 26 prospective areas and
structures with potentially exploitable geothermal energy sources. These include mainly
Tertiary and intramontane depressions situated in the Inner West Carpathians (south o f
the Klippen Belt). The 26 defined prospective areas cover 27% o f Slovakia's territory.
The tem perature and heat flow density o f geothermal fields are highly variable. At a
depth o f 1000m, tem perature range from 20C (Komarno high block) to more than 70C
(Eastern Slovakian basin, in which the most important parts are the Kosice basin, the
Humensky chrbat Mts. and the Besa-Cicarovce structure). The geothermal gradient in
the Inner W est Carpathians (0-1000m) averages 37C/km (Eastern Slovakian basin 40-
60C/km), so the heat flow density varies from 50m W /m 2 (Vienna basin) to 120mW /m 2
(Eastern Slovakian basin). The highest temperatures, geothermal gradient and heat flow
166
Slovakia
density indicate that, with regard to the geothermal properties, the Eastern Slovakian
basin is the m ost active region in Slovakia.
Geotherm al energy is related to geothermal waters which largely occur in Triassic
dolomites and limestones o f Inner Carpathian nappes and, to a lesser extend, in
Neogene sands, sandstones and conglomerates (Central depression, Horne Strhare -
Trenc graben, D ubnik depression) or in Neogene andesites and related pyroclastics
(Besa-Cicarovce). These aquifers lie at depths o f 200-5000 m (except in spring areas)
and the tem peratures range from 20 to 240C.
In 1971-1994 a total o f 61 geothermal wells were drilled (only 4 o f them e were

unsuccessful) which verified 900 1/s o f waters whose temperatures varies from 20 to
92C. Thermal capacity o f these thermal waters amounts to some 184MWt (water
temperature will be reduced to 15C during exploitation).
The most promising geothermal area is the Kosice basin, where m edium- and high-
temperature sources o f geothermal energy suitable for electricity generation (25-
30M W C) can be captured. At a depth o f 2500-3000m there are waters at 115-165C.
At present, there is no electricity generated from geothermal resources, but it will be
possible in the future.
D ir e c t U ses
Geotherm al waters are used for space heating, recreation and swimming pools in 35
localities. Their com bined discharge is 6011/s and recoverable thermal pow er 8 M W t.
Buildings in three towns are partly heated in this way, and so are greenhouses covering
20 hectares in ten localities. About 80 thermal pools w hose total area exceeds 50,000m"
serve for swimming and recreation. Therm al spas and swimming pools can admit
75,000 visitors a day. The m ajority o f exploited sources o f geothermal energy are
situated in southern Slovakia (Danube basin), prim arily an the Danube basin central
depression. At Vrbov in the Vysoke Tatry area, geothermal w ater is used not only for
recreation but also for fish farming. In the Liptov basin, geothermal w ater is used for
recreational swimming in one thermal spa (Besenova).
Essential conditions to the geothermal energy exploitation have already been created in
Slovakia. A project to heat 1,300 flats, town hospital and pensionists' hostel in the town
o f Galanta in the Danube basin is in preparation. Another project is the construction o f a
reinjection station at Podhajska (to heat greenhouses, houses and swimming pools).
G eotherm al w ater will also be used to heat 500 flats and an indoor swimming pool in
the town o f Poprad (Vysoke Tatry area).
Exploited - plant in operation 74.7 MW t

Unexploited - proven resources 184 M W t
Unexploited - probable and possible resources 5,700 MW t
167
Slovenia
SLOVENIA
Size 20,256 km2

Population 1.946, millions
Average annual growth rate o f GNP (199 -9 ) %
Average annual inflation (199 -9 ) %
Geothermal 0 GWh
Fossil fuels 4, 622 GWh
Hydro 3,399 GWh
Nuclear 4,609 GWh
Wind GWh
LE G E N D
Exploited high e n th a lp y resource

T E xploited low e n th a lp y resource
AUSTRIA A U nexp loited high e n th a lp y resource
HUNGARY V U n e x p lo ite d lo w e n th a lp y re s o u rc e
1 - Lendava 8 - Lasko
2 - Morava 9 - Rimske Toplice
3 - Murska Sobota 10 - Trebovlje
4 - Radenci 1 1 - Dolenjske Toplice
5 - Moravci/Buckovd 12 - Vrhnika
6 - Ptuj 13 - Bled
7 - Dobrna
CROATIA 100 km
LO C A TIO N OF THE
SLOVENIA
Systematic geothermal investigations started in 1982, aimed at the acquisition o f

fundamental geotherm al parameters: virgin rock tem perature and its gradients, thermal
conductivity, and the concentration o f radiogenic elements in the rocks.
Tem peratures in Slovenia, up to a depth o f 4000m, do not exceed 200C, whereas the
tem peratures gradients change within the broad interval from less than lOmK/m to
about 70mK/m. The geothermal energy potential is concentrated in the eastern part o f
the country.
At one locality (Ljutomer) electricity generation o f the order o f 1MW is expected, in
addition to district heating.
168
Slovenia

Unexploited - plant under construction or planned lM W e
D ir e c t U ses
At present the total m aximum possible flow rate o f all thermal springs and boreholes
with a temperature o f at least 20C is 11 OOkg/s with a thermal pow er o f 64M W t,
considering 25C as the outflow temperature, which is an ideal case. The installed
therm al pow er at 21 locations am ounted to 37M W t for utilisation o f geothermal energy
for direct heat (D ecem ber 1994). The total energy consumption at 21 locations reached,
in 1995, about 781TJ, considering the annual flow rate o f 327kg/s.
Thermal spas and recreation centres are the main consumers (50.3%). Hot w ater is also
used for space heating (26.9%), the heating o f greenhouses (9.4%) and therm al heat
pumps (8.4%), but less for industrial processes (1.7%) and air conditioning (3.3%).
O ver 400 heat pumps o f the w ater to w ater type are in use, contributing an additional
40TJ (940toe) o f thermal energy.
Geothermal investigations since 1990 have resulted in 36 boreholes with a total depth o f
about 28.1km. Most o f them were intended for the further exploration o f already known
centres and/or for increasing their capacities or for tapping new aquifers. The remaining
boreholes were drilled for exploitation purposes.
Accum ulations o f geothermal fluids are clearly related to the tectonic and lithological
setting o f the country. The geothermal conditions in the W part o f Slovenia are
influenced by the large crustal thickness in the area o f the O uter Dinarides and the
Southern Alps (up to 40km). These tectonic units consist, in the upper few kilometres,
o f karstified carbonate rocks, w here cold groundw ater circulates. This is the cause for
low geothermal gradients, and consequent low tem peratures down to greater depths. In
this area, the fractured type o f geothermal reservoir prevails. The springs discharge
mostly along the SW border area o f the Pannonian basin. There, the carbonate rocks o f
the Southern Alps, the Outer Dinarides and partly also o f Transition Zone, are overlain
locally by young Tertiary sediments. The pre-Tertiary depression in this area were
formed m ainly along the fractured zones, where most thermal springs with temperatures
o f below 45C are located.
In contrast, the NE part o f Slovenia is affected by the large positive anomaly o f the
Pannonian basin, characterised by thin crust (up to 30km) and thick Tertiary and
Q uaternary sedim entary layers (up to 5km). Geothermal reservoirs o f the intergranular
type occur here. At depths greater than 2500m, thermal fluids reach temperatures within
the range o f 100 to 200C.
All known geothermal resources are o f the low enthalpy type. High enthalpy resources
are still poorly known. The extraction o f geothermal fluids has been limited to the use
o f exploitation boreholes only; doublet schemes are not in use yet.
169
Slovenia
In the past 10 years it is estimated that US$ 73.5million o f public funds have been spent
on geothermal development. In 1994, 13 professional person-years o f effort were used
in developing the geothermal programme.
Su m m ary o f R esources

5
5Resources unexploited (probable and possible) am ount to 14.7-1018 J
170
Cyprus
CYPRUS
Size km
GN P per capita (1993) 10,380 USD per year
Annual CO2 emission per capita (199 ) tonnes
Geothermal 0 GWh
Fossil fuels GWh
Hydro 0 GWh
N uclear 0 GWh
Wind 0 GWh
Cyprus Island is subject to high tectonic stress due to the subduction o f the African plate
beneath Turkey. This causes uplift o f the island with possible reactivation o f existing
faults. Although the tectonic setting appears favourable for geothermal energy, the
outlet temperature o f the known hot springs on the island (about 15) never exceeds
20C. These springs are all related to the Troodos m assif or the sedimentary cover.
No detailed geotherm al assessm ent has been made. The existing springs are used for
spas, but their discharges do not seem very high.
171
Annex 1.1
Other European
Countries:
Albania
Armenia
Azerbadjan
Belarus
Bosnia & Herzegovina
Croatia
Georgia
M acedonia, FYR
M oldova
Ukraine
Yugoslavia, FR
A lbania
ALBANIA
Size 28,748 km2

Annual energy use per capita (1994)oil equivalent 720 kg
Geothermal 0 GWh
Hydro 3,771 GWh
Nuclear 0 GWh
Wind GWh
LEGEND
GEOTHERMAL
1- Krane-Sarande
2 - Langarice-Perm et
3 - Sarandaporo-Leskovik
4 - Tervoll-Gramsh
5- Llixha-Elbasan
6 - Kozan-Elbasan
7- Shupal-Tirana
8- Mamuras-Tirana
9- Peshkopi
0 100 20 0 km
i
40 __________________________________
LOCATION OF THE
ALBANIA
Thermal springs and wells in A lbania are located in three areas:

Kruja geothermal area, Ardenica geothermal area and Peshkopia geothermal area.
In addition to them there are several separated springs in the east o f the southern city o f
Saranda, near Krane village. Therm al springs have also been known in Selenica since
the X century.
Kruja geothermal area is the zone which has the biggest geothermal resources in
Albania, with a length o f 180km and a width o f 4-5km. It starts on the Adriatic coast,
north o f Rodoni Cape in Ishmi region, continues with Tirana, Elbasani up to south
eastern A lbanian-Greek border and extends to the Konica district in Greece.
The Ardenica geothermal area is situated 40km north o f Vlora. It comprises the
molassic-neogenic braehyanticline Ardenica structure and the Semani anticline, the
northern pericline o f the Patos-Verbas carbonatic structure and the neogenic molasses
covering it in the Verbas sector. The Ardenica geothermal area extends on that part o f
the peri-Adriatic Depression where the Vlora-Elbasan-Diber transverse passes.
174
A lbania
The Peshkopia geothermal area is situated in the north-east o f Albania, in the Korabi
hydrogeologic zone. Two kilometers east o f Peshkopia some thermal springs are
situated very close to each other. These thermal springs flow out on the Banja river
slope, which is composed o f flysch deposits. These springs are linked with the
disjunctive tectonic zone, in the Ohri-Diber deep fault, peripherically o f the Permian-
Triassic gypsum diapir, that has penetrated the Eocene flysch which surrounds it in a
ring-like pattern.
Tem peratures vary from a minimum o f 12C at 100m to 105.8C at 6000m. In the
central part o f the Pre-Adriatic depression, where there are many boreholes, the
tem perature reaches 6 8 C at 3000m. The thermal springs, which are situated mainly in
the regional tectonic fractures, have temperatures ranging from 21 to 58C.
The geothermal resources o f potential areas in Albania are between 0.39 and 39-
63GJ/m 2.
The most important resources explored until now are located in the northern h alf o f the
Kruja geothermal area, from Llixha-Elbasan in the south to Ishmi north o f Tirana. The
values o f specific reserves vary between 38.5 and 19.6GJ/m2. The southern part o f the
Kruja area has resources o f 20.63G J/m 2, evaluated by data obtained in the Galigati
section. A ccording to the geological conditions in this zone, its hydrogeological and
geotherm al characteristics, and referring to the geothermal springs found in Greece as a
direct continuation o f that zone towards south, it is expected that even in this part o f the
Kruja geotherm al area there are important geothermal resources, at least to an extent
similar to those o f the Tirana-Elbasani zone.
The Ardenica geothermal area is characterised by identified geothermal resources o f
8.19-10 GJ. The specific reserves am ount to 0.39GJ/m in the anticline structures.
Between the anticline structures, sectors have been evaluated to have reserves below
0.25GJ/m 2.
Geothermal resources o f Pershkopia area have been estimated similar to those o f
northern part o f the Kruja geothermal area.
Albania represents a country with a real potential in low enthalpy geothermal energy,
that can be used for economic purposes.
The springs at Peshkopia , Llixha Elbasani and Langarica Permeti and the Ishmi 1/b
well have been used for medical purposes for several decades. In Elbasani Llixha is a
medical centre with about 2 0 0 beds w here rheum atism and skin diseases are treated.
Thermal waters o f the
springs have been used in their natural state as potable w ater for the treatm ent o f
diseases o f the digestive system.
To date, geotherm al energy has never been used in A lbania as a source o f energy.
The thermal w ater o f the Elbasani Llixha and Peshkopia springs, the Ishmi 1/b and
Kozani 8 wells are in good technical condition. These hot w ater springs represent
energetic sources suitable for direct use in the future.
The important Ishmi 1/b and Kozani 8 wells, yielding 3.5 and 10.3 1/sec o f hot w ater
respectively, which can be used for the heating o f greenhouses, industrial and scientific
purposes once adequate equipm ent has been installed.
The utilisation o f the therm al w ater o f the Ishmi 1/b well (located in the plain near
Tirana) is supported by a relatively good infrastructure (socially and econom ically
175
A lbania
relatively developed area), a geographically favourable position (connected with the

national road, close to the future route o f an international highway which will link
Yugoslavia, A lbania and Greece).
M oreover, the advantage o f the Kozani No. 8 well is the higher tem perature o f the
therm al w ater and the relatively short distance from the W est-East Interbalkan highway
that will pass the town o f Elbasan.
In the peri Adriatic Depression, there are areas with a geothermal gradient o f 18-
20C/m where there are several abandoned oil and gas wells which may well be used
for single or doublet ground-source heat pump installations. They are located in the
plain area o f the country, e.g. in Divjaka and Kolonja where greenhouses could be built
to use the hot w ater for heating them.
M ore detailed and com plex hydrogeological and geophysical investigations should
focus on the exploration o f new therm al springs in the Kruja and Peshkopia geothermal
areas.
The same refers to the Tirana area which is situated in between the Ishmi 1/b and
Kozani 8 wells, to Elbasani Llixha as well as to the Galigati-Langarica-Sarandaporo
area close to the A lbanian-Greek border, and to the Peshkopia area in north-east
Albania.
Abandoned deep oil and gas wells, which are cased, could be used but the geological
conditions need to be reviewed before the possible production o f thermal water.
176
A rm enia
ARMENIA
Size 29,800 km2

Population (1994) 3.5millions
Average annual growth rate o f GNP (1993-94) -2.0%
Annual inflation (1994) 4,960 %
Annual energy use per capita (199 )oil equivalent 525,000 kg
Production o f electricity 5494 GWh
Geothermal GWh
Hydro 3479 GWh
N uclear GWh
Wind GWh
LEGEND
GEOTHERMAL SITES
1- Bajandur 7- Artachat
2- Vanazdor 8- Razdan
3- Dilidjan 9- Martouni
4- Ankavan 10- Dzermuk
5- Arkazan 11- Sisian
6- Sevaberd
100 km
I
LOCATION OF THE
GEOTHERM AL RESOURCES OF
ARMENIA
Arm enia is located within an area o f intense tectonic activity and recent volcanism o f
the M inor Caucasus Chain. The occurrence o f many surface hydrotherm al
manifestations highlights its large geothermal potential. A survey o f geothermal
resources has been com pleted and the main area o f geothermal interest identified. The
most promising area corresponds to a narrow zone extending over the central part o f the
country from N W to SE, with intra-mountain basins filled with thick alluvial deposits
(Sisian, Martouni, Sevan). The geothermal gradient value is about 50C/km. They
contain shallow to deep aquifers with measured tem peratures o f 140C, high
perm eability and high reservoir pressures. Fracture-controlled geothermal systems also
develop within their granitic and metamorphic basements, and outside.
M ost identified resources are related to low to intermediate temperature systems. They
are listed below. Some evidences o f high tem perature systems also exist.
177
A rm enia
D ir e c t U ses
Shirak Basin (Bajandur): a 2500m-deep well produces 100-110C waters from the
Upper Cretaceous reservoir.
Pamback Basin (Dilidjan and Vanadzor): a 2500m-deep reservoir in U pper Cretaceous

Formations produces 110C waters.
Ankavan: Is a fracture-controlled hydrothermal system developed within granites and

schists o f Precanibrian to Palaeozoic Age. W ater temperatures range between 32-41 C
and salinity between 3-8g/l.
Arzakan: Is a fracture-controlled hydrothermal system developed within a recent graben

structure filled with terrigenous deposits. Exploration wells produce 4 4 -5 1C waters
with 5g/l salinity and 2-71/s flow rate.
The Ararat Basin

W ells drilled for oil exploration evidenced 10-30C/km gradient values and waters with
high salinity (40-100g/l).
At Sevaberd (Kara Kala), a 3027m-deep well intersects a aquifer with highly saline
waters (47g/l) at 83C and a 251/s How rate. Reservoir formations arc limestone, shales
and clays.
At Mkhtchyan (Artachat), a 2634m-deep well intersects a aquifer with highly saline
waters (43g/l) at 41C and a low flow rate (ll/s). Reservoir formations are clays and
sandstones o f Palacocene Age.
In Gjumush area, the 3000m-thick sedimentary sequence (Tertiary) contains 70-80C
aquifers.
At Razdan, Upper Cretaceous aquifers produce 100C waters at 2600m depth; the
temperature reaches 140C at 3500m depth.
In Chatma Valley, 1700m-deep and 2500m-deep aquifers produce 60C waters and
90C waters, respectively.
Martouni: Is located within the large Sevan Basin filled with sedim entary and volcanic
deposits. Exploration wells have been drilled down to 1200m depth. They encountered
aquifers with low temperatures (32-40C), low to high flow rates (4-501/s), and low
salinity (2-3g/l). Geothermal potential o f thermal waters is estimated around 8 MWt.
Dzermuk: Is a fracture-controllcd hydrothermal system developed within granitic and

metamorphic rocks. A well drilled in 1938 produced 51/s o f 45-56C waters for
balneological therapy. A deeper reservoir (1500-2000m) with higher temperature
conditions (100C) also exists within fractured limestone.
At Dzermuk , hot waters are used for bathing.
Sisian: It is a fracture-controlled hydrotherm al system developed w ithin the Sisian

Basin filled with fluvial and lacustrine deposits intercalated with volcanic deposits o f
Tertiary to Quaternary Age. Exploration wells produced 36-43C waters with high flow
rates (2 0 -1001/s) and low salinity (4-61/s). Geothermal potential o f thermal waters is
estimated around 8 MWt.
178
A rm enia
Exploited - plant in operation n.a.

Unexploited - proven resources 16MWt
179
A ze rb a ija n
AZERBADJAN
Size 86,600km2
Annual population growth rate (1994) 1.2
%
GNP per capita (1994) 680USD per year
Average annual growth rate o f GNP (1993-94) -22%
Annual inflation (1994) 1780%
Production o f electricity 16634 GWh
Geothermal GWh
Hydro 1782 GWh
Nuclear GWh
Wind GWh
LEGEND
GEOTHERMAL SITES
1- Istisu
2- Ganca
3- Lenkoran-Masally
4- Aspheron
I
! 200 km
---I
LOCATION OF THE
AZERBADJAN
A zerbaijan has a similar geologic setting as neighbouring Georgia. It corresponds to a

sedimentary trough surrounded by the Major and M inor Caucasus Chains. Oil
exploration has provided much o f the data about aquifers and geothermal gradient
values. Low tem perature (35-65C) geothermal systems are evident within these
sedimentary formations.
D ir e c t U ses
Exploitation o f geothermal resources is mainly concerned with greenhouses.
In 1977, four regions o f geothermal interest had been identified:
Istisu Region (Central M inor Caucasus) where hot springs occur;
Ganca Region (M iddle Kura Valley) where the use o f 40-50C waters is planned for
space heating;
180
A zerbadjan
Lenkoran-Masally Region (South East Plain) w here hot springs deliver 63C waters; in
Lenkoran-Masally Region, hot waters are used for greenhouses since 1978 (.Astara ).
Aspheron Peninsula (Caspian Coast) where extensive drilling for oil has provided
detailed data. The Kirmakin Formation produces 10-601/s o f 58-60C waters at
Surakhany, and 51/s o f 35C waters at Bakou. The Low er Cretaceous Formation
produces 301/s o f 35C waters at Keschaj.
181
Belarus
B ELA R U S
Size 207,595 km2

Annual population growth rate (1994) 0.6%
Average annual growth rate o f GNP (1993-94) -20%
Annual CO 2 emission per capita tonnes
Production o f electricity 14,000 GWh
Geothermal GWh
Hydro 19,000 GWh
Nuclear GWh
W ind GWh
LEGEND

T
GEOTHERMAL SITES
1- Barsuki - Rechitsa - Peivomsaisk

2- Brest
0 K 200 km
1 I
LOCATION OF THE
BELARUS
Belarus is located on the western part o f the Russian Platform. Deep aquifers in
sedim entary formations o f Palaeozoic Age represent the main geothermal potential.
They are especially developed in South Belarus (near Ukraine) w ithin M iddle
Devonian.
D irect U ses
H ighly mineralised fluids (200-400g/l TDS) with tem perature up to 100C at 4,5km
depth have been evidenced in the Pripyat Depression, SE Belarus (Barsuki, Rechitsa,
Pervomsaisk). Aquifers with temperatures around 35C at 2.5km also occur in the Brest
Depression, SW Belarus.
No utilisation o f geothermal resources are known to date.
182
B osnia and H er 9 egovina
BOSNIA AND HERZEGOVINA
Size 51,129 km2

GNP per capita (199 ) USD per year
Geothermal 0 GWh
Hydro 1,250 GWh
Nuclear 0 GWh
Wind GWh
Before the recent civil war, the first 1MW pilot plant working on geothermal w ater was
about to be built in Sarajevo. Due to lack o f money the project has not been further
developed. The flow rate is 240 1/s at a tem perature o f 58C.
The country geothermal potential for space heating and balneological purposes, based
on the existing wells is about 33 MWt.
183
Croatia
CROATIA
Size 56,538 km2

Average annual inflation (199 - 9 ) %
Average annual growth rate o f energy use (199 ) %
Geothermal 0 GWh
Hydro 4,930 GWh
N uclear 0 GWh
Wind GWh
LEGEND
GEOTHERMAL SITES
1 - Ivanic
2 - Bizovac
3 - Recica
4 - Sv. N edjelja
5 - M ernatovec
6 - L. Kutnja
7 - Ferdinandov
8 - V. Ciglena
9 - M adarinci
10 - Ernestinova
11 - B. Greda
0 100 200 km
LOCATION OF THE
CROATIA
In the Republic o f Croatia, there are two regions possessing a geothermal energy
potential. The southern area (the Dinarides) with an average geothermal gradient o f
0.018C/m has little geothermal energy potential. The northern part, which belongs to
the Pannoman sedimentary basin, has an average geothermal gradient o f 0.049C/m.
Several geothermal reservoirs, discovered during hydrocarbon exploration, have been
extensively tested there.
Recorded flow rates reach 50-80kg/s, with well head temperatures o f between 80 and
152C. Geothermal energy (80-96C) from three geotherm al fields is utilised (with
reinjection). The installed thermal capacity is 15MWt, but the load factor is too low. It
has been estimated that the total thermal capacity based on tested reservoirs could
am ount to 815M W t (outlet temperature 50C).
There is no electricity generated from geothermal resources in Croatia.
184
Croatia
D ir e c t U ses
At Bizovac the thermal w ater is used for balneology and some space heating with fluid
extracted from two reservoirs at depths o f 1800 and 1600m. W ellhead tem peratures are
96 and 85C with flowrates o f 5 and 3kg/s (mineralisation 2g/l and 30g/l), respectively.
W aste geothermal w ater has been discharged into surface w ater bodies. Separate
treatm ent o f waste w ater is planned.
At Ivanic the w ater (2kg/s with 10g/l o f dissolved solids), at a wellhead tem perature o f
62C, is used for balneology. The reservoir pressure (initially hydrostatic) declines
slowly.
In C roatias capital Zagreb, an aquifer has been discovered by an oil exploratory well.
The geothermal w ater contains 2g/l o f dissolved solids, 0.1m 3/m 3 o f CO 2 and traces o f
H 2S. The reservoir temperature is 55 - 82C at depths between 500 and 1000m. The
very permeable section o f the aquifer covers an area o f 1 0 km in the south-western part
o f the town (sublocalities Blato and Mladost).
At the Blato site, the planned geothermal capacity is 7M W t. In Mladost, there are
several large buildings for sports activities (indoor and outdoor swimming pools and
two other halls), which are entirely geothermally heated (6.3M W t), including peak
consumption.
At Lunjkovec-Kutnjak, carbonate breccia form the reservoir rock, is characterised by a

porosity o f ~7.5. The w ater contains 5g/l o f dissolved solids and 3m 3 o f gas (85% CO 2,
about 15% hydrocarbon and traces o f H 2S). The measured productivity index is
450m 3/(d b ar). In the reservoir evaluation study, an average flowrate o f 80kg/s with
WHP 3-5 bars and W HT 125-140C has been predicted.
At Velika Ciglena the w ater from the dolomite reservoir (depth 3000m) contains 24g/l
dissolved solid and 30m 3/m 3 C 0 2 with 59 ppm H 2S. The predicted production well
flowrate is lOOkg/s with WHP 20-25 bars and W HT 165-170C.
The northern cities are close to a natural gas pipe line, thus limiting the interest and
development o f these fields as in many other countries with financial and other
constraints.
Exploited - plant in operation 10.5MW,

185
G eorgia
GEORGIA
Size 70,000 km2

GN P per capita (1994) 500 USD per year
Production o f electricity 14.168 GWh
Geothermal GWh
Hydro 7.525 GWh
Nuclcar GWh
Wind GWh
LEGEND
^ E xploited high e n th a lp y re source
W ' E xploited lo w e n th a lp y re source
U ne xp loite d high e n th a lp y re source
U ne xp loite d lo w e n th a lp y re sou rce
GEOTHERMAL. SITES
1- Gagra
2- S ukhum i-D randa
3- K indghi-O khurei
4- Zugdidi-Tsaishi-Rechki
5- Kvaloni
6- M engi-Sam tredia-Vani
7- Tbilisi
8- Ujarm a
9- T skaltubo
10- Vardzia-Nakalaveki
* 200 km
LOCATION OF THE
GEORGIA
Georgia corresponds to a collapsed sedim entary trough surrounded by the Major

Caucasus and M inor Caucasus Chains. Wells drilled for oil have provided much o f the
data on aquifers and geothermal gradient values. Georgia has a large geothermal
potential, with 15-20 low temperature geothermal fields identified mainly in W estern
Georgia.
D irect U ses
G eotherm al resources arc widely exploited for direct uses such as space heating,
greenhouses, agricultural drying, bathing and swimming, etc. Total installed pow er is
245MW,, producing 7,689TJ/y.
The total flow rate exceeds 80001/s with w ater tem peratures ranging from 33 to 108C,
and low salinity (l-3g/l). Production wells are usually deeper than 2000 m, and
maximum depth is 3728m. Reservoir formations are fractured, karstic limestones o f
186
G eorgia
Upper Cretaceous in the sedim entary trough (W est Georgia), and volcanics/sandstones
o f Paleocene-M iddle Eocene in the folded systems (East Georgia).
The main areas o f geothermal exploitations are

Gagra 47C; 30 1/s; balneology.
Sukhumi-Dranda 90C; 25 1/s; bathing, greenhouses, airport heating;
Kindghi-Okhurei 105C; 360 1/s; greenhouses, space heating;
Zugdidi-Tsaishi-Rechki 92C; 375 1/s; industrial process heat, space heating;
Kvaloni 97C; 87 1/s;
Mengi-Samtredia-Vani 65C; 150 1/s; bathing, greenhouses;
Tbilisi 65C; 60 1/s; space heating;
Ujarma 59C; 6 1/s;
Tskaltubo 33C; 250 1/s; bathing;
Vardzia-Nakalaveki 46C; 20 1/s;
Since 1991, no developm ent has taken place.

U nexploited - plant under construction or planned
U nexploited - proven resources
187
F.Y.R. o f M acedonia
F.Y.R. of MACEDONIA
Size 25,713 knr

Geothermal 0 GWh
Hydro 695 GWh
Nuclear 0 GWh
Wind GWh
The Republic o f M acedonia is situated in the central part o f the Balkan Peninsula, along
the very favourable geothermal zone that starts in H ungary in the north and Italy in the
west and stretches through Greece down to Turkey and beyond to the east. However,
existing natural springs and results o f exploratory investigation have revealed that
M acedonia is one o f the countries with the richest low-enthalpy geothermal energy
resources. Known geothermal fields are grouped according to geotectonic divisions in
M acedonia. The east and Northeast, which form part o f the M acedonian-Serbian m assif
characterised by crystalline basem ent rocks, is much richer than the west and Southwest
(Bosnian-Serbian-M acedonian geothermal area) w hich is characterised by limestone.
The extreme aggressiveness o f the waters o f this limestone area makes them unsuitable
for practical use as heat sources at this stage o f the development o f geothermal energy
Out o f the seven geothermal fields identified in the east and Northeast o f the country,
some have been found to be very promising: Strumica, Kotchany and Skopye.
Three o f them have been investigated to the stage w here practical use is possible: St ip,
Kumanovo, Debar.
188
F. Y .R. o f M acedonia
The Gevgelia valley is located in the river Vardar zone, in the southern part o f the
country. Three geothermal sites, all near active faults in an area o f high seismic activity,
have been identified so far.
The Smokvica geothermal site was determined after the drilling o f 22 boreholes down to
30-850m. The largest aquifer was found at 350-500m. The m axim um total yield from 4
production wells is about 180 1/s with an average temperature o f 65C. The flow o f
801/s has been found as a realistic maxim um for the field, w ithout causing a negative
influence on the w ater temperature.
In Negorska banja several shallow boreholes, between 20 and 130m deep, were drilled
in 1983. During 1984-1985, two boreholes o f 600m each were drilled, resulting in a
total thermal w ater flow by pum ping o f 801/s at 51C.
Gornitchet has not yet been sufficiently explored. There are two springs yielding 51/s
therm al w ater at 24C. Geotherm ometers indicate that the w ater has a tem perature o f
150C.
The geothermal field Kotchany is situated in the southernm ost part o f the Bosnian-
Serbian-M acedonian geothermal area. Three main geothermal localities have been
defined in the Kotchany valley.
Podlog is located in the middle o f the valley. The first well was drilled in 1967 down to
a depth o f 70m, giving 51/s free w ater flow at 60C. In 1980 a deeper well was drilled
nearby. At 307m an aquifer was intersected yielding over 1501/s free flowing w ater at
79C. In the period 1980-1986, 18 exploratory and production wells were drilled in the
area, resulting in a totally possible yield o f 600 1/s and w ater tem peratures between
57C an 79C.
Banja is located about 5km north o f Podlog. One successful well yields about 501/s o f
therm al w ater at 65C, but the latest borehole (450m) was unsuccessful.
Vinica (or Istibanja) is also north o f Podlog. The w ater temperature in drilled shallow
boreholes (up to 30m deep) is between 30 and 40C. In addition, a 180m deep borehole
was drilled and yielded 21/s o f 60C therm al w ater and another at 190m well yielded
61/s at 60C. The latest production wells have been drilled down to 200-350m and
resulted in a total flow o f around 601/s at 60C.
D ir e c t U ses
15 geotherm al projects are in operation or under developm ent in 5main areas. The total
flow is 10001/s, and the total installed therm al capacity is estimated to exceed 70M W t
with an energy use o f 510TJ/yr, o f which 80 % is exploited in greenhouse heating at
load factors o f about 33%.
189
F.Y .R. o f M acedonia

190
M oldova
M OLDOVA
Size 33,700 km2

Average annual growth rate o f energy use (1992) 3.3 %
Geothermal 0 GWh
Hydro 278 GWh
Nuclear 0 GWh
Wind 0 GWh
The geothermal conditions o f M oldova have been well investigated regionally. The data
currently available provide a good characterisation o f M esozoic-Cenozoic formations in
the country. Tem perature measurements have been carried out over different periods o f
time (between 1950 and 1990) by means o f hydrogen therm ometers and electrometric
units (laboratory AEKS-1500, therm om eter ETM P-55) in coasting ditches and wells
drilled o f oil, gas and w ater exploration.
Based on the evaluation o f the geological-hydrogeological and geothermal

docum entation, two zones may be distinguished on the territory o f M oldova which are
characterised by temperature anomalies:
1) the southern zone covering the territory o f M oldova below 46 4000,
2) the western zone around the town o f Ungheni.
The southern zone is characterised by the following characteristics: The temperature o f

the rocks and the underground waters increases towards the direction o f submergence o f
the crystalline basem ent and increasing thickness o f the sedim entary rocks from north
191
M oldova
and northw est to south and southwest. The highest tem peratures were m easured around
the villages o f Baimakliya, Valen, Kongaz and the town o f Kagula. The analysis o f the
stratigraphic sections at depths o f 250, 500, 750 and 1,000m shows that the temperature
increase with depth from 25C to 50C on average. In the same direction, the chemical
com position o f the underground waters changes from H 2C 0 3 -M g 2S 0 4 -type with a
m ineralisation ranging from 1.0-3.0g/l to the Cl-type with the mineralisation exceeding
30.0g/l. As a rule, the temperature anomalies are linear, bound to tectonic fractures and
accompanied by high contents o f He (more than 1.0 percent by volume).
The western zone covers an area o f about 1,600km2 and is a part o f the foreland o f the
Carpathians. Wells were drilled down to the crystalline basement and w ater with
temperatures between 37.0 to 46.0C was encountered in the Proterozoic formations.
Tem perature anom alies can be followed from the N eogenic to the Proterozoic
sediments. The mineralisation o f the w ater changes from 1.0-5.0g/l up to 56.0g/l.
Apart from the two identified geothermal zones, several authors (N.M. Frolov, 1963,
K.E. Moraru, 1990) consider the Prut river region and the areas o f intersection o f major
tectonic fractures as prospective for geothermal waters which is based on the
geophysical and geochemical (He content) data obtained so far.
It has to be stated, that the m ajority o f the wells are either artesian or the w ater table
adjusts at 10 .0 - 2 0 0 .0 m below ground level.
The large am ount o f data on the geothermal resources o f M oldova collected so far
(maps, well docum entations, flowrates, chemical composition and other) forms the basis
for the discussion o f the possibilities o f future heat recovery in M oldova in terms o f
economic profitability.
192
U kraine
UKRAINE
Size 603,700 km2

Consumption o f energy (1994) oil equivalent 180 million t
Annual CCH emission per capita tonnes
Geothermal GWh
Fossil fuels GWh
Hydro GWh
Nuclear 68.4 GWh
Wind GWh
In Ukraine, low to medium temperature aquifers are evident within sedim entary basins
running along the Carpathians and the Caucasus Chains (South and W est Ukraine). The
Dnepr-Donec coal Basin (Central Ukraine) also show elevated thermal gradient values
at the top o f the basem ent and contain geothermal reservoirs. High temperature aquifers
are found in the deepest part o f these basins with measured temperature up to 210C.
E lectricity G eneration
There is no exploitation o f high temperature waters for electricity generation. Some

pilot geothermal power stations with a capacity o f 1.5MW each based on a two-circuit
scheme w ith a low-boiling secondary fluid are planned for construction by 2005.
193
U kraine
D ir e c t Uses
The areas with expected geothermal potential are:
The Zakarpatsky Basin in the Trans-Carpatian Trough. Artesian wells produce 60-90C
thermal waters from reservoirs located between 1000-2500m.depth (Beregove ,
Uzhgorod , Kosyno, Tereblju). A deep well (Zaluzska-3, 4050m.depth) produces 210C
hot waters.
The Kharkiv-Poltava Region in the Dnepr-Donec Basin. M ore than 100 wells with
depth between 3000 to 4500m. have been drilled. M easured w ater tem peratures range
from 125 to 168C,
The Crimea Region. Maximum temperatures o f 158C have been m easured in wells up
to a depth o f 2400m.
Thermal waters (60-90C) are used in the Autonomous Republic o f Crimea mainly for
space heating. Five geothermal systems are operating with a total installed capacity o f
12MWt.(see below). In addition, there are single wells connected with boiler houses in
many places, which are not considered as geothermal exploitation, and not recorded
here.
Iljinka (lM W t installed capacity) for residential building heating; Sizovka ( lM W t) for
residential building heating; Kotelnikovo (2M W t) for residential building heating; Novo-
Alekseevka (3M W T) for dairy farming; Yantarne (5M W T) for residential building
heating.
Developm ent o f direct uses o f thermal waters is planned and installed capacity could be
154MWt in 2000, 200M W t in 2005 and 250M W t in 2010.

194
Y ugoslavia, FR
FEDERAL REPUBLIC OF YUGOSLAVIA
Size 102,173 km2

Geothermal 0 GW h
Hydro 10,000 GWh
Nuclear 0 GWh
Wind GWh
Geothermal investigations began in 1974, and an assessm ent o f the resources has
identified four geothermal provinces o f which the most promising are the Pannonian
and N eogenc magmatic provinces. More than 80 low enthalpy systems have been
identified, the most important o f which are located at the southern edge o f the
Pannonian Basin. The heat flow density values are higher than the average for
continental Europe, with the highest in the Pannonian Basin (>100m W /m 2). A total o f
159 natural thermal springs have been identified, with temperatures in excess o f 15C
and a total flow o f about 4000kg/s. Between 1977 and 1988, 58 were drilled in the
Pannonian Basin, w ith an overall yield o f 550kg/s and a heat capacity above 25C o f
48M W t, but since 1988 only four exploration wells have been drilled. In the other
provinces 45 boreholes were drilled up to 1992, with a yield o f 500kg/s and a total
capacity o f 108MWt.
195
Y ugoslavia, FR
D ir e c t U ses
The most com mon use o f the geothermal fluid is the traditional one o f balneology; there
are today 59 thermal spas in this country and thermal waters arc also bottled in nine
m ineral w ater bottling companies. The direct use for space heating is in its initial stage
and very modest in relation to the potential. The total installed therm al capacity is
80M W t and 6 M W t o f heat pumps and a total energy use o f 2375TJ/yr. 48% (1150TJ/yr)
o f the total is used for bathing and swimming, 24 % for space heating and nearly 11 %
for greenhouse heating. The geothermal activity is currently manned by a total o f four
professional person-years o f effort, three from the universities. The resource base data
suggest that geothermal energy in Serbia could make a significant contribution to the
national energy mix in future; in addition, the intensive use o f thermal w ater in agro-
and aquacultures and in district heating systems, particularly west o f Belgrade, could be
o f value to the Serbian energy situation.
S um m ary of R esources

Unexploited - proven resources I56MW,
196
Annex 1.1
North America
Canada
M exico
USA
Canada
CANADA
Size: 9,976,000 km2

Population: 29.2 millions
Annual population growth rate (1994): 1.3 %
GNP per capita (1994): 19,510 USD
Average annual growth rate o f GNP (1990-1994): 0.3 %
Average annual inflation (1984-1994): 3.1 %
Annual energy use per capita (oil equivalent): 7,795 kg
Average annual growth rate o f energy use: 2.2 %
Annual C 0 2 emission per capita: 14.36 metric tons
Production o f electricity (1995): 535,167 GWh
Geothermal: OGWh
Fossil fuels: 112,186 GWh
Hydro: 330,676 GWh
Nuclear 92,650 GWh
Wind: -
GE O TH ERM A L POTEN TIAL

The largest geothermal resources are expected to be found in the western part o f the
country. The Corddillera o f W estern Canada are host to about 25 young volcanic
centers and to about 100 hot springs. Available data is insufficient for a thorough
evaluation o f potential geothermal resources. The geological environm ent and the
number o f young volcanic centers in the area indicate that the geotherm al potential
m ight be some thousands o f m egawatts for electricity generation. Three wells have
been drilled in the M eager Mountain region and a high-tem perature (270 C) resource
demonstrated.
G e o t h e r m a l u til isa t io n
The only geothermal utilisation in Canada at present is the use o f 18 KC w ater from the
old coal mine o f Springhill, Nova Scotia. Heat exchangers are used to extract the
energy from the fluid and it is returned back to the mine at 12 IC. The system is
designed both for heating in the winter as well for cooling in the summer.
198
Canada
Carleton University in Ottawa has been using 9.5 C from sedim entary formations for
heating and cooling o f large buildings.
Geothermal wells have been drilled at Moose Jaw (Saskatchewan), Summerland

(British Colum bia) and M eager M ountain (British Columbia) but commercial utilisation
has not started so far.
Summary of geo therm al resources
Electricity Direct use

MWe GW h/y M W th GW h/y
In operation 0 0 3 13
Planned or under construction 70 570
Estim ated potential 2 0 000 180 000 410 000 3 600 000
199
M xico
MEXICO
Size: 1,958,000 km2

Average annual inflation (1984-1994) 40%
Annual energy use per capita (oil equivalent) 1,577 kg
Annual C 0 2 emission per capita 3.92 metric tons
Hydro 27,528 GWh
Nuclear 8,443 GWh
Wind 6 Gwh
LEGEND
A E xp lo ite d h ig h e n th a lp y re s o u rc e
^ E xp lo ite d lo w e n th a lp y re s o u rc e
U n e x p lo ite d lo w e n th a lp y re s o u rc e
V
GEOTHERMAL SITES IN MEXICO

1 Los H um eros 18 V o lca n de C alim a
2 Los A zu fres 19 San Jua n C sala
3 La Prim a vera 20 Santa R ita - A q ua C aliente
4 C erro Prieto 21 La Playa
5 El Pin acte 22 V a lle ce S antiago
6 Las T res Vrg en es 23 Puruandiro
7 O jina go 24 D om os d e Z ita C uoro
8 C ayu tln - San D iego 25 V o lca n Jacotepec
9 R io S a ntia go 26 A co cuico
10 T e p ic - San Ju a n 27 N isanda - La M ata
11 Las H erores - El M onte
12 Tetitl n - V a lle V e rd e
13 El O rito - Los B o rocilones
14 H ervore s de la V ega
15 La M edia Luna Santa R osa i
16 S a nta C ru z d e A tisliqu e /k
17 La S aledad \
0_________ 200 400 km
L O C A T IO N O F T H E
G E O T H E R |^ y ^ g U R C E S IN
GEO THERM AL POTENTIAL

The estimate o f the geotherm al potential o f M exico is as follows:
High enthalpy resources (l 70-350 1C) 6,000 M W e

M edium enthalpy resources (l 10-170 KC) 48,000 M W e
Here, it is assumed that the potential for electricity generation is 36,000 MW e.

An estimate o f low enthalpy resources (80-110 IC) is not available, but 1380 individual
thermal locations are listed in different locations in Mexico. By 1990, geothermal
investigations had been carried out in 42 geotherm al fields across the country. The
geothermal potential o f the country is therefore very large.
200
M exico
GEO THERM AL UTILIZATION

In 1995, four high-tem perature geotherm al fields were utilised for electricity generation
and two additional fields were under development. The table shows the installed
capacity and energy output from these fields.
Installed Annual energy Average load Under

capacity production % construction
MWe GW h/year MW C
Cerro Prieto 620 4743 87.3 150
Los Azufres 98 654 76.2 140
Los Humeros 35 286 93.3 50
La Primavera 70
Las Tres Virgenes 25
TOTAL 753 5682 86.1 435
The installed capacity o f geothermal power plants for electricity generation was 753
M W C in 1995. This is 2.3% o f the total 32,167 M W e installed in the Mexico.
Electricity generated by geothermal plants (5,682 GW h/y) represents the 4% o f the
electricity generated in the country.
Many o f the 1380 thermal springs in M exico are used for bathing and recreation. A
review o f the direct use o f geothermal energy in M exico has not been carried out.
Summary of geothermal resources

MWe GW h/y MW, GW h/y
In operation 753 5,682 n.a. n.a.
Planned or under 435 3,000
construction
Estimated potential 36,000 315,000 700,000 6,300,000
201
U nited States o f A m erica
UNITED STATES OF AMERICA
Size: 9 364 000 km 2

Population: 260.6 million
Annual population growth rate (1994): 1.03%
GNP per capita (1994): 25 880 USD per year
Average annual growth rate o f GNP (1990-1994): 2.5%
Average annual inflation (1984-1994): 3.3%
Annual energy use per capita (oil equivalent): 7 905 kg
Average annual growth rate o f energy use (1990-1994): 1.5%
Annual C 0 2 emission per capita: 19.11 metric tons
Production o f electricity (1995): 3 084 300 GWh
Geothermal: 14 660 GWh
Fossil fuels: 2 057 000 GWh
Hydro: 309 800 GWh
Nuclear: 673 000 GWh
Wind:
____________ LEGEND_____________
A E xploited high e n th a lp y resource

E xploited lo w e n th a lp y resource
U nexploited high e n th a lp y resource
U nexploited low e n th a lp y resource
GEOTHERMAL SITES IN USA
1 T h e G e yse rs 10 B rady
2 Im perial V a lle y 11 C o ve F o rt-S ulphurdale
3 C asa D iable 12 R o osevelt
4 H oney Lake 13 K lam ath Falls
5 C oso
6 Haw aii
7 S te a m b o a t N
8 D ixie V alley
9 B eow aw e
LO C A T IO N O F T H E
G E O T H E R IW ^ p ^ S O U R C E S IN
w
GEO THERM AL POTENTIAL

The United States o f America has large geothermal resources, and more electricity (15
TW h) is generated in geothermal power plants in the USA, than in any other country in
the world. Identified resources for electricity production corresponds to 23,000 MW e
18
for 30 years and identified resources for direct use are estimated to be 400x10 Joule
(110,000 TWh). The geothermal potential o f the USA for electricity production is
estimated to be 130,000 MW C for 30 years, and recoverable heat energy is estimated
2,400x 10 18 J (670,000 TWh).
GEO THERM AL UTILIZATION

Electricity generation has been the main utilization mode o f geothermal energy in the
USA. In recent years, rapid installm ent o f heat pum ps has resulted in the direct use o f
geothermal energy which is now approaching com parable levels o f energy
consumption to electricity generation. Table 1 shows a summary o f the power plants for
electricity generation in the USA, and Table 2 gives a summary o f geothermal direct
heat uses.
202
United States o f A m erica
Table 1. Geothermal pow er plants in the USA
N um ber o f Installed Capacity A nnual A verage

pow er plants capacity in use production load
[ MWe ] [ MWe] [ G W h/a ] %
T he G eysers 32 (6 retired) 2,100 1,896 7,449 45
Im perial V alley 17(1 retiered) 406.3 406
Casa Diablo 3 27 27
H oney Lake 3 8.3 8
Coso 9 236 236 1,860 91
H awaii 1 25 25
N evada 15 219.5 219
Utah 4 31 31
TO TA L 84 3,053 2,848 14,660 59
Total electricity generation from the geotherm al pow er plants (where inform ation was
available) was 14,660 GWh in the year 1995. The average load factor for these
geotherm al power plants is 0.59.
203
U nited States o f Am erica
Table 2. Summary o f geothermal direct heat use
Installed Energy use Load

factor
MWt TJ/year GW h/year
Space heating 169 1,388 386 0.26
B athing and sw im m ing 71 1,606 446 0.72
A gricultural drying 20 299 83 0.47
G reenhouses 81 709 197 0.28
Fish and anim al farm ing 77 1,468 408 0.60
Industrial process heat 43 629 175 0.46
Snow m elting 0.7 3 1 0.14
A ir conditioning 0.7 5 1 0.23
SU B TO TA L 461 6,107 1,696 0.42
H eat pum ps 1,444 8,188 2,274 0.18
TO TA L 1,905 14,295 3,971 0.24
Summary of geotherm al resources

MWe GW h/y M W th GW h/y
In operation 2,848 14660 1,905 3,971
Planned or under construction 130 3 000
Estimated potential 130,000 1, 100,000 2,500,000 2 2 ,0 0 0 ,0 0 0
204
Annex 1.1
Central & South

America
Argentina
Bolivia
Brazil
Chile
Colom bia
Costa Rica
Ecuador
El Salvador
Guatem ala
Honduras
Nicaragua
Panama
Peru
Venezuela
A rgentina
ARGENTINA__________________________________ ]
Size 2,766,890 km2

Annual energy use per capita (1993)oil equivalent 1367.5 kg
Annual COi emission per capita (1993) 3.2 tonnes
Geothermal 3.5 GWh
Hydro 26,911 GWh
Nuclear 7,066 GWh
Wind 5.2 GWh
The geothermal programm e in Argentina includes several projects.
E i .e c P R ic it v G e n e r a t io n
There are four high enthalpy geothermal fields in the country, only one is producing
electricity, and all o f them are associated with Quaternary calc-alkalic to shoshonitic
volcanism.
Neuquen Province:
-The project at Copahue is probably the most important o f all schemes in South
America; in April 1988, a 670kW binary cycle power plant, using an isopentane
working fluid was built. The plant runs on 6.7tons/h o f 171 C saturated steam and
contains 8 % non-condensable gas. The reservoir depth is between 850-1000m.
A feasibility study has been carried out for a new com mercial-size station with a power-
generating capacity up to 30MW.
206
A rgentina
- Reconnaissance surveys at the Domuyo field site suggest the existence o f a vapour-
dominated zone at 218-226C overlying a liquid-dominated reservoir at 186-190C.
Pre-feasibility studies have been completed.
Jujuy and Salta Provinces:
- G eochem istry at Tuzgle suggests the presence o f resources having temperature ranges
o f between 132-142C. This project is in the pre-feasibility stage.
San Juan Province:
- Valle del Cura field hosts a boiling reservoir. The geochemistry suggests temperatures
above 200C and possibly a secondary shallow aquifer. This project has reached the
pre-feasibility stage by 1995.

Unexploited - proven resources ~30M W e

Unexploitcd - probable and possible resources -
D ikix i U ses
Several proposals for the direct and indirect use o f the resources were made but only a
few o f them are underway to date: 45 projects are under regional assessment, 4 are
under feasibility studies ( Tuzgle , Focomar, Antuco and Copahue ) and only Bahia
Blanca (space heating, greenhouses) and Copahue, Domuyo, Villavicencio (space
heating, hot w ater heating as well as recreation) are under commercial utilisation.
W ith the exception o f Domuyo and Tuzgle where wells were drilled for thermal gradient
measurem ents and Copahue where exploration wells are working in flash condition,
production artesian wells represent the most common utilisation o f geothermal waters in
this country.
At Copahue wells have been drilled for electrical and com bined uses (two exploratory
and one production). They were drilled between 1981 and 19991 and reached a max.
depth o f around 1400m and a m axim um temperature o f 250C for the productive well.
At Rio Valdez (Tierra del Fuego Province) and Bahia Blanca-Pedro Luro sedimentary
basin (Buenos Aires Province) there are real possibilities o f geothermal developm ent for
low tem perature utilization at least.
For direct heat utilisation 50 artesian wells have been drilled from 1914 to 1991. Most
wells were drilled in between 1954-1958 (13 wells), 10 were drilled between 1949-
1953, 8 in between 1984-1988, 4 in between 1959-1963 and 3 in the following five
years; two wells were drilled during each o f the following five year periods: 1914-1918,
1969-1973, 1979-1983, and in 1924-1928, 1939-1943, 1944-1948, 1974-1978, 1989-
1993 only 1 well was drilled per period, while no drillings were carried out during the 5
years periods 1919-1923, 1929-1933, 1934-1938, 1944-1948. Depths range from around
207
A rgentina
500 to around 1700m and temperatures are low (50-70C) except for Copahue where is
about 235-250C. Flow rates vary widely from well to well from less than 1 to at least
61 kg/sec.
208
Bolivia
BOLIVIA
Size 1,098,580 km2

Geothermal 0 GWh
Hydro 1,400 GWh
Nuclear 0 GWh
Wind 0 GWh
the resources and the first prospecting. A certain am ount o f effort was put in the
following years but a few results have been obtained. The pre-feasibility and feasibility
studies were carried out aimed at the electricity generation by geothermal.
No low enthalpy project is known to date.
At Laguna Colorada area (.Apacheta and El Sol de Maana fields) in 1986 six deep
wells o f 1500m average depth were drilled (five o f which are producers and one is
considered an injector). Production tests were also performed. The following year
reservoir evaluation and feasibility studies were fulfilled. Operating wells with an
additional well will be sufficient to install up to 30M W using a condensing pow er plant.
In 1993 a feasibility study was carried out for the pilot plant (6-10M W ) and currently
funding is being sort to install it. At this field the fluid is double phase and runs at 300-
209
Bolivia
360tons/h, the geotherm al gradient is 300C/km. Total capacity has been estimated at
350MW.
At Rio / Salar de Empexa a feasibility study was com pleted and some shallow wells
drilled.
M ost pre-feasibility studies, including at Sajama and Salar de Challiviri fields, were
carried out between 1978-1979.
Exploited - plant in operation -
Unexploitcd - plant under construction or planned -
Unexploited - proven resources 36-40M W e

U nexploited - probable and possible resources 350M W e
210
Brazil
BRAZIL
Size 8,547,404 km'

Population (1994) 1 5 5 ,8 millions
Geothermal GWh
Fossil fuels GWh
Hydro GWh
Nuclear GWh
Wind GWh
The occurrence o f low tem perature w ater is quite widespread in the Brazilian highlands,
and more than 400 thermal mineral springs are known. Geochem ical studies point to the
possibility that at least a portion o f the fluids originates from deep reservoirs, but there
is no conclusive evidence for the existence o f high enthalpy resources. M ost o f the
springs are located in the metamorphic fold belts in central and eastern Brazil, and their
occurrence seems to be intimately related to local fault and fracture systems.
Nevertheless, the flow rates o f some o f these spring systems are quite impressive. Their
tem perature ranges from about 20 to about 80C.
A t present, geothermal waters are being used almost exclusively for balneological
purposes. Industrial uses o f therm al w ater have been attempted in the 1970s-1980s in
two localities for wood processing (pre-cooking prior to peeling) and pre-heated feed
w ater for boilers in the production o f instant coffee.
The potential for large scale exploitation o f low tem perature waters for industrial use
and space heating may be significant in the southern and south-eastern parts o f the
country, w here relatively cold winters prevail.
211
Chile
CHILE
Size 756,950 km2

Population (l 994) 13.9 millions
Annual C 02 emission per capita (1995) 3.2 tonnes
Geothermal 0 GWh
Hydro 18,408 GWh
Nuclear 0 GWh
Wind 0 GWh
8Q0Q'___________7000'____________ 6000'___________ 5000'____________ 4000'

LEGEND
E xp lo ite d high e n th a lp y re source
E xp lo ite d low e n th a lp y re source
A U ne xp loite d high e n th a lp y re source

PAC IFIC V U ne xp loite d low e n th a lp y re source
OCEAN
1-El Tatio
2 -P o c h u ld iz a
3 -P an im a vid a
4 -C a tillo
5-C h illa n
A T L A N T IC 6 -A g u a s ca lie n te s -L a g u n a Tujacto
OCEAN
LOCATION OF THE
8000' 7000' 6000' 5000'
CHILE
Geothermal investigation started almost 30 years ago, and after a long period o f
inactivity, interest in geothermal resources o f Chile reawakened due to new legislation
that will allow private sector investment in those resources.
No power plant has been installed in the country up to the date.
Chilean high-enthalpy geothermal production is concentrated along the Cordillera
mainly at the well known El Tatio field.
A t El Tatio, 6 exploration wells revealed tem peratures between 180-253C into the
pyroclastics at a depth o f 600m. 7 production wells found three discrete reservoirs with
temperatures up to 260C. Only three out o f the seven wells produce an average o f
I4.7kg/s (adequate for 6 M W each) and two produce less but are capable o f producing
5MW. A through estimate o f the field indicate that a potential 100 MW could be
realised.
212
Chile
Puchuldiza field is the second important field o f the country but studies there are still at
the beginning.
Three sites have been chosen for the pre-feasibility studies undertaken in 1993 and a
significant geothermal potential has been revealed: Panimvida hot springs, Catillo hot
springs and Chilln hot springs.
Prospective fields are likely to exist at the already m entioned field o f Pochuldiza and
Chilln, and m oreover at Suriri, Vegas del Flaco, Cajn de Calabozos, Tolguaca, Rio
Blanco (all these sites have geothermometric temperature between 150-280C),
Polloquere (superheated steam at the fumaroles with surface T=1 10C), Jurase,
Chanchoc-Copahue (possibly related with the already operating Copahue field in
Argentina, Petrohu, Alitar, Pampa de Lirima and several other sites in the rest o f the
country.
Unexploited - plant under construction or planned 28M W e

U nexploited - proven resources 72MW e
D ir e c t U ses
Resources with temperature less than 100C are abundant along the eastern edge o f the
Central Valley. Salt lakes (salares ) like Aguas Calientes Sur and Laguna Tujacto are
considered interesting therm al areas due to their w ater chem istry and the proxim ity to El
Taco iron mine. The Santiago basin should be m entioned with geothermometric
temperatures between 69-94 C.
213
C olom bia
COLOM BIA
Size 1,138,910 km2

Annual energy use per capita (1995) oil equivalent 883 kg
Geothermal 0 GWh
Hydro 37,000 GWh
Nuclear 0 GWh
Wind 0 GWh
8000' 7000'
LEGEND
A E x p lo ite d high e n th a lp y re s o u rc e
E x p lo ite d lo w e n th a lp y re s o u rc e
U n e x p lo ite d high e n th a lp y re s o u rc e
1 -N e v a d o del R u iz A
2 -L a s N e re id a -R u iz E s p iritu S a n to A
LOCATION OF THE
COLOMBIA
In 1968 the country began to devote some attention to geothermal energy.

The first reconnaissance study, completed in the early 1980s, was made through a
regional survey which 2 0 ,0 0 0 km 2 were identified for geothermal exploration suitable
for electric power generation.
As a result o f reconnaissance studies the area o f Nevado del Ruiz volcano was identified
as a prospect and a pre-feasibility study was carried out. In light o f the catastrophic
volcanic eruption o f 1985 studies were discontinued and only started again in 1992.
Feasibility is still in progress at Las Nereida-Ruiz Espritu Santo geothermal field
( Villamaria village) and the first 2 0 0 0 m deep exploration slim well is now underway.
214
C osta Rica
COSTA RICA
Size 51,100 km2

Geothermal 401 GWh
Hydro 3,675 GWh
Nuclear 0 GWh
Wind 0 GWh
Costa Rica is located in special geological setting, at the triple junction o f three oceanic
plates. Along the Cordilleran arc volcanic activity is intense and geothermal potentiality
high.
Estimates indicate that 75% o f the total heat resource is medium to low temperature
(<150C) while the remaining 25% heat is over 150C. All these resources represent
0.3% o f the resource base o f the country.
No low enthalpy project is known to date except for bathing and swimming.
215
Costa Rica
IEi. i .C T R i c i r y G 1 : n e r a t i o n
The estimated installaed capacity using a conventional cycle plant is 1,947MW for high
tem perature resources, and decreases to 865M W for high temperature reserves. If binary
cycle plants were used the installed capacity would increase to 2,535M W for the
resources and 1107MW for the reserves.
The most promising geothermal site is Miravalles geothermal field, at the base o f
Miravalles volcano.
Miravalles volcano area has been exploited between M arch-Novem ber 1994 and shows
a reservoir temperature o f around 255C. At present a total o f 60MW o f power comes
from M iravalles I which represents about the 5.6% o f the total installed electrical
capacity o f the country. 55MW are generated by a single flash condensing plant while
5M W are generated using a non-condensing backpressure facility.
The M iravalles II project, which is already underway will see the installation o f another
55M W single Hash pow er plant and will start full operation in 1998. Part o f the excess
steam is already sent to 2><5MW back pressure plants installed and operated by the
M exican utility (CFE), and their use will continue until the steam is required for
M iravalles II.
A third phase, the M iravalles III project for the installation o f 27.5M W , is scheduled
and drilling o f 3 exploration wells (two o f which have combined capacity o f 14MW)
has been completed. This would add 27.5MW.
Feasibility for another 27.5M W power plant, the M iravalles IV, is also underway.
The local utility is considering the utilisation o f part o f the heat contained in waste
fluids to run small ancillary power plants with the purpose o f optimising the use o f
geothermal resources and increasing the capacity o f the field.
In the areas o f Tenorio and Rincon de la Vieja volcanoes two other large geothermal
fields have been investigated in detail, including preliminary drilling. As a consequence
o f these pre-feasibility studies the form er is estimated to have 120-160MW potential
and the latter around 140-190MW. Feasibility studies started in 1996.
G eotherm al areas in the vicinity o f volcanoes Irazu , Turrialba, Platanar, Pods and
Barva are estimated to have a geothermal potential o f 100-115MW each.
Finally the Fortuna and the Orosi-Cacao volcanoes areas have a lesser potential with
70MW and 35MW geothermal potential respectively.
In Costa Rica a total o f 39 wells have been drilled for electrical and combined use (14
production, 14 injection and 1 I thermal gradient wells) in the Miravalles, Tenorio and
Rincon de la Vieja areas, totalling 5,1476m.
In 1995 the geothermal generation capacity o f Costa Rica was 60M W (gross
production: 447GW h/yr). At Miravalles another 55MW (gross production:
409.5GW h/yr) power plant is underway (M iravalles II) and power will be put on line on
April 1998, while a 27.5M W capacity unit is expected for the year 1999 (M iravalles
III).
216
C osta Rica
By the year 2000, a total o f about 152.5MW (gross production: 1200GWh/yr) will be
provided by domestic geothermal resources representing 15% o f the countrys
electricity supply.
By the year 2005 geothermal power supply will reach 207.5MW (gross production
l,565G W h/yr) which will be 8 % o f the com panys total installed generation capacity o f
the country. No further geothermal development is scheduled until 2010.
Exploited - plant in operation 60M W e(+10M W e)

Unexploited - plant under construction or planned 137.5MWe
U nexploited - proven resources 780-950M W e
Unexploited - probable and possible resources 1700-1800MWe
217
Ecuador
ECUADOR
Size 283,560 km2

Average annual inflation (1995) 23 %
Annual energy use per capita (1993) oil equivalent 705 kg
Annual C 0 2 emission per capita (1993) 18 tonnes
Geothermal 0 GWh
Hydro 6,000 GWh
Nuclear 0 GWh
Wind 0 GWh
8000'
LEGEND
E xp lo ite d high e n th a lp y re sou rce
V E xp lo ite d low e n th a lp y re source
.A U ne xp loite d high e n th a lp y re sou rce
V U ne xp loite d low e n th a lp y re sou rce
1 -T u fin o -C h ile s -C e rro N egro

2 -C h a lp a ta n
3 -C h a c h im b iro
4 -C h a lu p a s
LOCATION OF THE
ECUADOR
In 1978 exploration began in Ecuador over the whole territory, and covered regional
assessment, geological and geochemical stable isotopes studies, surface pre-feasibility
studies including geophysics.
A theoretical evaluation o f the geothermal potential based on volume estimates and heat
flow measurements yielded the following results: at Tufino-Chiles-Cerro Negro the
base resources are 5.62><10I9J, resources 2 .9 0 x ]0 lsJ, reserves 4 . 9 3 x ] 0 l7J this
corresponds to a total installed capacity o f 201 MW; at Chalupas the base resources are
2;.32x]0i9J, resources 9.04><10I7J, reserves 3.79x 1016J which corresponds to a total
installed power o f 156MW; at Chachimbiro the base resources are 6.72x10 I9J,
resources 3.27X10IXJ, reserves 4 .5 6 x l0 l7J which corresponds to a total installed
capacity o f 411 MW.
No low enthalpy project is known to date except for bathing and swimming.
218
Ecuador
E lec tr ic ity G eneration

A prefeasibility study was carried out at Tufino-Chiles-Cerro Negro where an only one
shallow well was drilled (1987) to support geophysical data interpretation and at
Chalupas, Chachimbiro and Chalpatan w here surface surveys were carried out.
Only a fraction o f the total geothermal potential corresponding to the economic reserves
with temperatures >200C, is considered as high enthalpy resources, and evaluation
results indicate: Tufino-Chiles-Cerro Negro 139MW, Chalupas 282M W and
Chachimbiro 113MW.

Unexploited - probable and possible resources 768M W e
219
El Salvador
E L SA L V A D O R
Size 21,040 km2

Geothermal 485 GWh
Hydro 2,300 GWh
Nuclear 0 GWh
Wind 0 GWh
Several geothermal sites occur m ainly in alignm ent with the young volcanic Cordillera
and are well-known in the country. Some o f them have already been exploited.
Since 1985, El Salvador has spent about US$ 22M on R&D, including the drilling o f 6
wells plus US$ 34M on field development and equipm ent and about US$ 56M on
electrical utilisation.
El Salvador is planning projects to turn geothermics into one o f the main energy
resources o f the country. To date geotherm ally generated electricity produces around
15% o f the whole electricity production.
No low enthalpy projects are known to date.
220
El Salvador
E l e c t r ic it y G en e r a t io n
At the mom ent, Ahuachapan is the most important geothermal area o f the country. In
1975 the first 30M W single flash pow er plant was put on line and in 1976 capacity
doubled with an additional 30M W unit. In 1980 a third plant, 35M W double flash,
brought the field into a total capacity o f 95M W . 32 production wells were drilled for
this project 14 o f them are producers but unfortunately because the field has been
overexploited, the reservoir perform ance has been affected, and because o f the lack o f
reinjection capability, power output declined to 48MW.
The drilling o f 10 new production and 4 injection wells brought an increase in pressure
to the existing field. The field expansion should help to reach the maxim um production
for the installed 95M W o f plant by 1997.
In the 1960s the Berlin geothermal area was explored with 6 wells down to 1400-
2300m, where tem perature o f 230C were encountered, but the project failed because o f
the low permeabilities. In 1980-1982 two wells with commercial characteristics were
drilled and in 1992 2x5M W non condensing wellhead back pressure units were
installed. Later, in 1993-1994, two new wells were drilled and encountered better
perm eabilities and temperatures o f up to 275C. A third 5MW non condensing wellhead
unit has been on line since 1995. At present the plants are generating only 13MW. The
drilling o f an additional 16 deep wells, construction o f a fluid transport device and
assemblage o f two generator units, totalling 28M W (two m odular condensing units), is
scheduled for 1998-1999.
Preliminary studies indicate that the potential capacity o f this field could reach 150MW.
San Vicente area has been investigated intensively: good permeabilities and high
tem peratures have been recorded (a 1300m deep exploration well intercepted a 230C
aquifer). Pre-feasibility has been completed, four deep wells are planned to be drilled by
1998. Feasibility studies are underway. An estimated geothermal potential o f 50-
100MW.
Power could be available by the year 2010.
Chipilapa field which is hydrologically connected to Ahuachapan has recently installed

two 5MW pow er plants.
Studies are in progress in Chinameca (pre-feasibility), Coatepeque (pre-feasibility),

Chongagua, Santa Rosa Lima, Parras Lempa (one exploratory well: 940m), and
Obrajuelo Lempa.
The installed capacity at 1995 was 118 MWe the updated electricity generation at 1997
is about 105 MWe an expansion plan has started for an additional 150MW by the year
2010.
Exploited - plant in operation 105MWe

U nexploited - proven resources 150MWe
Unexploited - probable and possible resources ~200M W e
221
G uatem ala
GUATEM ALA
Size 108,890 km2

Average annual inflation (1994) 1 1.6 %
Geothermal 0 GWh
Hydro 2,266 GWh
Nuclear 0 GWh
Wind 0 GWh
9000'
LEGEND
A . Exploited high enthalpy resource
/S, Unexploited high enthalpy resource
M E X IC O
G EO TH ERM AL SITES
1-Zunil
2-Am atitlan
3-Tecuam burr
4-San Marcos
o 5-M oyutao
EL SALVADO R
PACIFIC OCEAN
LOCATION OF THE
G EO THER M AL RESO URCES OF
9000' GUATEMALA
The arc-trench tectonic setting o f Guatemala is m arked by the plates junction and by
several regional faults. Volcanism and the connected geothermal activity is concentrated
along the Cordillera.
Up to date, no geotherm al plants have been constructed but 54M W e are planned by the
year 2 0 0 0 .
In the South-western most part o f the Guatem alan volcanic belt 14 significant
geothermal areas have been identified for steam pow er generation.
To date at Zunil I (Quetzaltenango area), 7 wells have encountered temperatures around
297C at depths o f 1500-2330m and a 24M W plant is under construction.
At Zunil II, a second field has been developed 3 slim-holes were drilled from 370-757m
and the measured reservoir tem perature was 245C. One o f the wells encountered
222
G uatem ala
commercial quality resources at 690m, producing 35t/h o f dry steam. It is believed that
this field may have the potential for fuelling 40-50M W .
A t the Amatitln field 4 exploratory wells were drilled in 1992-1993, ranging from
1500-2058m deep and have encountered temperatures from 230-300C (production
zone in the four wells is located 1110m deep). Two o f these wells can produce a total o f
24M W (one flow test was performed).
At Tecuamburro field regional assessm ent is underway. One slim-hole was drilled to
806m depth and found a bottom hole temperature o f 235C (with geothermometry
indicating equilibrium at 300C).
At San Marcos field geotherm om etry indicated a tem perature o f 250C. Pre-feasibility
assessm ent with exploratory drilling and detailed geophysical survey is underway.
In addition, at the Moyuta field studies have begun at a pre-feasibility level and the
Ipala field is under regional assessment..
16 wells from 120-2230m were drilled between 1990-1994 and funds are com m itted for
the installation o f a total o f 70MW. A total o f 94M W o f installed capacity is projected
by the year 2 0 0 0 .
U nexploited - plant under construction or planned 94MW e

U nexploited - proven resources ~70M W e
D ir e c t U ses
In the area o f Zunil I a farm-produce dryer plant uses steam from one o f the slim holes
to dry fruits and vegetables. Heat is also used for bathing/swimm ing. Energy use is
18.47TJ/yr and 5.28TJ/yr respectively.
At Amatitlan heat is used for industrial processes (brick drying for building) and for
bathing/swimm ing. Energy use for the latter is 59.36TJ/yr.
223
H onduras
HONDURAS
Size 112,090 km2

Average annual growth rate o f energy use (1 9 9 -9 ) %
Geothermal 0 GWh
Hydro 2,600 GWh
N uclear 0 GWh
Wind 0 GWh
LEGEND
E xploited high enth alp y resource
A T L A N T IC O C E A N E xploited low e n th alp y resource
A U nexploited high e nth alp y resource
V U nexploited low e nth alp y resource
G E O T H E R M A L SITE S
1-P latan a re s
0 50 100km
LO CATION O F THE
P A C IF IC
OCEAN
8500'
HONDURAS
The country was first studied in 1977. A geothermal interest scale was prepared for the
area surveyed that includes Platanares , Azacualpa, San Ignacio and Su Ia valley, in the
order, o f the highest priority sites.
A feasibility study was carried out at the Platanares geothermal field between 1986 and
1988. Geophysics and exploratory drilling indicated high potential for electrical
development.
The Platanares field so far explored is capable o f supporting 7MW.
Additional drilling to depths greater than l,000m and, in due course, the placement o f a
generating plant at the wellhead has been considered.
224
H onduras

U nexploited - probable and possible resources -
225
N icaragua
NICARAGUA
Size 129,494 km2

Geothermal 310 GW h
Hydro 415 GWh
N uclear 0 GWh
Wind GWh
Geothermal investigation began in the late 1960s along the Cordillera de Los
Marrabios, in the graben o f Nicaragua. Priority was given to the Momotombo and San
Jacinto Tizate fields, but several other geothermal sites are significant.
N o low enthalpy project is known to date.
Momotombo field, at the base o f the hom onym volcano, was exploited in 1983 with the
first 35MW power plant and in 1989 a second equal power plant was operating. At
present, pow er is reduced to 40M W but further drilling is planned for the beginning o f
1997 which will recover the lost capacity. In 1997 feasibility and eventual installation o f
a third unit (20M W ) is planned.
226
N icaragua
At San Jacinto-Tizate drilling started in 1992. Seven production wells have been
completed to depths from 728m to 2,339m o f which three can generate 23-30M W
where the potential for exploitation has been proven. The objective is the installation o f
5x24M W units (estimated potential is 120MW). This project has reached a hiatus but
the installation o f the first 24M W power plant is scheduled to start operating in 1998
and four equal pow er plants will be operating by 1999, 2000, 2001, 2002.
Studies up to a pre-feasibility level have been carried out at El Hoyo-Monte Galn ,

Masaya-Granada-Nandaime.
A t El Hoyo there are two projects; El Hoyo I in which feasibility is planned in 1997 and
the installation o f three pow er units is expected in 1998 (35M W ), 2000 (35M W ), 2001
(35M W ), and El Hoyo II that includes a feasibility study by the year 2000, and possible
installation o f three units in 2002 (35M W ), 2004 (35M W ), 2005 (35MW ).
At Masaya-Granada-Nandaime feasibility is planned in 2004 and installation o f three

pow er units in 2005 (35M W ), 2008 (35M W ), 2009 (35MW).
Reconnaissance studies are taking place at Cosigina, Casita and Telica-El ajo
volcanoes, Managua-Chiltepe, Masaya-Tipitapa , Isla de Ometepe.
All the above geothermal anomalies give an estimated potential o f 3000MW.
Exploited - plant in operation 40M W e

U nexploited - probable and possible resources ~2,500M W e
227
Panam a
PANAM
Size 78,200 km2

Population (1994) 2 .6 millions
Annual C 0 2 emission per capita (1 9 9 ) tonnes
Geothermal 0 GWh
Hydro 2,500 GWh
Nuclear 0 GWh
Wind 0 GWh
Due to extensive investigation and evaluation o f the country four geothermally

attractive areas have been recognized: El Valle de Antn (Panam-Cocl province),
Chitira-Calobre and Tonosl (Veraguas-Cocl province), (Veraguas province).
Reconnaissance studies carried out in those areas revealed El Valle de Antn field as the
most interesting for the occurrence o f a big caldera collapse structure and optimal
hydrological and sealing conditions.
E I, E C T R i d IV G E N ! R A T I O N
In 1971 geothermal exploration began in the country. A first reconnaissance study
characterised Cerro Pando/Barii-Colorado as an high priority area. Pre-feasibility
studies, including drilling, revealed that exploration risk was too high to proceed
investigating further.
228
Panam a
Later, two other projects aimed at the generation o f electricity, at El Valle de Anton and
Chitira-Calobre fields, were brought to an advanced pre-feasibility stage. However,
because o f the financial and political situation o f the country activities were interrupted
in 1988.
New funds were made available from 1995 and reactivation o f the El Valle de Anton
project is impending. The next step will be the determination o f the geothermal
potential. Chitira-Calobre is considered a high risk project because o f the low thermal
anomaly.
Isla de Coiba and Tonosi do not offer an interesting prospect for high enthalpy
resources at an econom ic depth.
229
Peru
PER U
Size 1,285,220 km2

Annual CO 2 emission per capita (1994) 1.08 tonnes
Geothermal 0 GWh
Hydro 11,700 GWh
Nuclear 0 GWh
Wind 0 GWh
As well as other countries em braced in the Pacific ring o f fire Peru is characterised by
high heat flow and over 2 ,0 0 0 hydrothermal sites which have been identified along the
volcanic chain.
M ore than 300 areas have surface temperatures o f 40-89C.
IE i. E T R i c i IV G e n e r a t i o n
Pre-feasibility studies carried out in the 1980s for electricity generation identified two
priority geothermal areas:
Aquilina Baos - departm ent o f Huarz - in the north and Chivay - department o f
Arequipa - in the south, the latter being more interesting.
Both areas seem to have the potential users (including for direct uses) and the possibility
for the installation small geothermal power plants.
Pre-feasibility studies carried out in Calieron de Huaylas {norte, centro, sur), Otuzco
and La Grama, Aguas Calientes, Cajamarca, included geochemical prospections,
thermal gradient measurements and resistivity surveys. Some recent geochemical and
230
Peru
isotopie analyses suggest reservoir tem peratures in the 180-210C range, at a site
1,200km southeast o f Lima.
The country wishes to reduce its dependence on fossil fuels and hydro pow er but there
has been no geothermal developm ent in Peru.
231
V enezuela
VENEZUELA
Size 912,050 km2

Population (1994) 2 1 .1 millions
Annual energy use per capita (1994)oil equivalent 1 12.7 kg
Annual C 0 2 emission per capita (1994) 6 tonnes
Geothermal 0 GWh
Hydro 55,000 GWh
N uclear 0 GWh
Wind 0 GWh
LEGEND
E xploited high e n th a lp y re source
^ E xploited low e n th a lp y resource
A U ne xp loite d high e n th alp y resource
V U ne xp loite d low e n th alp y resource
1-El P ilar-C asanay
150 300km
LO C ATIO N O F THE
VENEZUELA
The only geothermal developm ent in Venezuela is balneology in many o f the 3 6 1

geothermal localities. Interest in electricity generation has come from the high
temperature systems o f El Pilar-Casanay (State o f Sucre) which has been previously
evaluated but never developed further.
Since the early 1980s regional exploration has led to a detailed geochemical and pre
feasibility study o f El Pilar-Casanay field. A water-steam shallow reservoir with
tem peratures o f 200-220C and a deep liquid dominated reservoir at 250-300C has
been inferred. Fluids are com posed o f a medium salinity neutral brine with high CO 2
partial presure. A partial self-sealing system with a meteoric w ater recharge exists. The
possible users, for both electricity and direct applications, have also been identified.
Geothermal systems with tem peratures in the range o f 100-150C are not sufficiently
docum ented except for El Pinto in Monagas and No Carlos and Cariaco in Sucre.
232
V enezuela
D ir e c t Uses
Low tem perature resources between 60 C and 100C occur in several localities around
the Eastern M ountain M assif and San Diego , Naricual and Clarines in Anzoategui, and
Qda. Seca, Pantoiio, Cariaco and Los Impures in Sucre.
These resources are used for bathing spas but could also be useful in direct applications
for food-related industries; geothermal energy must be able to compete with the low
cost o f Venezuelan electricity and oil.
233
Annex 1.1
Asia
B urm a
China
India
Indonesia
Iran
Israel
Jap an
Jordan
Laos
Lebanon
N epal
Kazakhstan
Korea
Kyrgyzstan
Pakistan
P h ilip p in es
Sri Lanka
Taiwan
Thailand
Turkmenistan
Uzbekistan
Vietnam
B u rm a
BURMA
Size 678,528 km2

Geothermal GWh
Hydro (1992) 1,567 GWh
Nuclear (1994) GWh
Wind GWh
LEGEND
E xploited high e n th a lp y re source
^ E xploited lo w e n th a lp y re sou rce
U ne xp loite d lo w e n th a lp y re source
GEOTHERMAL SITES
1-
Rangoon

0
1
II 800 km
1
LOCATION OF THE
BURMA
Burma is located on the eastern edge o f the Himalaya Chain where intense deformation
a nd faulting has taken place. It consists o f a low-lying central belt comprised o f Tertiary
marine deposits bordered by two igneous belts running North-South. The lands o f the
coastal area are fdled with deltaic deposits which extend out into from the Bay o f
Bengal and overly a Tertiary rock basement. Tertiary to Quaternary volcanism occurred
in the central belt (M ount Popa) and the coastal area.
A total o f 97 hot springs are known in areas o f recent volcanism and along the main
faulted zones in the central belt and Southern Burma. A preliminary survey has been
made on 43 hot springs in 1986. W ater temperatures range from 25 C to 65C.
Estim ated deep tem peratures using N a-K -Ca or Na/k geotherm om eters vary from 150 to
350C.
No geothermal exploitation is known to date.
236
C h in a
CHINA
Size 9,596,961 km2

Population (1994) 1.2 billions
Average annual growth rate o f GNP (1993-94) + 11.8 %
Consumption o f energy (1992) oil equivalent 700 millions t
Production o f electricity GWh
Geothermal 980 GWh
Fossil fuels GWh
Hydro 132,500 GWh
Nuclear 1,800 GWh
Wind GWh
LEGEND
A E xploited high e n th a lp y re source
yy E xploited lo w e n th a lp y re sou rce
19
GEOTHERMAL SITES
1- T ib e t [Yangbajian, Langjui, Naqu, Yangyi]
2- W Yunnan [Tengchong, Rehai, Reshuitang,
Beijmg VT_
V W y
v Redian, Reli, Pannazhang]
3 - W S ichuan [Litang, Chaluo, Yangyi, Junlian ]
W
\
y w' 4- Taiwan [Datun, Tuchang, Quingshui
5- SE China [Dengwu, Huitang, Zhangzhou,
\
Yangjiang, Fuzhou, Baoting]
6- Tianjin [Tanggu, Hangu, Dagan]
w 7- Beijing [.Xiaotangshan]
\
8- Yingshan
9- Tangshan
10- Fen W ei Basin
11- S anglio Basin
1 2 -S h u n g d o n g -L ia o n in g Basin m r
13- N China Basin 0 A 1000 km
14- Errduos Basin
15- Erlian Basin A --------------------11
16- Jianghan Basin
LOCATION OF THE
17- Talim u Basin
18- C haidam u Basin GEOTHERM AL RESOURCES OF
19- Z h u n ge e r Basin
C H IN A
China has large geotherm al resources, including low-to-interm ediate and high
tem perature geotherm al systems, dissem inated throughout the country. Around 3,000
geotherm al systems have been mapped, including less than 2 0 0 sites suitable for
High temperature geothermal systems are m ainly concentrated in zones o f recent
volcanism and tectonic activity, i.e. the Himalayan Belt and Taiwan. Along the
Him alayan Belt, they are disseminated in an area o f 2000km long and 200-400km wide
in Southern Tibet, W estern Yunnan and W estern Sichuan Regions. A 112 geothermal
localities are known in Tibet, 47 in Yunnan and 12 in Sichuan. Most o f these fields are
remote areas w here conventional energy is limited, and the population density is low.
Seven geothermal pow er plants have been installed in China, with a total capacity o f
237
C h in a
32.2MW e. These are: Yangbaijian, Shiquanhe, Naqu, Tuchang, Dengwu, Huitang,

Quingshui.
In Tibet, the following geotherm al plants occur:

- Yangbaijian: It is the largest power plant in China. 18 production wells (200m deep)
have been drilled and produce 140-160C waters. The total installed capacity is
25.2M W e, generated by nine single flash, double flash and hybrid cycle pow er units.
Resources are estimated to be important and the capacity could increase (50-80M W e by
the year 2000; 100-150M W e by the year 2010). A new well drilled in 1993 in northern
part o f the field produced 330C waters at 2000m depth and its potential is estimated to
be lOMWe. W aste thermal waters are used for heating greenhouses (50,000m 2).
Shiquanhe (or Lang/iu): A 180C reservoir has been identified and a 2M W e plant was
built in 1987. It does not run continuously due to cold w ater invasion o f the reservoir.
Naqu: A IM W e binary cycle pow er plant uses 110-113C waters (well head
temperature) from a 170C reservoir.
In SE China ( Guangdong Province), two single flash pow er plants are using 90C
waters: Dengwu (0.686M W e) and Huitang (0.30M W e). They operate intermittently.
Others geotherm al fields are under investigation:

Yangyi in Tibet: an estimated 30M W e potential for electricity generation is related to
the occurrence o f a shallow reservoir (300m) with 207C waters.
In Yunnan , the high tem perature geothermal fields are:

Rehai-Tenchong: A bundant surface manifestations are known in the Rehai area and
used for bathing. Deep reservoir temperature is estimated about 276C and its potential
to be more than 200M W e.
Reshuitang-Lanpu: Surface-boiling hot springs are known and reservoir temperatures
are estimated to be between 160-220C. The potential installed capacity could be
lOOMWe.
Redian: Reservoir tem perature and extent are estimated to about 190C and 3.2km ,
respectively. It corresponds to a potential capacity o f 47M W e.
Reli: The estim ated potential capacity o f the 215-227C reservoir is 20MWe.
In W estern Sichuan, there are small fields near Litang and Chaluo, with temperature up
to 220C and a lOMWe potential.
Further developm ent o f electric generation in China would be focused on Tibet and
Yunnan Regions. Installed capacity o f existing plants will be increased and new plants
will be installed (Xietongnen in Tibet; Rehai, Reli and Pannazhang in Yunnan', Yangyi
and Litang in Sichuan). Estimations o f the geothermal potential are l,000M W e in South
Tibet, 570M W e in W est Yunnan and 170MWe in W est Sichuan.
The article 48 o f the Electricity Law, which was taken effect in China on April 1, 1996,
stipulates the encouraging and supporting policies o f China governm ent for developing
geothermal energy and other new energies, through favourable policies on price o f
electricity and taxes.
238
C h in a

U nexploited - plant under construction or planned
U nexploited - probable and possible resources l,840M W e
D ir e c t U ses
Low to intermediate temperature geothermal resources are widespread in China. They
are developed in large-scale sedim entary basins covering 36% total area o f China. The
main basins are: Sanglio, N orth China, Eerduos, Erlian, Jianghan, Sichuan, Talimu,
Chaidamu, Zhungeer. Among them, N orth China and Jiangsu Basins seem to be the
m ost promising areas for geothermal resources.
Low to intermediate tem perature geothermal resources are also developed in regions o f
high heat flow. These are:
SE China ( Fujian, Guangdong, E Jiangxi, S Hunnan Provinces). M ore than 600 hot
springs have been m apped with tem peratures ranging between 40-95C. Exploration has
been carried out on several hydrothermal systems and reservoir tem peratures estimated :
Zhangzhou (140C), Yangjiang (140C), Fuzhou, Dengwu (135C), Baoting (120C),
Huitang ;
Shangdong-Liaoning area, along the Tancheng-Lujiang Fault Zone;
Fen-Wei Graben, W est o f Pekin;
W Sichuan-N Yunnan to NE Tengchong zone, corresponding to a north-south, trending
tectonic and seismic zone.
Highest reservoir tem peratures are observed along the coastal area o f SE China.
Low to intermediate tem perature waters are widely used in China. In 1995, total flow
rate o f therm al waters for direct uses was 5996 kg/s. Annual energy use was 16 981 TJ
from an installed capacity o f l,914M W t w ith an average load factor o f 28%. The main
direct uses are:
Space heating, m ainly in N orth China (1,313,000m 2 o f heating area in total). In Tianjin
area ( Tanggu, Hangu, Dagan ), about 50 wells produce 831/s thermal waters with
tem perature up to 97C to heat 805,000m2 (334GW h);
Greenhouses (1,159,156m 2 in total; 100,000m 2 at Xiaotangshan, near Beijing);
Fish farming (1,600,000m in total; 650,000m at Xiaotangshan', 60,000m 2 at
Tangs han);
Bathing (594 baths, 23 swimming pools, 179 sanatoriums);
Industrial heat process; 49 known projects using thermal waters for dyeing, drying fruits
and vegetables, paper and hide processing, air conditioning and pre-heating boiler feed
water,...).
There are good prospects for future geothermal exploitation as environmental and
economic constraints favour the developm ent o f the geotherm al resources for district
heating particularly close to the load centres.
239
C h in a
Sum m ary o f R eso u rces
Exploited - plant in operation l,914M W t

240
In d ia
INDIA
Size 3,287,590 km2

Population (1994) 92 0 millions
Geothermal 0 GWh
Hydro 71,000 GWh
Nuclear 7,225 GWh
Wind 55 GWh
7000' 8000' 9000'

LEGEND
A . E x p lo ite d h ig h e n th a lp y re s o u rc e
C H IN A
V E x p lo ite d lo w e n th a lp y re so u rce
U n e x p lo ite d high e n th a lp y re s o u rc e
V U n e x p lo lte d lo w e n th a lp y re s o u rc e
1 -M an ika ra n 1 0 -A n h o n i-S a m o n i
2 1 1 -U n k e s h w a r
-B e a s -P a b a ti 12C am bay
4 -S a tlu j-S p ity v a lle y 1 3-B o m b a y
BURM A 5-T a po b a n 1 4-K o n ka n
6 -N u b ra 15-S on a
7 -D a rm a 1 6-G o d a va ri
8 -Tatapani 1 7 -D a m o d a r
9 -S a lb a rd i 1 8 -B a rre n island
A R A B IC S E A
5 00 1000km
LO C A T IO N O F T H E
IN D IA N
G EO TH ER M AL RESO UR CES OF
7000' 8000' 9000' INDIA
Due to its tectonic context, India is not particularly well placed for geothermal energy,
how ever there is geotherm al developm ent potential on the Andaman Nicobar island and
at several places across the sub-continent were the astenosphere is thinner and heat flow
anom laies occur.
Geothermal exploration has comprised detailed reconnaissance and evaluation which
has been limited to North W estern Himalaya and parts o f central and western India.
Preliminary total geotherm al pow er potential is estim ated to be 2,000-l0,000M W . Most
resources are o f intermediate tem perature type.
Himalayan Province:
-Puga-Chhumathang area: there are several therm al springs with temperature up to

87C. At Puga geophysic surveys indicate a reservoir at l-3km , drilling (34 wells with
maximum depth 385m) and other studies indicate reservoir tem peratures o f 180-260C.
241
In d ia
At Chhumathang 6 wells to a depth o f 221m discharged water-steam mixture o f 109C.

Reservoir tem perature is being estimated 160-200C.
-Beas and Parbati Valleys: at Reas Valley eight thermal springs have temperatures o f
30-57C. 18 wells 50-500m deep have been drilled. Reservoir tem peratures are
estimated to be 120-160C. At Parbati Valley six springs are around 21-90C. 19 wells
37-707m deep have been drilled with maxim um temperatures reaching 101C.
Reservoir tem peratures are estimated to be 186-202C at the m ost promising site
(Manikaran ) while other reservoir tem peratures are 170C (Jan), 100C (Kasol), 150C
(Khirganga).
-Satluj and Spity Valley, in 12 thermal localities temperatures are 23-73C. 5

exploratory holes were drilled to a maxim um depth o f 183m. The reservoir temperature
is estimated to 110-212C.
- Tapoban area : there are 12 springs with tem peratures o f up to 65C. 5 shallow (50-
52m) and 4 medium depth (291-728m) wells were drilled during 1975-1990. The
estimated reservoir temperature is 160-200C.
-Other localities', the m ost prom ising site, in Nubra Valley, have springs up to 76C.
Reservoir tem perature is estimated to be 110-180C.
In Darma Valley springs have 80C and reservoir tem perature is expected to be less
than 140C.
Son-Narmada-Tapti Province:
-Tatapcmi area: is considered a possible future geothermal field.

Springs have tem peratures between 58-98C. A num ber o f wells have been drilled here.
A reservoir is likely to occur at a depth l-3km with temperatures from 1 1230C (1km)
to 23040C (3km).
-Salbardi area: thermal springs have tem peratures around 38-42C and the reservoir
tem perature is estimated to be 110C.
-Anhoni-Samoni area : at Anhoni springs tem perature is 30-42C. A few wells were
drilled to a depth o f 635m where tem peratures were around 50C.
-Unkeshwar area : springs have tem peratures between 30-42C. The estimated reservoir
temperature is about 100C.
W est coast Province:

-Cambay graben : hot w ater with steam was encountered during oil drillings.
Tem peratures at 3km depth are estimated to be 150-200C.
-Northern and Eastern Bombay offshore : from temperature gradients, 125-225C are
expected at 3km depth.
-Konkan area : 60 therm al springs have temperatures o f between 34 -7 1C. 10 wells
were drilled and in Ganeshpuri reservoir tem perature could be 90-130C.
Sona Province:
242
In d ia
Therm al springs have tem perature o f 24-46C. Several wells were drilled to a depth o f
547m. Thermal gradients indicate a large variation. The reservoir base tem perature is
100 C.
Eastern and North Eastern Province:
51 therm al springs have temperatures o f 35-88C. The estimated base tem perature range
is from 90-150C. Very little exploration has been done at this location.
Southern India Province:
-Godavari Graben : the area has been extensively studied in connection with oil
exploration. Springs have recorded tem perature from 30-62C. Estimated reservoir
tem perature is 100-150C.
Damodar Valley Basins Province:
Springs have recorded temperature up to 80C, while reservoir temperatures are

estimated to be 80-120C.
Andam an-N icobar Province:
-Barren island has a geotectonic similarity to the Taupo zone, o f N ew Zealand. I f so it

could turn into the most promising exploitable therm al field in India. Unfortunately
exploration has not started yet.
Presently, attempts are being made to install geothermal power plant but none a
currently operating. In 1992 a 5M W binary cycle pilot pow er plant was successfully
tested its optimum operating capacity in the Manikaran field (Himalayan province).
A nother binary cycle pow er plant for the generation 20M W is planned for the Tatapani
field (Son-Narmada-Tapti province) and a 1MW plant in Puga Valley (Himalayan
province).
Sum m a ry o f R eso urces
U nexploited - plant under construction or planned 21 M W

U nexploited - proven resources -
Unexploited - probable and possible resources 2,000-10,000M W
D ir e c t Uses
Recently it has been decided to utilise thermal discharge from a well in Tapoban
(Himalayan province) for greenhouse fanning.
243
Indonesia
IN D O N E SIA
Size 2,027,087 km2

Annual energy use per capita (1994) oil equivalent kg
Geothermal 0.31 GWh
Hydro 2.134 GWh
N uclear GWh
Wind GWh
_ LEGEND
^ Exploited high enthalpy resource

VI3
9
17
11 Si bayak 11- Lumet Balai
Salak 12- Candi Kuning
/ .,V j _
L/ Patuha 13- Sarulla
Wayang Windu 14- Banten
16
Darajat 15- Cisolok
Kamonjang 16- Ulumbu
7- Karaha 17- Kerinci
8- Dieng 18- Ciharus
Jakarta 9- Ladendong 19-ilis
10- Ulubelu 20- Cibuni
fi* 21- Bedugul
A
3/y 7
20 - 4
5 6
8A 1500 km
12 A 19 I I I
LOCATION OF THE
INDONESIA
The Indonesian Archipelago is located in an area o f three m ajor plate margins (Indo-
Australian, Eurasian, Pacific plates). Interaction between them has led to the generation
o f island-arc volcanism and major faulting. More than 130 active or recent volcanoes
have been recorded. The combination between shallow crustal magmatic heat sources
and faulting creates highly suitable conditions for the developm ent o f large geothermal
resources in the Indonesia Archipelago.
The Indonesian Geological Survey has identified 217 geothermal localities with low to
intermediate (<150C) and high (>150C) reservoir temperatures. M ost o f them are
characterised by vigorous surface manifestations.
A t the end o f 1994, Indonesia had 309.5M W e o f electricity generating capacity from
geothermal plant at five sites. In October 1996, President Suharto issued a decree that
provided for the creation o f a new agency to approve and supervise new geothermal
projects. This agency will eliminate redundancy in the approval process, which
previously required both PLN and Pertam ina approval o f all projects. It is also aimed at
244
In d o n e sia
lowering the cost o f geotherm al pow er so that it is com petitive with coal-fired power
generation.
70 prospects in Indonesia are classified as high temperature (>200C) geothermal
systems. Their estimated resource potential is estimated to be about 19,000MWe,
distributed between Sumatra (4900), Java (7800), Bali (325), Nusa Tengarra (350), N
Sulawesi (1500), Maluka and Irian Jaya (1200).
Exploration and/or developm ent wells have been drilled on 11 prospects Kamojang (54
wells), Ciharus (1 well), Darajat (7 wells), Salak (17 wells), Wayung Windu (1 well),
Cisolok (1 well), Banten (1 well), Dieng (26 wells), Lahendong (12 wells), Sibayak (3
wells), Kerini (2 wells). About 1057MWe resource potential has been proved.
Exploration drilling has been started in Sarulla (N Sumatra ), Wilis (E Java ) and
Ulumbu (Flores).
Detailed scientific survey results have been used to identify other prospects which are
under consideration as part o f 20-25 years developm ent plans in Java-Bali (6 prospects),
Sumatra (8 prospects), Sulawesi (2 prospects). Their potential is estimated to be more
than l,400M W e.
M ajor projects for developm ent are planned between 1995 and 2000 the total installed
capacity would be l,079M W e by the end o f 1999, from Salak (220M W e), Darajat
(70M W e), Dieng (95M W e), Ulubelu (40M W C), Lumut Balai (40M W e), Sibayak
(22M W e), Lahendong (20M W e), Kamojang (80M W e), Patuha (55M W e), Karalia
(55M W e), Wayang Windu (40M W e), Candi Kuning (60M W e), Cibuni (10M W e),
Bedugul (110M W c).
In July and October 1994, Unocal brought 2x55M W plants online at the Gunung Salak
field near Jakarta. The com pany plans to construct four additional $380-million,
55M W plants at the Gunung Salak field, with the next to come online by m id -1997.
Also, the com pany is conducting geothermal exploration in N orth Sumatra's Sarulla
block.
On the Darajat concession south o f Jakarta, Amoseas supplies geothermal steam to fuel
PLN's 55M W plant nearby. In January 1996, Amoseas announced that it had signed a
PPA that will allow for construction o f 70M W plant on the Darajat block. Construction
o f the $125 million plant started in 1996 and is scheduled for com pletion by the end o f
1998.
Also smaller scale developments will take place on more than 15 off-grid sites
throughout the country, mostly in East Indonesia (Flores, Lombok, Am6on, Sumbawa).
Installation o f micro geo binary cycle plants o f lOO-lOOOkW would added 74M W e o f
capacity.
245
In d o n e sia
At the end o f 1997 six pow er plants sites were operating and total installed capacity is
589.5 M W ,
Salak six 55M W e units,
Sibayak 2 M W e,
Lahendong one 2,5M W e binary plant,
Dieng one 60M W e unit,
Darajat one 55 MW Cunit.
Kamojang one 30M W e and two 55M W e double flash plants,
In Kamojang there are pow er reserves for about 250 M W e.

Unexploited - proven resources l,057M W e
Unexploited - probable and possible resources 8,000M W e
D ir ec t U ses
No direct uses are mentioned in Indonesia.
246
Iran
IRAN
Size 1,648,000 km2

Population (1994) 6 5 .7 6 millions
Geothermal 0 GWh
Hydro 7 GWh
Nuclear 0 GWh
Wind GWh
50-00' 60-00
LEGEND
FORMER USSR A Exploited high enthalpy resource

TURKEY
G EOTHERM AL SITES
Teheran 1-M eshkinshahr 1
2-Boushi
3-Sareine
IRAQ
N
SAUDI ARABIA LOCATION OF THE

60-00' IRAN
Exploration began in 1975 and as a result, the main targets were identified in the
northern provinces. In 1993, feasibility studies started and as a result the Sabalan region
appeared the most prospective as potential for electricity generation; results from Khoy-
Maku and Sahand regions have also appeared interesting.
In Sabalan region there are reported to be at least 17 thermal springs with an average
tem perature o f 40C and maximum temperature o f 85C at Meshkinshahr, Boushli and
Sareine where geothcrm om eters estimate reservoir tem peratures o f 140-251C. After
extensive surface explorations the potential for this region is estimated to be
4 8 x lO l8Joule.
Meshkinshahr has been selected for the first deep drilling site.
247
Iran
In Damavand region the potential is estimated to be 5 x lO lsJoule.
Sum m ary o f R eso urces

Unexploited - probable and possible resources 1
'The estimated potential o f the most promising areas totals 53xlO lsJouIe.
248
Israel
ISRAEL
Size 20,320 km2

Geothermal 1.196 TJ
Hydro 0.032 GWh
Nuclear 0 GWh
Wind 0 GWh
3500'
LE G E N D
LEBANON
A E xp lo ite d high e n th a lp y re source
SYRIA E xp lo ite d lo w e n th a lp y re sou rce
U ne xp loite d high e n th a lp y re sou rce
U n e x p lo ite d lo w e n th a lp y re sou rce
Jerusalem
1 -H a m m e t-Y o a v 'ty
2 -N e g e v
co 3 -S ou th o f th e D ead S ea
GAZA f : 4 -H a m m a t G a d e r
r
EGYPT V
I
JORDAN N
SAUDI - LOCATION OF THE

RED ARABIA GEOTHERMAL RESOURCES OF
SEA
3500
IS R A E L
The extensive geothermal investigation made in the country during the 1970s and 80s
revealed several surface anomalies with temperatures between 26-62C. Deep well data
(about 340 deep drill holes spread all over the country) and other geothermal and
geological data, have led to the identification o f ten anomalous zones where
temperature gradients were subsequently calculated.
The most promising zones are the Jordan Valley, and Sea o f Galilee.
The value o f the heat resources has not been calculated.
All thermal springs in Israel are located in the Jordan-Dead Sea rift, which is a segment
o f the Syrian-African fault system. Temperature observed at these springs range
between 26C and 62C.
There is no electricity generation from geothermal resources in the country.
249
Israel
D ir e c t u se s
Presently, due to the relatively low temperature, geothermal w ater is used mainly for
health and recreation (44%) and agriculture: greenhouses (13%) and fish farming
(43%).
Thermal waters at 42C from an 1,857m deep drill hole are utilised in a spa at Hammei
Yoav, along the western part o f Israel between the foothills and the Mediterranean Sea.
W ater is from a dolomite/limestone aquifer o f the Yarkon-Tainin basin.
In the northern Negev area, as a demonstration plant for growing vegetables has been
established. Hot brackish water at 35-42C from the same aquifer at 550-650m is used;
the chloride content ranges from lOOOppm to 1400ppm, with a flow rate ranging from
150-220m3/hour.
South o f the Dead Sea , w ater at 60C comes from a 1536m deep w ater well, and is used
for heating greenhouses and as a frost prevention measure.
Geothermal water for fish farming is used in northern Israel close to the Jordan Valley
at Hammat Gader springs and along the Mediterranean coast about 70km north o f Tel-
Aviv. The spring temperature is 27C.
The uses o f geothermal resources in Israel are quite limited and currently the
geothermal fluids utilised give about 42M W t o f installed thermal power and a total
annual energy o f 1,196TJ.
S um m ary o f R eso urces

250
Ja p a n
JAPAN
Size 372,313 km2

Consumption o f energy (oil equivalent) (1994) 477.0 million t
Hydro 105.674 GWh
Nuclear 249.256 GWh
Wind GWh
LEGEND

A Unexploited high enthalpy resourc
^ Unexploited low enthalpy resource
GEOTHERMAL SITES
1-Mori
2-Matsukawa
3-Oruma
4-Kakkonda
5-Sumikawa
o-Uenotai
7 Onikobe
8- ^naizu-Nishivama
9-Ctake
10-Katchobaru
11-Suginoi
12- Ti'kenoyu
13-TaHgami
14-Oguni
15-Ogin
16-Kirist ima
17-Yama:jawa
18-Hachijojima
0 500km
LOCATION OF THE
JA P A N
A bout 200 recent volcanoes including 83 active ones are recorded in Japan. In addition,
sedim entary basins with aquifers are abundant. Its geologic framework is very
favourable to the developm ent o f geothermal systems which are possible sources for
both electricity generation and direct uses o f thermal waters.
Japan is today am ongst the w orlds largest producers o f geotherm ally generated
electricity, and thermal waters are w idely and traditionally used for bathing.
Geothermal pow er plants are concentrated in two areas, Tohoku and Kyushu. The first
geothermal plant took place at M atsukawa in 1966. At 1997 there are 18 plant sites with
a total installed capacity o f 300M W e and other 230M W C been completed at the end o f
1997. However, this represents less than 1% o f the overall Japanese pow er demand. An
increase to 600M W Cin 2000 and 2800M W Cby 2010 is planned.
251
Ja p a n
The geothermal plant sites are:
Hokkaido Mori (50M W e)

Tohoku Matsukawa (23,5M W e), Onuma (9,5M W e), Onikobe (12,5M W e),
Kakkonda (50+30M W o), Uenotai (27,5M W e), Sumikawa (50M W e),
Yanaizu-Nishi (65M W C).
Kyushu Otake (13,5M W e), Hatchobaru (55+55M W e), Suginoi (3M W e),
Kirishisma (0,1M W C), Takenoyu (0.105M W C), Yamagawa (30M W e), Ogiri
(30M W e), Takigami (25M W e).
Two new sites are under developm ent Hachijojima Island (3M W e planned) and Oguni
(20M W C planned). In addition, there are about 40 sites which have been investigated
where high tem perature geothermal systems are evident and could be developed for

Unexploited - plant under construction or planned 70MW e
Unexploited - proven resources 2,800M W e
D ir e c t U ses
The main direct uses o f thermal waters are bathing space heating, greenhouses, fish
farming and, snow melting. The 244 recorded geotherm al exploitations are concentrated
in Hokkaido and Tohoku where heat dem and is strong during winter, and in Kyushu
where resources are abundant.
Heat discharge from 6,868 wells in the 120 largest spas is calculated to be around
l,512M W t . The installed thermal power, at 1997, considering also bathing is 1,159
M W t, o f which 79% for bathing, 16% for space heating, and 5% for greenhouses). The
total annual thermal energy use is 27.000 TJ/y or 7,500 GWh/y.
Thermal waters are mainly produced by shallow to intermediate wells with depth
ranging from 100 to 1000m.
Further developm ent would combine direct uses o f thermal waters with small-scale,
binary cycle electric power generation (100 to 500kW capacity). This could represent a
24M W Ccapacity and 351/s o f 76C waters available for direct uses.
Exploited - plant in operation 1,159 M W t

Unexploited - plant under construction or planned 1,512 MWt
252
J o rd a n
JORDAN
Size 88,946 km2

Population (1994) 4 .2 2 millions
Geothermal 0 GWh
Hydro 0.02 GWh
Nuclear 0 GWh
Wind GWh
Jordan benefits from its unique geological setting on a transform fault along the Arabian
plate margin, the trace o f which is marked in the landscape by the Dead Sea depression.
This situation generates the possibility o f hot fluids rising along the plate margin itself,
or slightly within the plate, through a reactivation o f existing faults.
Two arc the areas o f geothermal interest: along the Dead Sea depression and the Jordan
Valley. These geothermal resources could support local developm ent (greenhouses,
aquaculture, tourism, etc.). The main obstacle seems to be the problem o f financing
such operations, although apparently, possibilities exist for foreign capital investment
(tourist industry and other developments).
253
Jo rd a n
D ir e c t u ses
Zara springs discharge w ater at temperatures between 30 C and 110C and are located
near several tourist com plexes which offer the potential for developing these springs for
thermal spas and air conditioning.
The North Shuna well produces w ater at a temperature o f around 50C, with a discharge
rate greater than 300m3/h. As it is located close to an agricultural area it is used for
greenhouses and fish farming.
The Madaba area, on the Jordan Plateau, near Amman, has a greenhouse market garden
industry. W inters on the plateau are cold. A shallow (<200m depth) groundw ater
resource exists in this area with a temperature o f between 30 C and 40C. This
geothermal energy could provide significant additional winter heating for the
greenhouses.
Wells in the area east o f Azrak produce some 50m3/h o f w ater at a tem perature o f about
50C, however, it is a desert area with no developed activity.
254
L ao s
LAOS
Size 236,800 km2

Geothermal GWh
Fossil fuels GWh
Hydro GWh
N uclear GWh
Wind GWh
There is no inform ation about the geothermal potential o f Laos.
Only scarce information is available about the geology o f Laos. A metamorphic

basem ent (gneisses, schists, marbles) o f Proterozoic outcrops in North Laos mainly. It is
overlain by a M esozoic and younger platform cover well developed in the southern part
o f Laos and also along the Chinese border. It is composed o f continental sediments
(conglom erates, sandstones, shales, evaporites) related to a Late Triassic folding and
uplift leading to intensive erosion.
M ore recently, a Late Cenozoic tensional regim e related to the Alpine tectonic belt
created small grabens fdled with Neogene terrestrial sediments in northern Laos. It also
generated a Quaternary basaltic volcanism with lavas covering a large area in south east
Laos (Bolovens Plateau).
No information about thermal manifestation and the geothermal potential o f Laos are
available. There are similarities w ith the recent tectonic regim e and basaltic volcanism
seen in nearby Vietnam and Thailand which suggests that there could be possible
geothermal resources in Laos related to the existence o f a deep faulted zone. Low to
intermediate tem perature geothermal systems could be developed within small grabens
containing Neogene deposits.
255
L ebanon
LEBANON
Size 10,230 km2

Geothermal 0 GWh
Hydro 0.9 GWh
Nuclear 0 GWh
Wind 0 GWh
The Dead Sea structures extend up into Lebanon via Israel. Here a hot spring exists in
the north o f the country although, as far as we know, no particular study has been
carried out o f these resources.
Similar geological structures are also found in neighbouring Syria.
These resources still need to be evaluated.
256
N epal
NEPAL
Size 140,800 km2

Population (1994) millions
Annual CO 2 emission per capita (199 ) tonnes
Geothermal 0 GWh
Fossil fuels 20 GWh
Hydro 900 GWh
Nuclear 0 GWh
Wind 0 GWh
Nepal is endowed with a num ber o f hot springs com monly known as Tato Pani that
have been widely used for bathing, washing and therapeutic purposes by the local
people. However, the demand for hot w ater supply, greenhouse farming, fish farming
and construction o f swimming pools is high.
Rior, Bajhang-Tapoban and Jomsom have minimum surface temperatures o f around 50-
55C and could be used for air conditioning, animal husbandly, soil warming,
swimming pools and fish farming activities.
G eochem istry indicated at Darchula, Jumlci, Tatopani-Mustang, Sadhu Khola,

Mayangdi and Chilime subsurface tem perature are in the range o f 85 to 115C and
surface tem perature around 70C. These waters could be used for space heating,
greenhouses, drying o f fish stock, agricultural products and cem ent blocks. A t Kodari
and Syabru Besi the subsurface tem perature has been estim ated to be 96.5 C, 86.5 C
respectively, making inexpensive electricity generation unviable.
257
N epal
The lack o f exploitation o f geothermal energy in Nepal is due, according to local

scientists, to the lack o f knowledge o f low temperature applications and to the logistical
problems related to the steep Himalayan terrain. However, significant progress has been
made in road construction in recent years opening good access to some geothermal
localities such as Kodari, Syabru Besi, Jomsom.
M oreover, the construction o f North-South highways in the western and far-western

region o f the country is now planned. Some projects have already com menced and
should be completed in the next few years. These routes will connect Darchula and
other localities.
Geothermal energy is expected to receive due attention in the Ninth Plan (1996-2001)
and in the energy sub-sector plan (1997-1999).
258
K a z a k h sta n
KAZAKHSTAN
Size 2,750,000 km2

Consumption o f energy (oil equivalent) (1994) million t
Geothermal GWh
Hydro GWh
Nuclear GWh
Wind GWh
LEGEND
^ E xploited high e n th a lp y re source
E xploited lo w e n th a lp y re sou rce
GEOTHERMAL SITES
1- C him ke nt (Kaplanbek)
2- Dzam bul
3- Kyzyl-Orda
4- Chu Valley-N orth Kyzyl-Kum
5- Panfilov (llli H igh Valley)
6 - A lm a alta
7 -T a ld y Kurgan
8- U st-Ju r
2 5
V Alma-Alta
0
------------ 1
I
500
1
1000 km
I
LOCATION OF THE
KAZAKSTAN
Kazakhstan has very large, low to medium enthalpy geotherm al resource in relation to
its geological setting. It is located along the southern margin o f the W est-Sibcrian
Platform, and extends to the Caspian-Aral Trough, which is characterised by high
thermal gradient values (up to 60 C/km). Many deep and hot aquifers have been
encountered by extensive drilling dedicated to oil production. Cretaceous formations in
particular contain large aquifers in the southern part o f the country. W ater temperatures
usually range from 40 to 120C and salinity is low (1-2 g/1).
Areas where geothermal resources are assessed or/and used are restricted to Southern
Kazakhstan. Six regions have been listed. Direct uses o f hot w ater are sometimes
mentioned, but to a rather limited scale when compare to the extent o f the expected
resources.
259
K a z a k h s ta n
High temperature waters (170C) are evident at a depth o f 4,5km in the high valley o f
Illi (SE Kazakhstan). More information is needed before assessing potential resources
for power generation.
D ir e c t U se s
In Southern Kazakhstan ( Chimkent, Dzambul, Kyzyl-Orda), wells intersecting aquifers
in Cretaceous formations (1200-2100m deep) produce hot waters (45-80C; 15-60 1/sec;
1 g/1). They are used for greenhouses (12,000 m2) and space heating ( Kaplanbek ).
In Chu Valley and North o f Kyzyl-Kum, Cretaceous aquifers produce 80-90C waters
with 1,5 g/1 salinity. Geothermal gradient values range around 35/km.
In the high valley o f Illi ( Panfilov ), Cretaceous aquifers (2000-3500m deep) produce
9 0 -1 15C waters with low salinity (1,5 g/1) and high flow rates (20-90 1/s). A deeper
aquifer (4500 m) has been identified with high temperature fluids (170C).
In Alma Alta Region, Cretaceous aquifers are 150m thick and at 2.5-3.5km depth. A
well is producing 30 1/s o f waters (80-120C) at a pressure o f 30-35 atm. Hot w ater is
used for greenhouses in w inter and air conditioning in sum m er ( Porovsky , Aleksev).
Projects for other direct heat uses at Alma Alta are planned.
In Taldy Kurgan Region (Southeastern Kazakhstan), geotherm al resources are estimated

to be high, with a potential o f 45,000 m3/yr hot w ater (90C).
In Ust-Jur Region (Caspian-Aral Trough), large geotherm al resources are expected

from data provided by oil wells. Values indicate that a thermal gradient o f 60/km is
reach. Geothermal fluids could be used for heating and pressurising oil reservoirs.
260
Korea
KOREA
NORTH SOUTH
Size 122,762 99,392 km2
Population (1994) 19.35 4 4 .5 6 millions
Production o f electricity (1995) 38,000 164,99 GWh
Geothermal 0 0 GWh
Fossil fuels 14,000 102,244 GWh
Hydro 23 5.423 GWh
N uclear 0 58,651 GWh
Wind 0 0 GWh
12500' 13000'
LEGEND
A. E x p lo ite d high e n th a lp y re s o u rc e
V E x p lo ite d lo w e n th a lp y re s o u rc e
A U n e x p lo ite d h ig h e n th a lp y re s o u rc e
1-S o u th -S o u th E a s t re g io n s
2 -M a s a n
3 -C h a n g w e o n
i
N
LOCATION OF THE
KOREA
Several therm al springs occur both in North (38 C) and in South K orea (69 C). W ater
temperatures have a mean value o f 31,2C and range between 25-78C; the average
tem perature increases from 47.3C in the sedim entary/volcanic/m etam orphic rocks to
55.2C in the granite areas. Permeability is controlled by faults and fractures
intersection systems and reservoirs. Geothermal convection systems occur mainly in
Donglae, Boogok, and Backahm in South K orea and Hambook province in North Korea.
Geothermal studies and investigations have been carried out from 1987 to 1993. In this
period a total o f 229 therm al wells have been drilled in South K orea with depth ranging
from 250 to 800m.
261
Korea
Due to the low tem perature o f geothermal water, there is no electricity generation in the
country.
D ir e c t u ses
The geothermal potential for the use o f low tem perature resources is large but
information is limited and the level o f exploration very low.
Presently therm al w ater is used for public or private bathing and in resort areas, for
swimming pools and sanatoriums for m edical treatment. The establishments are mostly
owned by individual and private companies.
Fish fanning with ground and thermal w ater is practised widely in the southern and
southeastern onshore parts o f Korea; a few greenhouses have started limited activity in
vegetable and potted plant cultivation.
Private programs set up during the late 1980s for commercial exploitation were
encouraged but there is a need for governmental support particularly for drilling
programs to develop new geothermal resources.
In 1993-1994 geothermal applications for space heating were investigated in Masan and
Changweon area and in Chejeu Island.
262
Kyrgystan
KYRGYZSTAN
Size 198,500 km2

Geothermal 0 GWh
Hydro 11.08 GWh
Nuclear 0 GWh
Wind 0 GWh
NO DATA AVAILABLE
263
P a k ista n
PAKISTAN
Size 803,940 Km2

Geothermal 0 GWh
Flydro 18,500 GWh
N uclear 500 GWh
Wind 0 GWh
Geotherm al manifestations are numerous and widely scattered and used for balneology.
There are more than two dozen known hot springs which have discharge temperatures
ranging from 35-94C.
A m ajor concentration is found in the northern part o f the country, in the Chitral,
Hunza, Yasin and Skardu valleys.
A second largest concentration o f thermal springs is the narrow zone running NE-SW
and culminating in Dadu district.
Studies are far from complete. Only surface tem perature measurements and chemical
analyses for m ajor elements have been carried out.
264
Philippines
PHILIPPINES
Size 300,000 knr

Population (1994) 6 7 .4 millions
Hydro 6,500 GWh
N uclear 0 GWh
Wind 0 GWh
The Philippines are today the w orlds second largest producer o f geothermally
generated electricity. Geothermal energy provides about 20% o f the countrys
I I.IX IK ICI IV G KMUAIION

In the Philippines nearly 20 years have been spent in managing with high temperature
resources thus a high level o f experience has been reached.
Five geothermal fields on Luzon and the Visayas islands are generating a total o f
1,445MW by March 1997:
265
P h ilip p in e s
Luzon -426M W at Mak-Ban field in Bulalo : 6x55M W units built in 1979-1984;

3x5.2M W in 1994 and 4><20MW in 1996.
-330M W at Tiwi field where 6><55MW units were built in 1979-1982.
-130M W at Bacon Manito field: 2x55M W in Palayan built in 1993-1994;
lx20M W in Cawayan in 1994.
Leyte -214.5MW at Leyte field in Tongonan 3x37.5MW units in 1983, 125MW in
Upper M ahiao in 1996, 1x77M W in M alitbog in 1996.
Negros -193M W at Southern Negros field in Palinpinon : 3x37.5MW in 1983; 2x20M W
in 1994 and another 2x20M W in 1995.
Mindanao -1 x52M W unit at Matingao in 1997.
Power plants planned by the year 1998 will bring an additional 455MW:
Luzon -32M W are planned for 1998: lx20M W in Botong and lx l2 M W in Binary.
Leyte -383M W are planned: 2x77M W in S.Sambaloran and 3x60M W in
Mahanagdong by 1997; lx l7 M W in Tongonan, lx l4 M W in Malitborg and
3x6M W in Mahanagdong by 1998.
Mindanao -lx 4 0 M W unit in Sandawa is planned by 1998.
All projects are fully com missioned except the plant in Sandawa (Mindanao).
By the year 2000 total geothermal pow er would be over 2000M W .
Reserves for geothermal power generation are estimated to be around 3,000M W

(proven) while the ultimate potential ciuld be as m uch as 4,000M W .
Exploited - plant in operation 1445MW

Unexploited - plant under construction or planned 455M W
Unexploited - proven resources -1000M W
Unexploited - probable and possible resources -2000M W
D ir e c t U ses
A direct heat project through utilisation o f waste brines from Palimpilon 1 power
developm ent was com missioned in 1994 for produce drying (hot dry fruits and fish).
Similar plants are planned to be established at other sites in the country.
Facilities producing ice are also planned in Manito, Albay using brines from several
exploration wells.
266
Sri L a n k a
SRI LANKA
Size 65,610 km2

Geothermal 0 GWh
Hydro 4,250 GWh
Nuclear 0 GWh
Wind 0 GWh
Along the Highland Group and the eastern Vijayan tectonic boundary o f Sri Lanka there
is a 350km long therm al spring line indicating a large geothermal system beneath.
Thermal springs have been found in 10 locations. Chem ical geotherm om eters yield
tem peratures o f about 140C at Kapurella , Maha Ova and Ma rangala. All other springs
have deep tem peratures o f at least 100C.
267
T a iw a n
[ _____________________________ TAIWAN
Size 36,179 km2

Population (1994) 2 1 .3 8 7 millions
Geothermal 0 GWh
Fossil fuels GWh
Hydro 8.77 GWh
Nuclear 33.93 GWh
Wind 0 GWh
An inventory o f the geothermal resources has been carried out.
In Taiwan, large geothermal resources exist and are related to recent volcanism.
Three high tem perature geothermal systems have been explored: Datun, Tuchang and
Quingshui.
The Datun deep reservoir contains 293C acid sulphate-chloride waters with a pH o f
around 2. The Tuchang reservoir produces 173C waters and fuels a 0.3 MWe binary
cycle pow er plant. At Quingshui, a 3M W e single flash power plant uses 130-150C
therm al waters.
This was halted because o f the quality o f the water.
Estimation o f the geothermal potential is up to 100 MWe.
268
T h a ila n d
T H A ILA N D
Size 514,000 km2

Consumption o f energy (1993) oil equivalent 37 million t
Fossil fuels GWh
Hydro 3.70 GWh
N uclear 0 GWh
Wind GWh
LEGEND
\4/ E xploited high e n th a lp y re source
V W E xploited lo w e n th a lp y resource
w
w
GEOTHERMAL SITES
1- Fang
2- San Kam paeng
3-P ai
4- M ae chan
0
1
I
"
I 200 km
I
LOCATION OF THE
TH A IL A N D
Evaluation o f the national geotherm al resources began in 1979 when exploration and
developm ent started in the northern part o f the country. M ore than 90 hot springs with
tem peratures ranging from 40 C to 100 C have been mapped.
Until now, three areas o f geothermal interest have been investigated: Fang, San
Kampaeng and Pai. The geology o f N orthern Thailand is comprised o f a Precam brian to
Triassic basem ent (gneiss, schist, granite, limestone). Strike-slip and normal faulting
during the tertiary developed deep-collapsed, sedim entary basins (i.e. Fang Basin). The
hydrothermal activity is controlled by these large-scale structural features. Low to
medium enthalpy geotherm al systems are fracture-controlled and developed within
these deep-seated faults. They are sustained by the observed active seismics.
269
T h a ila n d
A t Fang since 1989, 134C waters produced at about 60t/h from three 150 m-deep wells
run a 300kW Ormat binary cycle pow er plant. In 1992-93, EGAT drilled three
additional 500 m-deep wells. Well FX-2 produced 25t/h o f 125C w ater from a fracture
at 290 metres; the other two wells were not productive.
At San Kampaeng, exploration survey was conducted from 1982 to 1989. In 1989, two
deep wells were completed. The wells failed to yield enough data to characterise the
deep reservoir, how ever well GTE-8 produce 40 t/h o f 125C water. Thai geochemists
believe that San Kampaeng has a potential to produce about 5M W e, but its developm ent
awaits the availability o f cooling w ater and lower cost drilling techniques.
Pre-feasibility studies at Pai have been planned by EGAT for 1994-95. Preliminary
studies have indicated the area to be similar to Fang and to have deep tem peratures o f
I40-180C from geothermometry. Accordingly, the drilling o f five 200-300m deep
wells was scheduled in 1995. If they confirm the existence o f a resource, generation o f
power using binary techniques will be planned.
The Mae Chan area will be investigated in 1996-97 to develop geothermal resources in
this isolated area for local purposes.
Exploited - plant in operation 0.3M W C

Unexploitcd - probable and possible resources 5M W C
Unexploited - possible resources
D ir e c t U se s
Direct uses o f therm al waters (drying and cooling process, tourism ) are m entioned at
Fang, in connection with the electricity generation.
At San Kampaeng, available hot w ater from exploration wells is being used for tourism
and bathing.
Exploited - plant in operation 1.73MWt

270
T u rk m e n is ta n
T U R K M E N IS T A N
Size 488,000 km2

Geothermal GWh
Fossil fuels GWh
Hydro GWh
Nuclear 0 GWh
Wind GWh
LEGEND
A E xploited high e n th a lp y re source
yj E xploited lo w e n th a lp y re source
GEOTHERMAL SITES
1- C heleken
2- Boja-Dag, N ebit-D ag
3- Kopet-Dag
4- Darvaza
W Achkhabad
500 km
I
LOCATION OF THE
TU R K M E N IST A N
Turkm enistan is located on the southern margin o f the W est-Siberian Platform. Its
geological setting is dominated by the existence o f a large depression (Kara-Kum )
developed along the back o f the Himalayan Chain (Elbruz, Kopet-Dag, Karakorum).
This sedim entary basin is filled by thick terrigeneous deposits and shows high gradient
anom alies at the top o f the underlying basement.
D ir e c t U ses
The occurrence o f low enthalpy geothermal reservoirs have been reported in three
regions: the Caspian coast ( Cheleken, Boja-Dag, Nebit-Dag), the Kopet-Dag region (SE
Karakorum), the Darvaza region (central Kara-Kum). They are developed within
sedim entary formations between 2,000-3,500m depth. They are characterised with low
271
T u rk m e n is ta n
to medium tem perature conditions (70-100 C), high to very high salinities (50-150g/l),
and have variable productivity.
On the Caspian Coast, several aquifers have been recognised with high flow rates (250-
14001/s), high salinities (50-100g/l) and a temperature o f around 80C.
In the Kopet-Dag Foothills (South Turkm enistan), wells intersected deep aquifers
(2000-2500m; 70-80C) with lower productivity ( 15-551/s).
In the Darvaza Region (Central Kara-Kum ), deep aquifers (3000-3500m; 100C)
produce highly saline waters (150g/l).
No direct utilisation o f geothermal resources for heating is known to date. Mineral

extraction (Iodine, Bromine, Lead, Zinc, Copper) from highly saline fluids are
m entioned in the area o f Cheleken and Boja/Nebit-Dag, Caspian Coast.
272
U z b e k ista n
U ZB EK IST A N
Size 447,000 km2

Average annual growth rate o f GN P (1993-94) -2.6 %
Geothermal GWh
Fossil fuels GWh
Hydro GWh
Nuclear GWh
Wind GWh
LEGEND
/\ U nexploited high enthalpy resource
\7 U nexploited low enthalpy resource
GEOTHERMAL SITES
1- Amu-Darja
2- Surkhan-Darinskaja
3- Tachkent
4- Fergana
LOCATION OF THE
UZBEKISTAN
Uzbekstan is located at the southern margin o f the huge W est-Siberian Platform, where
sedim entary basins have developed along the fringe o f the Himalayan Belt (Pamir, Alaj,
Tianshan ). Drilling for oil exploration has provided some information about deep
tem perature conditions and flow rates. Geotherm al gradient values range from 30 to
40/km.
Low to m edium temperature aquifers (65 to 120 C) have developed within
sedim entary formations and represent large but not well-assessed geotherm al resources.
273
U z b e k ista n
D ir e c t U ses
Four sedim entary basins o f geothermal interest have been identified: Amu Darja,
Surkhan-Darinskaja, Tachkent and Fergana.
In the Amu Farja Basin w here geothermal gradient is 38C/km, a geothermal

reservoir with a tem perature o f 122C has been identified at a depth o f 2,950m.
In the Surkhan-Darinskaja Basin, an aquifer produces 8301/s o f hot waters (65C).
In the Tachkent Basin, The Lower Cretaceous Formations (2000-2500m.deep)

produces hot waters (75-80C) with low salinity (lg/1) and high flow rate values
(5001/s).
In the Fergana Neogene Basin where geothermal gradient is 32C/km, 5-6 aquifers
produce hot waters (70-90C) with flow rates ranging from 30 to 5001/s. Annual
production o f 20 existing wells is estimated around 350-400 TEC/yr.
A t Tachkent, a geothermal heating plant uses hot waters (65C; lg/1) produced by the
deep Cretaceous reservoir for space heating.
274
V ie tn a m
V IE T N A M
Size 236,800 km2

Annual inflation (1994) 6.8%
Consumption o f energy (1994) oil equivalent million t
Geothermal GWh
Fossil fuels GWh
Hydro (1994) 9.10 GWh
N uclear (1994) 0 GWh
Wind GWh
V ietnam lies along the tectonic suture between two m ajor tectonic belts, the Eurasian
and Pacific belts. This leads to the developm ent o f several grabcn and rift zones,
accompanied with Neogene to Quaternary basaltic volcanism (inland and offshore).
Geothermal resources in Vietnam have been investigated recently with the support o f
New Zealand and Italian organisations. More than 300 hot springs have been listed with
tem peratures ranging from 30 C to 105 C. They are closely connected with the recent
tectonic activity and rift faulting in the north-western region, in addition with recent
volcanic activity in the southern central region. The geology o f these individual
geothermal prospects indicates that they are likely to be low to medium temperature
systems developed in deep faulted zones.
275
V ie tn a m
The Thach Tru area (Southern Central Region) is considered to be the m ost prom ising
area, with a 130-180C estimated reservoir temperature. These tem perature values are
considered to be suitable for a 300 kW electricity generation plant.
No utilisation o f geothermal resources are known to date. A project for electricity

generation with a 300 kW pow er plant at Thach Tru is planned.

Unexploitcd - plant under construction or planned 0.3M W C
276
Annex 1.1
Africa
Algeria
Burundi
Djibouti
Egypt
Eritrea
Ethiopia
Kenya
M adagascar
Malawi
M orocco
M ozambique
Rwanda
Tanzania
Tunisia
Uganda
Zambia
Zimbabwe
A lgeria
A L G E R IA
Size 2,382,000 km2

Average annual growth rate o f energy use -1.4 %
Annual CO 2 emission per capita 2.92 tonnes
Geothermal 0 GWh
Hydro 353 GWh
A lgeria has three m ain geothermal zones all o f low enthalpy: the Tlemcenian dolomites
in the West; the carbonate formations in the East, the sandstone Albian reservoir in the
Sahara.
An inventory o f known hot springs exceeds 240 entries although detailed information is
known on ju st 30% o f these.
D ir e c t u ses
The western zone can be sub-divided into two areas. The southern area is characterised
by hom ogeneous geological formations o f dolomites and carbonates whilst the northern
area is set in allochotonous terrains. Studies o f the first area gave little information
about the reservoir although it is believed that the waters are from a deep origin. The
279
Algeria
Tlemcenian dolomites constitute a shallow reservoir with 15 or so recorded springs at

tem peratures ranging from 25C to 47C.
The eastern zone is characterised by springs with both a high flow rate (100 litres per
O 2
second) and temperatures up to 96 C. The reservoir covers an area o f 15,000km .
Although the southern zone covers some 600,000km 2 there are few thermal springs in
this area. Those that are recorded have tem peratures o f around 50 C. The area is mainly
exploited by wells for domestic and agricultural purposes.
G eotherm al heat is being used in two locations in the Sahara. At Ouargla and
Touggourt, greenhouses covering an area o f 72,00m 2 are heated by geothermal w ater at
57 C to maintain a greenhouse air temperature o f 12 C. The scheme has been
operating since 1992 and has resulted in a claimed 50% increase in the production o f
melons and tomatoes.
Considering the springs for which adequate data has been gathered, approxim ately 30%
o f all springs, it is estimated that the geothermal potential is some 640MWt. The total
potential is rather higher but insufficient data exists to formulate a reliable estimate.
Exploited - plant in operation lM W t

Unexploited - probable and possible resources no data
280
Burundi
BURUNDI
Size 27,834 km2

Average annual growth rate o f energy use 0 %
Geothermal 0 GWh
Fossil fuels 2 GWh
Hydro 115 GWh
LEGEND
/\ Unexploited high enthalpy resource
^ Unexploited low enthalpy resource
GEOTHERMAL SITES
1. R uhw a
2. Rwisizi Valley
RESOURCES IN BURUNDI
Research conducted in the early 1980s identified a hot spring with a temperature o f
68C at Ruhwa in north west Burundi. This is the highest recorded temperature for a
geothermal source in the country. The same research concluded that an exploitable
geothermal resource, with a temperature in the range 100 to 160 C, exists in the Ruisizi
V alley and probably extends into Zaire and Rwanda. W hilst the temperature is
insufficient for electricity generation, it is probably adequate for industrial or domestic
use.
281
Djibouti
D JIB O U T I
Size 23,200 km2

Average annual growth rate o f GNP %
Geothermal 0 GWh
LEGEND
RED S E A
GEOTHERMAL SITES
E T H IO P IA 1. A sal Field
2. Hanle Field
25 50km
S O M A LIA
LO C A T IO N O F G E O T H E R M A L
R E S O U R C E S IN D JIBO U TI
Djibouti is located in East Africa at a point w here three im portant tectonic features
meet; the Red Sea, the East African Rift Valley and the G u lf o f Aden. These features
are responsible for the formation o f the Afar Depression. Nearly the entire area o f
Djibouti is covered with volcanic rocks.
There are two main geothermal areas in Djibouti, the Asal Rift and Hanle Plain. The
Asal Rift is the most active structure in the A far Depression. It is characterised by a
volcanic series represented by basalts. It is thought that this volcanism is fed by a
cham ber that still exists below the rift. The Hanle Plain is one o f many tectonic
depressions lying parallel to the Asal Rift. Both areas have been the subject o f
geothermal exploration and research since the 1970s and research continues to the
present day.
During 1987-88 four exploration wells were drilled in the Asal Rift and two in the
Hanle Plain. The Asal Rift wells all encountered high temperatures, with a maximum o f
1Note: Consumption grew from 217 kg/capita to 775 kg/capita in 1992.
282
Djibouti
358C, but have low permeability. Two wells showed production potential, with
tem peratures o f 260 C at 1,300m, if problems surrounding their high salt content could
be overcome.
The two Hanle wells encountered a maximum temperature o f 124 C at 2,000m - a

temperature which was considered too low for geothermal electricity generation.
283
Egypt
EGYPT
Size 998,000 km2

Annual COo emission per capita 1.54 tonnes
Geothermal 0 GWh
Hydro 8,520 GWh
LEGEND
GEOTHERMAL SITES
1. S u e z G u lf
2. K harga O asis
3. D akhla O asis
4. B ah ariya O asis
R E S O U R C E S IN E G Y P T
Exploration for geothermal resources has identified the hottest springs are along the
eastern shore o f the G ulf o f Suez. Aquifer tem peratures o f up to 70 C have been
recorded.
Despite an above average therm al gradient, ju st one therm al well has been reported in
the Eastern Desert whilst in the W estern Desert the major oases produce large volumes
o f w ater up to 43 C.
N o thermal springs are reported to exist in northern Egypt.
284
E ritrea
E R IT R E A
Size 121,144 km2

Annual energy use per capita (oil equivalent) kg
Production o f electricity GWh
LEGEND
1 Exploited high enthalpy resource
f\ Unexploited high enthalpy resource
\7 Unexploited low enthalpy resource
GEOTHERMAL SITES
1. Alid Prospect
0 100 200km
RESOURCES IN ERITREA
The Alid volcanic range in Eritrea, at the most northerly tip o f the triangular Afar
Depression, is characterised by very high geotherm al gradients. Recent volcanic,
fumarolic and hot spring activity indicate a geothermal resource.
The Alid volcano is 900m above sea level and approxim ately 700m above the
surrounding quaternary plains o f marine and red bed sediments.
Three different w ater groups have been identified and investigations suggest that there
is little contact between these. The three groups are:
Gelti hot springs, near the southern coast o f the G ulf o f Zulu , which have
temperatures in excess o f 60 C.
Boyci River w ater well at the eastern edge o f the western escarpment.
Alid Caldera where w ater tem peratures exceeding 100 C have been recorded.
285
Ethiopia
E T H IO P IA
Size 998,000 km2

Geothermal 68 GWh
Fossil fuels 90 GWh
Hydro 1135 GWh
LEGEND
RED S E A

SUDAN
XJ Unexploited low enthalpy resource
GEOTHERMAL SITES
D JIB O U T I
1. A lu to -L a n g a n o
2. C orbetti
3. A ba ya
300 600km
S O M A L IA LO C A T IO N O F G E O T H E R M A L
KENYA
R E S O U R C E S IN E T H IO P IA
Two hundred kilom etres south o f Addis Ababa in the Aluto-Langano geothermal field,
eight wells have been drilled during various exploration studies. The field is situated in
the Ethiopian Rift Valley.
Exploration studies have shown that the m ost important aquifer is a Tertiary ignimbrite
which lies some 1400m below surface level. Tem peratures in the hottest wells reach
360C and well fluids contain concentrations o f sodium bicarbonate. This is a high
enthalpy, water dom inated field.
The energy potential o f the area has been estimated based on the thermal energy o f the
saturated water. Fluid temperatures are in the range 220 C to 360 C and porosity
reaches 7%. These results suggest that 3,000 to 6,000M W .year/knr is the extent o f the
possible resource. This is equivalent to 10-20M W e/km 3 for more than 30 years.
Researchers have suggested that the actual potential could be higher than this. Because
286
Ethiopia
o f the uncertainty surrounding the size o f the upflow zone a conservative estimate was
made.
O f the eight wells drilled to date, four are productive. A plant 7.8M W e is under
construction in Alucto by Ormat.

Unexploited - plant under construction or planned 7.8M W e
U nexploited - proven resources 15M W e
287
K enya
K EN Y A
Size 580,000 km2

Average annual growth rate o f GNP (1985-1994) 0 %
Geothermal 272 GWh
Hydro 2993 GWh
LEGEND
GEOTHERMAL SITES
1. O lkaria
2. S ag uta V alle y
3. Lake Bogora
4. M en en gal C ra te r
5. Eburru
6. Lake M agadi
R E S O U R C E S IN K E N Y A
K enyas geotherm al activity is a result o f its proxim ity to the East African Rift Valley.
It has already been established that geothermal energy is the least cost option for Kenya.
However, the developm ent o f geothermal resources has been hampered by the countrys
legal framework. This is now under review with the aim o f opening the market to allow
private sector investment into the energy sector.
Kenya has declared a plan to have 450M W e o f geothermal power by 2 0 12; this supply
30% o f K enyas current power demand.
Exploration o f the resource is continuing particularly in the Olkaria geothermal field.
288
K enya
In the Eastern Production Field, a 45M W e station (3 x l5 M W e M itsubishi turbines) is in
operation although its output has dropped to 31 M W e due to a decline in steam output.
In an attempt to bring the steam generation back up to capacity, four new wells have
been drilled. The original project, which cost US$ 60M, was funded by the World Bank.
Construction o f a 64M W e plant in the Olkaria North East Field has been delayed
pending the outcome o f K enyas restructuring programme. Once complete, it is hoped
that the plant will be built.
Funding from the W orld Bank has helped Kenya develop its geothermal infrastructure
and human resources in the past few years. Over the past four years Kenya has trained
several professional geothermal staff.

U nexploited - proven resources 450M W e
289
M adagascar
M ADAG ASCAR
Size 587,041 km2

G N P per capita (1994) 230 USD per year
Annual CCH emission per capita 0.8 tonnes
Geothermal 0 GWh
1lydro 347 GWh
LEGEND
f\ Exploited high enthalpy resource
IN D IAN O C E A N j
J ) GEOTHERMAL SITES
( j 1. A n tisira b e Field
\
A n ta n a n a rivo //
/ V
RESOURCES IN MADAGASCAR
2
The Antsirabe geothermal field is a large volcanic plateau o f approxim ately 1000km".
The area consists o f basaltic and sedim entary formations overlaying an old basem ent o f
gneisses and migmatites.
A num ber o f warm w ater springs exist in the area with temperatures ranging up to
49C . Estimates suggest that at depth the fluid temperature may reach 180C.
The proxim ity o f a m ajor town close to the field raises the possibility o f using
geothermal energy for industrial purposes.
290
Malawi
M ALAW I
Size 118,484 km2

Geothermal 0 GWh
Fossil fuels 16 GWh
Hydro 779 GWh
No geothermal data have been available.
291
M orocco
MOROCCO
Size 71 1,000 km2

Population (1994) 26 millions
GNP per capita (1994) 1 150 USD per year
Geothermal 0 GWh
Flydro 443 GWh
LEGEND
A T L A N T IC O C E A N M E D IT E R R A N E A N Exploited high enthalpy resource
GEOTHERMAL SITES
1. O ujda
2. T arfaya
A L G E R IA
W ESTERN SAHAR A
R E S O U R C E S IN M O R O C C O
Two sources o f inform ation exist concerning the geothermal resources o f Morocco;
shallow borehole data and deep oil well data. Data from these sources has revealed the
following regional characteristics.
The Precambrian domain o f the A nti -Atlas has the lowest heat flow density o f any
region in M orocco at 40mWm"2. The thermal gradient is reported as being 140Ckm"'.
The High Plateaux and M oroccan M eseta both have heat flow densities in the range 55 -
60m Wm"2.
High anomalies exist in the Northern domain particularly in the N orthern M iddle Atlas,
Eastern R if and Oujda regions. Many warm springs exist in these areas. One notable
case concerns a mining borehole drilled NE o f Oujda', at a depth o f 680m, w ater at
O 9
95 C was located. The heat flow density at this location exceeds 200m W m ' .
292
M orocco
There is an absence o f volcanism in the W estern R if Despite this many w arm springs
exist. These are thought to have their origin in deep circulation.
In the south, the A tlantic margin and coastal Saharan basins have high heat flow
densities and extensive hyperthermalism. An oil exploration borehole near Tarfaya
found hot w ater and steam. Several similar deep wells have produced w ater at 100C at
depths between 2000 and 3000m.
The Tindouf basin, which extends into Algeria, has a heat flow density o f ~90mWm"2.
293
M ozam bique
M O Z A M B IQ U E
Size 799,000 km2

Annual CO 2 emission per capita 1.0 tonne
Geothermal 0 GWh
Hydro 50 GWh
LEGEND
/\ Unexpioited high enthalpy resource
\J Unexploited low enthalpy resource
GEOTHERMAL SITES
1. Z a m b e si V alle y
2. Lake N iasa
3. Rio L u g e n d a -R o vu m a
4. E sp u ng ab era
R E S O U R C E S IN M O Z A M B IQ U E
Faults and tectonic activity associated with the East African Rift Valley have created
hydrotherm al fields in M ozambique. In fact 10% o f the country lies within the valley
and associated fracture zones. Exploratory work conducted during the 1970s and 80s
deduced that M ozambique has a geothermal potential in excess o f 25MWe-
M ozam biques geology can be divided into two regions;

The north west h alf consisting o f crystalline and metamorphic rocks o f mainly
Precam brian age but also M esozoic and late Palaeozoic and the late M esozoic and
Cainozoic sediments.
The Direccao National de Geologia has identified the following areas as potential
geothermal sites w orthy o f further exploration: Chire Urema Valley, Zambesi Valley,
Niasa Lake area, Ilha de Mozambique, Pebane, Vila Neeuagas, Espungabera, Rio
Lugenda-Rovuma.
294
M ozam bique
At least 38 therm al springs have been identified. Some o f these issue boiling w ater
whereas for others the w ater tem perature is <60C . Investigations have confirm ed the
potential for small scale power generation which is particularly suitable for
M ozambique.
S um m ary o f R eso urces

Unexploitcd - plant under construction or planned 0
Unexploitcd - proven resources 25M W C
Unexploited - probable and possible resources 50M W C
295
R w anda
[ __________________________________ RW ANDA
Size 26,338 km2

Geothermal 0 GWh
Fossil fuels 4 GWh
Hydro 230 GWh
No geothermal data were available.
296
T anzania
TANZANIA
Size 945,100 km2

Geothermal 0 GWh
Hydro 625 GWh
LEGEND
J Unexploited low enthalpy resource
GEOTHERMAL SITES
1. M beya P rosp ect

2. Ivuna Spring
200 40 0km
R E S O U R C E S IN T A N Z A N IA
There are a couple o f potential geothermal sites in Tanzania none o f which are exploited
at the present time. Perhaps the most significant o f these is the Mbeya prospect in south
west Tanzania.
The Mbeya prospect is associated with a volcano that exists on a fault sequence.
Exploration has revealed high enthalpy bicarbonate-sulphate-chloride fluids. At the
Ivuna spring these fluids are predicted to reach a temperature o f nearly 220C.
Developm ent o f the prospect may prove attractive since there is a nearby need for
electricity at a large cem ent works.
Some o f the countrys hot springs, whose fluids have a surface temperature up to 78C,
are used for salt extraction.
297
Tunisia
TU N ISIA
Size 154,500 km2

Geothermal 0 GWh
Hydro 64 GWh
LEGEND
GEOTHERMAL SITES
1. N o rth ern Region

2. Z a g h o va n M ou ntains
3. A tla s D om ain
4. C h otts P rovince
5. S o u thern P rovince
R E S O U R C E S IN T U N IS IA
Tunisia has experienced a threefold increase in energy consum ption between 1970 and
1986. It was once a net exporter o f energy but is now a net importer; hence the drive to
develop domestic resources including geothermal energy.
Tunisia is situated on the intersection o f 3 tectonic plates; the African, European and
M editerranean. Geologically the country can be considered to comprise the Saharan
platform in the south, the alpine fold mountains in the north and an eastern region
consisting o f five geological provinces that all differ from one another in their geology
but nonetheless oil exploration and hydrological studies have indicated that each
province could contain a geothermal resource.
Province 1, the northern region whose geology is affected by the alpine nappes,
incorporates a thick sandy layer. The hottest springs have tem peratures in the range 20
to 73 C at the surface and 110 C below surface. The discharge rate is I to 401/s and
298
Tunisia
the geo-gradient is in the range 80-90 C/km. The region is related to the Tuscan Italian
province and therefore is expected to be a high energy geothermal region.
Provinces 2 and 3 constitute the A tlas domain and consist o f layers o f sands,
sandstone and limestone. The domain has a good potential with province two containing
several hot springs with tem peratures >60C and flow rates o f 40-601/s making it a
prom ising low temperature resource. Heat flow is >90m W /m 2.
Province 4 contains an important feature - the Tebaga anticline. This forms a

transition from the Atlas and Sahara domains. It consists o f sedim entary rock o f Jurassic
and Cretaceous ages and >4,000m o f clays and sandstones. This is the most important
aquifer in the North African Sahara. Provinces three and four share similar geothermal
characteristics and good potential. W ater at 50 C has been recorded at 50m depth and
the geothermal gradient varies between 25 and 45 C/km. Heat flow varies between 80
and 120mW /m2.
Province 5, in the south o f Tunisia, contains the biggest sedim entary basin in the
country covering h alf o f Tunisia. Here the geothermal gradient is in the range 25 to
35C/km and the heat flow 80 to 140mW /m2.
Useful information about the geothermal resources has come from the 70 existing hot
springs, and the 230 hydrogeologic and 350 oil wells drilled as part o f groundw ater and
oil exploration programmes.
To date the exploitation o f the geothermal resource is limited to the use o f hot ground
w ater for agricultural greenhouses. One hundred hectares o f such greenhouses existed in
1985. This figure had grown to 3000ha by 1995 with thermal energy consumption
estimated at 70MW.

Unexploited - proven resources no data
299
U ganda
UGANDA
Size 241,800 km2

Geothermal 0 GWh
Fossil fuels 7 GWh
Hydro 781 GWh
On the basis o f a report written by a UN technical adviser in 1984, geothermal

exploration was initiated in the areas o f Buranga , Katwe and Kibiro. All three areas are
near U gandas western border and are influenced by the African Rift Valley.
In 1992 a geothermal exploration project set out to study the three areas with a view to
establishing which were the most promising for drilling exploratory wells. The study
concluded that all three areas were suitable.
At 120 C- 135 C aquifer tem peratures at Buranga were the lowest o f the areas
considered but had the highest flow rates (>15 litres/second). Estimates put the
geothermal field at a m inim um o f 0.1km2.
Both Katwe and Kibiro had lower flow rates (>0.5 and 6.5 litres/second respectively)
but higher tem peratures approaching 200C in both cases. The added advantage o f these
two areas is that they are only 5 to 10km from existing power transm ission lines.
300
Uganda
Studies have shown that all three geothermal areas have similar economics to small
scale hydro-pow er and that Katwe and Kibiro could be on a par with larger hydro plants
under certain circumstances.
To date no geothermal development has taken advantage o f these investigative studies.

It has been suggested that if funds can be found that there are two further study options;
conduct a 24km geological survey o f the Buranga area. The aim o f the study would
be to provide information that would allow the appropriate siting and installation o f a
small power plant to supply electricity to the local community and a dem onstration
plant for crop drying.
complete the geophysical exploration o f Katwe and Kibiro to establish whether the
fields are suitable for providing electricity to the national grid. The study areas are
200km 2 and 32km 2 respectively. The selected site w ould require 3 drill holes to be
bored down to 1600 - 1800m.
301
Zam bia
ZAM BIA
Size 752,614 km2

Annual Population growth rate (1985-94) 3.3 %
Average annual inflation (1994) -5 4 %
Geothermal 0 GWh
Fossil fuels 40 GWh
1lydro 7745 GWh
LEGEND
Z A IR E
Jf Exploited low enthalpy resource
GEOTHERMAL SITES
A N G O LA 1. K apisya
2. C h inyu nyu
Lu saka *
200 40 0km
R E S O U R C E S IN Z A M IB A
Two geothermal energy developments are under construction in Zambia
The first, the Kapisya geothermal project, is on the shores o f Lake Tanganyika in
Sumbu. A pilot plant was built in 1986 after exploration found that the hot springs were
favourable for development. Two organic Rankine Cycle turbogenerators, with a total
nominal capacity o f 200kW , have been installed. Due to a lack o f funds, the
construction o f the power transmission line has not progressed so the surrounding
com munities and fishing and tourism industries have not benefited from the
development.
The second project, currently at the planning stage, concerns the developm ent o f a
health resort and potentially construction o f a geothermal power plant. The plan is to
provide cheap power to the community at Chinyunyu Hot Springs, fifty kilometres east
o f Lusaka.
302
Zam bia

Unexploited - plant under construction or planned 200kW
Unexploited - proven resources no data
U nexploited - probable and possible resources no data
303
Z im babw e
ZIM BABW E
Size 390,759 km2

Geothermal 0 GWh
Hydro 1,693 GWh
No geothermal data were available.
304
Annex 1.1
Oceania
Australia
Fiji
New Zealand
Papua New Guinea
Other Pacific Islands
A ustralia
A U S T R A L IA
Size 7,682,000 km2

Annual energy use per capita (oil equivalent) 5,492 kg
Annual CO? emission per capita 18.5 tonnes
Geothermal 0.7 GWh
Hydro 16,539 GWh
Wind 4 GWh
Production o f heat (1993) 3,514 TJ
Geothermal heat 1 TJ
Thermal plant 3,513 TJ
LEGEND
IN D IA N O C E A N
P A C IF IC
OCEAN / \ Unexploited high enthalpy resource
GEOTHERMAL SITES
1. P ortland
2. T raralgo n
3. B irdsvllle
4. Q uilpie
5. F itzroy R iver
6. D o ug las R iver
7. M oom ba
500 1000km
R E S O U R C E S IN A U S T R A L IA
The Australian continent comprises sedimentary basins overlying Precam brian shield
amd Palaeozoic metamorphic complexes. Three high heat flow areas exist; the W estern,
Central and Eastern. Heat flows in the W estern region are low w hilst those in the
Eastern region o f the continent are high benefiting from a more recent magmatic
intrusion into the upper crust.
The Otway Basin is an east-west trending formation o f Cainozoic sediments. These
reach a maxim um depth o f over 6,000m at their thickest point in the south. Water
temperatures up to 62C have been recorded with w ater flowing north-south. The main
aquifers discharge to the sea along 240km o f coast representing a heat flow o f
1160MW(t). The east-west trending graben rocks o f the Grippsland basin contain
Cainozoic sediments o f up to 6,000m thickness. W ater, in the range 19 to 167C, flows
306
A ustralia
mainly N W to the sea at a rate o f ~1800M L/year. Good quality w ater is available in
three o f the Grippsland sub-basins at 50C. The G reat Artesian Basin covers almost
20% o f Australia and consists largely o f mesozoic sediments up to 3000m thick. Water
exists within these sedim ents at 30 to 50C but in some areas w ater at 120C is
available. W ater flows from individual bore holes can exceed 10,000m /day. Boiling
w ater from certain bore holes has been flowing for many years.
The Birdsville Power Station was constructed as a dem onstration to show how low
temperature thermal energy can be converted into electricity. W ater from the tow ns
bore hole is used to operate an organic Rankine cycle engine rated at 150kWe. The
geothermal power station, which augments diesel units, takes w ater from a depth o f
1220m. W ater has been flowing for 75 years with a surface temperature o f 99C. The
station has been operating since 1992 and has achieved a service factor o f 50%. After
consideration o f parasitic losses etc. the stations efficiency is only 4%. Birdsville town
has a power demand that varies between 60 and !50kW e . Geothermal energy is
sufficient to meet the low demand but when demand is higher the diesel sets have to be
brought in. Station performance is to be reviewed after the initial four years as a
dem onstration plant is completed i.e. during 1996.
Exploited - plant in operation 0.15MWe

Unexploited - proven resources 50MW e
Unexploited - probable and possible resources 1200MWe
D ir e c t Uses
Developm ent o f the Otway Basin has occurred in the town o f Portland. Since 1956
w ater has been drawn from a depth o f 1400m using four bore holes. Until 1983 all the
water, at a temperature o f 56 to 59C , was cooled for consumption. Presently however,
one o f the bore holes provides w ater to heat municipal and private buildings (total area
18,990m2) including an open air swimming pool. The latter has a thermal energy
requirement o f 800kW. In the 20 years that the project has been operating, there has
been only a slight drop in the static head, due to climate changes, o f lm . There has been
no change in the bore head w ater temperature. The project saves approxim ately A$300k
a year. O ther bore holes may be exploited in new developments.
During the 1950s, 68C w ater was used in paper manufacture near Traralgon. W ater
was brought to the surface using two bores from a depth o f 600m. The projcct however,
was abandoned after a few years. No reasons were specified.
W ater supplies drawn from hot aquifers are fairly com mon in inland Australia. For
example, at Quilpie, Queensland, boiling w ater from the G reat Artesian Basin, is drawn
up from 1,000m and cooled for domestic use. In another development, binary cycle
systems and flash steam generators o f 20kW e were tested at the Mulka cattle ranch
saving an estimated 15,000 litres per year o f diesel fuel. However this system has not
been developed commercially.
307
Fiji
FIJI
Size 18,376 km2

Geothermal 0 GWh
Fossil fuels 80 GWh
Hydro 385 GWh
LEGEND
P A C IF IC O C EAN
f\ Unexploited high enthalpy resource
"\J Unexploited low enthalpy resource
GEOTHERMAL SITES
1. S avusavu P rosp ect
<r
Outlying islands not shown
R E S O U R C E S IN FIJI
From evidence o f hot spring activity, the two main islands o f Fiji, Vanua Levu and Vitu
Levu, both have a geothermal resource. Over the years a num ber o f surveys have been
undertaken to exam ine the most promising geothermal areas. In some instances survey
work was performed to support oil exploration. Data has been gathered from
aeromagnetic, infra-red therm al imagery, electrical resistivity and traversing and sound
surveys.
On the island o f Vanua Levu, two areas with promising geothermal potential were
identified; Savusavu and Labasa. The Savusavu peninsula has an estimated potential o f
25M W e whereas the indications are that the Labasa prospect will only be able to
provide process heat for industry.
From survey results a model has been proposed for the Savusavu prospect. This
suggests that the geothermal gradient is as high as 80C/km . Ground w ater circulates to
308
Fiji
a depth o f 2km where its temperature reaches 180C. It is envisaged that ground w ater
could exist at a greater depth perhaps as far down as 2.5km where its tem perature would
be near 225C.
F ijis electrical power supply is predominantly supplied from hydro schemes for which,
particularly on Vanua Levu, there is limited scope for expansion. Therefore if the
econom ics o f geothermal potential can be assessed and proven, geothermal energy
could supplem ent existing hydro capacity. A programm e for exploration via deep
drilling, which would do much to prove the economics, has been developed.
During the 22nd Annual Session o f the South Pacific Applied Geoscience Comm ission
(SOPAC), Fiji, along with other South Seas island communities, proposed to participate
in a regional geothermal programme co-ordinated by SOPAC. It is envisaged that the
deep drilling exploration o f Fiji would progress under this programme. Funding for such
an activity was being sought during 1996.

Uncxploited - proven resources 25M W e
309
N ew Zealand
NEW ZEALAND
Size 271,000 km2

Hydro 21,269 GWh
Biomass 4 GWh
LEGEND
TASM AN SEA V Unexploited low enthalpy resource
GEOTHERMAL SITES
1. W aira kei
2. O ha aki
3. T araw era
W elling to n 4. R otokaw a
5. K aw erau
R E S O U R C E S IN N EW
Z E A LA N D
There has been little developm ent o f geothermal resources in N ew Zealand since 1990.
This is primarily because o f the low energy cost (the average 1994 w holesale price was
less than NZ 6 cents/kW h). However the restructuring o f the energy industry has m eant
that competition arising from the free m arket is keeping prices low. Consequently
there has been a slowing o f geothermal development.
1995 installed geothermal capacity was 286M W ; updated installed capacity at 1997 is
365 MWe.
Electricity consumption in New Zealand is predicted to achieve 3-5% growth per year
for the foreseeable future. New generating plant is therefore likely to be needed before
the year 2000. With optimisation o f steam field m anagement under way, the cost
effectiveness o f geothermal energy will improve making geothermal an attractive
option.
310
N ew Zealand
E lectricity generation
Seven geothermal fields have been developed or show potential: Wairakei, Ohaaki,
Ngawha, Mokai, Rotokawa, Tauhara, Lake Rotoma.
Over the past five years, the Wairakei field has been maintained at 150MW producing
on average 1180GWh/year. Field steam production is falling however, at approximately
4% per year due to a reduction in the fluid temperature. Construction o f an additional 15
to 20M W is imminent.
Over the past five years, high pressure steam production at he Ohaaki field has declined
rather more rapidly than predicted. The cause would appear to be cooler w ater seeping
into the well resulting in a drop in the well temperature o f 5C/year. As a result some
plant (~20M W e) may be decom missioned earlier than envisaged. More optimistically,
at a depth > 2,500m, the reservoir temperature is almost 300C; plans are being devised
to develop this resource.
Despite its low heat content and high dissolved mineral content, developm ent o f the
Ngawha field is planned during 1997/98. An 8M W e plant is scheduled for construction
and a second stage (16M W e) is planned for a later date.
The Mokai field is situated 20km NW o f Taupo. Exploratory drilling has revealed a
source o f ~3,200PJ with reservoir temperatures, at >320C, am ongst the highest in New
Zealand. Proposals to develop a 50M W e plant are under consideration.
Situated ~13km NW o f Taupo and ~9km east o f Wairakei, the Rotokawa field has eight
exploratory wells. Tem peratures o f ~320C have been recorded. An 18MWe plant is
under construction.
The Tauhara field is located NE o f Taupo town. It is connected at depth to Wairakei.

Proposals for a 10MWe plant are under consideration.
Studies at the Lake Rotoma field, 26km NE o f Rotorua city, have indicated that the field
could sustain a 50 to 150MWe plant. Currently approval is being sought for a 55M W e
development.

Unexploited - plant under construction or planned 157MWe
U nexploited - proven resources no data
D ir e c t uses
Several low enthalpy projects have been developed;
311
N ew Z ealand
At Kawerau, a paper making factory uses plant totalling ~5M W to separate 170C
water. A tim ber drying facility at the same location uses 16 tonnes per hour o f 9 bar
steam.
An alfalfa drying factory located on the Ohaaki field, uses lOOt/h o f hot w ater and 4t/h
o f steam.
Waste hot w ater from the Wairakei field is used to heat prawn breeding ponds. This
capacity will be used to advantage when the prawn ponds are extended shortly.
New Zealand currently em ploys some 80 geothermal professionals.
Summ ary of R esources

312
P apua N ew G uinea
PAPUA NEW GUINEA
Size 462,840 km2

Geothermal 0 GWh
Hydro 460 GWh
It has been estimated that the geotherm al potential for Papua N ew Guinea is some
300M W e . Further this energy source is considered to be com petitive with other
technologies.
Su m m a ry of R esources

Unexploitcd - plant under construction or planned 0
313
O ther Pacific Islands
OTH ER PACIFIC ISLANDS
Isla n d L a n d a re a (k m 2) P o p u la tio n in 0 0 0 s (1990)

American Samoa 197 39.6
Northern Marianas 471 23.0
Papua New Guinea 462,243 3910.0
Solomon Islands 27,556 318.7
Tonga 699 96.0
Vanuatu 1,880 142.6
Western Samoa 2,935 158.0
Profile o f Several Islands with Geothermal Potential
Geotherm al resources are unevenly distributed throughout the Pacific. M ost o f the
eastern islands and central and western equatorial atolls lack a significant resource. The
resource however is abundant on Hawaii and on the many volcanic islands near
tectonically active zones or near crustal plate boundaries.
Most Pacific island com munities depend upon diesel generation sets for electricity with
some using hydro-power and biomass combustion. Thus they are vulnerable to supply
and price variations affccting imported oil. Consequently the com munities would
welcome a reliable and economic electricity source.
Geothermal energy may have a role to play. The resource is available in many areas
around the Pacific and is cost com petitive with electricity from alternative technologies.
Additional benefits o f geothermal energy are that it is relatively pollution free and can
be developed in a small area.
The potential fo r Geothermal Power Generation on Some Pacific Islands (MWe for next
30 years) is below listed.
Country MWe
Papua New Guinea 300
Solomon Islands 50
Taiwan 200
Tonga 50
Vanuatu 100
Total 700
314
A nnex 2.1
Annex 2.1
TECHNICAL ISSUES
A nnex 2.1
IN D EX
1. IN TR O D U C TIO N ........................................................................................................319
1.1 Classification o f Geotherm al R esources................................................................319
1.2 Exploitation O f G eotherm al R eso u rces................................................................321
2. ELECTRICITY G EN ER ATIO N ............................................................................ 323

2.1 Conventional c y c le .......................................................................................................323
2.1.1 Backpressure u n its .........................................................................................................324
2.1.2 Condensing u n its............................................................................................................ 324
2.1.3 Single flash p la n ts.......................................................................................................... 325
2.1.4 M ulti-flash p la n ts ........................................................................................................... 326
2.2 Binary cycle......................................................................................................................326
2.2.1 Binary p la n ts ................................................................................................................... 328
2.2.2 Kalina C y cle.................................................................................................................... 329
2.2.3 W o rkin g flu id s ................................................................................................................ 331
2.3 Other sy ste m s................................................................................................................ 332
2.3.1 Bphase rotary separators............................................................................................. 332
2.3.2 Combined sy stem s.........................................................................................................332
2.3.3 Indirect c y c le s................................................................................................................. 332
3. NON ELECTRICAL U SE S.......................................................................................333

3.1. W ell C asin g......................................................................................................................334
3.2 W ellhead.......................................................................................................................... 334
3.3 Piping................................................................................................................................ 334
3.4 Pum ps...............................................................................................................................334
3.5 Heat ex ch a n g ers........................................................................................................... 336
3.6 G eotherm al heat p u m p s............................................................................................ 337
3.7 W ell protection and m aintenance devices............................................................ 338
4. NEW APPLICATIONS AND T E C H N O L O G Y ....................................................343
317
A nnex 2.1
1. IN T R O D U C T IO N
1.1 Classification o f G eotherm al Resources

A geothermal field and more broadly a geothermal resource takes place in special
tectonic settings when some typical geological, hydrological, structural and physical
conditions coexist:
Heat source: usually a shallow young intrusion which generates the thermal
anomaly. The thermal gradient in the surrounding shallow crust is higher than
~3C/100m which is the normal gradient.
Reservoir: a host rock with sufficient permeability and on a larger scale
transm issivity - either prim ary or secondary - which allows the circulation o f
geothermal fluids, but has retentive properties to enable fluids to heat within the
reservoir. W hen convection occurs, viscosity and dilatation coefficient o f the fluid
are also involved and the system reaches maxim um efficiency.
Sealing: a cover formation, over the reservoir, with sufficient impermeability -
either prim ary or secondary - to insulate the geothermal system from surface low
thermal ity water.
Rechargc: for the restoration o f the reservoir when extraction is in progress.
W hen the above conditions are complied, w ater from the recharge flows into the
reservoir and reaches thermal equilibrium with the host rock exposed to the heat source.
A transfer fluid has a m aximum efficiency when in the reservoir a convective
circulation system is triggered off. This condition allows the system to obtain shallow
hot fluids and makes the exploitation o f geothermal deposits easier and more
econom ically favourable.
Hot Dry Rock resources and geopressured resources have been the subjects o f R&D
investigation. M ajor technical difficulties still need to be resolved before these concepts
can be com m ercially developed.
Hot Dry Rock resources occur in regions at econom ically drillable depth, devoid o f
naturally occurring water, w here tem peratures are high enough to heat w ater that is
introduced via drillholes to an useful temperature. M ost regions investigated sofar have
not been totally dry. At present this technology represents an investment for future
and could be used in conventional high enthalpy reservoirs.
319
A nnex 2.1
Geopressured resouces occur in deep regions where the thermal energy in the fluid
found in the rocks is augm ented by a very high pressure resulting from a great depth o f
burial and entrapment under a highly im permeable seal. These resources still await
proper evaluation and development.
The common param eter for classifying geothermal resources is the Enthalpy o f
geothermal fluids. Enthalpy is used to state the heat content - thermal energy - o f the
fluids.
Thus, geothermal resources are roughly divided into low, medium and high enthalpy
resources, according to different criteria:
Thermal criteria:
Muffler & Cataldi, Hochstein, Benderitter & Cormy, Haenel, Rybach &
1978 1990 1990 Stegen a, 1988
Low Enthalpy <90C <125C <100C <150C
M edium Enthalpy 90-150C 125-225C 100-200C
High Enthalpy >150C >225C >200C >150C
Utilisation criteria: According to the available exploitation technology.
High Enthalpy Suitable for electricity generation

M edium -Low Enthalpy M ore suitable for direct heat use
Physical criteria: According to the physical state o f geothermal fluid.
High Enthalpy V apour/dry steam dominated geothermal systems

W ater dominated geothermal systems T > 2 104-220 C
M edium-Low Enthalpy Liquid dominated geothermal systems
In w ater-dom inated systems liquid w ater is the continuum and the pressure-controlling
phase. Some vapour may occur as discrete bubbles. These geothermal systems are the
most widely distributed in the world. Depending on temperature and pressure
conditions: hot water, w ater and steam mixtures, w et steam and in some cases dry steam
can be produced.
In vapour-dominated (or dry steam) systems liquid w ater and vapour norm ally coexist
in the reservoir, with vapour as the continuum and pressure-controlling phase.
Geothermal systems o f this type, the best-known o f which are Larderello, in Italy and
The Geysers in California. These high temperature systems are somewhat rare. In these
fields dry to superheated steam is produced.
Saturated steam plants are the simplest and most used plants in Italy, California, Japan
and have an high output, generating over 70% electricity from geothermal energy.
320
A nnex 2.1
1.2 E xp loitation o f G eotherm al R esources

Geothermal resources are suited to different types o f application. The following
diagram o f Fig. 2.1.1 summarises the possible uses.
DIRECT USES 300C POW ER GENERATION
D irect
p o w e r g eneration
HIGH
Pu lp in g 20 0 C ENTHALPY
4 RESOURCES
In o rg an ic d ry in g
4
E v ap o ratio n
4 I5 0 C
F e rm e n ta tio n
4- B inary cycle
S pace h eatin g p o w e r g e neration
4
D ry in g freezin g I0 0 C
4
A g ricu ltu re 85C
4
B aln eo lo g y LOW
4 ENTHALPY
A q u a cu ltu re RESOURCES
CASCADED USE 20C

(4)
0C
Fig. 2.1.1 Exploitation o f geothermal resources.
This diagram em phasises some important aspects o f the utilisation o f geothermal

resources:
the ways to exploit geothermal resources can be arranged into two main classes
according to the type o f application: direct uses and electricity generation, which is
possible at/or above 85C.
by com bining applications through the use o f cascade systems it is possible to
enhance the hcat-utilisation o f geothermal projects, before recycling the exhausted
fluid.
321
A nnex 2.1
The tem perature o f the resource may limit the possible uses; at tem peratures equal or
below 20C resources are exploited only in very special conditions or by using heat
pumps.
The Linda! diagram (Lindal, 1973), (see Fig. 2.1.2), shows the most common uses o f
geothermal fluids and their typical temperatures.
180C - Evaporation o f highly concentrated solutions

Refrigeration by ammonia absorption
Digestion in paper pulp, kraft
170C - Heavy water via hydrogen sulphide process
Drying o f diatomaceous earth
SATURATED 160C - Drying o f fish meal
STEAM Drying o f timber
150C - Alumina via B ayers process
140C - Drying farm products at high rates
Canning o f food
130C - Evaporation in sugar refining
Extraction o f salts by evaporation and crystallisation
120C - Fresh water by distillation
Most, multiple effect evaporation, concentration o f saline solution
110C- Drying and curing o f light aggregate cement slabs
100C- Drying o f organic materials, seaweed, grass, vegetables, etc.
Washing and drying o f wool
90C - Drying o f stock fish
Intense de-icing operations
80C - Space heating
Greenhouses by space heating
WATER 70C - Refrigeration (lower temperature limit)
60C - Animal husbandry
Greenhouses by combined space and hotbed heating
50C - M ushroom growing space heating
Balneological baths w jth
40C - Soil warming heat pumps
30C - Swimming pools, biodgradation, fermentation
Warm water for year-round mining in cold climates
De-icing
20C - Hatching o f fish
Fish farming
Fig. 2.1.2 Typical fluid temperature for direct applications (modified from Lindal,
1973).
322
A nnex 2.1
2. ELECTRICITY GENERATION
Geothermal energy can be converted into electric energy through the following systems:
Conventional cycle superheated or saturated steam.

single-flash,
multi-flash steam.
Binary cycle
Bi-phase rotary separators coupled with electric generators
Combined systems
Indirect cycle
2.1 Conventional cycle

In conventional cycle systems the generation o f electricity occurs when dry steam -
directly from the dry well or after separation from a wet well - is passed through a
turbine coupled with an alternator.
Conventional steam turbines are available in the form o f prefabricated m odular units or
expressly designed with either atmospheric (backpressure) or condensing exhaust.
well well cooling water pump
Fig. 2.1.3 Schematic diagram o f a backpressure (a) and a condensing unit (b).
323
A nnex 2.1
2.1.1 Backpressure units

In backpressure units the steam after passing the turbine is exhausted directly into the
atmosphere.
Atmospheric exhaust turbines are used when the percentage o f non-condensable gases
in the geothermal fluid is higher than 12-15% in weight, or when the duration o f the
production system is uncertain.
M oreover, they are extremely useful as pilot plants, stand-by plants, in the case o f small
supplies from isolated wells, and for generating electricity from test wells during field
development.
These units are cheaper, can be constructed and installed very quickly and put in
operation in around 13-14 months.
On the other hand, performance is lower with respect to the condensing type, due to the
high steam consumption per kilowatt-hour produced (alm ost double from the same inlet
pressure).
2.1.2 Condensing units

In condensing units instead o f discharging the steam from the turbine to the atmosphere
it is discharged to a condensing cham ber that is m aintained at very low pressure and
passed through a cooling tower.
They consist of:
Condensing or backpressure turbines

Direct contact or surface condenser
Com pressor-extractor o f non-condensable gases and intermediate refrigerant
Cooling tower
Instrumentation and control system
Electric system
324
A nnex 2.1
well well
Fig. 2.1.4 Schematic diagram o f a superheated or saturated steam plant.
In the direct contact condenser geothermal fluid and cooling w ater are mixed together
while in the surface condenser expanded geothermal steam flows am ong a set o f pipes
through which the cooling w ater circulates.
2.1.3 Single flash plants

The fluid from the reservoir is generally a high tem perature liquid and when reaching
the surface - where pressure is lower - turns, usually only partially, into vapour
(flashing).
These plants are used if geothermal fluid, at the well head, is a two phase mixture o f
liquid and vapour in varying percentages depending on the reservoir properties and well
head pressure.
A fter separation from the fluid, vapour is admitted to the turbine.
Fig. 2.1.5 Schematic diagram o f a single flash type geothermal plant.
325
A nnex 2 .1
Flash type installations exist in Japan (Hatehobaru, Otake, Onuma, etc.), Iceland
(Krafla), New Zealand (W airakei), M exico (Cerro Prieto), El Salvador (Ahuachapan),
Philippines, former USSR (Pauzhetka), M iravalles (Costa Rica) and other countries.
2.1.4 Multi-flash plants

M ulti-flash systems are similar to the single-flash apart from additional flash tanks for
the production o f further steam from the hot w ater com ing from the separator.
The steam produced during the first flash stage - that takes place in the well - is sent to
the first stage o f the turbine, while the steam produced from the following flashes - that
take place on the surface - is admitted in intermediate turbine stages.
Fig. 2.1.6 Schematic diagram o f a multi-flash type geothermal plant.
2.2 Binary cycle

In a binary cycle the secondary organic fluid is the working fluid o f a closcd subcritical
Organic Rankine Cycle (ORC).
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Properly selected organic fluids result in the use o f smaller, efficient turbines; they
eliminate the necessity for superheaters, and allow the application o f sealed units,
similar to refrigeration com pressors, requiring little maintenance.
In recent years ORC cycles have been extensively applied in different conditions as:
W ater extracted from medium-low temperature reservoirs with downwell pumps.

Separated residual w ater (to be reinjected) from the lowest temperature flash stage
in an existing flashed steam plant (bottoming cycles).
W aste steam from turbines with atmospheric discharge.
ORC systems can incorporate sim pler single stage turbines, whereas traditional steam
systems often require complex m ulti-stage turbines to handle the large pressure drop.
M ixtures o f working fluids (saturated hydrocarbons, or halogcnated hydrocarbons or

am m onia/water mixtures) give improved performance over Rankine cycles with pure
working fluids executing single, multiple or supercritical cycles.
A limit to cycle performance is given by the minimum temperature to which the

geofluid can be cooled, depending on silica deposition which occurs at temperatures
increasing as resource temperature increases. Theoretical calculations indicate that only
at resource temperatures below 140C the geofluid can be cooled below am bience
temperature.
In order to overcom e this problem, with the contribution o f recent technological

improvement, different solutions have been found out:
Brine dilution with condensate.
In the case o f two-phase geothermal fluid, steam is separated from brine and used
as a heating medium in the working fluid vaporiser. Thus, the geothermal
condensate at vaporiser exit may be mixed with the hot separated brine to provide a
preheating medium for the organic fluid. Since the onset o f silica precipitation is
related to its concentration in the brine, dilution o f the brine with the condensate
reduces precipitation temperature o f the silica.
Recovery o f internal heat
A recuperator heat exchanger is added between the organic system turbine and the
condenser. Since the organic fluid has a retrograde dew point - or saturation curve -
organic vapour tends to superheat, or becom e drier when the steam is expanded
through the turbine. The recuperator is used to recover the superheated steam for
the preheating o f the organic fluid prior to further heating in the econom iser or
preheater. The heat exchanger is relatively low cost since no corrosion or material
problems are associated with organic fluids.
Cascade units
The cascade concept, developed in the early 80s is aimed at increasing the whole
cycle efficiency. The units are cascaded at various levels o f brine tem perature with
the result that more heat is extracted from the source by cooling the brine to a lower
optimal temperature than with a parallel arrangement.
the thermal efficiency o f existing ORC plants, intended as the ratio between the
electric power available at generator terminals and the heat released by the
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A nnex 2.1
geotherm al fluid, generally range from 10% to 15.5% for resources at 100C to
160C and is slightly higher (17%) for temperatures up to 190C, with a two-phase
geothermal fluid.
2.2.1 Binary plants

Generating electricity from low-to-medium temperature geothermal fluids and waste hot
waters com ing from the separators in water-dom inated geothermal fields has made
considerable progress in recent years, thanks to improvements made in binary fluid
technology.
Binary technology is based on the principle o f heat transfer from the geothermal fluid,
with temperature in the range o f ~85-170C to a secondary working fluid, usually an
organic fluid.
In the domain o f low-to-medium temperature applications, organic fluids have several

special properties which provide them with an advantage over w ater (steam) and allow a
higher cycle efficiency: a low boiling point allows the organic fluids to flash at low
temperatures, a high m olecular weight and low enthalpy drop allow organic fluids to
operate with a lower flow rate and hence the turbom achinery to be simpler, "non-
wetting" (non-condensing) characteristics during expansion (steam in part condenses on
the turbine blades during expansion, resulting in reduced efficiency if it is not
superheated sufficiently therefore requiring higher temperatures), a low preheat and
vaporisation energy ratio. Furthermore, geothermal fluids often have a high salt content
which cause problems in design and construction o f good quality heat exchangers.
steam
well well feed pump well
Fig. 2.1.8 Schematic diagram o f a binary cycle type geothermal plant.
Apart from low-to-medium tem perature geothermal fluids and waste fluids, binary
systems can also be used for non-artesian wells or w here the flashing o f geothermal
fluids should be avoided (i.e. to prevent well sealing). In this case, downholc pumps can
be used to keep the fluids in a pressurised liquid state, and energy can be extracted from
the circulating fluid by means o f binary units.
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A nnex 2.1
With the exception o f the plants that work with ammonia, for technical reasons, binary
plants are usually constructed in small modular units o f a few hundreds kW to ~10MW
capacity. These units can then be linked up to create power plants to some tents o f
megawatts.
2.2.2 K alina1 Cycle

The more developed non-organic fluid Rankine cycle at present is the Kalina cycle
which uses a w ater-am m onia mixture as a working fluid (85-15 weight %). According
to H.M .Leibowitz and D.W .M arkus o f Energy Inc., Hayward, California, this cycle
achieves a therm odynamic efficiency (brine effectiveness) that is approxim ately 50%
greater than that o f standard binary Rankine plants.
production reinjection
well well
Fig. 2.1.9 Schematic diagram o f a Kalina Plant cycle
The hot brine from the geothermal well is used firstly to both superheat and reheat the
working fluid and then to evaporate and preheat it before being reinjected into the
ground.
The working fluid, in superheated condition, is expanded through the H .P.turbine stages
and then reheated before entering the L.P.turbine stage. After the second expansion, the
Kalina technology is the property of Energy Inc., Hayward, California. Ansaldo Energia, Genoa, Italy is licensed for plant
construction.
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A nnex 2.1
saturated vapour moves through a recuperative boiler before being condensed in a w ater
cooled condenser.
The features that distinguish the Kalina cycle from other binary Rankine plants are:
Variable boiling temperature

The 85% am m onia/water mixture allows a variable temperature process in a
conventional subcritical boiler. At a pressure o f 31.2bar, the working fluid begins to
boil at 74C (bubble point) and completes boiling at 149C (dew point). This
process produces a very good working fluid/brine match.
Highly recuperative cycle

The two recuperative heat exchangers (HE-4 and HE-2) provide approxim ately
38% o f the total heat transferred to the working fluid improving the net brine
effectiveness i.e. kWh/kg. Only through the use o f mixtures it is possible to transfer
heat from the turbine exhaust at 9.2bar to the incoming working fluid at 31.2bar.
Even though the turbine exhaust pressure is lower than in the boiler, the
tem perature at which the exhaust vapour begins to condense (dew point) is
approxim ately 35C higher than the tem perature at which the working fluid begins
to boil.
By contrast, the turbine exhaust in binary plants that work with organic fluids
cannot be used for boiling. The recuperation is limited to the small amounts o f
superheat remaining in the exhaust, which may be used for liquid preheat duty.
Standard steam turbine

The m olecular weight o f am monia is very sim ilar to that o f w ater (17 and 18
respectively). Thus, standard steam turbines may be used for am m onia/water duty.
M olecular weight allows the fluid to reach its sonic velocity which, in turn, sets the
blade heights and rotational speed. Except for the zero leakage mechanical seal, the
am m onia/water turbine is identical to conventional steam turbines.
Heat exchanger design
The specific heat o f am m onia/water mixtures is more than twice that o f
hydrocarbons or chloro-fluoro-carbons, even though mixtures have lower
conductance than pure components, surface per unit o f heat transferred is reduced
proportionally. Carbon steel is specified throughout.
Kalina technology has been tested in a 3MW dem onstration plant located at the Energy
Technology and Engineering Centre (ETEC), a DOE facility, near Canoga Park,
California.
The dem o-plant was in the form o f a waste-heat drive bottoming cycle using - as heat-
source - combustion gases generated in an adjacent facility at 540C.
During the tests some problem s occurred in the labyrinth seal o f the turbine, the packing
stuffing box o f the plunger type feed pump, and in the removal o f dissolved solids from
the working fluid, but the general reliability o f this relatively new technology has been
proven.
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A nnex 2.1
Applications in geothermal fields have get to be deployed.
2.2.3 W orking fluids

From a theoretical standpoint, any fluid may be used to produce a Rankine cycle as long
as it boils and condenses at heat source and sink temperature respectively. Among
these, organic fluids possess several properties which allow them to produce higher
cycle efficiency at low temperature.
The selection o f a proper working fluid is not easy. Different applications and
equipment will require different properties from the working fluid. Each application
should be studied in detail to select the fluid that will provide a better performance.
As discussed, the properties that will affect the performance are m olecular weight,
boiling point (vapour pressure/tem perature relationship), temperature/entropy
relationship and therm al/chem ical stability.
Other factors to be considered are toxicity, flam mability, availability and cost.
Selection often depends on considerations regarding the physical and therm odynamic
properties o f the fluid with respect to the operating conditions.
Thermal and chemical instability and oxygen exposure can result in fluid decomposition
which may lead to system failure. If failure does not occur, non-condensable gases may
be produced and could reduce the heat transfer rate in the condenser causing accelerated
corrosion o f the system components.
The fluid m ust also coexist with the lubricants within the system, since decom position
may also be caused by the mixing o f these two substances. This becomes critical around
the turbine shaft and bearings. In addition, vapour pressure o f the working fluid will
decrease when oil is absorbed and therefore specific oils which arc insoluble within the
working fluid arc required.
Organic working fluids can be classified into:
Chloro-carbons and chloro-Jluoro carbons (CFCs).

CFCs are com m only used as refrigerants in refrigeration and air conditioning
equipment. They have limited thermal stability, but they are safe from an
operational standpoint.
Hydrocarbons or partially substituted hydrocarbons.
Hydrocarbons are more stable at high temperature and more environm ent friendly,
but are highly flam mable and require greater safety procedures.
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A nnex 2.1
R - 11 Allied P - ID (1)
R - 12 Gentron 113A (1)
R - 22 Dowtherm A (1)
E - 113 Isobutane
R - 114 Toluene
M onochlorobenzene M ethanol
Perchloroethylene Pentane
Trifluoroethanol Ethane
Fluorinol 85
Tabic 2 . 1 Comm only used organic working fluids. (i) Trade name.
Non-organic fluids such as am monia have also been m entioned for low temperature
heat recovery application. Some systems using am monia Rankine cycle have been
recently built and put into operation.
2.3 Other systems

2.3.1 Biphase rotary separators
Biphase rotary separator turboalternators were recently developed to extract pow er from
two-phases steam /w ater mixtures. While the systems described above utilise steam
turbines, this system uses liquid turbines. Biphase units can be used coupled with
conventional turbines which are driven by the steam discharged from the biphase rotary
separator. In 1989 only one geothermal rotary separator plant was operating, and
another was under construction thus operating experience is still rather limited.
2.3.2 Combined systems

Systems o f this type consist o f cascade application o f different systems aimed to
optimise the exploitation o f the geothermal fluid energy content. It is worth mentioning
the coupling o f flash steam with binary cycle plants and geothermal with oil-burning
traditional power plants.
2.3.3 Indirect cycles

A heat exchanger is placed between the well and the turbine for the production o f clean
steam, in a closed cycle. In this system it is necessary to recover the chemicals
contained in the fluid but the installation is much more complex and costly, compared
to direct cyclc plants.
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A nnex 2.1
3. NON ELECTRICAL USES
Space and district heating, agricultural applications such as greenhouses and

aquaculture are the most widespread forms o f utilisation.
O ther industrial applications can be taylored for specific processes where the
geothermal resource meets a local demand.
For few years, developm ent o f Heat Pump (HP) technology increase the field o f
application for geothermal energy. HP can use very low temperature resources and can
produce both heat and cold for air conditioning systems
The entire range o f temperature o f geothermal fluids, w hether steam or water, can be
utilised in industrial process heating. The most important process uses o f geothermal
energy are drying and dehydration, followed by evaporation, distillation, washing, and
salt and chemical extraction.
The equipment and com ponents are a function o f the characteristic o f the resource and
the type o f final use.
For example, for geothermal district heating,(see Fig. 2.1.10) only the geothermal
well(s) and the geothermal plant are specific to geothermal energy. The parts dedicated
to the end users (the district heating network is indicated in the below Figure) can
require some specific adaptation (in this case, mainly due to the tem perature o f the
geothermal fluid).
In this paragraph we describe only the main significant equipm ent and com ponents
connected with the geothermal exploitation
Fig. 2.1.10 Geothermal district heating
333
A nnex 2.1
3.1. W ell Casing

Casing is the heavy metal pipe, lowered into a well during drilling and cem ented into
place to line the well and enhance fluid recovery.
The m ost common casing material is carbon steel.
Because geothermal fluid is corrosive, a novel well concept (see figure 2.1.11) has been
tested in France (supported by EU- the well is operation since 1997).
This new well design combines cem ented steel casing and Fiberglas liners while the
annular is kept free. The well casing provide mechanical strength while the liners
furnish chemical resistance and protect the steel casing. It is a material alternative to the
corrosion o f chemical, microbiological or galvanic origin.
3.2 W ellhead
The wellhead is flanged on the top end o f a well casing, in order to control more
efficiently the geothermal fluid resources. A typical geothermal w ellhead consists o f the
following main components: expansion spool, gate valves, flowline delivery device.
Gate valves are usually manufactured with material suitable for corrosive fluids, such as
gas with high H 2S content and can work up to 300C and about 150bar.
3.3 Piping
Pre-insulated or insulated pipes are needed to transport geothermal fluid from the
production field to the plant. The transm ission pipeline diam eter has to be designed so
that the pressure drop in a straight section o f pipe, at m aximum flow rate, is o f the order
o f 0.5 to 1bar/Km.
The most common pipe material is carbon steel or flexible copper (max. temperature
138C). Insulation is usually provided by polyurethane foam and a protective
polyethylene or spiral wound sheet aluminium or stainless steel metal cover.
Various other m aterials like fibreglass, polypropylene, polybuthylene, polyethylene and

other plastic are installed for small size piping and/or lower temperature.
Steel alloys and even titanium are used for high tem perature applications.
3.4 Pumps
Production pumps
W hen the artesian flow is deemed to be insufficient for the needs o f the project, the
installation o f a production pump m ight be necessary. Depending on the setting depth
and w ater temperature different types o f pumps are currently in use, see Figure 2.1.12.
Shaft driven submersible pumps consist o f a multistage downhole centrifugal pump

set in the well with a surface mounted motor and a long drive assembly extending
from the m otor to the pump. This pump is the most currently used up to a depth o f
200m, because o f lower cost and easier maintenance. W ater tem peratures must be
in the range o f 80 to 130C.
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A nnex 2.1
Electric submersible pum p consists o f a m ultistage centrifugal pum p connected to

an electrical motor, directly set in the well on the bottom o f the pump. They can be
used deeper and have a capacity up to 2,000 1/m, about seven times more that o f the
shaft driven pumps.
Because 50% o f the pump breakdowns are due to electrical problems, any w ater
infiltration m ust be elim inated by the w aterproof design for the motor. In the case o f
bottom hole high fluid temperature (200C), special electric oil filled motors are
available.
Submersible turbopumps have a hydraulic part driven by a turbine, itself driven by

pressurised geothermal w ater circulation at the surface aided by a pump. Although the
energy efficiency o f these pumps is lower than that o f the two others, this is
com pensated for by lower maintenance costs.
Reinjection pumps
A ccording to modern practice geothermal fluids must often be removed and dumped at
shallow level by reinjection wells, where all fluids are returned to the geothermal
aquifer by a reinjection pump. Usually for produced w ater reinjection horizontal pumps
are adopted. They have a capacity up to 1,500 1/min and operate with water
tem perature up to 80C.
w [\u = _
t L
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Tubirvg Jr
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If k 9-MuKtag pump
1P-11
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Fig. 2.1.11 Types o f pumps: a) electric submersible, b) shaft driven, c) turbopump
335
A nnex 2 . 1
3.5 Heat exchangers

A plate heat exchanger consists o f a pack o f metal plates with portholes for the passage
o f the two fluids. The plates are fitted with a gasket which seals the channel and directs
the fluid in two alternate directions. Different solutions (plate corrugations or wiring
grid between plates) promote fluid turbulence to reduce fouling between the plates. The
plate pack is assembled between a frame plate and a pressure plate by means o f
tightening bolts. The typical performance limits are temperatures up to 130C and
pressures up to 25bar.
A tr E x p a n s w n
S u r g e T ook
Fig. 2.1.12 Plate heat exchanger Fig. 2.1.13 Down hole heat exchanger
The brazed plate heat exchanger is a variation on the normal plate heat exchanger and
consists o f a pack o f metal plates fitted without intcrplate gaskets. The pack o f plates is
tightened by bolts between a frame plate and a pressure plate; special gaskets are
installed between the a.m. external plates and the pack o f plates. The plates are brazed
together in a vacuum oven to form a com pact pressure-resistant unit. The turbulence
created by the plate corrugations promotes heat transfer and reduces fouling. The
system is designed to work up to 225C and 30bar.
Shell and tube is the most conventional type o f heat exchanger; it consists o f a series o f
tubes surrounded by an enclosing shell. The tubes can have a U-tube configuration but
in order to facilitate cleaning o f the tubes, the solution with straight tubes and
removable heads at both ends is usually adopted. Operating limits are 130C and 25bar.
The com ponents o f the heat exchangers must be made, when necessary, o f corrosion
resistant material, such as titanium.
The Downhole Heat Exchanger (DHE) is essentially a passive means to extract heat,
without removing w ater from the well. Clean w ater is pumped or circulates by natural
convention through the DHE.
Depending on the depth o f the well, shallow type DHE (from 30 to 200m deep) are
336
A nnex 2.1
currently used in Europe. The deep type DHE (depth up to 2300m, research program on
going in Switzerland) m ust also be considered.
3.6 Geotherm al heat pumps

It is possible using the heat pum p technique to extract thermal energy from a heat
source with a low temperature to make thermal energy available at a higher
temperature.
Heat pumps can be used for heating or for cooling or for both in combination, e.g.
cooling in the sum m er and heating during the winter.
H eat pumps are widely used in Europe and U.S.A. space and/or district heating systems.
They can be used alone for heating and/or cooling buildings or individual houses; they
can also be use as a part o f a larger scheme, for exam ple in district heating scheme to
increase the quantity o f energy extracted from the geothermal fluid.
The heat source can be o f different types, e.g. outside air, ground w ater or waste heat
form industry or the heat in the ground.
Geotherm al w ater at low temperature, say 20 C- 40 C, which is too low for direct
application in space heating, is an ideal heat source for heat pumps in a district heating
plant because the econom ics o f a heat pump installation is closely related to the
tem perature o f the heat source. When used in a close or open loops it is called a
geothermal heat pump.
Heat pump need external energy input to work. The m ost common are electric motor
driven heat pum ps (see Fig. 2.1.15) there are also gas motor (see Fig. 2.1.16) or
chem ical absorption systems (see Fig. 2.1.17).
A heat pump works like a refrigerator, where the working fluid is circulated in a closed
circuit rem oving heat from inside the freezer and discharging it to the surrondings.
In the heat pump, the working fluid extracts heat from the heat source through
evaporation and discharges it by condensation to the district heating water.
To do this work external energy input is required and the most com monly used type is a
com pressor driven by an electric motor, but chemical absorption, gas compression and
other m ethods are available.
The ration o f the output energy to operating energy input is the basic measure o f the
effectiveness o f a heat pump and very important to the econom ics o f the heat pump
operation, as previously referred to. This ratio is known as the Coefficient o f
Perform ance COP, and it is very attractive for heat sources with a temperature in the
range 20 C - 40C.
For example, if the geothermal resource is 30C and is cooled down to 20 C, and the
hot w ater to space heating is 55 C, then the COP factor could be around 4.
This means that the heat output for space heating is about four times the energy input to
the com pressor motor.
The typical performance limits o f geothermal heat pumps are:

- Geothermal source temperature range: from 18 C to 65 C
- Geothermal w ater flow: from 50 C to300 m 3/h
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A nnex 2.1
- Pleating w ater temperature range: from 50 C to 90 C

- Heat capacity: from 0.5 to about 30 MW
In a heat pump plant the following equipm ent is installed:
Evaporator: in the evaporator geothermal w ater transmits its heat to the working fluid
and brings it to boiling point at low pressure, causing its evaporation.
Turbine compressor: an electrical motor driven turbine com pressor increases the
pressure and therefore the temperature o f the gas.
Different heat capacity o f the heat pump plant can be achieved by com bining the
various com pressor frame sizes with the various com mercially available working fluids.
Condenser: in the condenser the heated working fluid (gas) transfers its heat to the
circuit o f the heated w ater and is brought back to liquid phase.
Pressure control valve: after the condenser the pressure o f the working fluid is
decreased by a reduction valve and the working fluid (after the flash box), is return to
the evaporator in order to complete the cycle and can than be re-used.
3.7 W ell protection and m aintenance devices

Due to the fluid com position, corrosion and scaling could cause problem s during
geothermal exploitation both for electricity generation and non electrical uses. In order
to overcom e such difficulties, effective protection from corrosion and scaling can take
place through a chemical inhibition system. The treatm ent is generally based on
inhibitors based on quaternary amines, whose filming capacity ensures an optimum
protection o f the casing.
Systems, such as down-hole injection lines, have been installed in production wells
(more than 40 operations in Europe)
New techniques for the fabrication o f continuous injection lines as well as new
m aterials for this product are being developed. New inhibitors and the chemical
com patibility o f these inhibitors with the other m aterials used in the well loop, are
routinelly tested.
Specific geothermal plants need periodic rehabilitation work which is necessary for the
elimination o f scale and reconditioning o f boreholes. D ifferent m ethods are available:
mechanical cleaning with a scraping tricone tool hanging from a rod assembly
hydraulic jetting with a cool-tubing unit o f small diameter
com bined hydraulic-mechanical processes
338
A nnex 2.1
WELCOM
PUITS TUBE ACIER / COMPOSITES
COMBINED STEEL CASING / FIBERGLASS LINING WELL
M ANCHETTE
D 'E X P A N SIO N
EXPAN SIO N
SPOOL
A N N U L A IR E U B R E
F R E E A N N U LU S
RECEPTA CLE
S IE G E / SE A T
TU BE C O M P O S IT E
F IB E R G L A SS CASING
C EN TR E D M S
CENTSA1JZERS
T U B E .4C I ER
ST E E L C A SIN G
R E S E R V O IR -
Fig. 2.1.14 Novel well concept
339
A nnex 2.1
Electric M otor
Fig. 2.1.15 Closed cycle electric m otor driven vapour com pression heat pump
340
A nnex 2.1
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Fig. 2.1.16 Closed cycle, engine driven vapour com pression heat pump
341
A nnex 2.1
Heot cxt
Fig. 2.1.17 Absorption heat pump
342
A nnex 2.1
4. NEW APPLICATIONS AND TECHNOLO GY
Developm ent o f geothermal systems and equipment in the low-enthalpy field is

continuous. Here we outline a selection o f new solutions to improve performance or
durability.
Patch-flex
Therm o-setting resins can now be used to manufacture a flexible com posite tube called
a Patch-flex.
The resin is run in through narrow diam eter flexible tubing, the Patch-flex is inflated
and hardened in-situ to create a tough im permeable sleeve that is self-sealing and
pressure resistant along its entire length. The perm anent sleeve o f the Patch-flex will
rem ain downhole and is made o f therm o-setting resins, fibres and elastomers. The
Patch-flex can be used as an efficient and economical means o f repairing perforated or
badly corroded casing.
Down hole line

Continuos down hole, injection and/or control line could be developed.
Early applications aimed at chemical injection, in resident mode, o f corrosion and/or
scaling inhibitors and, occasionally, o f biocides.
Performances recorded since the implementation in 1990 o f the first prototypes have
been prom ising and future extension o f the concept is contemplated, including the
following:
High temperature service

A tw o-fold Teflon encapsulated line makes it possible to operate a resident
inhibition line at a tem perature as high as 280C, provided special care is taken with
inhibitor selection (stability at high temperature), material definition and inside
coating o f the injection tubing.
Instrumental lines
A prototype line connected to a pressure/tem perature transducer (quartz gauge) is
currently operating on a Paris basin geothermal well. It includes two pre
encapsulated copper wires connected via a rope socket to gauge telemetry. This
application allows remote m onitoring o f bottom hole pressure and temperatures by
means o f a teleprocessing system.
Coiled tubing services, wire line logs, slim hole drilling
Present research trends are now directed towards the developm ent o f coilcd tubing
services and logging applications for strongly deviated and horizontal wells. The
im plem entation o f high resolution video cameras and optical transm ission appears a
promising route for this type o f logging operation.
In the long run, down-hole line technology should move towards intelligent
instrumental lines and slim hole drilling technology.
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A nnex 2.1
Innovative drilling o f geoth erm al well

Within the framework o f a cross border European project for the exploitation and
utilisation o f the geothermal potential in the region o f Braunau (A) and Simbach am Inn
(D); and in co-operation between local Authorities and private local energy suppliers,
an innovative technique for geothermal well drilling has been proposed. The innovation
consists o f the drilling o f a large hole (670mm diameter) to a depth o f 650m and from
there drilling two deviated smaller holes in opposite directions to a depth o f 2,300m. It
is possible to reach a distance o f 2,000m between the extraction and the re-injection
point with this technology. M oreover the production hole will be oriented horizontally
through the upper layer o f dolom ite to increase the probability o f finding karst
developm ent for the required yield (only the top 50 to 100m o f the dolom ite exhibits
karst development and is therefore exploitable). In this way drilling is only necessary at
one location for both production and re-injection.
Tem perature profiling/bottom pressure monitoring

A system for m onitoring the wellbore temperature profile and bottomhole pressure in a
geothermal well at the same time continuously, was tested by Geothermal Energy
Research and Developm ent Co. Ltd., Tokyo, Japan in a test well o f the Yunomori Field
(Iwate Prefecture) from N ovem ber 1993 to June 1994, up to a depth o f about 700m with
a maximum temperature o f 160C.
The in-hole system consists o f a pressure cham ber and a sinker bar that are suspended
by 6.35mm O.D. x 3.86mm I.D. capillary tube (Incoloy 825 or SUS 316L). Polyim ide-
coating fibre optics (GI type, 50/125mm) with 1.8mm O.D. sheath (SUS 316L) is
inserted in the capillary tube. The bottom hole pressure change at the cham ber is
transm itted to a surface pressure gauge (quartz type) through the annular space inside o f
the capillary tube and outside the optical fibre. The optical fibre is separated from the
pressurised capillary tube at the surface and connected to the optical fibre sensor system
consisting o f a laser diode drive circuit, a high speed averaging unit, and a personal
com puter to process data and display tem perature distribution.
The tem perature m easurem ent is based on a laser pulse light transm itted via optical
fibre. The velocity v (<light velocity in a vacuum) through fibre optics and generated
scattered light can be used to determine the temperature. A part o f the scattered light
returns to the input end as back scattered light. The position o f the scattered light point
(x) is determ ined as x=v*t/2 by the delay time (t) from the pulsed light input to its
return. The tem perature at the scattered light point o f origin can be known from
intensity o f the Raman scattered light, Stokes light and anti-Stokes light, as a function
o f temperature.
The existing Polyimide coated fibre has a temperature limit below 300C. Since many
deep wells have temperature over 350C, the current temperature specification is not
sufficient for this application. Therefore a new type o f optical fibre which can work
below 400C is under development.
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Deep downhole heat exchangers

Down hole heat exchangers (less than 100m deep) associated with Heat Pump are
currently use in Switzerland, Sweden and other European countries, for heating (and/or
cooling) individual houses and buildings. It would be interesting to adapt this concept
with deeper wells (1000 to 2000 m deep).
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Annex 3.1
THE CASE FOR GEO THERM AL ENERGY AND ACCEPTABILITY
347
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INDEX
1. ENVIRO NM ENTAL ISSU E S......................... ....................................................... 350

1.1 Environmental im p a ct....................................... ....................................................... 350
1.2 Green House Gas Em issions..................................................................................... 352
2. EM PLOYM ENT BENEFITS........................... ....................................................... 354

2.1 Evaluation of the effects of the construction and operation of geothermal
heating plant on the labour m arket........................................................................ 354
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1. EN VIRONM ENTAL ISSUES
1.1 Environm ental im pact
The exploitation o f geothermal resources has an im pact on the environm ent although
the effects are not as marked as other resources. These effects will, however, depend
on a num ber o f interacting factors. These include the characteristics o f the reservoir,
the type o f extracted fluid, the type o f application, the size o f the plant and the terrain
in which the project is developed. Each plant will, invariably, present its own site-
specific problems and solutions.
The first perceptible effect on the environm ent is drilling, w hether the boreholes are
shallow ones for measuring the geothermal gradient in the pre-feasibility exploration
phase, or deep exploratory/production wells. Installation o f a drilling rig plus all the
accessory equipm ent entails the construction o f an access road and a drilling pad. The
latter will cover an area ranging from 300-500irr for a small truck-m ounted rig
(max.depth 300-700m) to 1200-1500m2 for a sm all-to-m edium mobile rig (max.depth
2000m).
These operations will only modify the surface m orphology o f an area temporarily.
W ells should be sealed with tubular steel lining or casing when crossing potential
groundw ater aquifers to prevent the mixing o f drilling fluids with groundwater.
Blowouts can also pollute water, and blow-out preventers need to be installed when
drilling geothermal wells where high tem peratures and formation pressures are
anticipated.
During drilling or flow-tests, undesirable gases may be discharged into the atmosphere,
but these operations are tem porary and limited to few months. The drilling mud, is
generally a bentonite clay slurry but in some cases it can include other substances
which can be harmful to the environment. In these cases the mud needs to be treated
and separated from the liquid after use. The w ater can be re-utilised but the solid
matter, with drilling cuttings, should be stocked in special waste tanks or ponds.
However, the im pact on the environm ent caused by drilling ends once drilling is
com pleted and is limited to a relatively small area.
The next stage is the installation o f pipelines for the fluid collection and disposal
system and the construction o f utilisation plants. These two stages affect the surface
morphology in the im mediate vicinity o f these structures and can caused some
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disturbance to flora and fauna. The landscape will be modified, although in some areas
such as Larderello, Italy, the network o f pipelines criss-crossing the countryside and
the pow er-plant cooling towers have become an integral part o f the panorama.
The environmental impact associated with the exploitation o f geothermal resources is
limited to the area surrounding the generation or heat abstraction plants. There are no
transportation, processing or distribution activities which would otherwise expand the
area o f potential risk. In addition to this advantage there are several environmental
protection measures which can be readily implem ented to minimise potential
detrimental effects.
Environm ental problem s can arise during plant operation. Geotherm al fluids (steam or
hot water) usually contain gases such as carbon dioxide (CO 2), hydrogen sulphide
(H 2S) and m ethane (CH 4), as well as dissolved substances whose concentrations
usually increase with temperature. For example, sodium chloride (NaCl), boron (B),
and in some cases traces o f arsenic (As) and mercury (Elg) are a source o f pollution if
discharged directly into the environment.
Some geothermal waters such as those utilised for district-heating in Iceland are
comprised o f freshwater, but this is an exception to the rule.
The waste waters from geothermal plants also have a higher temperature than the
surface environm ent and therefore constitute a potential thermal pollutant.
The potential environm ental pollution, both therm al and chemical caused by the
discharge o f waste water, is generally avoided by the re-injection o f these waste fluids
into the reservoir. These operations need to be perform ed by specialists with wide
experience in this field, to avoid polluting freshwater aquifers and cooling the
geothermal reservoir.
M oreover, re-injection properly applied at the right site and to a correct depth has the
effect o f recharging the geothermal reservoir extending its lifetime and preventing
possible subsidence phenomena.
Electricity generation in binary cycle plants will affect the environm ent in the same
way as direct heat uses. The effects are potentially greater in the case o f conventional
back-pressure or condensing power-plants, especially with regard to air quality, but
can be kept w ithin acceptable limits, particularly where small geotherm al resources
and small plants (<10 M W e) are involved. The odour threshold for hydrogen sulphide
in the air is about 5 parts per billion by volume and subtle physiological effects can be
detected at slightly higher concentrations. Various processes, however, can be used to
reduce emissions o f this gas. Green-house gas emissions from geothermal plant are
very limited as the figures presented below indicate.
Binary cycle plants used for electricity generation and district heating plants may also
cause m inor problem s w ith hydrogen sulphide emissions. These can be overcome
simply by adopting closed-loop systems that prevent gaseous emissions.
Organic Rankine Cycle (ORC) systems are potential sources o f environmental

pollution where the risk comes almost exclusively from the working fluids. In fact for
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geothermal fluids, complete re-injection systems return virtually all the liquids, solids
and gases that make up the geotherm al brine to underground reservoirs.
Several other aspects related specifically to the safety and environm ental effects o f
organic fluids used in ORC systems have now been established. The M ontreal Protocol
o f 1987, drastically restricted the use o f several Freons and various substitutes for
chloro-fluoro-carbons (CFCs) are currently under developm ent as a result. For this and
other reasons, the most recent ORC systems use different kinds o f hydrocarbon or
inorganic fluids such as am m onia as working fluids.
Although ORC units are sealed, a loss o f organic fluid into the atmosphere can occur
during system operation. For w ell-designed systems the leakage rate is minimal,
approxim ately 3% o f the total fluid content or 150kg/yr, well below the limits
established by current regulation. However, because some o f these fluids are
flammable, com prehensive fire protection m ust be provided.
Low-to-m oderate temperature geothermal fluids used in m ost direct use applications
generally contain low levels o f chemicals and the discharge o f spent geothermal fluids
is seldom a m ajor problem. Chem ical and thermal pollution can be overcame by using
downhole heat exchangers wherever possible. The thermal fluid circulated through the
heat exchanger may be pure w ater or a suitable low-boiling fluid, depending on the
aquifer temperature. Potential pollutants are therefore retained within the aquifer.
1.2 Green House Gas Emissions
The operation o f geothermal plant, particularly high enthalpy resources for electricity
generation will produce some carbon dioxide and methane plus other gases, which
contribute to the natural green-house effect o f the E arths atmosphere. However, the
mode o f operation (i.e. closed circuit or use o f re-injection) strongly affects the amount
o f Carbon Dioxide discharged to the atmosphere.
The figures used in Table 3.1.1 are based on a m edian value derived from a num ber o f
operational sites. However, when com pared to the equivalent energy produced from
fossil-fuel alternatives the am ount o f gas released is much lower which is evident from
the com parison in Table 3.1.2 below.
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Geothermal Param eter Value

Electrical output Em issions during construction - CO 2 (kg/TJ) 2,527.8
Em issions during construction - SO 2 (kg/TJ) 5.6
Em issions during construction - N O x (kg/TJ) 77.8
Emissions during construction - Particulates (kg/TJ) 8.9
Em ission factor - CO 2 (kg/TJ) 19,444.4
Em ission factor - SO 2 (kg/TJ) 0.0
Em ission factor - N O x (kg/TJ) 0.0
Em ission factor - Particulates (kg/TJ) 0.0
Therm al output Em issions during construction - CO 2 (kg/TJ) 280.9
Em issions during construction - SO 2 (kg/TJ) 0.6
Em issions during construction - N O x (kg/TJ) 8.6
Emissions during construction - Particulates (kg/TJ) 1.0
Em ission factor - CO 2 (kg/TJ) 2,160.5
Em ission factor - SO 2 (kg/TJ) 0.0
Em ission factor - N O x (kg/TJ) 0.0
Em ission factor - Particulates (kg/TJ) 0.0
Table 3.1.1 Emissions data for Geotherm al Electricity Generation and Thermal
Plant
Power generation Conventional Com bined cycle Geothermal

technology steam cycle coal gas turbine
Em ission factor fired plant
C 0 2 (kg/GJ) 249 112 19.4
S 0 2 (g/GJ) 3326 0 0.0
N O x (g/GJ) 977 196.5 0.0
Particulates (kg/TJ) 47 0 0.0
Table 3.1.2 Com parison o f some emissions from different forms o f therm al pow er
generation
1.3 Environm ental benefits
The environmental advantages outlined here are relevant to almost all possible variants
o f geothermal energy use:
Continuous supply
G eotherm al heat is always available when required. Biomass, geothermal energy and
small hydro are the only renewable energies which are available in a stored form
w ithout the use o f an intermediary form o f storage such as batteries. The wide range o f
energy conversion techniques allows geothermal resources to be used for many
different applications. Further developm ent in this sector will make it possible to use
geothermal energy practically everywhere once further technical advances have been
made.
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A nnex 3.1
Little operating cost
Once a geothermal heat plant is installed operating costs are minimal since water, as
the energy carrier, is continuously available. Moreover, once an installed system has
been fully com m issioned it requires only a little auxiliary energy to drive the
circulation pumps.
Scarce emissions to atmosphere
As indicated above the level o f pollutant em issions to atmosphere are very low
com pared to conventional energy sources for electricity and heat generation.
Little space required
Geothermal plants occupy a com paratively small surface area. Storage facilities which
are required for fossil fuels or biomass are unnecessary.
No load traffic
No raw m aterials have to be transported to the geothermal plants once they become
operational.
M inim um risk o f accidents
Geotherm al energy is recovered in plants with conventional technical components. No

hazardous material has to be handled. Energy transferred via w ater presents minimal
risk when compared with the com bustion hazards posed by the use o f fossil-fuels.
2. EM PLOYM ENT BENEFITS
2.1 Evaluation o f the effects o f the construction and operation o f geothermal

heating plant on the labour market.
A case study for the Federal Land o f M ecklenburg - W est Pomerania (Germany) is
described here as an example o f em ploym ent opportunities generated from the
construction and operation o f a geothermal heating plant.
The construction and operation o f geothermal heating plants should not be exclusively
confined to environmental benefits, energy policy, public heating supplies and cost -
em ployment opportunities should be included as well.
The utilisation o f geothermal energy requires capital-intensive plants - the investment

needed for a geothermal heating plant is 10 times greater than for a gas-fired heating
plant with the same heat output. When a geothermal heating plant is constructed,
many suppliers deliver a wide range o f goods and services, which can be local and can
be small or medium sized enterprises. As a rule, a com plete gas-fired heating plant
will be delivered by one general contractor.
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The supply o f geothermal heat implies the replacement o f natural gas or other fossil
fuels by a locally available resource whose utilisation requires capital investment and,
above all, perm anent debt service and technical service o f the equipment. The share o f
the cost o f imported energy is low (ranging from 5 to 20 % com pared to 60 to 80 % in
the case o f a fossil-fuel fired heating plant).
In this way, the m ajor share o f the profit gained through the sale o f heat energy is used
for debt service (between 40 and 60 %) as well as for services such as plant
management, maintenance and repair, etc., which results in job creation in the country
or region. Expenditure is not predominantly for the paym ent o f fuel or power imports
as would be the case for fossil-fuelled plant.
Based on the results obtained in the N eustadt-Glewe dem onstration plant an attempt
has been made to evaluate the indirect effects on employment. In this exam ple the
existence o f deep wells has to be taken into consideration.
The analysis o f the suppliers contributions covers both the investment and the
operating phases. W hile the construction o f the plant and engineering work provide
em ploym ent over a period o f 1 - 3 years, the phase o f operation - geothermal heating
plants are designed for a period o f at least 30 years - includes perm anent em ployment
in the field o f the services listed below. The suppliers contributions are classified
according to the following characteristics:
- turnover in the project

- net output (gross proceeds = production)
- large-scale enterprises and SME.
The total investment budget in the N eustadt-Glewe dem onstration plant was ECU 9.3
million, comprising:
- ECU 5.8 million for supplies

- ECU 0.8 million for architects and engineers work
- ECU 0.5 million for R&D and testing
- ECU 0.4 million for project m anagement
- ECU 1.6 million for the purchase o f existing units
- ECU 0.2 million for the purchase o f the site.
This amounts to ECU 7.5 million o f the total investment budget for supplies and
services.
The turnover o f local enterprises (those directly related to the project) in M ecklenburg-
W est Pomerania was ECU 6.05 million (65 % o f the total turnover or 81 % o f all
supplies and services) split between ECU 3.95 million for SMEs (42 % o f the total
turnover or 53 % o f all supplies and services or 65 % o f the total domestic turnover)
and ECU 2.1 million from large-size enterprises.
The value o f the production from the local enterprises (directly involved in the
scheme) within the overall turnover was about ECU 3.7 million (which is equal to 74
% o f the total value o f the production or 49 % o f all supplies and services) with ECU
2.55 million attributable to SMEs (51 % o f the value o f the production or 34 % o f all
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supplies and services or 42 % o f the total domestic turnover) and ECU 1.15 million
attributable to large-scale enterprises.
Based on the assumption that one m an-year o f em ployment is equal to a value o f

production o f ECU 30,000, the total value o f production corresponds to a one-off
effect o f em ploym ent o f about 120 man-years (= 60 employees based on an investment
period o f 2 years) with 85 man-years directly related to SMEs.
Depending on the content o f work / qualification it is estimated that an investment

ranging from about ECU 100,000 to 1.0 million will lead to the creation o f one
workplace. The am ount o f em ployment becomes even clearer in the operational phase.
The annual turnover for supplies and services, for debt service and taxes is ECU 1.05
million on average. This implies a value o f production o f about ECU 0.3 million per
year resulting in about 10 permanent jobs.
Here, however, only ECU 0.06 million /year with about 2 permanent jobs can be
directly related to SMEs (the managing board is provided by the regional energy
supplier WEMAG).
Summarising the above, the local employment effects are as follows:
- investment about 120 man-years 60 jobs over a period o f 2 years
- operation about 300 man-years 10 jobs over a period o f 30 years
- total about 420 man-years
- with about 150 man-years attributed to SME.
The technological part o f the Neustadt-Glcwe project was supported by the local
governm ent with a total o f ECU 2.3 million (= 25 % o f the total budget). This
corresponds to a ratio o f about ECU 5,500 / m an-year o f local em ploym ent (ECU 2.3
million : 420 man-years) and a ratio o f about ECU 230,000 per perm anently created
local job (ECU 2.3 million : 10 perm anent jobs).
These figures show the high employment benefits o f politically supported energy
schemes such as the construction o f geothermal heating plants. The amount and ratio o f
the support are related to the fact that the Ncustadt-G lewe plant is a demonstration
scheme (extensive research programme, am ong others) which needs to be taken into
consideration.
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Annex 4.1
ECONOM Y OF GEO THERM OELECTRIC GENERATION
357
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INDEX
1. PRESENT PROBLEM S OF GEO THERM AL DEVELOPM ENT (1997) 360
2. THE INFLUENCE OF DIFFERENT M ARKETS IN GEOTHERM AL

ENERGY D E V E L O PM E N T ................................................................................... 361
3. THE PRIVATISATION PROCESS AND ITS INFLUENCE ON THE

DEVELOPM ENT OF GEO THERM AL E N E R G Y ........................................ 362
4. THE PROJECT FIN A N C IN G ............................................................................ 363
5. COST ELEM ENTS OF A GEO THERM AL PR O JE C T ............................... 365

5.1 R econnaissance..............................................................................................................368
5.2 P refeasibility.................................................................................................................. 368
5.3 Feasibility........................................................................................................................ 369
5.4 Im plem en tation ............................................................................................................ 370
5.5 Operation and M aintenance..................................................................................... 371
6. VARIABILITY OF INVESTM ENT C O S T S ..................................................... 372

6.1 D rillin g .............................................................................................................................372
6.2 The influence of well productivity...........................................................................373
6.3 Specific cost of the p la n t............................................................................................ 374
6.4 Plant fa c to r .....................................................................................................................375
7. TYPICAL COSTS OF GEOTHERM OELECTRIC G E N ER A T IO N ....... 376
8. SENSITIVITY A N A L Y SE S..................................................................................... 380
9. FINANCIAL ANALYSIS AND PRICE E V A LU A TIO N ............................... 381
10. PAY BACK PE R IO D ................................................................................................. 384
11. PRICING C RITER IA .................................................................................................385

11.1 M ining Risk evaluation...............................................................................................385
11.2 Effect o f tax sy stem ......................................................................................................385
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1. PRESENT PROBLEM S OF GEO THERM AL DEVELOPM ENT (1997)
The pace o f geothermal energy exploitation increased rapidly in the 1970s and 1980s.
W ith the demise o f the oil crisis and subsequent sharp decrease in the price o f oil,
geothermal energy has become less competitive with conventional energy sources.
A further reason for decrease in investments in geothermal projects, is the fact that the
main International Banking Agencies (W.B., A.D.B., I.D.B. etc.) no longer consider
investments in the energy sector as a priority. The privatisation o f the energy sector is
actually recom mended by the W orld Bank to all Governments o f developing countries.
The generation cost o f geothermal energy is generally still com petitive with other
alternative. For instance the electrical generation cost from the oil burning power plants
is about 10% higher than the average cost o f a geotherm al power plant o f more than 50
MW.
However the lower returns make a less appealing investment for a private sector
investor in comparison with other opportunities offered by a free market economy,
especially when the mining or geological risk is taken into consideration, which will
always exist with a geothermal project.
In this context an unusual contradiction exists. From an economical standpoint a

geothermal project is usually com petitive with an alternative technology as the
generation cost is lower. Moreover, a geothermal resource it is at least partially
renewable, this part is lost if not exploited by means o f proper investments. Again it is a
local, not a tradable or exportable resource, but its exploitation for many countries
means a reduction in imported o f fuels and in a com m ensurate reduction in foreign
exchange.
From a financial standpoint the same project may appear unattractive m ainly for two
reasons:
a higher income m ight not necessarily reward the mining risk.

the rate or return o f the investment, even if positive, may be lower than the
opportunity rate for the investor, in com parison with an alternative offered by other
investments.
From a technical viewpoint a solution to these problems may arise from an

im provem ent in exploration techniques leading to a reduction in mining risk. However,
until the economic profitability o f geothermal resources is substantially increased by
market conditions, investments in the im provement o f geoscientific exploration
techniques cannot be expected.
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A possible solution to the problem o f investment in geothermal generation may be

found from a different approach to the organisation and im plem entation o f projects.
2. THE INFLUENCE OF DIFFERENT M ARKETS IN GEO THERM AL

ENERGY DEVELOPM ENT
The development o f geothermal energy for electrical generation purposes, has followed
different paths according to the specific institutional and market conditions o f different
countries.
The different conditions can be summarised in three groups as follows:
a) Countries where indigenous know-how and financial resources existed before the
beginning o f the geothermal developm ent (United States, Italy, Japan, Iceland and New
Zealand). Here the geothermal exploration as well as the im plem entation o f plants, has
been m ainly regulated by free m arket conditions, both when the investor was a state
ow ned public utility or a private one.
b) Countries that supported the private sector and charged it with the exploration and
exploitation o f the geothermal resource, even when the electrical energy production, is
either a state monopoly or strictly regulated by the Government. Such a policy was
implemented by means o f m ining concession and operation contracts for the purchase
o f the steam or the electrical energy. In these countries the m arket conditions cannot be
considered free m arket, being only one (the state) is the final purchaser. The free
market rules are applied here when the concession is offered to different investors in a
com petitive bid. Financial resources come mainly from private investors and partially
from the state owned com panies, often financed, on their side, by international banking
agencies. This situation is typical in two countries where geothermal energy is a
significant commercial energy, Indonesia and Philippines.
c) Countries where the state-owned public utilities developed the resources by

themselves and com missioned the generation plants. This situation was prevalent in all
Latin America countries until very recently. The investment capital was either from the
governm ents or from the state-owned com panies, but the international banking agencies
(I.B.R.D., I.D.B., UNDP) played a fundamental role in the developm ent o f geothermal
resources.
In cases a) and b) the operations may be carried out in two different ways:
1) By two operators:
a mining com pany as far as the geothermal field exploitation and steam
production is concerned
a public utility which implements and operates the geothermoelectric plant
In this case the mining company get the lease or concession from the land owner,
produces and sells the steam to the public utility which produces and sells the electric
energy into the pow er sector market.
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2) By a single operator, being the field developer, the ow ner and operator o f the pow er
plant is the same entity.
In case a), the decision to im plem ent a geothermal project is determined mainly by
financial considerations. In contrast the developm ent policies in the group b) countries
are regulated by economic aspects. For instance a governm ent may accept to pay a
private investor a price higher than the least cost alternative, taking into account shadow
prices, for a strategic reasons to develop indigenous resources, or using the opportunity
to diversify energy resources.
In case c), where the finance for a project comes from an International Banking Agency,
each project has to be submitted for approval, and therefore both econom ical and
financial aspects have to be in principle strictly observed, according to the rules o f the
financial institutions concerned.
In practice the im plem entation o f schemes is more complex, especially where contracts
between the state-owned enterprises and private investors are concerned. For instance,
the effect o f contracts signed under solicited or unsolicited proposals, or after structured
or unstructured requests, strongly affects the final econom ical and financial results o f a
project.
O ther param eters may strongly influence the final outcome o f a project. For exam ple a
project im plem ented by a private investor, , generally results in a lower production cost
due to the higher efficiency o f a private enterprise (not bounded with strict controls like
a public one). But the higher expected rate o f return o f the same investor may
eventually result in a higher price for the energy.
There are many aspects o f this kind that should be carefully analysed before issuing a
final judgem ent on the matter.
A detailed assessm ent o f geothermal generation cost is therefore necessary both for the
general appraisal o f the sector and to look for a solution o f its present problems.
3. THE PRIVATISATION PROCESS AND ITS INFLUENCE ON THE

DEVELOPM ENT OF GEO THERM AL ENERG Y
Since the mid 1980s privatisation o f infrastructure and energy supply industries has
increased substantially even in the countries w here the Governm ent usually had a
unique role in this matter. In the present decade this process has been especially
significant in the sectors o f telecom m unication and electrical generation and
distribution.
Such a process is the result o f a general policy supported both by most governm ents and
by the international banking agencies. These do not consider investments in the energy
sector as a priority and therefore in many countries geothermal developm ent has slowed
down or even stopped for lack o f investment. This phenom enon happened particularly
in countries where geotherm al developm ent was conventionally carried out by State
enterprises.
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The reasons for a new policy in favour o f privatisation can be summarised:
the restriction o f G overnm ents financial resources for capital intensive investments
like the energy projects, because o f macro economic conditions
the decision o f the international banking agencies (W.B., A.D.B., l.D.B.) to consider
investments in energy projects as a low priority
- the low er efficiency o f the state owned com panies in com parison with the private
ones, mainly due to the strict rules and controls duly applied to the states companies
because o f their use o f public funds and political interference.
Such a policy did not affect the pace o f geothermal developm ent in the countries where
private enterprise was already active, for instance in Indonesia and Philippines. Here the
developm ent was also supported by the Governments for general economical reasons,
has previously explained under the paragraph 1 o f this chapter.
These economical considerations did not apply in other countries (in the most
developed ones) were free m arket rules have restrained geothermal development
because the decrease in the price o f oil has made it less competitive.
Quite different condition occur in Latin Am erican countries were an extensive

unexploited geothermal potential still exists and in many cases is possibly competitive
with alternative energy resources.
As stated before, in these countries the electricity supply system has been, until very
recently, under full state control. M ost Governments presently widely accept and
support privatisation policies. The lack o f specific laws, tradition and experience have,
however, slowed down the privatisation process, even against the willingness o f
Governments and state enterprises. Today in many countries a new legislation is already
in force, and in others it is a process that is in progress so that this obstacle will be
overcome.
N evertheless in many cases decisions specifically related to investment in geothermal

schemes are slow because techno-economical aspects o f the technology are not yet
clear to the decision-makers. For example if the cost o f geothermal energy is lower
than an alternative one, the final price may be higher. In reality risk rem uneration is a
concept not widely understood. As well as the fact that the expected rate o f return for a
private investor is higher than the one used for planning by governm ent agencies.
Private sector investments also demand shorter repaym ent periods than state sector
entreprises.
At present in many countries, especially in Latin America, the shortage o f financial

resources still affects the geotherm al development. The existence in the m arket o f a new
kind o f financing instrum ent may resolve the problem in the near future.
4. THE PROJECT FIN AN C IN G
The definition o f project Financing is: to finance a project, fu lly or partially, on the
basis o f the credit o f the same project, which is wholly dependent on the incomes o f the
project for the sole or main source o f the debt service.
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A nnex 4.1
This kind o f financing procedure is spreading through out in the w orld for public works
projects. In the estimation o f the I.B.R.D. within the year 20001 14% o f the total world
investments for infrastructures schemes, will be im plem ented according to this
procedure.
The basic difference with traditional financing procedures is that in the case o f Project
Financing the loan is not granted on the basis o f the solvency o f the investor but on the
financial w arrantee o f the project itself. This means that in the assessm ent o f the
investments, the pay back o f the loan is expected not from the financial soundness o f
the borrower, but from the income and profits that the project is expected to generate.
This kind o f financing is called no or limited resource loans .
This procedure has only an important consequence for the investor (be it public or
private): because it does not bind, (or partially binds), financial resources so that they
are available for other investments.
If on the one the hand such a procedure makes the financing o f a project easier, on the
other hand the projects technical design, planning, scheduling, and economical and
financial analysis, (the feasibility study), has to be prepared with attention to detail
which is somewhat different from the traditional approach. For instance for an
international banking agency, to finance an energy project, the following requirements
will be necessary:
- the system needs to supply the estimated energy output

- the project offers the least cost expansion
- the investor can pay the debt service
In a Project Financing evaluation the following requirements need to be analysed:
- the market will buy the produced energy

- the price the market will pay guarantees the pay back o f the loan
- the borrow er has the capacity to sustain the risks involved in the p ro je c t.
In other words in the first instance the project analysis has to define the production cost,
and provide a check that it is the least cost option. Moreover, the cost m ust be sustained
by the econom y o f the country. In the second instance the analysis must assess that the
price the market can pay for the energy, throughout the entire economic life o f the
plant, is enough to pay the operation and maintenance o f the plant, the debt service, the
taxes, and leaves to the owner with profits equal or higher than an alternative
investment.
An important item o f the preparatory study for a Project Financing assessm ent is risk
analysis. The Bank, because o f it own criteria, may not acccpt the risk related to the
project.
1 F.Sander, Privatization and Foreign Investment in Developing W orld 1988-1992, The W orld Bank.
364
A nnex 4.1
The borrow ers analysis must indicate not only the technical risks, but also the financial
and political ones, clearly indicating the mitigation procedures that will be taken related
to technical, financial, legal and insurance aspects o f the project.
In the case o f geothermal projects, generally, the land ow ner (the government, the state
or a private, according to the local laws) grants the exploitation rights to a
concessionaire. The relationship between the ow ner and the concessionaire are
regulated by contracts that may be:
- BOO (Build, Own and Operate)

- BOOT (Build, Own, Operate, and Transfer)
- BLT (Build, Lease and Transfer).
These contracts are the basis on which the Project Financing is structured.
In countries where the privatisation process is now underway, Project Financing

through BOO, BOOT or BLT contracts, offers the State owned electric companies
many advantages:
- reduction o f need o f financial resources
- reduction o f the im plem entation schedule in comparison with a traditional route
linked to turn-key contracts and loans from international banking agencies
- the previous identification o f risks and their mitigation.
It should be stressed that the im plem entation o f a Project Financing procedure has to
overcom e some difficulties, especially for state owned com panies which do not have a
specific experience in the matter.
The following criteria are essential:

- The preparatory studies must be specifically orientated.
- The project must be attractive for many potential at investors: the lack o f competition
may lethal for a project.
- Bidding and negotiation in this kind o f contracts requires much more care than the
traditional turn-key contracts. The risk o f stipulating contracts which in the long
term may result in losses for one o f the parties is high.
- The higher efficiency o f private investors results in low er costs but this is not
necessarily reflected in lower prices. The expected return for a private investor must
pay for higher efficiency.
However, Project Financing is a mechanism that may overcom e the present slow pace
o f geotherm al development.
5. COST ELEM ENTS OF A GEO THERM AL PROJECT
As already stated in paragraph 3, the assessm ent o f the param eters that affects the cost
o f geothermal energy is fundamental for any sound analysis on the matter.
365
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The discrepancy o f some investment costs in different countries and in different

geothermal areas, makes it almost impossible to generalise the production cost o f
geothermal energy. Local market conditions, decision-m aking procedures, but mainly
the geological features o f a field, deeply affect the final production cost which it can
change by a factor from one to three or more o f the original cost.
It is essential therefore to define a methodology for cost assessment, rather than give
figures which essential therefore related to specific param eters and conditions.
To assess the generation cost o f a geothermal project, the expenditure that investors
afford in each phase o f the project, from prelim inary reconnaissance to the operation o f
the plant, need to be exam ined in detail strictly in connection with the schedule o f the
project (Fig.4.1.1)
Investm ent Cost o f Typical Phases
.....................
Reconnaissance L - ... i
- -
Prefeasibility
m - I
Resource-feasibility 1 5
/ - nr .................
max
min
Plant feasibility
-- -X I
Field developm ent ............................ : r .... ................ 0
i
.
------------------------ 1----------------------
Plant construction I ------------ fl
t ^ --------------------- 1r------------------------------------------
----------------------------------------- - ----------------------- ,-----------------------
------------------------------------------ ,------------------------/
-------------------------------------------1 1------------------------------------------ r
0.0 0.1 1.0 10.0 100.0 1000.0
M EC U
Fig. 4.1.1
366
A nnex 4.1
Project Phases and Risk M anagem ent
Reconnaissance
Prefeasibility
Resource feasibility
I financial risk
Plant feasibility
HI m ining risk & financial risk
Field development m ainly m ining risk
Plant construction
Low High Very High
Fig. 4.1.2
A geothermal project develops (or should developed) in a sequence o f phases based on

established procedures:
1. Surface Exploration
- reconnaissance
- prefeasibility
2. Deep Exploration
- feasibility :
. field (deep exploratory drilling)
. plant
3. Implementation
- field development:
. production and reinjection wells
. piping and separation system
- plant construction
4. Operation
A review o f the activities and the objectives related to the different phases and their
relevant cost is advisable.
The above project phases and risk m anagem ent is outlined in Figure 4.1.2.
367
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5.1 Reconnaissance
Reconnaissance is a low cost activity, in the order o f hundred or two hundred thousand
dollars, whose objective is to prepare an inventory o f the geothermal resources areas in
a nation or in a region, to establish a priority and to chose the m ost promising
prospects.
Even if the financial cost o f such an activity is negligible, the general frame o f a
geothermal development, (i.e. its economic value is important). A reconnaissance study
reduces the risk o f the following stages o f the project, allows better program m ing and
scheduling o f the successive activities and eventually may result in lower production
costs.
In some cases when a state owned operator has been involved, it has happened that the
choice o f an area for expensive deep exploration resulted a failure without preliminary
reconnaissance study or delays have been caused in a general developm ent program
when better areas w here initially neglected.
These incidents em phasise the importance o f reconnaissance activities.
5.2 Prefeasibility
The goal o f a prefeasibility study is to establish the existence o f a geothermal resource
on the basis o f data that can be collected by means o f surface exploration and locate the
best sites for deep exploration wells.
The geoscientific activities performed in this phase are geology, geophysics and
geochemistry. The direct cost o f such activities is generally not excessive (they should
be in the order o f 400 thousand ECU). Costs up to the double this figure are sometime
justified where complex or hidden geological features o f the exploration area exist. The
cost may also substantially increase if drilling o f a deep slim hole results advisable at
the end o f the surface prospections.
It is strongly recom mendable that the prefeasibility phase does not last more than a few
m onths and no more than a year. The request for more details and further prospections
arc often requested which inflates the costs and delays the subsequent developm ent with
no substantial reduction in the mining risk.
An idealized function o f the reduction in the mining risk with increasing investment in
exploration is broadly a hyperbolic one, as may be seen in the following graph2 (Figure
4.1.3).
The graph synthetises the concept that exploration drastically reduces the mining risk,
but a residual risk will always exist, and an increase in exploration work cannot
com pletely eliminate it.
2 Speech o f F.Barberi at the I.I.L.A. convention on Geotherm ics, Guatem ala City(1977)
368
A nnex 4.1
Fig. 4.1.3 M ining Risk versus Exploration Investm ent
If a delay in production results in a low er actualized value o f the produced energy, the
real cost o f an inflated exploration program is much higher than its direct cost.
The outcome may be that the actualised cost o f this phase could be in four or more
times higher than expected.
5.3 Feasibility
It should be em phasised that the goals o f a feasibility study are as follows:
- Verify if the project may be carried out from a technical standpoint

- Define the technical characteristics, selecting the best conditions after a technical and
econom ical com parison with other alternatives
- Design plant and equipm ent with sufficient detail to define their functional
characteristics, their cost and implementation schedule.
- Assess costs and benefits, economic and financial, com pare the whole project with
possible alternatives, including non-im plem entation .
In a geotherm al project, the feasibility study is divided in two parts for logical and
operational reasons. The field is deep exploration, as well as the assessm ent o f the
available resource and its therm odynamical characteristics, is carried out prior to any
definition o f the equipm ent (class, size, therm odynamic cycle, layout etc.).
The first phase is the Resource Feasibility and its aim is:
- to verify the existence o f a geotherm al reservoir,

- to assess its size and potential
- to define the fluids therm odynamical parameters.
369
A nnex 4.1
This phase is the most critical one in a geothermal development: the investment in
drilling is quite high, between 4.4 and 8.8 millions ECU, about 1.3 million ECU per
exploration well with an average estimated depth o f 1500m, including well-site, access
purchase and preparation, engineering and administration. This cost (sometimes higher
than the figures quoted here) is entirely submitted to the mining risk. The mining risk
includes not only the existence o f the resource but also its therm odynamical and
chemical characteristics. These param eters may substantially affect the possibility o f
exploitation and its cost.
The second phase, or Plant Feasibility, is based on the results o f the first one, and its
goals are:
- Choose the size o f the plant and its thermal cycle,

- Compare and optimize the possible technical solutions and param eters (i.e single or
double flash, inlet pressure, condensing pressure, gas extraction systems, piping and
separators sizing and lay-out),
- Design plant and field surface equipm ent in a prelim inary way,
- Analyse the whole project from an econom ical and financial standpoint.
As we have seen in the former paragraph, a feasibility study conceived for Project
Financing must develop the last item in a special way.
The cost o f a typical feasibility study is in between 0.4 and 0.9 million ECU, and its
duration depends mainly from the drilling program. A schedule o f 1.5 years is
considered an acceptable average.
5.4 Implementation
Time, schedule, size and costs o f this phase depend on the characteristics o f the
geothermal reservoir as ascertained during the resource feasibility stage. The field
potential defines the size o f the plant and therefore its specific cost. The w ells flow
determines the num ber o f wells to be drilled and therefore the developm ent cost and
schedule (Fig. 4.1.4).
T ypical Im plem entation Plan
max
Reconnaissance f i"
min
Prefeasibilitv
Resource feasibility
Plant feasibility
Field dev. & Plant con.
0 1 2 3 4 5 6
Y ears
Fig. 4.1.4
370
A nnex 4.1
In the im plem entation phase it is advisable to analyse separate ways to carry out field
developm ent and plant construction. The activities during the field developm ent phase
include the drilling o f production and reinjection wells and the construction o f the
piping and separation systems.
The average cost o f a developm ent well may be estim ated from an approxim ation o f
some tens o f percent. Cost estimates in the order o f 0.9-1.3 million ECU per well are a
safe approximation in developing, but not oil-producing countries. W hat cannot be
foreseen (before o f the drilling o f the exploration wells) is the average yield from wells.
The world average pow er o f productive wells (for w et steam reservoirs, measured at the
beginning o f production) has been estimated at 5MW. This value is presently increasing
for the more recently developed fields to around 6 MW(e). This value is near the
boundaiy that makes a geothermal project com petitive with a traditional power plant
with the present cost o f oil. However, the variability o f this value in actual wells is very
high (see par. 6.2).
It is impossible to establish generically the cost o f the developm ent o f a geothermal area
w ithout the results o f the feasibility study o f a specific field. It can be assumed that the
specific cost o f such developm ent must be lower than 1750 ECU / kW installed
including the pow er plant to make the whole project econom ically sound.
It is appropriate to point out that a developm ent cost lower than 875 ECU /kW is not
exceptional.
The schedule o f a field developm ent depends on the num ber o f wells to be drilled. The
schedule may be reduced to fit any plant construction program, with m inor cost
increases, in this phase more drilling rigs are used. This procedure can ensure that the
plant construction and erection phase can be completed in time for the im plem entation
phase.
The construction time for the pow er plant depends on the size and the equipment
supplier. Around 24 months (for the first unit) plus minus 6 months, is the usual
construction time seen in many projects over the last few years.
The definition o f the cost o f the power plant is much easier to determine. To a certain
degree is the cost function o f market conditions. The main factor influencing the
specific cost is the size o f the plant. At present units o f 55M W have a specific cost o f
around 700 ECU /kW , while the small units o f 10-15 MW may reach a cost almost
double this per kW installed.
5.5 Operation and maintenance

The field O&M costs and those o f the plant then need to be re-examined. An acceptable
estimate o f the O&M cost for all equipm ent (field and plant) is an annual expense o f
between 2 and 3% o f the capital costs o f the plant (below 55 MW).
371
A nnex 4.1
The expense o f drilling replacem ent wells has to be added. This cost cannot be
estim ated generically bccause it is linked to the same uncertainties described for the
field developm ent and, moreover, it depends on the rate o f decline o f the production
wells. The cost o f drilling replacem ent wells is roughly double the O&M expense
directly related to surface plant operation.
6. VARIABILITY OF INVESTM ENT COSTS
As stated at the beginning o f the previous paragraph, it is impossible define in a general

way the cost o f geothermal energy. Nevertheless to evaluate the possible development
o f geothermal energy and its future m arket some reference costs must be defined.
To do this task, a previous analysis o f the range o f investments at each different phase
o f a project is necessary, to obtain reasonable figures and an estimate o f possible errors,
their reasons and variability.
This analysis is a basic requirem ent for choosing the parameters that, through the
application o f a proper mathematical model, will allow us to calculate costs and prices
o f geotherm oelectric energy. The same model can be used to analyse the influence o f
the variation o f each param eter on the final generation cost.
Each contributory parameters, previously described, should be exam ined in more

detailed.
6.1 Drilling
The depth o f geothermal wells in presently producing fields is in between 500 and
3000m, with an average depth o f around 1500m. It is known that the specific cost (ECU
/m) is not constant and increases with depth. Costs for access, well site and equipment
usage are constant so that a general evaluation o f well cost can be approximated.
M arket conditions may also considerably affect the cost o f drilling contracts.
Drilling costs are strictly dependant on the oil industry market. As the exploration and
developm ent o f new oilfields grows, the availability o f equipm ent decreases which
leads on an increase in the price for the rent o f rigs, especially in a secondary market
like the geotherm al one.
The cost is quite noticeably in countries or areas where drilling activity for oil exists.
The reason is clear; rig m obilisation, and the supply o f consumables, equipment and
spare parts are obviously cheaper where a drilling industry is active.
All these costs are generally predictable for each project and even if they fluctuate by
plus or minus 30-50% around the average o f 0.9-1.1 million ECU per development
well, they do not represent a critical uncertainty for geotherm al projects.
372
A nnex 4.1
It is im portant to recognise that exploration and developm ent wells have different costs.
In the form er the drilling is slowed by uncertainty in the stratigraphy, the need to take
cores and perform more in-well measurements. M oreover, contracts for exploration
wells generally envisage a small num ber o f wells, so that the influence o f moving in and
out is specifically higher.
For all these reasons an exploration well can cost around 20-30% more in comparison
with developm ent wells. It should be stressed that problems can arise during drilling
which m ight push, the final cost substantially higher.
The calculations for the energy production cost, assume an average drilling price o f 1.1
and 1.3 million ECU per development and exploration well, respectively. These costs
include expenses for the construction o f the preparation o f the well site and access
roads.
6.2 The influence o f well productivity.

Well productivity is certainly the param eter that most affect the final cost o f geothermal
energy. The effect o f this param eter on the proficiency o f geothermal energy has been
analysed by different authors.3
In reality production wells connected to operating pow er plants can have energy outputs
from less than 2 to more than 30 MW(e).
If the specific cost o f drilling related to the w ells potential (ECU /M W e) keeping
constant the cost per well) is considered, this value may change from 1 to 15 or even
more.
It is clear that such a wide variation, in com parison to the other uncertainties with
variations o f some tens o f percent o f the other costs, make this param eter the most
critical one.
A fter the surface exploration phase, the existence o f a therm al anom aly at depth, its
tem perature and location can only be assessed with a fair degree o f approximation. The
param eters that determine the productivity, that is the permeability o f the reservoir, its
transm issivity and recharge conditions, can only inferred. It is only after drilling and
testing o f the exploration wells, that the available pow er o f the future development
wells can be evaluated in relatively sound manner.
In a general assessm ent o f geothermal generation costs is therefore advisable to manage

the well productivity as a variable and analyse the final cost as a function o f this
param eter (see par. 8).
3 Girelli,M. (1991) Economic proficiency of geothermal generation versus drilling costs and oil prices. International Sem inary on
Geothermal Prospects in Latin Am erica and the Caribbean, San Salvador (C.A.) 1991.(in Spanish)
373
A nnex 4.1
6.3 Specific cost o f the plant

M arket conditions may partially affect the price o f equipment. Altough this influence
may be high as an absolute value, it is rather low as a percentage o f the project total,
possibly less than 10%.
The size o f the units and the total installed pow er is a much more important influence.
As far as the thermal cycle is concerned the geothermal turbines are o f three kinds:
- back-pressure
- condensing
- organic cycle
The low cost but low efficiency o f back-pressure turbines are econom ically justified,
only in an initial stage o f a geothermal development, or when the incondesable gas
content o f the steam is higher than 12-14%.
The organic cycle units, have a high specific cost. They are therefore, justified for
exploitation o f brines with temperatures under 200C, which are regarded as marginal
wells or o f residual separated waters.
The main cycle to be taken into consideration are, single or double flash condensing
turbines.
Even if any size o f condensing unit were available (with an upper limit o f 55 M W due
to the maxim um possible size o f the turbine blades), the actual units currently available
(single flash) can be grouped, for sake o f simplicity, in three categories according to
their size:
- 10-15 MW
- 2 5 -3 0 MW
- 55 MW
The last figure (55 MW) represents a market standard for the upper size. From a
technical standpoint turbines around 65 M W or more can now be built.
Based on the results from different bids in the last few years it is possible to
m ethodically assess the range o f specifics cost o f pow er plants equipped with these
units (within an error limited to the effect o f market condition and competition).
- 10-15 MW 1200-1300 E C U /k W
- 2 5 -3 0 MW 875-1050
- 55 MW 600-850
These costs are relevant to single unit plants. Further units o f the same plants may have
a discount o f up to 20% o f the average values (Figure 4.1.5).
374
A nnex 4.1
6.4 Plant factor

Calculations to determine the unit cost o f generation assume a plant factor which is
the average yearly percentage o f time plant generates at rated power, during the whole
economic lifetime. It is assumed that the electricity system can receive the entire
production o f the plant, as actually happens for all the existing geotherm al pow er plants
around the world. For this reason the term plan factor and not load factor is used as
the latter term is generally dependant on the capability o f the electricity distribution
network to absorb the full capacity o f the plant.
It has to be stressed that such assumptions are based on the hypothesis that the plant is
sized so that the fields steam production may sustain the rated pow er o f the plant for its
lifetime.
An oversizing o f the pow er plant (up to a certain degree) results in higher financial
benefits,4 but such cases are not considered as they do not represent a standard
condition.
The unavailability o f the plant is therefore related only to the scheduled yearly
maintenance requirements and estimated accidental out-of-service incidents, both o f
the plant, the field and related equipment.
In reality geotherm oelectric generation is typically used for base load production. From
a theoretical standpoint a storatibility o f the unexploited resource exists, but the time
requested for closing and opening the wells (for technical and safety reasons), does not
allow any daily modulation.
Specific investment costs
1500
1000
P
U 500
B
o -------------------------------------- 1---------------- ---------------------- ---------------- 1---------------- -----------------------
15 MW 30 MW 55 MW
Typical plant size
Fig. 4.1.5
4 Girelli, M.,Parini,M, Pisani, P. .Economic evaluation o f alternative strategies o f geotherm al exploitation, Proc.World Geothermal
Congress, Florence, 1995, pp. 2843-2846.
375
A nnex 4 . 1
7. TYPICAL COSTS OF GEO THERM OELECTRIC GENERATION
The form er assessm ent o f the cost and the schedule o f the com ponents for a geothermal
electric project, allows the cost o f the energy produced to be calculated. It is therefore
possible to analyse the influence o f the variability o f each factor on the final cost (see
Figure 4.1.6).
Calculations were made by means o f a mathematical model, based on the Discounted

Cash Flow Method.
Before choosing a reference project to evaluate what can be termed a typical cost
preliminary calculations were performed on different cases.
Based on the project partners professional judgem ent the base case is a plant o f a single
55M W units, whose generation cost results are alm ost equivalent to a 2 x 30 MW, can
be accepted as representative o f a typical project .
It should be stressed again that the results from these calculations are based on input
data within accepted error limits. The eventual figures are consequently subject to error.
A Reference Typical Geothermal Project is defined by the following input data which is
the basis o f the m athematical model (see also tables o f the Appendix to this Annex for
the inputs o f the Financial model).
G eotherm oelectric Project

Generation costs
S ' 60
| 40
B 20
O
m 0
15 MW 30 MW 55 MW
Typical plant size
Fig. 4 .1.6
376
A nnex 4.1
EXPLORATION
Surface prospections
cost 0.4 MECU
term 5 1 year
Deep exploration
cost (wells drilling not included) 0.9 MECU
term 2 years
Exploration wells
n o f wells 4
cost per well 1.1 MECU
success ratio 1:1 (or 50%)
% o f unsuccessful wells good for reinjection 50%
average productivity o f successful wells 6 MW
D EV E L O PM E N T 6
Wells
cost per well 1.0 MECU
average productivity 6 MW
success ratio 4:1 (or 80%)
ratio producing/reinjection wells 3:1
Piping and separation system
cost per producing well 0.7 MECU
cost per reinjection well 0.5 MECU
PLANT CONSTRUCTION
Specific cost 750 ECU /kW
Construction tim e7 3 years
Plant factor 85%
Internal consumptions 6%
OPERATION & M AINTENANCE8

Field
O&M (percentage o f investment cost) 3.5% per year
production/injection decline 3% yearly
make-up wells (to keep the steam production
and reinjection capacity constant for 25 years) 15
piping and separation to make up prod, wells 0.35 MECU
reinj.wells 0.26 MECU
Plant (percentage o f the investment cost) 3.5% yearly
5 Including the time for contracting a drilling company

'' The term for developm ent is assum ed to be the same as plant construction.
7 Including 6 months for bidding and contracting
8 Including A dm inistration and Engineerig.
377
Annex 4.1
The following conditions were also assumed:
- The productive life o f the plant is 25 years.

- An allowance for contingencies o f 10% o f investment cost has been applied to the
whole project.
- The discount rate used in the basic calculations is 10%.
- The disbursements are evenly distributed for every year over the term o f each phase.
- The delivery point is taken as at the high tension side o f the plant substation.
(Transmission line cost and its operation are not included).
The generation cost for a 55 MW plant results:
37 ECU /M W h9
o f which 14.4 ECU is relevant to the field, 4.3 ECU is for the piping and separation
system and 18 ECU is allowed for the plant.
Due to the variability o f the input param eters attention must be paid to these figures.
Their absolute value is certainly affected by errors in the order o f 1-K3% but they can be
treated with confidence for com parison purposes.
The discounted specific investment cost for all the project is around 1545 ECU /kW.
If same criteria area applied to a 30 MW plant the generation cost is:
47 ECU /M W h
that is 25% higher than the 55 MW plant.
This is a preliminary but meaningful indication o f the variability o f the generation cost
as a function o f the technical and economical characteristics o f a project (Figure 4.1.7).
9 No taxes or royalties are included.

378
A nnex 4.1
G en eratio n costs versus well pro d u ctiv ity and d rilling costs
65
Drilling cost per well (MECU/well)
60
55
JS
50

s 45
p
u 40
UJ
35
30
25
4 6 8 10 12
W ell p roductivity (M W e)
Fig. 4.1.8
G eneration costs versus w ell productivity and plant specific costs
4 6 8 10 12
W ell productivity (M W e)
Fig. 4.1.9
379
A nnex 4.1
8. S E N S IT IV IT Y A N A LY SES
The effect o f the variation o f the main parameters on the generation cost are shown in
Figures 4.1.8 and 4.1.9.
The first analysis was performed calculating the production cost assuming a variation o f
4 to 12 MW in the potential productivity o f each well and variation is the cost o f each
developm ent well from 0.9 to 1.6 MECU (the cost o f the exploration wells is assumed
to be 25% higher).
It can be seen that the influence o f a possible change o f each w ells productivity is
much more effective on the final production cost than the probable drilling cost
variation.
As stated in a previous paragraph, the specific cost o f a pow er plant is a function o f the
size o f the single units and o f the plant as a whole. The lower cost analysed (740
ECU/kW ) is that o f a lx55M W plant, the highest cost corresponds approxim ately to a
15 MW unit.
It appears that the influence o f the cost related to the size o f the plant strongly affects
the production cost.
This is the reason w hy private investors do not norm ally accept developm ent o f fields
with a proven or possible potential smaller than 100 MW.
The assessm ent o f the Reference Project was performed with a discount rate o f 10%.
The choice o f this param eter is highly subjective.
The State owned public utilities in developing countries generally adopt higher values,
the international banking corporations a lower one in the order o f 8%, in developed
countries even as low as 6% depending upon the perception o f risk.
Such a param eter strongly affects the results o f the cost calculation as may be seen in
Figure 4.1.10, where the energy cost, as well as the com ponents related to the field and
the plant, is calculated against a variation in the discount rate o f between 6 and 12 %.
Fig. 4.1.10
380
A nnex 4.1
9. FIN A N C IA L A N A LY SIS AND P R IC E EV A LU A TIO N
In the economic analysis the disbursements considered in the cash flow are values o f the
investments in the project implementation at the time they are bound. (For instance, the
pow er plant cost are entered in the economic cash flow at the moment o f the
construction).
In the financial analysis the expenses are divided between equity and loan. The share
related to the equity, as in the economic analysis, is charged to the cash flow at the time
they are engaged. The disbursem ent related to the loan are distributed according to the
conditions o f the debt service, that is IDC (Interest During Construction), loans
interests, and capital recovery and they entered, in the cash flow at the time o f the actual
payment.
In the m ethodology used in this study the Financial Analysis is performed using a
Discounted Cash Flow Method based on a cash flow o f costs distributed according to
the concepts explained above.
The analysis has been performed on the basis o f the data shown in paragraph 7, which
includes:
- Share between equity and loan

- Loan interest and term
On the basis o f the same analysis the prices have been calculated taking into
consideration:
Opportunity rate o f the investor

- Taxation
- Amortisation term and rules
Shares and royalties, if any.
The opportunity rate, which measures the profit expected by the investor as a yearly
interest rate on the total investment, may be expressed as the I.R.R. (Internal Rate o f
Return) o f the Project.
In present market conditions, the expccted I.R.R. o f a private investor is 20% for the
field and 15% for the plant and equipm ent calculated on the total investment regardless
o f the share between loan and equity.
The assumed term o f the loan was 10 years. Due to the effect o f actualization an
extension o f this term to 20 or 25 years has a negligible effect on the Net Present Value
o f the cash flow and therefore on the eventual calculated price, if taxation is not taken
into consideration.
381
A nnex 4.1
Assuming an interest rate over the loan o f 8%, and disregarding the effect o f a possible
inflation, the price without taxes is:
57.2 ECU /M W h
and the average IRR 17.15%.
This figure is more than 50% higher than the cost, which clearly shows that the high
opportunity rate for a private investor in com parison with the one for a state company
(generally equal to the assumed discount rate) which inflates the energy price.
Nevertheless some qualification is necessary to place this analysis into perspective.
First o f all, in the calculated cost, the mining risk and its relevant cost is not included.
Even if it was assessed it would increase the IRR by 3% o f the calculated cost for the
reference project which results in a price around 41 ECU /M W h instead o f 37 (figure
4.1.11).
M oreover, the cost has been calculated assuming a tight schedule o f project
im plem entation and a high efficiency for the investor.
Generally, the com parison between prices and cost is made when a private investor as
opposed to a state company is involved. The controls applied to a state company, often
make it necessarily less efficient and therefore the eventual cost o f a project managed
by a state utility, is higher than the example calculated here.
For instance if the terms generally necessary for a State owned com pany to get the
authorisation to contract a loan from an International Banking Agency are considered,
the loan negotiation and bidding time, the bidding for drilling and turn-key construction
contacts, the terms o f the project schedule must be extended by at least three years.
Under these conditions the reference cost grows by up to almost 39 ECU /M W h, just
because o f the delay in the im plem entation schedule.
Part o f the difference between cost and price can be regarded therefore as a type o f
remuneration for the efficiency o f the private investor.
382
A nnex 4.1
Fig. 4.1.11
Fig. 4.1.12
383
A nnex 4.1
10. PAY B A C K P E R IO D
The pay-back period is defined as the time between the beginning o f the production and
the m om ent when the cum ulated cash flow becomes positive. This condition obviously
depends on the actual price paid for the energy produced and it therefore differs for
equal projects in different market conditions.
For this reason the pay-back period is a useful means o f describing a geothermal
investments generally. To became meaningful it should be related to a specific project.
Nevertheless a review o f some figures can be useful for com parison purposes.
It should be stressed that the pay-back period for investments in geothermoelectric

generation is quite short if a project is correctly im plem ented and the mining results or
quality o f the resource are favourable.
According to the param eters and data o f the Reference Project described in paragraph 7,
the pay-back period has been calculated in different ways according to different cash
flows (Figure 4.1.12).
a) the cash How o f a project im plem ented by a private investor whose equity is 20% o f
the investment, and the price o f the energy is the one that allows an expected I.R.R.
o f 15% for the equipm ent and plant, and 20% for the investment in the field,
b) the cash flow o f a project, whose price o f energy is that one related to an expected
IRR o f 12% and the equity corresponds to the whole investment. Such an example
could represent one implemented by a state owned public utility.
Both cases were analysed with and without the disbursements related to the paym ent o f
interests at a rate o f 8% yearly over the negative values o f the cumulated cash-flow.
Taxes were excluded.
Case a) 25 months without interests and 35 with the interest.
Case b) 4 years and 6 months without interests, 6 years and 5 months with the interests
Such values must be regarded as an indication, not as exact figures, as they depend on
many subjective parameters.
Such values are apparently very short in comparison with other projects in the field o f
alternative energy, fit with the values expected by private investors in any investment
involving a certain degree o f risk, as such as any mining project.
384
A nnex 4.1
11. PRICING CRITERIA
The prices shown in the previous paragraph are basically related only to a financial
analysis related to the expected IRR o f the investor and the interest rate o f the loan.
Some additional comments on factors influencing the eventual price of

geotherm oelectric energy are appropriate here.
11.1 M ining Risk evaluation

The higher expected IRR for the field (5% or more) is justified by the mining risk
related to the investment in the field. The cost o f the mining risk may be expressed by
the am ount o f the investment in exploration divided by the percentage o f the risk o f
failure. Statistically such a risk , from the phase o f surface exploration to that o f deep
exploration drilling, may be around 50%.
A quantitative evaluation o f the risk may therefore be calculated doubling the cost o f
the exploration phases. The higher cost calculated corresponds to an increase 3% o f the
opportunity rate related to the field. Therefore if the expected IRR o f 15% for the
investments in equipment, the expected IRR o f 18% for the field is justified.
A success ratio o f 50% is subjective even if based on past experience. A change in this
param eter strongly affects the increase o f IRR expected to com pensate for the risk.
Moreover, the contingencies over the whole project have been assumed to be 10% o f
the investm ent cost. Such a value is considered fair for the equipment, plant and unit
costs but may be regarded as low for drilling the well. Experience has shown that
unforeseen and unexpected technical problems have resulted in drilling costs for some
wells, more than two or even three times higher than the average cost assumed in these
calculations.
This possibility can be included in the mining risk evaluation which causes a
com m ensurate increase in the calculated value o f 3% up to 5%.
11.2 Effect o f tax system

Taxation can be applied as royalties on the mining resource, as share o f the gross
income, or tax on the net profit.
The tax system in each country is different and may be applied to one on more o f the
above factors. It is therefore impossible to assess the generic effect o f the taxation
system on the prices.
N evertheless it is advisable to calculate the tax effect under some typical conditions,
and analyse what effects a taxation system has on the final price o f energy.
385
A nnex 4.1
For sake o f simplicity the effect o f a complex taxation system can be summarised by
means o f only one o f the factors listed above. For exam ple as a tax expressed on a
percentage o f the net profit.
The net profit according to the laws o f each country, may be calculated in different
ways. For instance deducible am ortisations may be limited in time or quantity. Interest
on the equity may deduced from the income or included in the profit, as well as, in
some countries, the interest on the loan.
If a taxation rate o f 30% is applied on the net profit, the Reference Project, the price
will increase to:
65 ECU /M W h
if the amortisation is deducible in equal rates in 10 years, as well as the interest on the
loan. With this price the IRR on the equity (supposed 20% o f the investment, being
80% borrowed) is 31%.
Figure 4.1.14 shows the effect o f a different taxation rate on the price o f electricity.
Usually the taxes are calculated on the yearly net revenue: an im portant factor affecting
the evaluation o f the net revenue, and therefore the requested price o f energy, is the
possibility o f deducing the loans interest rate. Generally such a deduction is allowed on
the actual interest paid to the bank but not as interest over the equity.
In pratice the price usually requested by the investor treat the whole investment as
equity. The difference to the resulting price is sensible, and produces a much more
favourable IRR on equity.
The price without the deduction o f the interest o f the loan results
68.6 ECU /M W h
and the return on equity 33.5%.
A nother factor that may affect the price o f energy in many contracts is the inflation
index. If inflation is enter into a pricing formula, it applies to the whole price (capacity
and energy) and results in an unjustified price increase.
U sually operation costs are linked to inflation, whereas the investment costs are not, as
the interest rate over the loans are generally not varied with inflation.
A solution to this problem is the partition o f the price in a constant Capacity price
related to the investment, and an Energy price which can be varied with the inflation
rate.
386
A nnex 4.1
Effect o f Tax System on Energy Price
price without taxes .......~ 1
price w ith taxes (*) IJ

1 1 1 1
20 40 60 80
EC U /M W h
(*) Taxation o f 30% on the net profit
Fig. 4.1.13
Fig. 4.1.14
387
A ppendix to A nnex 4.1
Appendix to Annex 4.1
IN PU T O F T H E F IN A N C IA L M O D E L
389
Table 1
Am ortisation schem e/investm ent incentives
Investment Subdivision (*)

Field 100.0%
Gathering System 100.0%
Plant 100.0%
Transmission Line 100.0%
Year Amortisation
1 10.0%
2 10.0%
3 10.0%
4 10.0%
5 10.0%
6 10.0%
7 10.0%
8 10.0%
9 10.0%
10 10.0%
Note: (*) contingencies included
390
Table 2
Field Characteristics
Exploration W ells
T o tal 4 w e lls
ii
G o o d fo r P ro d u c tio n 2 A v e ra g e P ro d u c tiv ity 6 MW
G o o d fo r R ein jectio n 1 A v e ra g e A b so rp tio n 100.0% %
(in % o f g en e ra l av e rag e )
S terile E x p lo ra tio n W ells 1
Developm ent and M ake-up W ells

Production R einjection
A v erag e In itial P ro d u c tio n 6 MW Initial R atio P ro d ./R e in je ctio n 3:1
T ype: T ype:
A v erag e P ro d u c tio n D eclin e 3.0 % w ells A v e ra g e A b so rp tio n D eclin e 3 .0 % % /y e a r
R eserv e P ro d u ctio n C ap. 10.0% % R ese rv e A b so rp tio n C ap. 10.0% %
R atio G o o d /S te rile W ells 4:1 R atio G o o d /S te rile W ells 4:1
391
Table 3
Field: Drilling Mode
Drilling Performance
Max. N um ber Exploration W ells/year 4 wells/year
Max. N um ber Development W ells/year 8 wells/year
W ells Distribution in Time
Exploration: Anticipated
Development: Hom ogeneous Distr., rest anticipated
Partial Capacity: Posticipatcd
Make-up: Posticipated
M ake-up W ells Grouping 2 wells
Capacity A dvance
Y ear Project Status Capacity (MW) Advance (%)
7 Tot. Cap. 55
Y ear Project Status Deep Expl. Development Part. Cap.

4 12 0 <-- Required W ells
0
2 Deep Exploration 0
3 Deep Exploration 4
4 Development 0
5 Development 0
6 Development 12
392
Table 4
Econom ic and financial param eters
Public
D iscount Rate 10.0%
Private
Opportunity Rates Financial Parameters
- Field 20.0% Risk Capital 20.0% % of total investment

- Gathering System 15.0% Financed Capital 80.0% % of total investment
- Power Plant 15.0% Interest Rate 8.00% %
- Transmission Line 15.0% Amortisation 10 years
Constant Payment
Risk Covering Fund 5.0% % of income
Fiscal and Sharing Data
Total
Tax Rate 30.0%
Share on Gross Income 0.0%
Tax-free Portion 0.0%
Share on Net Income 0.0%
Max. Deduction o f Passive Interest 100.0%
393
Table 5
Geotherm al plant
Technical Data
Plant Factor 85.0%

Internal Consumption 6.0% o f gross capacity
Costs
Construction
Global Definition
Specific Cost 744 ECU/kW (>Distr. %, 1)
Global Cost 41A MECU
Specific Cost (calculated) 744 ECU/kW
Erection 0.0% % o f yearly investment
Adm. & Engineering 10.0% % o f yearly investment
Contingencies 0.0% % o f yearly investment
Operation
O&M 2.5% % o f total investment
Adm. & Engineering 1.0% % o f total investment
394
Table 6
General
Project Identification
Field Typical Project
Case 1 x 55
Project Characteristics
Costs Assignm ent and Contract Type
Public Private Contract Duration Residual Value
(BOO,BOT,BLT) (year) (% o f
investment)
Field BOO
-Surface Exploration X
-Deep Exploration X
-Developm ent X
-Operation X
Gathering System X BOO

Plant X BOO
Transm ission Line X
Energy Sale Point: Plant
395
Table 7
Project Size and Chronogram
Exploration: Duration Y ear
-Surface 1 years 1 1998 Start Year

-Deep 2 2 1999
Field Development 3 4 2001
Operation and M aintenance
-Partial Capacity 0 7 2004
-Total Capacity 25 7 2004
-Declining Capacity 0 32 2029
Total 25
Project Duration: 31 31 2028 End Year
Total Capacity 55 MW Year: 7
396
Table 8
Field: Cost Data
Surface Exploration
Investigation and Studies 0.4 MECU (> Distr.% , 1)
Deep Exploration
Investigation and Studies 1.3 MECU (> Distr. %, 2)
Land and Access 0 MECU (> Distr. %, 3)
Drilling Costs 1.3 M ECU * 4 wells
Field Developm ent

Investigation and Studies 1.7 MECU (> Distr. %, 4)
Land and Access 0.9 MECU ( - > Distr. %, 5)
Drilling Costs
-production 1.05 MECU * 9 wells
-reinjection 1.05 MECU * 3 wells
Average Well Cost 1.05 MECU
397
Operation and M aintenance

Make-up Drilling Costs
-production 1.05 MECU * 10 wells
-reinjection 1.05 MECU * 4 wells
Average Well Cost 1.05 MECU
A dm. & Engineering
1.5% % o f total investment
I 10.0% % o f yearly investment
1 2 3 4 5
1 Surface Exploration 100.0% %

2 Deep Exploration 50.0% 50.0%
3 Deep Exploration 50.0% 50.0%
4 Development 33.3% 33.3%
5 Developm ent 33.3% 33.3%
6 Development 33.3% 33.3%
398
Table 9
Gathering System
Field Developm ent

M aterials
Fixed Cost 0 MECU
Variable Cost:
-per Production Well 0.7 M ECU * 11 wells
-per Reinjection Well 0.35 MECU * 4 wells
Total Investm ent 9.1 M ECU (--> Distr.%, 1)
Erection 0.0% % o f yearly investment
Adni. & Engineering 10.0% % o f yearly investment

Operation
M aterials for M ake-up W ells
Variable Cost:
-per Production Well 0,3 M ECU * 10 wells
-per Reinjection W ell 0.26 M ECU * 4 wells
Average 0.32 MECU

Adm. and Engineering 1.5% % o f total investment
399
MW Wells %
1 Total Capacity 0
2 0
3 0
4 Developm ent 0 33.3%
5 Development 0 33.3%
6 Development 0 33.3%
7 Total Capacity 55 0
400
A nnex 4.2
Annex 4.2
COM PARISON WITH OTHER ENERGY SOURCES
401
A nnex 4.2
IN DEX
1. ASSUM PTIO NS AND APPROACH USED FOR COM PARISON OF

GEO THERM AL ENERGY W ITH OTHER ENERGY R E SO U R C E S....404
1.1 Geotherm al versus other R E .................................................................................... 404
1.1.1. Small h y d ro ..................................................................................................................... 404
1.1.2. Onshore w in d ..................................................................................................................405
1.1.3. W a v e .................................................................................................................................405
1.1.4. Tidal b a rra g e ................................................................................................................... 405
1.1.5. M unicipal Solid W aste..................................................................................................405
1.1.6. Photovoltaic..................................................................................................................... 406
1.1.7. Anaerobic Digestion (agricultural w a s te )................................................................ 406
1.2 Geothermal versus other conventional energy so u rces...................................409
403
A nnex 4.2
1. ASSUM PTIO NS AND APPROACH USED FOR COM PARISO N OF

GEO THERM AL ENERGY W ITH OTHER ENERGY RESOURCES.
1.1 Geotherm al versus other RE

A general com parison o f geothermal versus other RE for electricity generation in EU
and in the world is given in attached Table 4.2.1. The purpose o f providing a range for
each technology is to dem onstrate that a number o f variables determine the unit cost o f
generation. Capital cost estimates have been taken from in-house knowledge o f these
technologies. Costs presented are largely based on UK or western European data.
The unit cost o f generation has been calculated using a conventional economic analysis,
which discounts the cash flow over the technical life o f the project. No allowance is
made for inflation. A profile o f capital costs and operational and maintenance costs for
each year o f the projects anticipated life are discounted to the first year o f the project.
The income stream assumes that the unit cost o f generation will remain constant over
the technical life o f the project. Income for most technologies is entirely derived from
the am ount o f electricity generated per year. For waste incineration some additional
income is derived from a disposal tariff. The income for each year o f operation is also
discounted to the year the project was initiated.
The unit cost o f generation for each technology has been calculated an at arbitrary 8%
discount rate, which was the standard public sector discount rate in the UK prior to
privatisation o f the countrys utility companies. The unit cost o f generation represents
the value o f each unit generated which would be necessary for the project to break even.
Listed below are some qualifying remarks for each technology which explain the range
in values.
1.1.1. Small hydro
The wide range o f capital costs shown dem onstrates that costs are highly site-specific.
One noticeable factor is that capital cost/kW installed capacity tend to decrease with
increasing capacity (because m anufacturing overheads are less significant for larger
turbines) and with increasing head (because cheaper, less complex turbines can be used
at higher heads, and speed increasers are not needed).
Hence the worst case above - capital cost 3000ECU/kW , operating cost 25ECU/kW and
load factor 15%, would represent a very small turbine (say 50kW) on a small stream
with long low flow periods.
404
A nnex 4.2
W hereas the best case - capital cost 800ECU/kW , operating cost 15ECU/kW, load
factor 95% would represent a large machine (say 5MW) operating with a large, constant
flow and head (allowing a simple turbine and automatic controls) with minimal civil
works required (e.g. installed on the com pensation flow outlet o f a w ater supply
reservoir).
Operating and m aintenance costs are low, and likely to remain so with increasing plant
automation and remote control (even o f multiple sites).
1.1.2. Onshore wind
The load factor range presented reflects the variation in different wind regimes across
W estern Europe. Development costs vary according to proximity to the electricity
distribution network and the necessity for new access roads, particularly in remote
locations.
1.1.3. Wave
Cost information for the prototype OSPREY II is com mercially confidential and is not
available to this study. The prcdictcd costs for 2010 are based on successful
developm ent o f the technology. These costs include the device and its associated
transm ission system.
1.1.4. Tidal barrage
The size o f 240 MW is based on the only tidal barrage project which was built for
commercial dem onstration at La Ranee in Brittany, northern France. The construction
time refers to La Ranee project. Cost estimates presented here are from more recent
work on site-specific feasibility studies in the UK in the absence o f data on the Ranee
barrage. The UK programme on tidal energy revealed that there are no significant
econom ies o f scale despite differences in scale o f potential barrages o f over two orders
o f magnitude.
1.1.5. M unicipal Solid W aste
Costs are based on the newer m unicipal solid waste incineration plant which now
requires flue gas scrubbing equipment. The fuel cost is negative as this is effectively
the waste disposal fee. The waste disposal fee in the early years was relatively low,
about 5 - 2 0 ECU(1990)/t, but is now in the range 1 0 - 9 0 ECU(1990)/t.
In future waste disposal fees could rise further as land fill options become more
405
A nnex 4.2
restricted. Since the unit cost o f generation is highly dependent on disposal fees, local or
national policies on waste disposal options are o f critical importance to the
com petitiveness o f the technology and its likely location.
1.1.6. Photovoltaic
1 - 1 0 0 kWp is regarded as a typical unit size for individual system sizes in Europe.
In the developing world typical solar home systems are often only 40 - 100 Wp.
Load Factor: This is the equivalent time which a system would have to produce
pow er at the nominal level to provide the same total energy in a year. i.e. load factor
= annual energy production (kW h/kW p) / number o f hours in a year. The lower
values are for remote professional systems w here reliability is paramount.
Consequently the systems arc typically oversized and may only be used for part o f
the year. When the batteries are full any remaining energy produced is lost - usually
as heat in the modules. Such systems therefore have a very low load factor although
they usually meet the energy demand in a cost effective fashion.
The costs o f energy quoted are the minimum costs achievable. For current and
future figures these will apply to grid connected systems in southern Europe. In
northern Europe it will be important to use PV modules to displace conventional
cladding materials in building facades in order to save on other building costs and
effectively reducc the costs allocated to the PV generation system.
1.1.7. Anaerobic Digestion (agricultural waste)
The 1995 data is based on Danish information as Denmark was the main country
developing centralised AD. This is an em erging technology which is likely to be
affected by different policies to agricultural waste in different countries. Overall
there likely to be a reduction in electricity costs as capital costs are reduced and
markets are developed for digestate.
406
A nnex 4.2
A naerobic
G eotherm al Small Hydro W ind Urban Solid Land D igestion Photo Tidal W ave
(onshore) W aste Fill Gas (agricultural V oltaics Barrage (near
C om bustion w aste) shore)
Typical unit size (MWe) 10-55 0.001-10 0.41 10-27 1 1 1-100 kW 240 2
Availability factor % 95 >95 98 90 90 90 70-99 90 94
Load Factor (%) 65-85 15-95 18%-35% 90 80 27 3-15 26 25
(Time plant generates at rated power) (24%)
Construction time (years) 1-3 1-2 0.25 2-3 1 1 10-180 days 7 < 1
Economic lifetime (years) 25 40 15 20 15 20 15-25 >40 30
Investment cost (ECU/kW) 2,300-1,400 970-3,600 850-1,100 5,000-6,400 1,200 7,260-8,470 24,200-5,500 2,100-2,800
Fixed operating and 49-46 18-30 24-36 379-429 67-202 600-726 Negligible 109-145
407
maintenance cost (ECU/kW)

Generation cost for energy 5 5 -3 0 22 - 140 3 6 -8 4 2 4 -1 6 0 42 1 2 0 -1 6 0 1,250-620 1 2 0 -1 6 0 110
( ECU/M W h)
EU installed capacity (MWe) 834* 9,000 3,500 1,437 298 150 60 240 0
W orld installed capacity 7,679 27,900 4,821 3,069 1,385 5,300-6,300 376 261 0
(MWe)
Table 4.2.1 Electricity generation: comparison betw een geothermal and other RE resources.
For geothermal data:* include Iceland, generation cost derived using 10% discount rate
For other RE resources data: published information; EU figures exclude Iceland; generation cost derived using 8% discount rate
Cost values at 1995.
A nnex 4.2
Chevilly la Rue/lHay Meaux-Beauval Alfortville Fresnes Villeneuve-St. George

les Roses
M.FF Million. ECU FF Million. ECU FF Million. ECU FF Million. ECU Milion.ECU FF
W ells 67,00 10,31 18,00 2,77 17,00 2,62 19,80 3,05
G eotherm al plant 21,00 3,23 37,50 5,77 60,70 9,34
H eating network 148,00 22,77 3,80 0,58
Total 215,00 33,08 124,00 19,08 42,8 6,58 54,5 8,38 80,50 12,38
D w ellings connected 12 800 8500 4750 3900 3940

N o f production wells 2 2 1 1 1
G eotherm al H eat 112000 103000 490000 400000 55000
distributed (MW h/y)
Ratio
G eotherm al Heat/Total
408
80%
Heat 84% 66% 85% 80%
Total capacity, heat
netw ork (MW ) 75 96
G eotherm al capacity (M W ) 34% 26 28% 27 9 8,7 12
Ratio
Total invest/N o f dw elling 2.641 2.245 1.385 2.149 3.142
Notes:
The five cases presented are in the Paris Basin
Doublet scheme operation = alw ays 1 injection w ell associated with 1 production well
The well are between 1800 to 2000 m depth (Price for one doublet from 2,6 to 3 Million ECU)
Geotherm al capacity is calculated with the exploited flow rate and the actual inlet and outlet tem perature
The final cost o f each operation depend on w hether a form er network exist or not.
The % o f Geothermal heat distributed is higher than the % o f geothermal capacity installed (due to the type o f installation chosen for econom ical reasons in France)
Table 4.2.2. Investments costs for main geothermal district heating systems in France
A nnex 4.2
1.2 Geotherm al versus other conventional energy sources

Comparison o f geothermal versus other conventional energy sources for electricity
generation in EU and in the world is given in the Table 4.2.3. This type o f analysis is
purely for economic com parison to provide a broad com parison between geothermal
energy and a range o f different technologies or different schemes.
G eotherm al Coal N atural gas Fuel oil N uclear
Average unit size (MWe) 10-55 600 225 600 2,000

Availability factor (%) 95 90 80 95 95
Load Factor (%) 65-85 85 80 85 75
(Time plant generates at rated power)
Construction time (years) 1 -3 4 2.5 3 3
Economic lifetime (years) 25 35 30 40 30
Investment cost average (ECU / kW) 2 ,3 0 0 - 1,400 950 550 900 3,080
Fixed operating and maintenance cost 4 6 -4 9 48 33 27 92
(ECU / KW / yr))
Fuel cost (ECU cents / kWh) 0 1.53 1.65 2.02 0.05
Unit generation cost (ECU/MWh) 5 5 -3 0 37 30 39 74
EU installed capacity (MWe) 834* 315,000 120,000
Table 4.2.3: Electricity generation: com parison between geothermal and conventional
energy sources *(1997 including Iceland)
All costs above arc updated up to 1997-1998 and they have been assumed as constant
for all the period o f analysis. In particular:
Coal and fuel-oil: m edium-large new conventional power plants have been performed
for the costing.
Installed capacity: 600 Mwe. They have an standard profdc without relevant expenses
to reduce the environmental impacts. Large-Coal plant does not include flue gas
scrubbing to remove SO 2 or N ox. Average efficiency : 43-40 % respectively.
Operating and maintenance costs: 5 - 3% /yr o f the investment cost, respectively.
Coal co st1: $45 /ton (5,700 kcal/kg) - Average Unit Value CIF.
Oil cost: $ 13/bbll - Average Unit Value CIF
Natural gas plants: a 225 MWc CHP plant has been selected to be used in the above
comparison. Operating and maintenance costs: 6% o f the investment costs.
Average efficiency: 48%. Gas cost: $ 80 /th m3.
Nuclear power plant: PW R type.

Operating and maintenance costs: 3% /yr o f the investment cost.
The method for the estimates o f the unit generation cost is the annuity approach . For
such approach a discount rate o f 10% has been applied .Note that the fuel cost has been
undertaken in constant terms over all the economic life time o f the plant. Thus, no
growth rate in real terms is foreseen in the analysis.
1 Source: CESEN study based on Energy Prices & Taxes (IEA-1998).

409
A nnex 5.1
Annex 5 .1
THE SHARE OF GEO THERM AL ENERGY: AN ANALYSIS OF THE

PRESENT SITUATION AND EXPECTED FUTURE DEVELOPM ENT FOR
THE ELECTRICITY GENERATION
A nnex 5.1
INDEX
1. IN TR O D U C T IO N ........................................................................................................414
2. M ETH O D O LO G Y .......................................................................................................414
3. FO RECAST AND SC E N A R IO S............................................................................ 415

3.1 R eference Scenario - ( T a b l e 5.1.4)........................................................................417
3.2 Tendency Scenario - ( T a b l e 5 .1 .5 ) .........................................................................417
3.3 M edium profile Scenario - ( T a b l e 5 . 1.6)............................................................. 418
3.4 Low profile Scenario - ( T a b l e 5 . 1.7)..................................................................... 418
3.5 High profile Scenario - ( T a b l e 5 .1 .8 ) .................................................................... 418
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1. INTRODUCTION
In this annex only the present situation o f geothermal supply dedicated to the electricity
generation is considered in order to estimate a realistic size o f this market and to foresee
the potentialities together with the future developments.
Considering that a geothermal market can exist only if there is the availability o f the
natural resource the market analysis covers the countries where exploitable resources
exist.
The analysis focused attention on 30 countries (see Figure 5.1.1) selected as

interesting because o f their endowment o f high enthalpy geothermal resources for
electricity generation and grouped according the areas considered by this study:
1. EUROPEAN UNION
2. E.E.A. AND OTHER EUROPEAN COUNTRIES
3. NORTH AM ERICA
4. CENTRAL AMERICA
5. SOUTH AM ERICA
6. ASIA
7. OCEANIA
8. AFRICA
2. M ETHODOLOGY
The statistical and economical analysis has required the organisation o f a reliable
database. Since every Organisation has its own way to collect and select data,
inconsistencies in output data could occur.
Therefore only reference data coming from direct investigation (questionnaires sent to
national institutions energy agencies), energy balance sheets, national planning
docum ents (especially for geothermal energy data), and, in addition, official
publications, coming from ONU, OECD and Economist Intelligence Unit) were used (l).
(l)Lhe reference data for the analysis of energy and electricity supply come mainly from:
Energy balances an statistics o f NON- OECD countries (IEA)
Energy balances and statistics o f OECD countries (JEA)
Statistic Yearbook 1995 (ONU)
414
A nnex 5.1
W hen possible, the time series considered 1995 but sometimes the most recent data are
1994 or even 1993. It is possible to have data for the year 1996 only very rarely.
Starting from all these available data, the study presents the projections o f geothermal
installed capacity for electric energy generation for the following periods:
1995/2000; 2000/2005; 2005/2010
In addition, the installed capacity (expressed in MWe) is translated, through the national
average load factor, into the annual electricity output which is expressed in GWh.
The analysis o f the geothermal m arket takes account o f the present and the past
situation, from a general background o f the average tendency o f energy and electricity
production (1990-1994), and then considers the tendency for geotherm al energy
supply both from the point o f view o f installed capacity (M W e) and annual energy
production (GWh). The distinction between installed capacity and annual production is
im portant because it allows the relative importance o f geothermal energy for the
production o f electricity as a function o f the total supply to be recognised (Table 5.1.1).
Considering the present availability o f all types o f geothermal resources in terms o f

installed capacity, it is also possible to make hypotheses about future developments
both for the installed capacity and for the effective geothermal energy production for
each country.
The report is organised by summarising each nation in the form o f country sheet,
which includes the last available energy balance (generally 1995), taking account,
where possible, o f the time series (see energy statistics) for the last 4/5 years, in order
to consider the energy supply situation o f that nation as accurately as possible and to
appreciate the effective role played by geothermal energy. In this case the main
reference data come also from direct investigation forms (institutional questionnaires)
especially for the data about geothermal sector.
3. F O R E C A S T AND SC E N A R IO S
The present availability o f geothermal resources has been distinguished as a function o f

their situation with regard to exploitation (see Table 5.1.2 and note 1).
Figures on Plants in operation, Plant planned or under construction, and Proven

resources and Probable/Possible resources are derived mainly from data directly
achieved by means o f questionnaires com piled by official national institutions and other
official publications such as the Proceedings o f WGC and generally refer to 1995.
415
A nnex 5.1
Progress o f exploitation code
Exploited Plant in operation A
Unexploited Plant planned or under construction B

Unexploited Proven resources C
Unexploited Probable and possible resources D
Table 5.1.1 Classification o f geothermal sources*
This analysis has been extended to look at the possibilities and forecasts for increasing
the present geothermal supply. Some reference scenarios have been constructed, each o f
them based a specific starting hypotheses.
The scenarios considered for the three periods, 1995-2000, 2000-2005 and 2005-2010
as follows:
a) REFERENCE SCENARIO
b) TEND EN CY SCENARIO
c) M EDIUM PRO FILE SCENARIO
d) LOW PRO FILE SCENARIO
e) HIGH PROFILE SCENARIO
The first and second scenarios can be considered as base case scenarios developed
without any specific simulations.
In the third, fourth and fifth cases, the possibilities are analysed which could exploit the
available reserves through a dedicated action plan.
The inclusion o f the data for annual electricity production (GW h/y), calculated through
the load factor in 1994/1995, is for easier comparison o f the geothermal sector with
total electricity supply, in order to check the potential supply from geothermal cources
indicated by the different scenarios.
The criteria and parameters assumed by each scenario are summarized in table 5.1.3; the
level o f exploitation and reference code refer to those o f Table 5.1.2.
In Figures from 5.1.1. to 5.1.8 are summarized and shown the geothermal energy
scenarios for each area considered by this study.
(l) T h e m ark e t a n a ly sis h as re q u ired a sim p lific a tio n o f th e tra d itio n a l d e fin itio n s o f re so u rc es and
reserv es (W h ite an d W illia m s 1975; M u ffle r a n d C atald i 1978; H a e le l 1983) w h ic h h a v e b e e n sy n th esise d
in 4 categ o ries:
E x p lo ite d re so u rces: p la n t in o p e ra tio n
U n e x p lo ite d reso u rc es: p la n t u n d e r c o n stru c tio n or p la n n ed
U n e x p lo ite d re so u rc e s p ro v en re so u rce s
U n e x p lo ite d p ro b a b le a n d p o ssib le re so u rc e s
P roven re so u rc e s h av e b een c o n sid e re d th o se e v a lu a te d th ro u g h w e lls, ev en ex p lo ra to ry , w h ile p ro b ab le
an d p o ss ib le re so u rc e s h a v e b e e n c o n sid e re d th o se e v a lu a te d th ro u g h su rface su rv ey s (g e o ch e m istry ,
g eo p h y sic s etc. ...) o r th ro u g h sim p le re c o in n a ssa n c e stu d ie s su ch as g eo lo g ic a l ev id en ces.
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A nnex 5.1
SCENARIO 1995 1995/2000 2000/2005 2005/2010

REFEREN CE A A+0,35 B A +0,70 B A+B
TENDENCY A A (l+ % var.A )5 A (l+ % var.A )10 A (l+ % var.A )15
M EDIUM PROFILE A A+0,90B A+B+0,35 C A+B+C

A+B+0,65 C
LOW PROFILE A A +0,70 B A+B A+B+0,40C

HIGH PROFILE A A+B A+B +0,50 C A+B+C+0,20D
Table 5.1.2 Synthesis o f the criteria and param eters assumed by each scenario
3.1 R eference Scenario - (Table 5.1.4)

In this first scenario, the future size o f the market is showed, as com m unicated by the
national institutional organisations, adding the M W e already installed (group A) with
the MWe which will come from the plants under construction or planned (group B).
For group B the progress o f the under construction and planned plants is not exactly
known and considering that 3-4 years are sufficient to have a plant in operation, the
hypothesis is o f a linear growth. In other words it is assumed that the planned capacity
will increase by 35% o f the resource planned by the year 2000, by another 35% by the
year 2005 and will com plete by the year 2010.
3.2 Tendency Scenario - (T able 5.1.5)

This second scenario is based on a past tendency assuming a linear projection o f the
past trend o f the geothermal supply developm ent to the future. This kind o f analysis is
possible only for those countries which have already resources under exploitation.
Therefore the limit o f this scenario is the underestimate from new countries which could
start geothermal exploitation.
The application o f the past production trend to the future increase o f geothermal
installed capacity could appear forced but the aim o f this scenario is ju st to make
valid the official forecast presented by the national (Reference scenario). These official
forecasts have been checked by a com parison between w hat has already done in the
past, and the potential level simply calculated as the projection o f annual average
variation.
The final result is a distinction between the selected countries, into three groups:
= A +B - Countries where the final result is equal to the sum o f M W installed

(A) and under construction or planned (B);
< A +B - Countries where the final result is lower;
> A +B - Countries where the final result is higher;
417
A nnex 5.1
In the first group (=A+B) it should appear as a validation o f the official forecast
(reference scenario).
In the second group (<A+B) this scenario seems to reveal a potential optimistic official
plan (since the linear projection has given a lower result).
In the third group (>A+B) the official plans appear be to prudential, compared to the
previous tendency.
3.3 M edium profile Scenario - (T a b le 5.1 .6 )
Considering the possibility o f an action plan, the hypotheses are:
-) for the year 2000 nearly all o f what was planned should be realised;
-) for the year 2010 also the am ount o f proven resources could be even exploited (that
generally required 4-6 years o f work), (i.e. A+B+C).
-) for the intermediate year o f 2005 two possible scenarios have been considered for
the exploitation o f proven resources (35%) and (70%). This depends on many
factors that will change between countries.
3.4 Low profile Scenario - (Table 5.1.7)

The base hypothesis has the objective to further develop plants planned or already
constructed, but with the presence o f some obstacles. First o f all technical lags,
organisation deficiencies, a low interest by the institutional organisations, lack o f
money, etc.). The final result is generally a little worse than the medium profile scenario
(input only by the year 2005 all the plants planned should be constructed), and by the
year 2010 only a little part o f the proven resources (group C) could be exploited.
3.5 High profile Scenario - (Table 5.1.8)

This last scenario should show a theoretical possible maxim um if the action plans to
improve geothermal energy supply are good. That is it nothing goes wrong, and if the
country has a favourable context to develop and exploit this kind o f energy.
In this scenario, a strong action plan could lead to the complete use o f geothermal
proven resources, and further it should be even possible to exploit some (about 20%) o f
the probable and possible resources (group D). Only in this case, it would be possible to
exploit these last resources, because the time required extends beyond the period
considered in this analysis.
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A nnex 5.1
(1-2) (3) G EO TH ER M A L ELECTR IC ITY G EN ER A TIO N DATA (1995)

PLA NT IN O PER ATION
A REA C O U N TRY ELECTRICITY ENERG Y IN STALLED U nexploited U nexploited U nexploited
PROD U CTIO N PROD U CTIO N CA PA CITY Plant planned Proven Probale and
1994 o r under resources Possible
construction resources
A Load factor B C D
GWh G W h/yr MWe % MWe MWe MWe
EU France* n.a. 24 4.2 65.2 n.a. n.a. n.a.
G reece 40,623 - - - 10 200 n.a.
Italy 231,804 3,762 742.2 57.9 227.5 n.a. n.a.
Portugal 31,380 52 9 66 n.a. n.a. n.a.
EEA & O ther Iceland 4,780 284 49.9 65 120.0 n.a. 4,000
European Russia** 875,910 25 11 25.9 130 80 380-550
Countries Turkey 78,322 71.1 20.9 38.8 258.0 100 200-300
NORTH Canada 554,227 - - - 70 n.a. 2,500

A M ERICA
Usa 3,473,616 17,386.8 2.970.0 66.8 130 n.a. 30,000
M exico 147,926 5,682.0 753.0 86.1 435 n.a. 6,000
C EN TRA L C osta Rica 4,770 447 60 85 137.5 780-950 1,700-1,800

A M ERICA
El Salvador 3,170 908.6 118 87.9 28 150 200
G uatem ala 3,160 - - - 94 70 n.a.
N icaragua 1,690 310 40 88.5 465 n.a. 2,500
SOUTH A rgentina 61,590 3.4 0.7 57.1 n.a. 30 n.a.

A M ERICA
Bolivia 2,820 - - - n.a. 36-40 350
Chile 25,280 - - - 28 72 n.a.
Ecuador 8,260 _ _ _ n.a. 534 768
ASIA C hina 928,080 109.6 32.2 38.9 n.a. n.a. 1,840
India 385,560 - - - 21 n.a. 2,000-10,000
Indonesia 53,410 1,051.4 309 38.8 992 1,057 8,000
Japan 964,328 1,738.4 300 66.1 230 2,800 n.a.
Philippines 27,060 7,520 1,445 59.4 455.0 1,000 2,000
Thailand 71,180 2.3 0.3 87.9 n.a. 5 n.a.
O CEA N IA A ustralia 167,155 1.2 1 14.1 - 50 1,200
N ew Zeland 35,135 2,193 286 87.5 157 n.a. n.a.
P apua-N ew Gui. 1,392 _ . _ n.a. 300 300
A FRICA Ethiopia 1,290 53.9 7 87.9 n.a. 15 20
K enia 3,540 348.0 45 88.3 64 450 600
M ozam bique 490 - - - n.a. 25 50
(*) G uadelupe
(**) K am chatka
Table 5.1.3 Energy Present Situation

1 "1993-94-Energy B alances o fN O N O ECD countries" IEA /Paris 1996
2 "1993-94-Energy Balances o f O ECD countries" IEA /Paris 1996
3 D ata given by CO U N TR Y Q U E ST IO N N A IRE S and W G C 1995 (m odified); refers m ainly to 1995 situation updated to 1997 for som e countries
n.a. D ata not available
419
A nnex 5.1
2000 2005 2010

MWe MWe MWe
France 4 4 4
Greece 4 10
Italy 822 901 970
Portugal 9 9 9
T otal EU 839 922 993
Iceland 92 134 170

Russia 57 102 141
Turkey 111 202 279
T otal EU R O PE 1,099 1,359 1,583
Canada 25 49 70
Usa 3,016 3,061 3,100
Mexico 905 1,058 1,188
N orth A m erica 3,945 4,168 4,35 8

Guatemala 33 66 4
Nicaragua 203 366 505
C en tral A m erica 472 725 943
Argentina 1 1 1
Bolivia -
Chile 10 20 28
Ecuador - - -
South A m erica 10 20 29
China 32 32 32
India 15 21
Indonesia 656 1,003 1,30 1
Japan 381 461 530
Philippines 1,604 1,764 1,900
Thailand - - -
Asia 2,681 3,275 3,78 5
Australia 1 1
New Zeland 341 396 44 3
Papua-New Gui. - - -
O ceania 342 397 444
Ethiopia 7 7 7
Kenia 67 90 109
Mozambique 0 0 0
A frica 74 97 116
Table 5.1.4 Reference Scenario (M W el

(Official forecast from national institutions)
420
A nnex 5.1
2000 2005 2010

MWe MWe MWe
France 6 9 13
Greece - - -
Italy 881 1,046 1,241
Portugal 48 259 1,390
T otal EU 935 1,314 2,644
Iceland 36 26 19
Russia 15 21 29
Turkey 13 8 5
T otal EU R O PE 1,000 1,369 2,697
Canada - - -
Usa 3,829 4,937 6,365
Mexico 1,034 1,419 1,947
N o rth A m erica 4,863 6,356 8,313

Guatemala - - -
Nicaragua 47 56 67
C en tral A m erica 209 228 273
Argentina 1 1 2
Bolivia - - -
Chile - - -
Ecuador - - -
China 47 69 102
India - - -
Indonesia 214 148 103
Japan 363 440 533
Philippines 2,133 3,149 4,649
Thailand - 1 1
Asia 2,758 3,807 5,387
Australia 1 1 2
New Zeland 210 154 113
Papua-New Gui. - - -
O c e a n ia 211 155 115
Ethiopia 7 7 7
Kenia 39 33 29
Mozambique - - -
A frica 46 40 36
T ab le 5.1.5 "T e n d en cy " S c e n a rio (M W e)

( L in e a r p ro je c tio n o f th e p a st tre n d )
421
A nnex 5.1
2000 2005 2010

MWe MWe MWe
France 4 4 4 4 4
Greece 9 80 140 210 210
Italy 947 970 970 970 970
Portugal 9 9 9 9 9
T otal EU 969 1,063 1,123 1,193 1,193
Iceland 158 170 170 170 170

Russia 128 169 193 221 221
Turkey 253 314 344 379 379
T otal E U R O PE 1,508 1,716 1,830 1,963 1,963
Canada 63 70 70 70 70
Usa 3,087 3,100 3,100 3,100 3,100
Mexico 1,145 1,188 1,188 1,188 1,188
N orth A m erica 4,295 4,358 4,358 4,358 4,358
Costa Rica 184 471 705 978 1,148

El Salvador 143 199 244 296 296
Guatemala 85 119 140 164 164
Nicaragua 459 505 505 505 505
C en tral A m erica 870 1,293 1,593 1,943 2,113
Argentina 1 11 20 31 31
Bolivia 13 23 36 40
Chile 25 53 75 100 100
Ecuador - 187 347 534 534
South A m erica 26 264 466 701 705
China 32 32 32 32 32
India 19 21 21 21 21
Indonesia 1,202 1,671 1,988 2,358 2,358
Japan 507 1,510 2,350 3,330 3,330
Philippines 1,855 2,250 2,550 2,900 2,900
Thailand - 2 4 5 5
Asia 3,615 5,486 6,892 8,593 8,647
Australia 1 18 33 51 51
New Zeland 427 443 443 443 443
Papua-New Gui. - 105 195 300 300
O ceania 428 566 671 794 794
Ethiopia 7 12 17 22 22
Kenia 103 267 402 559 559
Mozambique 0 9 16 25 25
A frica 110 288 435 606 606
Table 5.1.6 "Medium Profile" Scenario (MW e)

( Planned plants and proven resources )
422
A nnex 5.1
2000 2005 2010

MWe MWe MWe
France 4 4 4
Greece 7 10 90
Italy 902 970 970
Portugal 9 9 9
T otal EU 922 993 1,073
Iceland 134 170 170

Russia 102 141 173
Turkey 202 279 319
T otal E U R O PE 1,359 1,583 1,735
Canada 49 70 70
Usa 3,061 3,100 3,100
Mexico 1,058 1,188 1,188
N o rth A m erica 4,168 4,358 4,358

Guatemala 66 94 122
Nicaragua 366 505 505
C en tral A m erica 725 943 1,343
Argentina 1 1 13
Bolivia - - 14
Chile 20 28 57
Ecuador - - 214
China 32 32 32
India 15 21 21
Indonesia 1,003 1,301 1,724
Japan 461 530 1,650
Philippines 1,764 1,900 2,300
Thailand - 0 2
Asia 3,275 3,785 5,729
Australia 1 1 21
Papua-New Gui. - - 120
397 444 584
Ethiopia 7 7 13
Kenia 90 109 289
Mozambique - - 10
A frica 97 116 312
Table 5.1.7 "Low Profile" Scenario (MWe)

( Planned plants and part o f proven resources)
423
A nnex 5.1
200 2005 2010

MWe MWe MW e
France 4
Greece 10 1 10 210
Italy 970 970 970
Portugal 9 9 9
T otal EU 993 1,093 1,193
Iceland 170 170 970

Russia 141 181 297
Turkey 279 329 419
T otal E U R O PE 1,583 1,773 2,879
Canada 70 70 570
Usa 3,100 3,100 9,100
Mexico 1,188 1,188 2,388
N orth A m erica 4,358 4,358 12,058
Costa Rica 198 588 1,318

Guatemala 94 129 164
Nicaragua 505 505 1,005
C e n tra l A m erica 943 1,443 2,823
Argentina 1 16 31
Bolivia 18 106
Chile 28 64 100
Ecuador - 267 688
China 32 32 400
India 21 21 421
Indonesia 1,301 1,830 3,958
Japan 530 1,930 3,330
Philippines 1,900 2,400 3,300
Thailand - 3 5
Asia 3,785 6,216 11,415
Australia 26 291
Papua-New Gui. - 150 360
O ceania 444 619 1,094
Ethiopia 7 15 26
Kenia 109 334 679
Mozambique 0 13 35
A frica 116 361 740
Table 5 .1.8 "High Profile" Scenario (MWe)

( Planned plants, proven resources and part o f the probable/possible ones )
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1995 1995/2000 2000/2005 2005/2010
- - - "TENDENCY" S. ---------- "MEDI UM P." S.

---------------"LOW P." S. ---------------"HIGH P." S.
EU 1995 1 9 9 5 /2 0 0 0 2 0 0 0 /2 0 0 5 2 0 0 5 /2 0 1 0
REFERENCE S. 755 839 922 993
"TENDENCY" S. 935 1,314 2,644
"MEDIUM P." S. 969 1,063 1,193
"LOW P." S. 922 993 1,073
"HIGH P." S. 993 1,093 1,193
Fig. 5.1.1 E U R O P E A N UNION - Geothermal Energy Forecast (MW e capacity)
425
A nnex 5.1
REFERENCES. - - - "TEN D EN CY 'S. -------------------" M E D I U M P. " S.

"LOW P. " S. -------------------" H I G H P . S.
TO TA L EUROPE 1995 1 9 9 5 /2 0 0 0 2 0 0 0 /2 0 0 5 2 0 0 5 /2 0 1 0
REFERENCES. 837 1,099 1,359 1,583
"TENDENCY" S. 1,000 1,369 2,697
"MEDI UM P." S. 1,508 1,716 1,963
"LOW P." S. 1,359 1,583 1,735
"HIGH P." S. 1,583 1,773 2,879
Fig. 5.1.2 E U R O PE - Geothermal Energy Forecast (M W e capacity)
426
A nnex 5.1
- - - " T E N D E N C Y " S. ---------------- " M E D I U M P." S.

---------------- " L O W P." S. ---------------- " H I G H P." S.
N O R T H A M E R IC A 1995 1 9 9 5 /2 0 0 0 2 0 0 0 /2 0 0 5 2 0 0 5 /2 0 1 0
REFERENCE S. 3,723 3,945 4,168 4,358
"TENDENCY" S. 4,863 6,356 8,313
"MEDIUM P." S. 4,295 4,358 4,358
"LOW P." S. 4,168 4,358 4,358
"HIGH P." S. 4,358 4,358 12,058
Fig. 5.1.3 N O R T H A M E R I C A - Geothermal Energy Forecast (M W e capacity)
427
A nnex 5.1
REFERENCES. ..................." T ENDE NCY" S. ---------------"MEDI UM P." S.

"LOW P." S. --------------"HIGH P." S.
C E N T R A L A M E R IC A 1995 1995/2000 20 0 0 /2 0 0 5 2 0 0 5 /2 0 1 0
REFERENCE S. 218 472 725 943

"TENDENCY" S. 209 228 273
"MEDIUM P." S. 870 1,293 1,943
"LOW P." S. 725 943 1,343
"HIGH P." S. 943 1,443 2,823
Fig. 5.1.4 C E N T R A L A M E R I C A - Geothermal Energy Forecast (MWe capacity)
428
A nnex 5.
REFERENCES. ..................... " T E N D E N C Y " S. ---------------- " M E D I U M P." S.

" L O W P." S. --------------- " H I G H P." S.
1995 1 9 9 5 /2 0 0 0 2 0 0 0 /2 0 0 5 2 0 0 5 /2 0 1 0
REFERENCE S. 1 10 20 29
"TENDENCY" S. 1 1 2
"MEDI UM P." S. 26 264 701
"LOW P." S. 20 29 298
"HIGH P." S. 29 365 924
Fig. 5.1.5 SOU TH A M E R IC A - Geothermal Energy Forecast (MW e capacity)
429
A nnex 5.1
REFERENCES. --------------- " T E N D E N C Y " S. ---------------- " M E D I U M P." S.

" L O W P. S. --------------- " H I G H P." S.
A SIA 1995 1995/2000 2000/2005 2005/2010

R E FE R E N C E S. 2,087 2,681 3,275 3,785
"TEN D EN C Y " S. 2,758 3,807 5,387
"M ED IU M P." S. 3,615 5,486 8,563
"LOW P." S. 3,275 3,785 5,729
"HIGH P." S. 3,785 6,216 11,415
Fig. 5.1.6 A SIA - Geothermal Energy Forecast (M W e capacity)
430
A nnex 5.1
REFERENCES. ----------------" T E N D E N C Y " S. -----------------" M E D I U M P." S.

" L O W P." S. ----------------" H I G H P." S.
O CEANIA 1995 1995/2000 2000/2005 2005/2010
R EFEREN CE S. 287 342 397 444
"TEN D EN CY" S. 211 155 115
"M EDIUM P." S. 428 566 794
"LOW P." S. 397 444 584
"HIGH P." S. 444 619 1.094
Fig. 5.1.7 O C EA N IA - G eotherm al Energy Forecast (M W e capacity)
431
A nnex 5.1
REFERENCES. .................- " T E N D E N C Y ' S . ----------------- " M E D I U M P." S.

" L O W P." S. --------------- " H I G H P." S.
A F R IC A 1995 1995/2000 2000/2005 2005/2010

REFERENCE S. 52 74 97 116
"TENDENCY" S. 46 40 36
"MEDI UM P." S. 110 287 606
"LOW P." S. 97 116 312
"HIGH P." S. 116 361 740
Fig. 5.1.8 A F R IC A - G eotherm al Energy Forecast (M W e capacity)
432
FRANCE*
("1993 -Energy Statistics Yearbook" O N U /N ew York 1995)
(*) Guadeloupe
M AIN E N E R G Y D A TA (thousand toe)

1990 1991 1992 1993 \
P R IM A R Y EN E R G Y P R O D U C T IO N
coal
oil
natural gas
electricity
to ta l 0 0 0 0
% variation
E N E R G Y D EM AN D
solids
liquids 389 408 430 441
gas
electricity
total 389 408 430 441
PR O D U C T IO N O F E L E C T R IC IT Y (million KW h)
1990 1991 1992 1993

therm al selfproducers 747 824 901 960
public
hydro selfproducers
public
nuclear selfproducers
public
geotherm al selfproducers
public
to tal 747 824 901 960
% variation 0 .0 8 7
G e o th e rm a l p ro d u c tio n sh a re - - - -
% variation
433
GREECE
("1993 -Energy Statistics Yearbook" ONU/New York 1995)
M A IN E N E R G Y DA TA (thousand toe)
1990 1991 1992 1993
PR IM A R Y EN E R G Y PR O D U C T IO N
coal 7,115 6,898 6,848 7,519
oil 834 840 690 564
natural gas 153 150 138 102
electricity 172 273 206 223
to tal 8 ,2 7 4 8,161 7 ,8 8 2 8 ,4 0 8
% variation 0.005 -1.37 -3.42 6.67
EN E R G Y D E M A N D
solids 8,063 7,763 8,033 8,524
liquids 13,413 14,326 14,669 14,704
gas 153 150 138 102
total 21,862 22,567 23,098 23.622
PR O D U C T IO N OF E L E C T R IC IT Y (m illion KWh)
1990 1991 1992 1993

public 32,129 31,708 34,086 34,962
hydro selfproducers
public 1,997 3,171 2,389 2,541
public
geotherm al selfproducers 2
public 0 0 6 46
to ta l 35,001 3 5 ,8 1 3 3 7 ,4 1 0 3 8 ,3 9 6
"/variation 0.031
G e o th e rm a l p ro d u c tio n sh a re 0.00000 0.00000 0 .0 1 6 0 .1 2 5
% variation 679.456
434
ITALY
M AIN EN ERG Y DA TA (thousand toe)

1990 1991 1992 1993
coal 1,270 1,340 1,450 1,320
oil 4,668 4,330 4,500 4,640
natural gas 14,040 14,130 14,740 15,770
electricity 8,426 10,730 10,830 10,590
total 28,404 30,530 31,520 32,320
% variation 0.044 7.48 3.24 2.54
EN E R G Y D EM A N D
solids 6,072 6,180 6,410 5,990
liquids 64,330 63,900 64,500 63,070
gas 30,650 33,390 32,710 33,260
electricity 18,450 18860 19,220 19,290
total 119,502 122,330 122,840 121,610
P R O D U C I ION O F E L E C T R IC IT Y (million KW h)
1990 1991 1992 1993

thermal selfproducers 20,817 22,543 24,601 27,562
public 157,773 150,710 152,396 147,076
hydro selfproducers 5,747 6,901 7,506 7,400
public 29,332 38,705 38,280 37,082
public
geothermal selfproducers 0 0 0 0
public 3,222 3,182 3,460 3,668
total 2 1 6 ,8 9 1 22 2 ,0 4 1 2 2 6 ,2 4 3 2 2 2 ,7 8 8
% variation 0.009
G eo th erm al p ro d u ctio n share 1.49 1.43 1.53 1.65
% variation 0.035
435
PORTUGAL
MAIN EN ERG Y DATA (thousand toe)

1990 1991 1992 1993
PR IM A R Y EN E R G Y PR O D U C TIO N
coal 115 111 91 81
oil 0 0 0 0
natural gas 0 0 0 0
to tal 918 904 532 837
% variation -0.030 -1.53 -41.15 57.33
EN E R G Y D EM AN D
solids 2,773 2,710 2,862 3,133
liquids 9,868 10021 11,160 10,491
gas 0 0 0 0
total 13,448 13,532 14,578 14.395
PR O D U C TIO N O F E L E C T R IC IT Y (million KW h)
1990 1991 1992 1993

therm al selfproducers 1,408 1,608 1,792 2,133
public 17,784 19,081 23,212 20,320
hydro selfproducers 29 36 20 24
public 9,274 9,140 5,054 8,713
nuclear selfproducers 0
public 0 0 0 0
public 5 6 9 15
to tal 2 8 ,5 0 0 2 9,871 3 0 ,0 8 7 3 1 ,2 0 5
% variation 0.031
G e o th e rm a l p ro d u c tio n sh a re 0 .0 2 0 .0 2 0 .0 3 0 .0 5
% variation 0.399
436
ICELAND
M A IN E N E R G Y D A T A (thousand toe)
1990 1991 1992 1993
P R IM A R Y E N E R G Y P R O D U C T IO N
coal
oil
natural gas
total 619 604 568 605
% variation -0.008 -2.42 -5.96 6.51

EN ER G Y DEM AND
solids 60 61 43 45
liquids 578 503 521 648
gas
total 1,257 1.168 1,132 1,298
P R O D U C T IO N O F E L E C T R IC IT Y (million KWh)
1990 1991 1992 1993
public 6 6 4 4
public 4,200 4,200 4,302 4,462
public
geotherm al selfproducers - - - 4
public 300 283 230 254
total 4,511 4.494 4,541 4,727
% variation 0.016
G e o th e rm a l p ro d u c tio n sh a re 6.65 6 .3 0 5 .06 5.4 6
% variation -0.064
437
RUSSIA
M A IN EN E R G Y DATA (thousand toe)

1992 1993
P R IM A R Y EN E R G Y PR O D U C T IO N
coal 169,311 154,236
oil 399,270 351,437
natural gas 492,572 484,336
electricity 45,974 46,081
total 1 ,1 0 7 .1 2 7 1 ,0 3 6 .0 9 0
% variation -0.036
solids 168,841 151,885
liquids 165,965 162,872
gas 339,543 337,984
total 7 1 8 ,9 2 7 6 9 7 ,2 1 1
PR O D U C T IO N O F E L E C T R IC IT Y (million KWh)
1992 1993
therm al selfproducers A l,2 5 1 41,658
public 668,944 619,656
hydro selfproducers 751 890
public 171,843 174,284
public 119,626 119,186
public 29 28
total 1 ,0 0 8 .4 5 0 9 5 5 ,7 0 2
% variation -0.052
G e o th e rm a l p ro d u c tio n sh a re 0 .0 0 2 9 0 .0 0 2 9
% variation 0.07
438
TURKEY
("1993 -Energy Statistics Yearbook" ONU/ New York 1995)
M A IN EN ERG Y D A TA (thousand toe)

1990 1991 1992 1993
PR IM A R Y EN E R G Y PR O D U C TIO N
coal 11,773 11,818 10,938 11,571
oil 3,711 4,363 A,215 3,891
natural gas 194 186 163 165
electricity 2,059 2,028 2,345 2,986
total 17,737 18,395 17,721 18,613
% variation 0.016 3.71 -3.66 5.03

EN ERG Y D EM AN D
solids 15,793 16,994 15,420 16,233
liquids 20,194 19,072 20,740 23,839
gas 3,173 3,876 3,819 4,244
electricity 1,996 2,049 2,334 2,954
total 41,156 41.991 42,313 47,270
PR O D U C T IO N O F E L EC TR IC IT Y (million KW h)
1990 1991 1992 1993
public 30,964 34,117 36,989 35,623
public 23,138 22,769 26,556 33,935
public
public 80 81 70 78
total 57,544 60,337 67,342 73,808
% variation 0.087
G e o th e rm a l p ro d u c tio n sh a re 0 .1 3 9 0 .1 3 4 0 .1 0 4 0 .1 0 6
% variation -0.087
439
CANADA
M AIN EN ERG Y DATA (thousand toe)

1990 1991 1992 1993
PR IM A R Y EN ERG Y
PR O D U C TIO N
coal 36,944 38,706 34,428 37,519
oil 90,957 91,212 94,652 99,419
natural gas 98,259 103,763 113,852 125,715
electricity 44,487 48,613 48,170 52,494
9 ,9 8 1 1,80 12,81 13,73
% variation 0.112 18.24 8.56 7.18
EN ERG Y D EM AN D
solids 23,508 24,694 25,263 24,060
liquids 75,698 72,218 74,226 76,612
gas 60,664 61,369 64,545 68,882
electricity 44,448 47028 46,016 50,136
total 204,318 205,309 210,050 219,690
PR O D U C TIO N OF E L EC TR IC IT Y (million KWh)

1990 1991 1992 1993
public 101,644 103,544 112,918 97,679
public 265,531 274,546 285,866 290,322
public 72,886 84,929 80,580 94,823
geothermal selfproducers
public 26 32 33 28
total 4 8 2 ,0 3 5 5 0 7 ,9 1 3 5 2 0 ,8 5 7 5 2 7 ,3 1 6
% variation 0.030
G eotherm al production share 0 .0 0 5 4 0 .0 0 6 3 0 .0 0 6 3 0 .0 0 5 3
% variation -0.005
440
USA
("1993-Energy Statistics Yearbook" O N U /New York 1995)
M A IN E N E R G Y D A TA (thousand toe)
1990 1991 1992 1993
P R IM A R Y EN E R G Y
PR O D U C T IO N
coal 540,307 522,653 522,712 482,897
oil 425,422 431,786 422,020 405,841
natural gas 462,709 459,184 462,870 477,885
electricity 187,822 196,966 196,427 198,940
total 1 ,6 1 6 .2 6 0 1 ,6 1 0 .5 8 9 1 ,6 0 4 .0 2 9 1 ,5 6 5 .5 6 3
% variation - 0.011 -0.35 -0.41 -2.40
solids 467,679 463,398 465,815 450,525
liquids 738,169 727070 735,864 766,525
gas 486,968 503,921 517,203 534,117
electricity 187,992 198,881 198,864 201,412
total 1,880.808 1,893.270 1,917.746 1,952.579
P R O D U C I ION OF E L E C T R IC IT Y (million KWh)

1990 1991 1992 1993
public 1,942.779 1,928.848 1,930.776 1,997.605
public 279,926 275,519 239,559 265,063
nuclear selfproducers 109 75 63 74
public 576,862 612,565 618,776 610,291
geotherm al selfproducers 9,368 10,569 11,578 13,107
public 8,584 8,090 8,107 9,569
to ta l 3 ,0 1 1 .7 4 9 3 ,0 5 7 .8 1 9 3 ,0 7 4 .5 0 4 3 ,1 4 5 .8 9 2
% variation 0.015
G e o th e rm a l p ro d u c tio n sh a re 0 .6 0 0.61 0 .6 4 0.7 2

% variation 0.065
441
MEXICO
M A IN EN ERG Y DA TA (thousand toe)

1990 1991 1992 1993
PR O D U C TIO N
coal 3,895 3,546 3,361 3,815
oil 149,463 156,330 156,202 156,400
natural gas 22,813 22,645 22,337 23,335
electricity 7,187 7,656 8,263 9,132
total 18 3 ,3 5 8 1 9 0 ,1 7 7 190,163 19 2 ,6 8 2
% variation 0.017 3.72 - 0.01 1.32
EN ERG Y D EM AN D
solids 4,003 3,790 3,846 3,873
liquids 76,171 79350 79,365 80,732
gas 23,248 24,173 24,807 24,373
electricity 7,069 7,535 8,173 9,037
total 110,491 114,848 116.191 118,015
PR O D U C T IO N OF EL EC TR IC IT Y (million KWh)
1990 1991 1992 1993
public 82,849 86,943 85,835 89,284
public 23,338 21,737 26,095 25,799
public 2,937 4,242 3,919 4,806
public 5,124 5,435 5,804 6,576
total 122,448 1 2 6 ,8 0 7 130,103 1 34,925
% variation 0.033
G e o th e rm a l p ro d u c tio n sh a re 4 .1 8 4 .2 9 4 .4 6 1 4 .8 7 4
% variation 0.052
442
COSTA RICA
MA IN EN E R G Y D A TA (thou san d toe)
1990 1991 1992 1993
PR IM A R Y E N E R G Y
PR O D U C T IO N
coal
oil
natural gas
9,98 1 1,80 12,81 13,73

% variation 0.112 18.24 8.56 7.18
E N E R G Y D EM A N D
solids
liquids 885 952 1.118 1,155
gas
total 1,200 1,266 1,419 1,495
PR O D U C T IO N OF E L EC TR IC IT Y (m illion KW h)
1990 1991 1992 1993
thermal selfproducers 0 0 5 2
public 47 178 580 423
public 3,496 3,620 3,542 3,937
public
public
total 3 ,5 4 4 3 ,8 0 8 4 ,1 4 4 4 ,3 8 6
% variation 0.074 7.45 8.82 5.84
G eoth erm al p rod uction share - - - -

% variation
443
EL SALVADOR
MAIN EN E R G Y D ATA (thousand toe)
1990 1991 1992 1993
PR O D U C T IO N
coal
oil
natural gas
total 504 476 460 498
% variation -0.004 -5.56 -3.36 8.26
solids
liquids 734 936 1,047 1,221
gas

total 1,238 1.413 1,511 1,726
1990 1991 1992 1993
public 151 604 576 608
hydro selfproducers
public 1,673 1,294 1,446 1,800
public
public 419 425 391 400
total 2 ,2 9 6 2 ,3 6 4 2 ,4 5 7 2 ,8 5 8
% variation 0.076 2.96 3.93 16.32
G eoth erm al production share 18.25 17.98 15.91 14.00

% variation -0.085 -1.49 -11.48 -12.05
444
GUATEMALA
("1993 -Energy Statistics Yearbook" O NU / New York 1995)
1990 1991 1992 1993
P R IM A R Y EN E RG Y
PR O D UC T IO N
coal
oil 215 202 306 352
natural gas 8 8 8 9
total 408 395 496 526
% variation 0.088 -3.19 25.57 6.05
solids
liquids 1,398 1,376 1,654 1,546
gas 8 8 8 9
total 1,591 1,569 1,844 1,720
1990 1991 1992 1993
public 95 248 598 1,040
public 2,147 2,147 2,113 1,922
public
public
total 2 ,3 3 0 2 ,4 9 3 2 ,8 2 2 3 ,0 8 4
% variation 0.098 7.00 13.20 9.28
G eoth erm al p rod uction share - - - -

% variation
445
NICARAGUA
M AIN EN E R G Y D ATA (thou san d toe)
1990 1991 1992 1993
PR O D U C T IO N
coal
oil
natural gas
total 367 423 425 469
% variation 0.085 15.26 0.47 10.35
EN E RG Y D E M A N D
solids
liquids 639 614 729 783
gas

total 1,011 1,042 1,157 1,252
1990 1991 1992 1993
public 536 600 803 810
public 403 337 257 300
public
public 386 458 468 515
total 1,398 1,468 1 ,586 1,683
% variation 0.064 5.01 8.04 6.12
G eotherm al production share 27.61 3 1 .2 0 2 9.51 3 0 .6 0

% variation 0.035 13.00 -5.42 3.70
446
ARGENTINA
M AIN E N E R G Y D A TA (thousand toe)
1990 1991 1992 1993
PR IM A R Y E N E R G Y
PR O D U C T IO N
coal 159 172 127 99
oil 25,989 26,471 29,764 31,311
natural gas 18,945 21,154 21,476 22,089
electricity 3,453 3,434 3,524 4,092
total 4 8 ,5 4 6 51,231 5 4 ,8 9 1 5 7 ,5 9 1
% variation 0.059 5.53 7.14 4.92
solids 810 709 776 623
liquids 17,561 18,336 18,836 19,661
gas 20,982 22,958 23,452 23,739
electricity 3,524 3,509 3,747 4,199
total 42,877 45,512 46,811 48,222
PR O D U C T IO N OF E L E C T R IC IT Y (m illion KW h)
1990 1991 1992 1993
public 21,666 25,996 25,692 27,132
public 18,060 16,361 19,500 24,076
public 7,281 7,771 7,081 7,750
public
total 5 0 ,9 0 7 5 4 ,0 4 8 5 6 ,2 7 3 6 3 ,0 3 8
% variation 0.074 6.17 4.12 12.02
G eotherm al production share
% variation
447
BOLIVIA
M A IN E N E R G Y D A T A (thousand toe)
1990 1991 1992 1993
PRIM ARY EN E R G Y
P R O D U C T IO N
coal
oil 1,232 1,303 1,311 1,245
natural gas 2,405 2,386 2,577 2,556
total 3 ,7 4 5 3 ,8 0 8 4 ,0 0 4 3 ,9 1 9
% variation 0.015 1.68 5.15 -2.12
ENERGY DEMAND
solids
liquids 1,181 1,223 1,209 1,307
gas 450 446 599 619

total 1,740 1,789 1,925 2,045
P R O D U C T I O N O F E L E C T R I C I T Y (million KWh)
1990 1991 1992 1993
thermal selfproducers 113 113 1 18 120

public 767 111 944 950

public 1,125 1,261 1,225 1,250
public
public
total 2,133 2 ,2 7 5 2 ,4 1 2 2,4 4 5
% variation 0.047 6.66 6.02 1.37
G eotherm al p rod uction share - - - -

% variation
448
CHILE
M AIN EN E RG Y D A TA (thousand toe)
1990 1991 1992 1993
P R IM A R Y EN E RG Y
PR O D UC T IO N
coal 1,805 1,825 1,357 1,127
oil 1,301 1,174 1,056 1,047
natural gas 1,655 1,464 1,666 1,604
electricity 1,029 1,129 1,440 1,515
total 5 ,7 9 0 5 ,5 9 2 5 ,5 1 9 5 ,2 9 3
% variation - 0.029 - 3.42 -1.31 - 4.09
solids 3,088 2,479 2,202 2,219
liquids 6,506 6,617 7,346 7,583
gas 1,624 1,422 1,637 1,556
electricity 1,029 1,129 1,440 1,515

total 12,247 11,647 12,625 12,873
PR O D U C T IO N OF E L E C T R IC IT Y (m illion KW h)
1990 1991 1992 1993

public 5,000 5,300 4,220 4,880
public 11,322 12,478 16,042 16,900
public
public
total 18 ,3 7 2 19,961 2 2 ,3 6 2 2 4 ,0 0 4
% variation 0.093 8.65 12.03 7.34
G eoth erm al production share - - - -

% variation
449
ECUADOR
("1 9 9 3 -Energy Statistics Yearbook" O N U / New York 1995)
MA IN EN E RG Y D ATA (thousand toe)
1990 1991 1992 1993
PR IM A R Y EN E RG Y
PR O D UC T IO N
coal
oil 15,055 15,803 16,901 18,112
natural gas 116 116 116 116
total 1 5,599 16,354 17,443 18,733
% variation 0.063 4.84 6.66 7.40
solids
liquids 4,834 5,171 5,414 5,241
gas 116 116 116 116
total 5,378 5,722 5,956 5,862
1990 1991 1992 1993
thermal selfproducers
public 1,355 1,891 2,214 1,576
hydro selfproducers
public 4,972 5,061 4,951 5,871
public
public
total 6 ,3 2 7 6 ,9 5 2 7,165 7 ,4 4 7
% variation 0.056 9.88 3.06 3.94
G eotherm al production share

% variation
450
CHINA
("1 9 9 3 -E n e rg y S ta tistic s Y ea rb o o k " O N U /N e w Y o rk 1995)
MAIN EN E R G Y D ATA (thousand toe)
19 9 0 1991 1992 1993
PR O D UC T IO N
coal 539,402 543,159 557,626 574,298
oil 138,283 140,968 142,073 145.213
natural gas 14,227 14,943 14,682 15,781
electricity 10,896 10,756 11,520 13,703
total 7 0 2 ,8 0 8 .0 0 7 0 9 ,8 2 6 .0 0 7 2 5 ,9 0 1 .0 0 7 4 8 ,9 9 5 .0 0
% variation 2.15 1.00 2.26 3.18
solids 509,349 527,861 544,535 562,244
liquids 90,775 99309 109,826 116,700
gas 14,227 14,943 14,682 15,781
electricity 11,054 11,001 11,949 14,150
total 625,405 653,114 680,992 708,875
1990 1991 1992 1993
thermal selfprodu
cers
public 494,480 552,460 621,470 685,153
hydro selfprodu
cers
public 126,720 125,090 132,470 151,800
nuclear selfprodu
cers
public 500 2,500
geothermal selfprodu
cers
public
total 6 2 1 ,2 0 0 6 7 7 ,5 5 0 7 5 4 ,4 4 0 8 3 9 ,4 5 3
% variation 0.106 9.07 11.35 11.27
G eoth erm al p rod uction share
% variation
451
INDIA
M AIN EN ERG Y DA TA (thousand toe)
1990 1991 1992 1993
P R IM A R Y ENERG Y
PR O D UC T IO N
coal 120,530 135,103 139,396 146,667
oil 34,179 32,016 29,104 27,665
natural gas 9,284 10,469 10,886 10,987
electricity 7,761 7,697 7,763 7,849
total 1 7 1 ,7 5 4 185,285 187,14 9 193,168
% variation 4.03 7.88 1.01 3.22
solids 125,564 135,471 142,109 150,025
liquids 45,721 48,949 52,044 54,067
gas 9,284 10,469 10,886 10,987
electricity 7,879 7,822 7,866 7,956
total 188,448 202,711 212,905 223,035
PR O D U C I ION O F E L EC TR IC IT Y (million KWh)
1990 1991 1992 1993
public 186,514 208,709 224,717 246,000
public 71,641 72,757 69,869 70,650
public 6,141 5,524 6,726 6,800
geothermal selfproducers 2 2
public 32 39 50 50
total 2 8 9 ,4 3 9 315,631 3 3 2 ,7 1 3 3 5 6 ,5 1 9
% variation 0.072 9.05 5.41 7.16
G eoth erm al production share 0.01 0.01 0.02 0.01
% variation 0.097 11.76 26.49 -6.68
452
INDONESIA
M A IN EN E R G Y DATA (thousand toe)
1990 1991 1992 1993
PR IM A R Y EN E R G Y
PR O D U C TIO N
coal 5,131 9,600 14,803 19,309
oil 92,894 102,903 100,023 100,127
natural gas 56,018 45,347 47,510 49,249
electricity 1,846 1,817 1,978 1,972
total 1 5 5 ,8 8 9 1 5 9 ,6 6 7 1 6 4 ,3 1 4 1 7 0 ,6 5 7
% variation 3.06 2.42 2.91 3.86
solids 2,069 4,025 3,732 6,336
liquids 30,179 33,346 34,659 35,547
gas 30,012 13,301 17,202 19,620
electricity 1,846 1,817 1,978 1,972
total 64,106 52,489 57,571 63,475
1990 1991 1992 1993
public 27,432 30,026 30,843 35,316
public 5,890 5,974 8,572 7,835
public
public 1,125 1,102 1,025 1,087
total 4 8 ,8 9 7 5 1 ,4 5 2 5 4 ,9 4 0 5 8 ,8 8 8
% variation 0.064 5.23 6.78 7.19
G eotherm al production share 2 2 2 2
% variation -0.071
453
JAPAN
("1 9 9 3 -Energy Statistics Yearbook" O N U / New York 1995)
1990 1991 1992 1993
PR O D U C T IO N
coal 5,087 4,959 4,679 4,445
oil 553 751 834 758
natural gas 2,003 2,092 2,115 2,159
electricity 62,336 66,112 67,300 75,415
total 6 9 ,9 7 9 7 3 ,9 1 4 7 4 ,9 2 8 8 2 ,7 7 7
% variation 5.82 5.62 1.37 10.48
solids 80,337 83,761 82,786 84,671
liquids 204,137 207,661 209,921 204,915
gas 48,082 51,693 52,530 53,104
electricity 62336 66,112 67,300 75415
total 394,892 409,227 412,537 418,105
PR O D U C T IO N O F EL EC TR IC IT Y (million KWh)
1990 1991 1992 1993
public
public
nuclear selfproducers 869 1,118 953 1,040
public
geothermal selfproducers 257 255 275 321
public
total 9 9 ,6 7 9 100,977 107,00 2 110,997
% variation 0.036 1.30 5.97 3.73
G eotherm al production 0.2 6 0.25 0.2 6 0.2 9

share
% variation 0.039 -2.05 1.77 12.53
454
PHILIPPINES
M AIN EN E R G Y DATA (thousand toe)
1990 1991 1992 1993
PR IM A R Y EN E R G Y
PR O D U C T IO N
coal 588 597 786 792
oil 245 165 418 500
natural gas
electricity 5,213 5,384 5,259 5,294
total 6 ,0 4 6 6 ,1 4 6 6 ,4 6 3 6 ,5 8 6
% variation 2.90 1.65 5.16 1.90
EN E R G Y DEM AN D
solids 1,511 1,642 1,344 1,384
liquids 10,666 11,046 11,839 12,120
gas
electricity 5,213 5,384 5,259 5,294
total 17,390 18,072 18,442 18,798
P R O D U C I ION OF E L EC TR IC IT Y (million KWh)
1990 1991 1992 1993
thermal selfproducers 1,062 900 975 980
public 13,738 10,952 10,848 10,900
public 6,045 5,130 4,237 4,250
public
public 5,466 5,757 5,700 5,740
total 2 6 ,3 2 7 2 2 ,7 5 4 2 1 ,7 7 5 2 1 ,8 8 5
% variation - 0.060 - 13.57 - 4.30 0.51
G eotherm al production share 21 25 26 26
% variation 0.081
455
THAILAND
1990 1991 1992 1993
PR O D U C TIO N
coal 3,242 3,834 4,018 4,065
oil 2,820 3,269 3,592 3,696
natural gas 5,400 6,706 7,188 8,105
total 1 1,890 14,203 14,832 16,184
% variation 11.00 19.45 4.43 9.12
EN ERG Y D EM AN D
solids 3,406 4,045 4,128 4,177
liquids 19,977 21125 23,045 26,237
gas 5,400 6,706 7,188 8,105
total 29,264 32,318 34,763 38,888
PR O D U C TIO N O F E L E C T R IC IT Y (million KWh)
1990 1991 1992 1993

public 39,199 45,599 52,859 59,705
hydro selfproducers
public 4,976 4,587 4,239 3,700
public
public
total 4 6 ,1 7 5 5 2 ,4 8 6 5 9 ,6 9 8 6 6 ,3 0 5
% variation 0.128 13.67 13.74 11.07
Geothermal production share - - - -

% variation
456
AUSTRALIA
M AIN EN E R G Y D A TA (thousand toe)

1992 1993
PR O D U C T IO N
coal 1 10,022 110,921
oil 24,380 24,026
natural gas 19,403 20,879
total 155,160 157,293
% variation 0.010
solids
40,650 39,634
liquids 33,053
36,575
gas 14,342 14,933
total 89,400 92,609
PR O D U C T IO N OF E L EC TR IC IT Y (million KWh)
1992 1993
thermal selfproducers 11,612 11,693
public 132,382 134,990
public 16,210 16,590
public
public
total 160,254 163,332
% variation 0.026
G eoth erm al p rod uction share *
% variation
457
NEW ZEALAND
1992 1993
PR O D U C T IO N
coal 1,669 1,758
oil 1,908 2,040
natural gas 4,976 4,841
total 1 2 ,2 7 7 1 2 ,5 0 2
% variation 0.036
EN ERG Y DEM AN D
solids 1,380 1,276
liquids 4,345 4,200
gas 4,976 4,841
total 1 4 ,4 2 5 1 4 ,1 8 0
PR O D U C T IO N O F EL EC TR IC IT Y (million KWh)
1992 1993
thermal selfproducers
public 8,368 7,705
hydro selfproducers
public 20,631 23,368
public
public 2,272 2,159
total 3 1 ,2 7 1 3 3 ,2 3 2
% variation 0.032
G eotherm al production share 7 .2 7 6 .5 0
% variation -0.06
458
PAPUA NEW GUINEA
M A IN EN ERG Y D A TA (thousand toe)
1992 1993
PR O D U C T IO N
coal
oil 5 ,2 9 9 5,399
natural gas 72 74
electricity 40 40
total 5 ,4 1 1 5 ,5 1 3
% variation 0.024399807
solids 1 1
liquids 754 751
gas 72 74
electricity 40 40
total 867 866
PR O D U C T IO N O F EL E C T R IC IT Y (million KWh)
1992 1993
thermal selfproducers 1,210 1,210
public 120 120
public 415 415
public
public
total 1 ,7 9 0 1 ,7 9 0
% variation
G eotherm al production share -

% variation
459
ETHIOPIA
M A IN EN E R G Y D A TA (thousand toe)
1992 1993
P R IM A R Y EN E R G Y PR O D U C T IO N
coal
oil
natural gas
electricity 154 166
total 154 166
% variation 0.011
solids
liquids 849 848
gas
electricity 154 166
total 1 ,0 0 3 1 ,0 1 4
P R O D U C T IO N O F E L E C T R IC IT Y (million KWh)
1992 1993
thermal selfproducers 53 53
public 20 27
hydro selfproducers
public 1 1,127 1,251
public
geothermal selfproducers 67 68
public
total 1 ,2 6 7 1 ,3 9 9
% variation 0.016
G eotherm al production share 5 .2 9 4 .8 6
% variation -0.001
460
KENYA
1992 1993
coal
oil
natural gas
electricity 474 491
total 474 491
% variation 0.029
EN E R G Y DEM AN D
solids 111 92
liquids 1,423 1,541
gas
electricity 495 514
total 2 ,0 2 9 2 ,1 4 7
1992 1993
public 97 81
public 2 ,1 1 6 2,973
public ji
public 272 272
total 3 ,2 1 5 3 ,3 9 6
% variation 0.052
G eoth erm al production share 8 .4 6 8.01
% variation -0.03
461
MOZAMBIQUE
M A IN EN ERG Y DA TA (thousand toe)
1992 1993
coal 28 28
oil
natural gas
electricity 4 4
total 32 32
% variation
solids 42 42
liquids 273 270
gas
electricity 32 32
total 347 344
1992 1993
public 290 290
hydro selfproducers
public 50 50
public
public
total 490 490
% variation 0.047
G eotherm al production share -
% variation
462
A nnex 5.2
Annex 5.2
GEO THERM AL OPERATORS

A nnex 5.2
INDEX
1. FACTS ON GEO THERM AL O PER A TO R S 466
2. MAIN M ANUFACTURES MARKET SHARE: GENERAL

C O NSIDERATIONS............................................................................................... 468
ANSALDO ENERGIA S.P.A
FUJI ELECTRIC C O ., LTD
MITSUBISHI HEAVY INDUSTRIES, LTD
O RM AT INDUSTRIES LTD
TO SHIBA C O ., LTD
465
A nnex 5.2
1. FACTS ON GEO THERM AL OPERATORS
The geothermal sector is both a natural phenomenon and an economic resource o f the
planet which has provoked the interest and intervention o f man from different
perspectives.
The geothermal sector involves a scientific interest which has continued to developed
the know ledge o f geothermal processes and their effects. Scientists, technicians, and
researchers around the world strive towards this aim by means o f theoretical and
applied research, laboratory and field analyses, interpretation from surveys.
From a scientific viewpoint, the geothermal sector, is not a mono-thematic discipline

limited only to the study on the origin o f E arths heat; other disciplines are also
involved (volcanology, structural geology, hydro-geology, geophysics, geochemistry,
etc. etc.).
The economic interest is aimed at the extraction and exploition o f energy from the Earth
for hum an needs (heat, electricity, curative) as described in the previous chapters.
Both scientific and economic aspects are strictly connected and interrelated. In fact, the
economic interest o f geothermal resources is a strong incentive for the continuous
improvement o f scientific and technological knowledge and consequent theoretical and
applied research.
The aim o f this study defines geothermal operators as those strictly and directly
involved with the economic exploitation for energy production.
In this context the geothermal operators include:
Consulting and engineering operators, who are m ainly related to the intellectual
activity during the field exploration phase, evaluation o f field, reservoir and
production, engineering, project m anagement during the plant installation, field
evaluation monitoring during exploitation, specialised studies and surveys etc.
This category is very large and not easy to define and classify because it includes a
num ber o f operators from large com panies, to the medium size, and very small
ones, individuals, sectors o f Universities and research centres, parts o f firms also
involved in other geological sectors which occasionally treat the geothermal one.
In general, the w orld situation shows a stationary and often w eakening status o f the
sector, due to the corresponding low developm ent o f projects in new areas. The
European operators are strongly present in this category from many years especially
in Italy for electricity generation and in Iceland, France and Germany for direct
466
A nnex 5.2
uses. The strong individual capabilities and firm s experience often do not show a
corresponding strength in the world market due mainly to the fragmentation in
small, m edium entities and weak cooperation.
The situation appears even more stationary due also to the com petition from non-
EU operators, especially in the USA, Japan, and New Zealand, who are strongly
represented in the more dynamic areas from geothermal developm ent such as
Indonesia and Philippines
Drilling operators, who are those involved in well drilling and related activities. For
this category, it is difficult to define the behaviour for the sector as most are not
specifically or exclusively involved in geothermal drilling but are also involved in
hydrocarbons and w ater markets.
A general impression has become evident from the activities o f big companies
operating at continental and/or world level with established equipment. Another
factor is the entry o f firms from Central Eastern Countries sometimes directly,
sometimes as subcontractors to the m ain w estern contractors. This last process is
favoured because o f the relatively good technical expertise o f such drillers and their
highly com petitive prices.
Drilling activity (exploration, exploitation, reinjection wells) is presently (1990-96)

m ainly concentrated in Indonesia, Philippines, Japan, USA, M exico, Iceland, Italy.
Data from the inventory indicate about 1,100 as total num ber o f geotherm al wells
drilled in the world in 1990-96. This num ber can be assumed as low er limit
considering the lack o f data from some countries.
European drilling operators have a good reputation from a technical point o f view;
they could also be active participants with new com panies from Central Eastern
European operators in the process o f m arket penetration.
Service operators, are those com panies involved in spccialistic activities related to
all phases o f the geothermal developm ent such as geochemical/geophysical
surveys, lab analyses, well logging, m easurem ent/testing equipm ent (construction,
installation) services related to plant operation. This category is wide and covers a
lot o f specialist activities traditionally subcontracted by the geothermal field
developers. M any o f these services are also performed by consulting engineering
companies. Their activity is largely proportional to the plant behaviour.
Plant m anufacturers. This category includes different kind o f operators
(geothermoclectric pow er plants, direct uses plants, com ponents, etc.).
As far as geothermal electric plants are concerned, a more detailed survey is

provided here.
467
A nnex 5.2
2. MAIN MANUFACTURES MARKET SHARE: GENERAL

CONSIDERATIONS
The world geothermal electricity generation capacity installed between the period 1971
- 1997 (including the under construction plants) is 7,282 MWe and 7,855 MWe
including the plants scheduled for com m issioning up to 2000, as presented Tabic 5.2.1
and Table 5.2.3.
In Table 5.2.2 the world installed capacity for all geothermal power plants
manufacturers is given and am ounts to about 9,700 MWe. For the same above period
about 8,377 MWe (-9 0 % ) is plant m anufactured by the present five world leaders o f
geothermal turbines and generators manufacturers: Ansaldo, Fuji, Mitsubishi, Ormat
and Toshiba. The remaining 10% is divided between two other worldwide companies,
Elliot Gc and GEC Alsthom (7%) and several com panies with any national relevance.
The market is dominated by the five companies m entioned above which during the
period 1971 - 1995 installed about 6,532 MW (73% o f the worldwide total from table
5.2.2), in five continents, as shown in Table 5.2.3.
The European presence in the world market is represented by Ansaldo (20%) and GEC
Alsthom (3%). Ansaldo products are distributed in different countries Indonesia, USA,
Philippines, and the rem ainder in the Italian market. Both companies act at international
level with a presence diffused across all the geothermal markets.
The Japanese share is dominant in the world market and represents more than 70% o f
the global market with conventional cycle power plants installed all over the world.
Ormat is the world leader o f binary cycle type geothermal power plants.
Presently pow er plants utilising Ansaldo, Fuji, and Toshiba technology are under
construction or are being com missioned in the world, am ount for a total o f about 1,260
in the period up to 2000. The Philippines represent the actual m ain market for the
Japanese manufacturers, while Indonesia, Central America and Italy is the destination
for the European leader, Ansaldo. The world market for this com pany in the period
1971- 1997 represents about 40% o f its total installed capacity (Tabic 5.2.4).
A short company description for each o f the above four main manufacturers o f
conventional cycle pow er plant ( Ansaldo, Toshiba, M itsubishi, Fuji ) and for the main
binary cycle plant producer, Ormat, and a summary o f the supplied units arc given with
indication o f the custom er and the country where plants have been installed.
This census has been limited to the com panies w hich have supplied reliable and
complete historical data.
468
A nnex 5.2
MW insta led
Greece 2.0
Iceland 75.0
Italy 816.8
Portugal 14.6
T urkey 17.8
Europe 926.2 12%
Kenya 45.0 1%
China 4.5
Indonesia 420.0
Japan 423.0
New Zealand 97.3
Philippines 1,449.7
Thailand 0.2
Asia 2,394.7 33%
Costarica 1 15.0
El Salvador 95.0
Mexico 813.0
Nicaragua 70.0
C. America 1,093.0 15%
USA 2,823.0 39%

TOTAL 7,282.0
Tab. 5.2.1 Distribution o f geothermal power (M W e) installed by countries and

continents by the five world leader turbine and generator manufacturers
(1971-1997).
469
A nnex 5.2
M anufacturer G eotherm al pow er installed - M W e

up to 1971 1971-1985 1986-1995 1996-2000 Total
Toshiba 2,057 535.1 232 2,824.1
Ansaldo 655 163.3 810 571.3 2,199.6
Mitsubishi 10 950.8 846.9 60.0 1,867.7
Fuji 334.8 880.9 486.5 1,707.2
Ormat 1.7 190.8 63.6 256.1
Elliot Ge 410 410
Gee Alsthom 248 248
ND 81 81
Ben Holt Rotoflow 74 74
Nei Parson 25 25
Chinese companies 21 21
Russian companies 21 21
Mafi Trench 13 13
Aeg-Kanis 2 2
T urboden/Sowit 1.5 1.5
TOTAL 665 4,402.6 3,265.2 1,413.4 9,746.2
Table 5.2.2 - Geothermal power plants (M we) installed in the world up to 1995 and
2000 .
Mafi Trench Geothermal pow er installed up to 1995

and to be installed up to 2000
Russian Companies
Geothermal pow er installed up to 1995
Chinese companies
Nei Parson
HJ Geothermal pow er installed up to 1985
Ben Holt Roto flow
ND
Gee Alsthom
Elliot Ge
Ormat
Fuji
Mitsubishi
Ansaldo
Toshiba
0 500 1000 1500 2000 2500 3000
Power (MW)
Fig. 5.2.1 M ain m anufacturers market share
470
A nnex 5.2
P erio d Turbine/Generator Manufacturer / M W installed A m erica E u ro p a A sia Ocea Afric

nia a
Ansaldo Fuji Mitsubishi Ormat Toshiba Total U SA MEX CR GUA El NIC GR I IS P TR China RI J T RP N.Z. EAK
S.
under 60 224 - 57 232 573 60 25 50 438
commissioning
under 511.3 262.5 60.0 6.6 - 840 396.3 90 6.6 115 232.5
construction
1991-1995 460 80.2 260.2 83 177.5 1,061 70 38 115 150 4.5 4.5 165 203 310
1986-1990 350 568.2 586.7 101.7 357.6 1,964 1,133 350 35 2 160 4.5 1.3 110 55.5 0.2 15 97.3
1981-1985 83.8 290.8 494 1.7 973 1,843 946 275 35 31 17.8 3.2 30 53.1 407.5 45
1976-1980 46 44 415.7 0 679 1,185 344 75 65 46 66 3 101 484.7
1971-1975 33.5 0 40 0 405 479 330 75 30 33.5 10
TOTAL 1,484 1,246 1,857 193 2,592 7,372 2,823 813 115 0 95 70 2 817 165 14.6 17.8 4.5 420 423 0.2 1,450 97.3 45
20% 17% 25% 3% 36% 38% 11% 2% 0.5% 2% 1% 0% 11% 1% 0.2% 0.2% 0.1% 6% 6% 0% 20% 1% 1%
GRAN TOTAL 1,544 1,470 1,857 250 2,824 7,945 175 25 145 1,888
Table 5.2.3 Country distribution o f geothermal pow er plants installed (MWe) by the five leader manufacturers up to 1995, under construction
(1997) and under commissioning.
under com m issioning = 2x30 MW Costarica - Miravalles 3

1x25 Guatemala - Zumil
The Philippines:
180 MW (Leyte-Mahanagdong): 52 MW(Mindanao - Matingao)
18 MW (Leyte-Mahanagdong): 14 M W (Leyte - Tongonan 1)
154 MW (Leyte S. Sambalouan); 20 M W (Bac Man, Botong)
2x25 El Salvador - Berlin 2
A nnex 5.2
Country Turbine/Generator IV anufacturer/MW installed (1971-1997)

Ansaldo Fuji M itsubishi Ormat Toshiba Total
Costarica 55 5 55 115.0
China 3.2 1.3 4.5
El Salvador 35 60.9 95
Greece 2 2.0
Iceland 6 60 9 75.0
Indonesia 225 195 420.0
Italy 816.8 816.8
Japan 0.645 199.9 222.5 423.0
Kenya 45 45.0
Mexico 80 80 55 3 595 813.0
New Zealand 93.8 3.5 97.3
Nicaragua 70 70.0
Philippines 1 10 428 566.7 15 330 1,449.7
Portugal 3 1.6 14.6
Thailand 0.2 0.2
T urkey 17.8 17.8
USA 1 10 662.9 511.5 148.9 1,389.6 2,822.9
TOTAL 1,485 1,216 1,797 193 2,592 7,282
Table 5.2.4 Distribution o f geothermal pow er (M W e) installed by countries and by

the five leader turbine and generator m anufacturers (1971 -1997)
* Generators (only) installed in Indonesia (1x55 MW), in New Zealand (2x50 MW)
and in Japan (1 x25 MW)
472
A nnex 5.2
A n s a l d o E n e r g i a s .p .a .
V ia N ic o l a L o r e n z i , 8 - 16152 G e n o a - I t a l y
t e l . + + 3 9 10 6551 FAX + + 3 9 10 6 5 5 6 2 0 9
Ansaldo Energia is an Ansaldo Company - Finmeccanica Iri Group - and com bines all
manufacturing, engineering, contracting and service activities in the power generation
field.
Ansaldo Energia designs and builds all kinds o f power stations: steam fossil fired, gas
turbine and combined cycle, hydroelectric, geothermal, nuclear, photovoltaic, fuel cell,
as well as desalination plants: it can supply turn-key contract equipm ent , in separate
lots, or components.
Ansaldo Energia is the result o f a merger between Ansaldo Componenti, Ansaldo Gie
and Franco Tosi in 1986; it also draws upon the manufacturing potential o f different
subsidiaries o f Ansaldo: Coem sa Ansaldo (Brazil), Ganz Ansaldo (Hungary), Ansaldo
Volund (Denmark).
The com pany is based in Genoa and Milan and has m anufacturing facilities in Legnano,
Genoa and Gioia del Colle (Italy), Canoas (Brazil), Budapest, Obuda, Szolnok, Baya
and Gyula (Hungary).
Representatives abroad are spreaded all around Europe (Denmark, France, Germany,
Greece, Hungary, Ireland, Luxem bourg, Monaco, The Nederlands, Romania, Spain,
Sweden, United Kingdom) Asia (M iddle East: Emirates, Iran, Kuwait, Lebanon, Qatar,
Saudi Arabia, Turkey, C.S.I.; Pacific: China, Hong Kong, India, Indonesia, Japan,
Korea, M alaysia, Pakistan, Philippines, Singapore, Thailand) Africa (Algeria, Egypt,
Morocco, Tunisia) and America (Southern: Argentina, Bolivia, Brazil, Chile, Colombia,
Ecuador, Peru, Uruguay; Central: Costa Rica, Cuba, Republica Dominicana, Panama;
Northern: USA).
The com pany's turnover is more than 10,000MECU (2,036.546 billion italian liras in
1994; 3,309.688 billion in 1995) and about 7,160 perm anent employees (2,800
engineering, 3,060 m anufacturing).Ansaldo Energia has installed over 131,000MW
throughout the world o f which 93,000M W is for thermal power plants.
Ansaldo Energia provides technical pre-sale services as well as financial, including

project financing or equity participation in BOT / BOO projects.
Ansaldo has supplied 60 units - about I400M W - in 8 countries between 1971-1997:
C ountry NO. o f Units MW

Costa Rica 1 55
Indonesia 4 225
Italy 40 816.8
M exico 10 80
Nicaragua 2 70
Philippines 2 110
T urkey 1 17.8
USA 2 110
total 60 1484.6
473
A nnex 5.2
Ansaldo geotherm al pow er plants installed in the world:
STARTUP DATE NO. UNITS / MW CUSTO M ER COUNTRY
2x60 ENEL Italy

10x20 ENEL Italy
UNDER 1x18.9 ENEL Italy
CONSTRUCTION 3x15 ENEL Italy
1x12.4 ENEL Italy
1x60 CAL. ENERGY Indonesia (Dieng)
1x55 PLN Indonesia (Salak 3)
TOTAL 5 1 1.3MW
2x60 ENEL Italy
2x15 ENEL Italy
1991-1995 2x55 NAPCOR Philippines
2x55 PLN Indonesia
1x55 ICE MIRA VALLES II Costa Rica
7x5 CFE M exico
TOTAL 460M W
2x20 ENEL Italy
5x18 ENEL Italy
1986-1990 2x15 ENEL Italy
3x15 CFE M exico
1x35 INE Nicaragua
2x55 NCPA USA
TOTAL 350MW
1x35 INE Nicaragua
1981-1985 1x17.8 TEK Turkey
1x15 ENEL Italy
2x8 ENEL Italy
TOTAL 83.8MW
1976-1980 2x15 ENEL Italy
2x8 ENEL Italy
TOTAL 46MW
2x15 ENEL Italy
1971-1975 1x3.5 ENEL Italy
TOTAL 33.5M W
632.9 ENEL Italy
1926-1970 20.3 BORACIFERA LARDERELLO Italy
1.8 CFE M exico
TOTAL 655MW
From 1926 to date: GRAND TOTAL installed in the world.

2.139.6M W
474
A nnex 5.2
F u j i E l e c t r i c C o ., L t d .
12 - 1 Y U R A K U C H O 1 - C H O M E , C H IY O D A -K U , T O K IO , 100 JA PA N
T E L . ++81 3 3 2 1 1 - 7111 F A X ++81 3 21 1 - 7988
Fuji Electric supplied 43 units in the world and operates in 9 countries.

The com pany produces a wide variety o f turbines, single flash and double flash cycles,
w ith capacity range from lOOkW - 150,000 kW.
Fuji main m arket area for geothermal turbines during 1981-89 was the USA (660M W
installed), presently Philippines and M exico represent the only large market.
The com pany installed mainly generators in Indonesia (1994) and New Zealand (1986);
its market share in Japan is very low, latest installations were made in 1989-91 for only
245 kW.
Fuji Electric co. has supplied 43 units, for about 1,200 MW installed in the following
countries during the period 1975 - 1996:
C ountry N O .of Units MW N otes

China 1 3.2
El Salvador 1 35
Iceland 1 6
Indonesia (1) (55) generator only
Japan 4+0) 0.645+(25) no. 1 generator only
M exico 4 80
New Zealand (2) (100) generator only
Philippines 12 428
U.S.A. 19 662.9
total 43 1215.7
475
A nnex 5.2
Fuji electric geotherm al pow er plant installed in the w orld 1975-1996:
STARTUP DATE NO. UNITS / M W CUSTOM ER COUNTRY
1991 - 1 9 9 5
1991 1x0.2 BEPPU REHAB. CENTER Jap an
1993 1x20 NPC / PALIM PINON P h ilip p in es
1994 3x20 NPC / PALIM PINON P h ilip p in es
1996/97 3 x 7 7 .5 NPC / M ALITBOG P h ilip p in es
TOTAL 3 1 2 .7
1 9 8 6 - 1990
1986 1x55 DEPT. W ATER RESOURCES U SA
1987 4x20 CERRO PRIETO CFE M ex ico
1988 1x60.5 OXBOW GEOTH . CORP. U SA
1988 2 x 3 5 .8 M AGM A POW ER CO. U SA
1988 2x30 COSO GEOTH. CO. U SA
1988 0.3 NEDO NIPPON STEEL CORP. Jap an
1989 6x30 COSO GEOTH. CO. USA
1989 1x35.8 MAGMA POW ER CO. U SA
1989 2 x 1 2 .5 MISSION POW ER ENG. CO. U SA
1989 1x0.045 TAKEN AKA KOUM UNTEN CO. Jap an
TOTAL: 568.2
1981 - 1985
1981 1x55 NORTHERN CALIF. POW ER AGENCY USA
1981 1x10 SOUTHERN CALIF. EDISON CO. USA
1982 1x55 NORTHERN CALIF. POWER AGENCY USA
1983 3 x 3 7 .5 NPC / PALIM PINON P h ilip p in es
1983 1x0.1 DAIW ABOO KANKO O CO. Jap an
1985 1x55 DEPART. W ATER RESOURCES U SA
1985 1x3.2 NAT. TECH. IMPORT CORP. C h in a
TOTAL: 2 9 0 .8
1975 - 1980
1980 2 x 1 .5 NPC / PILOT PLANT OKOY P h ilip p in es
1980 1x35 CEL / RIO LEMPA El S a lv a d o r
1980 1x6 SUDURNES REG. HEATING Icelan d
TOTAL: 44
F rom 1975 to 1996 GRAND TOTAL in stalled in th e w o rld .

1 ,215.7M W
476
A nnex 5.2
M i t s u b i s h i H e a v y In d u s t r i e s , ltd
P o w e r S y s te m H e a d q u a r t e r s
5 -1 , M a r u n o u c h i 2 - c h o m e , C h i y o d a - k u , T o k y o , J a p a n
T E L . + + 8 1 3 3 2 1 2 - 2111 F A X + + 81 3 3 2 1 2 - 9841
M itsubishi is one o f the largest supplier com panies with 69 units installed in the world
and operates in 12 countries. The com pany produces a wide variety o f unit types, with
capacity range from lOOkW - 150,000 kW, modular skid mounted turbines and three
plant cycles: single flash, double flash and binary.
M itsubishi has total engineering capabilities: design, system engineering and equipment
(from well head to transm ission line) for full turnkey geothermal pow er plants.
The com pany is based in Tokyo and has m anufacturing facilities in Nagasaki and a
Power System Division in USA and representatives all over the world.
M itsubishi has supplied 69 units, for about 1,800 MW installed in the following
countries during the period 1967-1995:
Country NO. o f Units MW

C o sta ric a 1 5.0
E l S a lv a d o r 3 61.1
G re ec e 1 2.0
Icelan d 2 60.0
In d o n esia 4 195.0
Jap an 11 2 0 9 .9
K enya 3 4 5 .0
M ex ico 6 55.0
N e w Z e a lan d 2 93.8
P h ilip p in es 17 566.7
P o rtu g al 1 3.0
U .S .A . 18 511.5
TOTAL 69 1808.0
477
A nnex 5.2
M itsubishi H eavy Industries geotherm al pow er plant installed in the w orld, 1967-1995:
STARTUP DATF, N O. UNITS / MW CUSTOM ER COUNTRY
1991 - 1995
1995 1x30 K y u s h u E l e c . P o w e r Co. Japan
1995 1x50 T o u h o k u E l e c . Po w e r C o . Japan
1994/95 2x20 N P C /B a c o n M a n it o P hilippines
1995 4x20 N P C / M ak - B an P hilippines
1x5 M ir a v a l l e s C o sta R ica
1994 1x55 D a r a ja t / PLN Indonesia
1991 1x0.2 H ir o s e S h o u ji Japan
TOTAL 2 6 0 .2 M W
1 9 8 6 - 1990
1987 2x55 K a m o j a n g / PLN In d o n esia
1987 1x2 G reece p p c G reece
1987 1x25 a m jv / Coso U SA
1988/89 2x11 F r e e p o r t G e o t .R e s . C o . U SA
1988 2 x 4 6 .9 NZE N e w Z ealan d
1988 1x0.2 N ip p o n S t e e l C o r p . Japan
1988 1x54 D eser t Po w e r C o . U SA
1989 2 x 1 4 .4 Freeport M cM oran Res. Co . U SA
1989 2 x 1 8 .5 G e o . E a s t M e sa U SA
1989 2 x 1 .9 G e o E a s t M e sa U SA
1989 1x150.9 PG & E T he G ey sers U SA
1990 1x4.2 Un o c a l Sa l t n S ea U SA
1990 1x55 Ky u sh u E l e c . p o w e r C o . Japan
t o t a l 5 8 6 .7 M W
1981 - 1985
1981 1x3 S u g in o i G e o . P o w e r P l a n t Japan
1981 1x15 K e n y a K PC K enya
1981 1x30 C e r r o P r ie t o C F E M exico
1982 5x5 A z u f r e s C FE M exico
1982 1x15 K e n y a K PC K enya
1983 1x70.7 Smud U SA
1983 1x30 K a m o ja n g P L N Indonesia
1982/83 2x 3 7 .5 T o n g o n a n Ley te N PC P h ilippines
1984 2x55 M a l ik in g B a n a h a w N P C P hilippines
1985 1x15 K en y a K PC K enya
1985 h p + lp 36.6 M agma U SA
1985 1x52 H eber G eotherm al. Co . U SA
1985 1x16.7 C h evron G eotherm al Co . U SA
TOTAL 4 9 4 M W
1 9 7 6 -1 9 8 0
1976 1x30 A hu acha pan CEL El S alvador
1977 lx l Ja pa n e se G o v e r n m en t Japan
1977 1x50 K y u shu e lec . po w er Co. Japan
1977 1x37.5 T o n g o n a n L eyte N PC P hilippines
1977 1x3 T o n g o n a n L e y te N PC P hilippines
1978 2x30 K rafla Iceland
1979 1x1.2 M a k il in g B a n a h a w N P C P hilippines
1979 2x55 M a k il in g B a n a h a w N P C P hilippines
1980 2x55 M a k il in g B a n a h a w N PC P h ilippines
1980 1x10 U n o c a l S a l t n S ea U SA
1980 1x3 A z o r e s SR C I Portugal
TOTAL 4 1 5 .7 M W
1967 - 1975
1967 1x10 Ky u s h u El e c . Po w e r C o . Japan
1973 1x10 M it s u b is h i M etal C o . Japan
1975 1x30 A h u a c h a pa n CEL El S alv ad o r
1975 lx l.l a h u a c i-ia p a n CEL El S alvador
TOTAL 5 1 .1 M W
F rom 1967 to 1995 GRAND TOTAL installed in the w orld.

1 ,807.7M W
478
A nnex 5.2
O R M A T INDUTRIES LTD
980 G r e g S t . , S p a r k s , N e v a d a 89431 - 6039 P.O. b o x 68 - y a v n e 81100 I s r a e l

U SA
T e l. + + 1 702 356 9029 FAX++1 702 356 9039 T e l. ++ 972-8-94337351 f a x + + 9 7 2 -8 -9439901
The Israeli com pany ORM AT, with its U.S. subsidiary, is the w orld s largest Organic
Rankine Cycle technology manufacturer.
Since 1965, some four thousand ORM AT Energy Converters (OEC) based on ORC
technology have been supplied and are operating in over 55 countries. A m ong them
more than 200 OECs, for about 300 MW, which operate on geothermal sources in the
USA, Mexico, the Philippines, New Zealand, Portugal, Iceland, Thailand , China and
Italy.
Ormat m odular power plants , utilizing Geothermal Combined Cycle and Binary
Technologies are designed and tailored to the resource, to optimize efficiency and cost-
effectiveness o f electrical generation.
The modular pow er plants, ranging from 200 KW to over 120 MW, efficiently match
the pow er plant to the geothermal resource characteristics, steam quality and brine
chemistry.
Binary technologies are w ater cooled, air cooled and two phase types with geothermal
fluid tem perature from 95C to 315C.
Ormat developed the Geothermal Combined Cycle Units (GCCU) to generate power
from high pressure geotherm al steam resources at up to 3 15C
O RM AT OECs are modular, self-contained units, com prising factory tested, skid
mounted com ponents which include heat exchangers, turbine, generator, control
system, low and high voltage swithgear, valves, safety circuits and piping. Isopentane is
generally used as working fluid.
O rmat has experience on developing geothermal pow er plants projects under a Total
Project M anagem ent concept that includes design, engineering, m anufacturing,
financing, construction and operation. The com pany can take responsability for
equipm ent supply only or assume total project responsability under BOO, BOOT, and
BTO arrangements.
The main m arket areas for Ormat remain the USA with up to 149 MW installed and the
Philippines were about 32 M W have been com m issioned in 1997 and where
construction has ju st started.
The main Ormat application o f OECs units during the period 1984-1997 are:
Country MW
C h in a 1.3
Iceland 9.0
M ex ico 3.0
N e w Z e a la n d 3.5
P h ilip p in es 15
P o rtu g al 11.6
T h a ila n d 0.2
U .S .A . 148.9
Total 192.5
479
A nnex 5.2
O rm at O E C s plants installed in the w orld 1984-1997:
STARTUP DATE NO. UNITS / M W CUSTOM ER COUNTRY
On
Commissioning
1997 14 LEYTE, TONGONAN 1 NPC P h ilip p in es
1997 18 LEYTE, M AHANAGDONG , NPC P h ilip p in es
? ? BA C -M A N - BOTONG P h ilip p in es
TOTAL 3 2 M W
1991 - 1995
1992 4.5 SUDURNES REG. HEAT. Iceland
CO.,SVA RTSENGI
1992 30 PUNA GEOTH. POW ER, HAWAII USA
1993 40 1IEB ERS. GEOTH. USA
IM PERIA L,CA LIFORNIA
1993 3 LOS AZUFRES, CFE M ex ico
1994 2 x 2 .5 + 3 x 2 .2 RIBEIRA GRA NDE, SOGEO, AZORES P o rtu g al
TOTAL 89.1 M W
1 9 8 6 - 1990
1986 5.2 STEAM BOAT, NEVADA USA
1986 30 ORM ESA, EAST M ESA, CALIFORNIA U SA
1987 15 N P C / MAK BAN P h ilip p in e s
1989 42 ORM ESA, EAST M ESA, CALIFORNIA U SA
1989 3.5 TARAW ERA, KAW ERAU N e w Z ea la n d
1989 1.3 NAGQU , TIBET C h in a
1989 0.2 EGAT, FANG T h a ila n d
1989 4.5 SUDURNES REG. HEAT. Icelan d
CO.,SVA RTSENGI
TOTAL 101.7M W
1981 - 1985
1984 1.7 T A D S ENTERPRISES, W ABUSKA , USA
NEVADA
TOTAL 1.7M W
F ro m 1984 to 1997 GRAND TOTAL in stalled in th e w o rld .

2 2 4 .5 M W
480
A nnex 5.2
T o sh ib a C o ., L t d .
P o w er S y stem s D iv isio n , 1-6 U c h is a iw a i - ch o

I-C H O M E , CHIYODA -K.U, T O K IO 100, JA PA N
T E L . ++ 81 3 597 2338 FAX ++ 81 3 597 2501
Toshiba supplied 39 units in the world and operates in 5 countries.

The com pany produces condensing type turbines, single flash and double flash cycles,
with capacity range from 20,000 kW - 124,000 kW.
Toshiba m ain m arket area for geothermal turbines during eighties and seventies was
USA (1389,6 MW installed), Philippines and Mexico. Since 1994 the market is limited
to Japan.
Toshiba has supplied 38 units, for about 2600 MW installed in the following countries
during the period 1971 - 1996:
Country N O .of Units MW

C o sta R ica 1 55
Jap an 5 222.5
M ex ico 9 595
P h ilip p in es 6 330
U.S.A. 17 1389.6
total 38 2592.1
481
A nnex 5.2
T oshiba geotherm al pow er plant installed in the w orld 1975-1996:
STARTUP DATE NO. UNITS / M W CUSTOMER COUNTRY
1991 - 1995
1992 1x55 M ira v a lle s 1, IC E C o sta R ica
1994 1x27.5 T o h o k u E lectric P o w er Jap an
1995 1x65 T o h o k u E lec tric P o w er Jap an
1996 1x30 T o h o k u E le c tric P o w e r Jap an
TOTAL 177.5M W
1 9 8 6 - 1990
1986 1 x110 C e rro P rieto , C F E M ex ico
1987 1x110 C rie to P rie to , C F E M ex ico
1987 1x5 In stitu to Invest. E lectrical M ex ico
1988 2 x 6 6 .3 C e n tral C alif. P o w e r Co. U SA
TOTAL 3 5 7 .6 M W
1981 - 1 9 8 5
1985 2x110 C erro P ietro , C F E M ex ico
1985 1 x124 P ac ific G as & E lee. C o ., G ey se rs U SA
1984 2 x 4 8 .5 O cc id e n ta l G e o th e rm al Inc. U SA
1983 2x124 P acific G as & E lee. C o ., G ey sers USA
1982 1x124 P acific G as & E lee. C o ., G ey se rs U SA
1982 2x55 NPC P h ilip p in es
1982 1x50 H o k k aid o E lectric P o w er Co. Jap an
TOTAL 9 7 3 M W
1 9 7 5 - 1980
1980 1x114 P acific G as & E lee. C o ., G ey sers U SA
1980 2x55 NPC P h ilip p in e s
1979 2 x 3 7 .5 C erro P rieto , C F E M ex ico
1979 2x55 N PC P h ilip p in es
1978 1x50 T o h o k u E le c tric P o w er Ja p a n
TOTAL 67 9 M W
1971 - 1974
1973 2x55 P acific G as & E lee. C o., G ey se rs USA
1973 2 x 3 7 .5 C e rro P rieto , C F E M ex ico
1971 2x55 P a cific G as & E lee. C o ., G ey se rs U SA
TOTAL 4 0 5 M W
F ro m 1971 to 1996 GRAND TOTAL in stalled in the w o rld .

2,592.1 M W
482
A nnex 5.3
Annex 5.3
CENSUS OF EU AND NON-EU FINANCING AGENCIES TO GEOTHERM AL

SECTOR
483
A nnex 5.3
INDEX
1. OVERW IEW ON MAIN INTERNATIONAL

FINANCING AGENCIES 486
E U -D G I ............................................................................................................................ 489
EU-DG XII ........................................................................................................................490
EU-DGXVII ..................................................................................................................... 492
E.I.B. European Investment Bank ............................................................................... 495
E.B.R.D European Bank for the Reconstruction and Developm ent......................496
I.A.D.B. Inter-American Developm ent B ank............................................................. 498
M AE - DGCS Italian Ministry o f Foreign A ffairs....................................................500
WORLD BANK .............................................................................................................. 521

IB R D
ID A
IFC
M IG A
IC S ID
A.D.B. Asian Development B a n k .................................................................................504
NORDIC FINANCE G R O U P ....................................................................................... 506

N IB
NDF
NEFCO
NOPEF
485
A nnex 5.3
1. OVERW IEW ON MAIN INTERNATIONAL FINANCING AGENCIES
A list o f the main international agencies and some o f the national ones that financed the
geothermal sector is presented.
These EU and non EU agencies have been, and are presently active, in supporting
geothermal projects in all its activities and phases: exploration, drilling, plant
installation.
Identified funds arc distributed by years and divided according to the type o f use for the
geothermal resources: electric generation, direct use o f heat , combined use o f heat.
Funds committed to support project only in research and tecnology including
reconnaissance, pre- and feasibility studies, training courses and technical assistance are
also indicated.
The EU General Directorates analysed arc : DG I, DG XII, DG XVII with their relevant
programmes. O ther European agencies arc : European Investment Bank (EIB), the
European Bank for the Reconstruction and Development (EBRD), the Nordic Finance
Group (NFG), based in Finland and the Directorate for Development and Cooperation
(DGCS) o f the Italian Foreign M inistry (MAE). Between the main international
agencies the census includes the Inter-American Development Bank (IADB), the Asian
Development Bank (ADB) and the World Bank (WB) with all its five main lending
organizations.
List does not included private interest groups and some national or regional cooperation
agencies whose data were not available such the Overseas Economic Cooperation Fund
(OECF), the Japanese co-operation agency which actively operates in the Far East area
in supporting geothermal activities.
The period considered is from 1978 to 1997 - 2000. In Table 5.3.1 are summarized the
funds com mitted during the above period with indications o f the geographical area
where projects were implemented.
The total funds (loans and grants) amount to about 2,446 MECU o f which 86% to
support worldwide activities in Central and Southern America, The Philippines,
Indonesia, Eastern Africa, while only the 14% in European countries with an increasing
trend for international financing agencies as EBRD and WB to support geothermal
projects in countries such Russia and CIS countries (see Figures 5.3.1, 5.3.2).
The total funds, as loans and grants by each financing agency are shown in Figure 5.3.3.
486
A nnex 5.3
1000
900 -- Rest o f the w orld
800 Europe
700
600
500 --
400 --
300
200
100
0
1978-80 1981-85 1986-90 1991-95 1996-2000
Fig. 5.3.1 Total Funds com m itted from 1978 to 2000
Europe
345 M EC U
R est of th e w o rld ( 14%)
2101 M E C U
(86%)
Fig. 5.3.2 International Financing A gencies, and destination area o f the support
(1978-2000)
D G X II-Joule --------------------------- I 1
DGXVII - Altcncr ------ 1
DGXVII - Thermie ' ----------------- 1
| j| I.(Kills
EBRD ^
Grants
ia d b
adb
MAE-DGCS I
n fg
W orld Bank
. I ---------------------
0.1 1 10 100 1000
M ECU
Fig. 5.3.3 Total funds (1978-2000) as loans and grants
487
A nnex 5.3
488
Table 5.3.1 Organizations and funds com mitted to support geothermal activities from 1978 to 1997 and forecast to 2000
LE G E N D
Type o f use for the geotherm al resources: G eographical area o f the funded geotherm al
Elec.: E lectric generation
EU ROPE LA TIN A M E R IC A

Dir.: D irect use o f heat
Com .: C om bined use o f heat R U S SIA and G E O R G IA ASIA
R&T: Research & Technology (including reconnaissance, pre- and feasibility studies, training
(1) Projects funded by M A E w ere located in Latin A m erica. A sia and Africa.
(2) Projects funded b y W B w ere located in L atin A m erica, A sia and A frica and Russia.
A nnex 5.3
EU-DG I
European Commission - Directorate General I
Rue de la Loi 2 0 0 - B-1049 Brussels (Belgium)
The European Comm ission is organised in Directorates General (in charge o f specific
themes) and Directorates which are in charge o f specific areas. DG I usually supports
the technical assistance projects as grants and in case o f co-financiation also loans.
DG I generally allocates an annual budget for countries distributed according to priority

sectors established with local Authorities in those countries. Projects are planned on the
basis o f the established sectors and priorities by local Authorities with the participation
o f local E.U. representatives. The opportunities are diffused through the Official
Gazette o f European Comm unity and the assignments are made through open tender
subsequent to a pre-selection.
DG I has supported two geothermal projects, both o f them in Guatemala. In particular it

has granted 640,000ECU in 1993-96 for the pre-feasibility study o f San Marco area and
300,000ECU for a study aimed at the optimisation o f energy cost and price in that
country.
1 FU ND S C O M M IT T E D TO SU PPO R T G E O T H E R M A L A CT IV IT IE S
E U -D G I
PROJECTS TOTAL ITEMIZED

YEAR SUPPORTED SUPPORT UTILIZATION SUPPORT
(E C U ) (E C U )
Electricity generation
1977-1992 D irect uses
Combined uses
Research & Technology
1993-1995 1 640,000 D irect uses
Combined uses
Research & Technology 640,000
1996-1997 1 300,000 Direct uses
Combined uses
GRAND TOTAL 2 940,000
1 Item Research & Technology in c lu d e s re c o n n a issa n c e , p re - a n d fe a sib ility stu d ie s, tra in in g c o u rse s and
assistan ce. Item s Electricity generation, Direct uses an d Combined uses in clu d e m a in te n a n c e &
re h a b ilita tio n o f th e p lan ts.
489
A nnex 5.3
EU -DG XII
European Commission - Directorate General XII
Science, Research and Development
Rue de la Loi 200 - B 1049 Brussels - Belgium
DG XII has supported several projects related to Research and Development actions in
the past 20 years.
With regards to the geothermal sector DG XII has supported and continues to support
the research and developm ent o f technologies mainly through the j o u l e Programme.
The JO U LE Programme deals with and supports R&D projects generally related to the
following topics, which can slightly vary during the time:
Research and technology developm ent strategy relevant to the energy framework as
analysis, socio-economic research, environment, econom ical aspects;
Rational use o f energy aimed at the reduction o f the energy demand and increasing
the energy efficiency o f the main sources o f consumption;
Stimulate the introduction o f the renewable sources and increase their utilization;
Introduction o f innovations in the use o f coal and hydrocarbons in the fossil fuels
sector;
Dissemination o f technologies.
According to the recent policy o f DG XII, conventional European geothermal

development does not justify further R&D support from public funds as it is technically
successful (even if problems, cither o f econom ic/financial or only o f local significance,
still remain).
For this reason, at present, support for conventional geothermal research (though this
could change again in the future) it is not foreseen.
The support for non-conventional geothermal research still goes on; in particular DG
XII still provides support for the research o f Hot Dry Rocks. A single European HDR
project brings together all the interested parties onto a single site (Soultz-sous-Forets)
which is progressing towards a pilot plant p o st-1998.
In the years 1977 to 1992 DGX1I supported R&D into geothermal resources and
technologies. During that period several projects where financed in conventional
geothermal research and resource assessm ent sectors up to a total am ount o f about
4M ECU.
In the period 1992-1996 a total contribution o f 4.6M ECU was devoted to 7 R&D
projects in the geothermal conventional sector.
The support for non-conventional geothermal resources DGXII in the years 1993-1995
was 9M ECU (out o f 26M ECU total cost) and the corresponding figures for 1996-1997
are 2.5M ECU and 6.8MECU respectively.
Summing up, a total support o f 20. IM ECU has been allocated from DG XII for
490
A nnex 5.3
geothermics, conventional and non-conventional, from 1977 up to now.
FU N D S C O M M IT T E D TO SU PPO R T G E O T H E R M A L A C TIV ITIES
E U -D G XII - JO U L E

(ECU) (ECU)
1977-1992 7 4,000,000 Direct uses
Combined uses
1993-1995 7 13,600,000 Direct uses
Combined uses
Research & Technology 7
1996-1997 ? 2,500,000 Direct uses
Combined uses
GRAND TOTAL 20,100,000
491
A nnex 5.3
EU-DGXVII
European Commission - Directorate General XVII
Energy
Rue de la Loi 2 0 0 - B 1049 Brussels - Belgium
The most important program m es funded by this Directorate are altener and t h e r m ie :
altener programm e was established by a Council decision on 13rd September 1993

for the prom otion o f renewable energies in the Community.
altener is the only programm e which focuses exclusively into renewable energy
sources close to commercial exploitation (wind power, solar energy, hydropower,
geothermal energy) and is aimed at the renewable energy developm ent across the
Com m unity providing support for pilot actions proposed by M em ber States.
The program m e was established for five years (from 1993 to 1997) and appropriated a
total budget of40M E C U .
The specific target by the year 2005 are the following:

To increase the consumption o f renewable energies with respect to the total energy
consumption (from 4% in 1991 to 8% in 2005);
To triple the production o f electric energy obtained from renewable energies (except
hydro power plants with more that 10MW o f total installed power);
To reduce the em ission o f carbon dioxide by 180 million tons;
To attain o f a m arket share o f 5% for biofuels on respect to the total fuel
consumption for m otor vehicles.
The topics covered by the program m e are:

The integration o f renewables and the removal o f different kind o f obstacles and
creation o f regional centers for RES;
Financial and economic measures to improve the use o f RES to elaborate
developm ent plans and prefeasibility evaluations;
The training o f potential developers and investors, exchange o f experiences and
dissemination o f information;
The cooperation o f new Com m unity Countries;
Other projects useful to the general target o f the programme.
The key players in the geothermal sectors as developers, investors, public authorities
have to set a detailed proposal with sufficient technical economical explanatory
elements according to the format established by the Commission.
Projects o f national interest have a dead time while those o f general interest can be
presented in every moment.
The proposals are exam ined and judged. If passed, the financial support, that can vary
from 50% to 100% o f the total cost, is assigned.
From the beginning o f the program m e (1993) the support to projects exclusively related
to geothermal resources had reached about 500,000ECU (not including projects relevant
to the integration o f different RES).
492
A nnex 5.3
The projects financed were 3 in 1994, 1 in 1995 and 2 in 1996.
FU N D S C O M M IT T E D TO SU PPO R T G E O T H E R M A L A CT IV IT IE S
EU -D G XVII - A L T E N E R
PROJECTS TOTAL ITEM IZED

(E C U ) (E C U )
1994 3 ? Direct uses
Combined uses
1995 1 360,000 Direct uses
Combined uses
1996 2 488,000 Direct uses
Combined uses
programm e started in 1990 as a prosecution o f the previous Comm unity

T H E R M IE
Demonstration Programm e which covered the periods 1978-1982, 1983-1985, 1986-
1989.
Although the detailed content o f the program m e has changed somewhat in the time, the
general criteria remain to assure the energy supply, the energy saving, the reduction o f
the environm ental impact and the strenghtening o f technological skills w ithin the
industry.
The specific objectives are to improve the energy efficiency (demand and supply), to
improve the use o f renewable energies, to encourage an environm ent only friendly use
for coal and solid fuels, the optim ization o f gas and oil exploitation in the EU, the
dissem ination o f the new technologies and their the promotion.
The programm e is updated yearly.
The proposals m ust be presented by at least two participants o f different EU M em ber

States and the Com m unity financial participation is around 35% except for universities
or similar institutions for which support may be total.
The projects must have innovative com ponents or set im provem ent for the existing
technologies. The products or processes must have passed the R&D phase in order to be
demonstrative.
The key players interested in such dem onstrative project have to set a detailed proposal,
according to the format established by the Commission with detailed technical
econom ical explanatory elements.
t h e r m ie program m e has been and is still strongly active in the support to geothermal
sector.
The specific sector which have been financed are electricity generation, direct uses
(district heating, acquaculture, greenhouse heating), combined uses, industry &
493
A nnex 5.3
technology.
Beneficiary countries are, in order: France (36 projects supported), Italy (30), Germany
(20), Spain (12), Greece (7), Portugal (6), D enm ark (5), U K (4), Belgium (3), Austria
(2), The N ederlands (2), Iceland (1), Ireland (1).
From 1979 to 1996, 129 projects in geothermal sector have been supported
corresponding to a total am ount o f around 68MECU.
FU N D S C O M M IT T E D TO S U PPO R T G E O T H E R M A L A C T IV IT IE S
EU-DG XVII - T H ER M IE
PROJECTS TOTAL UTILIZATION ITEMIZED

YEAR SUPPORTED SUPPORT SUPPORT
(E C U ) (E C U )
Electricity generation 5 7,443,400

1978-1980 23 15,026,700 Direct uses 18 7,583,300
Combined uses - -
Research & Technology - -

1981-1985 34 15,775,000 Direct uses 24 9,444,700
Combined uses 5 3,097,400
Research & Technology 1 187,400
Electricity generation 1 1 ,0 0 0 ,1 0 0
1986-1990 34 13,345,000 Direct uses 12 4,430,500
Research & Technology 10 2,101,400
1991-1995 32 18,853,400 Direct uses 12 6,698,500
Electricity generation - -
1996 6 4,941,900 Direct uses 2 1,488,900

Research Technology 2 1,561,100
GRAND TOTAL 129 67,942,000
494
A nnex 5.3
E.I.B.
European Investment Bank
100 Boulevard Konrad Adenauer - Brussels - L-2950 Luxembourg
Ph. +352 4379 3149 - Fax +352 4379 3189 / 3188
EIB has funded 10 geothermal projects and only in Italy in the M t Am iata area (near the
big Larderello geothermal field). The beneficiary was ENEL and total funding from
1978 to 1993 was about 253.4M ECU.
FU ND S C O M M IT T E D TO S U PPO R T G E O T H E R M A L A C T IV IT IE S
EIB

(E C U ) (E C U )
1976-1980 1 16,580,000 Direct uses
Combined uses
1981-1985 2 47,370,000 Direct uses
Combined uses
1986-1990 6 163,160,000 Direct uses
Combined uses
1991-1995 1 26,320,000 Direct uses
Combined uses
1996-2000 Direct uses
Combined uses
GRAND TOTAL 10 253,430,000
495
A nnex 5.3
E.B.R.D.
European Bank for the Reconstruction and Development
One Exchange Square - London EC2A2ETT - England
The European Bank for the Reconstruction and Development was founded by several
leading countries with the purpose o f providing Eastern European countries with a
financial instrum ent to support their transition to m arket economies to achieve better
efficiency for both public and private initiative and stim ulating private enteiprises
growth.
EBRD gives financial opportunities through equity, quasi equity, depth instruments and
grants for the realisation o f projects and studies as well as engineering activities.
The Bank co-operates with other bilateral and m ultilateral institutions (WB, IFC,
M IGA, EU, EIB, export credit agencies and commercial entities) co-financing projects.
The way to access funding generally occurs through a direct request from the investors
either public or private. For the realisation o f projects, supply o f goods, technical
assistance services, consultancy, studies and similar, the Bank acts through a specific
call for tenders, open competition m ostly on an international basis.
W ith reference to funding projects to private or public entities, the Bank performs a
detailed evaluation and investigation on the technical/econom ical reliability o f the
project with special focus on the intrinsic profitability and cash flow generation o f the
project.
The applicant is subject to verification and has to offer adequate reliability and
guarantees.
For operations in the public sector (governments, public agencies, public utilities owned
or controlled by national or local governments, agencies and enterprises m ajorities
owned by governments) the contracts follow open tendering if their value is esteemed
equal or greater than 200,000ECU for goods and services and 5,000,000ECU for work
execution. Notification is published in the B anks bulletin Procurement Opportunities
and in the United N ations Developm ent Business .
For operations in the private sector the Bank acts mainly following the common
banking procedures with lower constrains regarding the uses o f international tenders to
obtain goods or services.
For consultant services the Bank adopts flexible and transparent procedures. For
contract values less than 50,000ECU the firm or the individual can be selected directly;
for values o f between 50,000 and 200,000ECU the selection is carried out on the basis
o f a short list o f qualified candidates. For m ajor contracts valued at over 200,000ECU, a
more com petitive procedure based on a short list o f qualified firms is prepared on the
basis o f the response to the formal announcement, soliciting expression o f interest,
published in the B anks Procurement Opportunities .
To date the Bank has granted consultancies and feasibility studies in Georgia and a
feasibility study for the first geothermal pow er plant in Kamchatka ( Russia). The total
496
A nnex 5.3
am ount funded is about 680,000ECU. M oreover, a loan for the construction o f the first
geothermal 40M W e plant in M utnovsky field (Kamchatka) has been recently awarded,
about 85 MECU.
The Bank, in the near future could finance the extension o f the Kamchatka geothermal
project for about the same am ount as above.
FU N D S C O M M IT T ED TO SU PPO R T G E O T H E R M A L A CT IV IT IE S
EBRD
PROJECTS TOTAL ITEM IZED

(E C U ) (E C U )
Combined uses
Combined uses
Combined uses
1991-1995 1 219,000 Direct uses
Combined uses
1996-1997 2 85,460,000 Direct uses
Combined uses
GRAND TOTAL 3 85,679,000
497
A nnex 5.3
I.A.D.B.
Inter-American Development Bank
1300 New York. Avenue, N.W. Washington, D.C. 20577
The Bank was founded in favour o f the Banks borrowing m em ber Countries in the
A m ericas and has about thirty-five years o f operation.
The Bank actively promotes energy developm ent by means o f loans and technical
cooperation for technically, socio-econom ically and financially feasible projects
supporting electric energy generation, transm ission and distribution projects and/or
programs, as well as the developm ent o f hydrocarbon resources.
The Bank may participate in, promote or support the following activities toward these
goals:
exploration.
evaluation and quantification o f resources.
development, production and processing.
transportation, storage and distribution.
institution strengthening.
training and skills development.
developm ent and im provem ent o f the technological infrastructure.
energy utilization.
applied research.
energy planning and policy.
cooperation among m em ber countries.
The following aspects receive special consideration in projects to which the Bank
extends support, either directly in the project itself or through its participation in other
sectors:
The reliability and conservation o f the energy supply and its efficient use.
Increase in the supply o f energy through better utilization o f installed capacity.
The energy projects or programs should preferably be part o f short, medium or long
term investm ent plans for financing the energy sector or its subsectors and should be
integrated with the socio-economic planning at national level.
The energy projects would serve as key elements to promote developm ent in their
areas o f influence thorough the generation o f subsidiary economic activities.
There should be an assurance that the rural energy plans and projects include, within
the national energy context, the economic and physical requirements o f the rural
areas and rural com munities and that the energy projects would contribute to the
creation o f new jobs in the non-farm ing sector to strengthen rural social and
economic development.
The projects should increase the production o f renewable energy.
The projects should help the countries to continue their programs for institutional
improvements in the energy sector and contribute to a transform ation o f the energy
supply and consum ption structure in Latin America.
498
A nnex 5.3
The activity must be such that in addition to meeting the requirem ent o f overall
financial feasibility, its benefits from the use o f energy will reach the homes o f the
disadvantaged target sectors, consistent with the B anks tariff policy.
The energy projects should be conceived and designed in a manner com patible with
environmental protection requirements.
In applying this policy, the Bank will maintain close coordination with all the
international agencies operating in the energy field, especially those directing their
efforts to Latin America.
The IADB support to the projects takes place through loans and grants. The Bank has
been actively present in the small-medium scale RES projects, with almost 50 approved
loan and grant funding for nearly 500M ECU. This amount represents the 5% o f the
entire energy sector expense which since 1961 counted on some 250 loans (about 10
Billion ECU).
In this framework, the geothermal sector appears the most consistent with respect to
other renewable energies, with 25 loans and grants (from 1975 to 1996) totalling about
330 MECU for geothermal feasibility studies, field developm ent and plant construction.
All beneficiaries are in South and Central America.
FU ND S C O M M IT T ED TO SU PPO R T G E O T H E R M A L A CT IV IT IE S
IADB

(E C U ) (ec u )
1976-1980 2 10,320,000 D irect uses
Combined uses
Electricity generation 2 68.480.000
1981-1985 8 90,370,000 D irect uses
Combined uses
Research & Technology 6 21.890.000
Electricity generation 1 57.920.000
1986-1990 6 67,740,000 D irect uses
Combined uses
Research & Technology 5 9.820.000
1991-1995 7 155,380,000 D irect uses
Combined uses 2,100,000
Research & Technology 4
1996 1 3,600,000 D irect uses
Combined uses
G RA ND T O T A L 24 327,410,000
499
A nnex 5.3
MAE - DCCS
Italian M inistry o f Foreign Affairs
Directorate for Developm ent Cooperation
Piazzale della Farnesina, 1 - 00194 Roma - Italy - Ph. +39 6 36912997 - Fax +39 6 3235911
The Directorate General for the Cooperation to Development is under the authority o f
the Italian M inistry for Foreign Affairs. It is active from long time in the support o f
w orldwide projects mainly in developing countries.
The enterprieses which are supported cover several aspects (infrastructure, energy,
services, transport, education, health, food & agriculture, industry, econom y etc.) at
different levels (education, training, planning, design, m aintenance, technical assistance,
supply o f equipment and goods etc.).
The financial support is in the form o f grants, loans, co-financing and participation in
multilateral funds. The projects admitted to funds are then assigned through tenders.
The general approach (which can have exceptions) starts from the specific request o f
the Country which are transmitted to M AE-DGCS according to the formal channels.
The requests are analysed, checked, discussed and support is usually assigned on the
basis o f the priority and the availability o f funds according to the principles o f the
Project Cycle M anagement. Usually the different phases take place in joint partnership
with bi-national com missions made up o f political representatives and technical experts
from both sides.
In the geothermal sector the DGCS has been particularly active in the 1980s in
developing countries, mostly in South America, Asia and Africa for training, studies,
surveys, drilling and some plants.
The total am ount granted from 1976 to date is about 53.7M ECU.In the years 1981,
1990 and 1992 three loans have been assigned totalling I I2.900M ECU for
geothermoelectric power plants construction.
FUNDS C O M M IT T ED TO SU PPO R T G E O T H E R M A L A CT IV IT IE S
MAE-DGCS

(E C U ) (E C U )

1981-1985 17 20,354,000 Direct uses
Combined uses
1986-1990 13 25,681,900 Direct uses
Combined uses
1991-1995 4 120,626,500 Direct uses
Combined uses
GRAND TOTAL 34 166,662,400
500
A nnex 5.3
W ORLD BANK
The World Bank Group (WB) com prises five organizations:
International Bank for Reconstruction and Development (IBRD),
International Development Association (IDA),
International Finance Corporation (IFC),
Multilateral Investment Guarantee Agency (MIGA),
International Centre for the Settlement o f Investment Disputes (ICSID).
Since its inception, the World Bank has provided nearly 225,000 MECU in financing
for some 5,000 projects.
Typically, the WB does not finance the total cost o f a project, ju st the com ponents that
must be purchased with foreign exchange, which on average is about 40%. The rest o f
the funding is provided by the borrowing countries and by other agencies and
commercial banks that cofinance with the WB.
Loans and credits are adm inistered by the same WB staff and the project must meet the
same criteria in order to qualify for a loan. They must be technically and financially
sound, produce acceptable rates o f return, and contribute to a countrys economic
growth and development. The project developm ent follows the typical project cycle.
The loan am ounts for the projects supported from 1983 is about 1,400MECU
IBRD
The IBRD, founded in 1944, is the W orld Bank Group's main lending organization. It
lends to developing countries with relatively high per capita incomes. The money the
IBRD lends is used to pay for developm ent projects, such as building highways,
schools, and hospitals, and for program s to help governm ents change the way they
manage their economies.
The IBRD raises m ost o f its money on the world's financial markets. It sells bonds and
other debt securities to pension funds, insurance companies, corporations, other banks,
and individuals around the world.
IBRD is owned by its I 80 m ember countries with voting power in the institution based
on a country's shareholding, which in turn is based on a country's economic strength.
During the past five years, the IBRD approved an annual average o f 14,000 MECU in
loans for developm ent projects.
IDA
The IDA was established in 1960 to provide assistance on concessional terms to the
poorest developing countries, those that cannot afford to borrow from the IBRD. IDA
loans, known as "credits," are provided mainly to countries with annual per capita
incomes o f about 770 ECU or less; credits are interest free, but carry a small service
charge. Terms on credits are 35 or 40 years, with a 10 year grace period.
501
A nnex 5.3
IDA resources arc derived from contributions from governments, IBRD profits, and
repaym ents on earlier IDA credits. IDA has 159 m ember countries, each country must
be a m em ber o f IBRD before it can join IDA.
During the past five years, IDA approved an annual average o f 6,000 MECU in credits
(lending) to help pay for developm ent projects.
IFC
The IFC was established in 1956 to help strengthen the private sector in developing
countries. IFC lends directly to the private sector, while the IBRD and IDA lend to
governments. IFC aids the private sector by providing long-term loans, equity
investments, guarantees and "standby financing," risk m anagement and "quasi-equity
instruments," such as subordinated loans, preferred stock, and income notes.
Interest rate on IFC loans and financing: M arket rates, which vary between countries
and projects. Maturity on loans: three to 13 years, with grace periods as long as eight
years.
About 80 percent o f funds are borrowed in the international financial markets through
public bond issues or private placements and 20 percent are borrowed from the IBRD.
IFC is owned by 170 m ember countries.
Lending: IFC investments have risen from about 3,600M ECU in fiscal 1993 to more
than 6,250MECU in fiscal 1996, including syndications and underwriting for private-
sector projects in developing countries.
IFC philosophy is to encourage the growth o f productive private enterprises that would
contribute many key com ponents to development. The investments are placed according
to business principles, taking on the full commercial risk and earning a profit from the
operations.
A nother principle is to com plement the role o f market operators attracting investments
and projects in countries which private investors would otherwise consider excessively
risky, provided there is co-participation o f private, local and international, investors.
Funding is in form o f loans, equity, quasi-equity.

The number o f projects per year is 100-200 (in 1995, 213 projects funded with an
investment o f 35.5MECU.
The ways to access IFC funding are: direct contact with sponsors who have proven the
economic and financial reliability, the existence o f environmental standards; the proven
technical, financial and economical viability (including profitability) o f the project and
for the private sector a condition is the ownership o f the project.
The IFC has not funded yet projects related to the geothermal sector. A project for the
installation o f an ORM AT binary cycle 28M W pow er plant in Guatem ala (Zunil
project) with more than 20M ECU support from IFC could be funded in future.
502
A nnex 5.3
MIGA
MIGA was established in 1988 to help developing countries attract foreign investment.
M IGA provides investors with investment guarantees against "non-commercial risk,"
such as expropriation and war. It also provides governments with advice on improving
the climate for foreign investment.
MIGA may insure up to 90 percent o f an investment, with a current limit o f 45M ECU
per project. MIGA is owned by 134 countries.
In fiscal 1996, MIGA issued 68 guarantee contracts worth about 770M ECU.
ICSID
ICSID was founded in 1966 to promote increased flows o f international investment by
providing facilities for the conciliation and arbitration o f disputes between governments
and foreign investors. ICSID also provides advice, carries out research, and produces
publications in the area o f foreign investment law.
ICSID is owned by 126 countries as o f June 30, 1996.

Research and publications: ICSID's publications in the field o f foreign investment law
include multi-volume collections o f investment laws and treaties and a semi-annual law
journal.
FU ND S C O M M IT T ED TO SU PPO R T G E O T H E R M A L A C TIV ITIES
WORLD BANK

(E C U ) (E C U )

1981-1985 1 32,631,600 Direct uses
Combined uses
1986-1990 4 440,444,700 Direct uses
Combined uses
1991-1995 3 682,000,000 Direct uses
1996-2000 4 245,471,000 Direct uses
GRAND TOTAL 12 1,400,547,300
503
A nnex 5.3
A.D.B.
Asian Developm ent Bank
6 ADB Avenue 0401 M andaluyon City, Manila (Philippines)
A fter the second oil crisis in 1979 together with the reassessm ent o f the energy policies
from international financing institutions and countries also the ADB readjusted its
strategy for energy sector. The main criteria o f the plan regarded:
- the strong increasing o f investments in energy projects in the 1980s (alm ost three
times that in the preceding decade,
- the substantial support to the indigenous sources o f supply in Developing Member
Countries.
The Bank has extensively financed the energy realizative projects (no. 82) for a total
am ount o f 10,900MECU and has also provided 76M ECU o f Technical Assistance.
The general policy o f ADB foresees also the joint financing operation with other
international financing institutions (W .B., E.B.R.D., etc.). W.B. widely assisted the
Developing M ember Countries in the institutional and legal framework related to
energy sector, especially restructuring and reforms resulting necessary for the open
market economy.
The Bank is also interested in projects related to Renewable Energy System also if their
share is generally low.
In the geothermal sector ADB financed only one project: the total amount o f the loan is
about 120MECU which financed a power geothermal plant in 1989 in Philippines.
FU ND S C O M M IT T ED TO SU PPO R T G E O T H E R M A L A CT IV IT IE S
A .D .B .

(E C U ) (E C U )
Combined uses
1 120,000,000 Electricity generation 1
Combined uses
Combined uses
G RA ND T O T A L I 120,000,00
504
A nnex 5.3
The main arguments and projects recom m ended for Board approval are the following:
- technical assistance and landing projects in Developing M em ber Countries for

restructuring o f power sector and incentive investments from the private sector,
- new capacity additions have to be adequately justified by the existing production
framework (rehabilitation and efficiency increasing o f existing plants as priority),
- environmental protection is carefully examined,
- BOO/BOT projects and joint venture ones.
The ADB is callcd for financing by Countries. The work opportunities are publicised in
the monthly magazine ADB Business Opportunities .
505
A nnex 5.3
NORDIC FINANCE GROUP

Fabianinkatu 34, PO Box 249 - FIN-00171 Helsinki (Finland)
The Nordic Finance Group com prises four multilateral finances institutions:
Nordic Investment Bank (NIB),
Nordic Development Fund (NDF),
Nordic Environment Finance Corporation (NEFCO),
Nordic Project Fund (NOPEF),
The institutions within the Group are owned by the five Nordic countries (Denmark,
Finland, Iceland, Norway and Sweden). We can participate in all project stages from
financing the pilot studies to financing final implementation.
All projects financed have to be o f mutual interest to the borrower and the Nordic
countries.
In its activities both within and beyond the Nordic area, the Group co-operates with
Nordic and multilateral finance institutions, banks and regional sources o f finance (i.e.
EBRD, EIB, IFC, ADB, etc.).
The Nordic Finance Group can offer solid financial com petence in different parts o f the
world and with different associates. During the nineties the Group has taken part in
projects in over 70 countries.
NIB
The Nordic Investment Bank (NIB) is a multilateral financial institution owned by the
five N ordic countries founded in 1975. NIB finances private and public projects which
have high priority with the N ordic countries and the borrowers.
NIB offers its customers long-term loans and guarantees on com petitive market terms.
NIB finances projects o f various kinds which bring the Nordic countries more closely
together, such as cross-bordcr investments and infrastructure improvements. NIB also
finances investments securing energy supply and supporting research and development.
High priority is given to projects improving the environm ent o f the Nordic area and its
neighbouring regions. NIB can also finance foreign direct investment in the Nordic
area.
The Bank has financed more than one thousand projects which have helped to
strengthen N ordic economic co-operation. Loans outstanding to N ordic borrowers in
August 1997 totalled some ECU 5.5 billion.
NIB grants loans to companies, local authorities, public institutions and regional credit
institutions. The Bank can finance up to h alf the total cost o f a project. In this way its
loans supplem ent loans from other banks and finance institutes and/or the custom ers
own funding.
The core o f N IB s lending outside the Nordic Countries consists o f Project investment
loans (PIL) to the growth market o f Asia, Latin America, Central and Eastern Europe,
Africa and the M iddle East. PIL loans are long-term loans with a repaym ent time o f up
to twenty years. The proceeds o f the loans can be used to cover any part o f project
506
A nnex 5.3
costs. So far, PIL loans have been granted for projects in more than thirty countries.
Project investm ent loans are normally granted to governments or against government
guarantees. The Bank is also open to participation in the financing o f projects in the
private sector, primarily in infrastructure investments and utility projects.
NIB also provides loans to investments, including jo int ventures and corporate
acquisitions, within the OECD area.
NIB is participating in the financing o f projects o f regional interest in the Baltic

countries. As part o f the Baltic investment programm e o f the Nordic countries, NIB
offers investment loans to small and medium-sized com panies in Estonia, Latvia and
Lithuania.
Since 1997, NIB has been granting environm ental investment loans to the neighbouring
regions o f the Nordic area. These loans are made towards public and private
environmental projects in North-W est Russia and the Baltic region. The projects must
contribute to reducing environmental degradation and transboundary pollution.
NDF
The Nordic Development Fund (NDF) finances high priority projects o f Nordic interest
in developing countries with favourable and very long-term developm ent credit.
NDF is a multilateral developm ent financing institution which concentrates on the least
developed, low and lower middle income countries. Projects in poor developing
countries have priority. Credits are granted for projects promoting economic and social
developm ent in accordance with the developm ent aid policies o f the Nordic countries.
NDF grants credits with a repaym ent time o f forty years, including a ten year grace
period.
NDF credits are interest-free but carry a service charge o f 0.75% p.a. and a
com m ittm ent charge o f 0.5% p.a.. Credits are only granted on a basis o f co-financing
with other financiers, most o f them other multilateral finance institutions such as the
World Bank group, the big regional developm ent banks and the Nordic bilateral
developm ent agencies.
The NDF specialises above all on fields in which N ordic enterprises are particularly
competitive. N ordic com petitive bidding is normally applied for procurem ent o f both
goods and services.
NDF supports private sector development. The fund offers direct co-financing o f private
sector projects in the developing countries, in collaboration with Nordic enterprises,
local partners and other finance institutions.
N D F s fund capital amounts to 625M ECU, financed through the developm ent co
operation budgets o f the Nordic countries. Annual lending is approxim ately 63MECU.
507
A nnex 5.3
NEFCO
The Nordic Environment Finance Corporation (NEFCO) is a multilateral Nordic risk
capital institution financing environmental projects in the Central and Eastern European
Countries.
N EFC O s activities are intended to produce positive environmental effects in the
project country and in the Nordic area. Priority is given to neighbouring regions o f the
Nordic area, i.e., the Baltic countries and the Barents region.
NEFCO can take part in projects by equity investments and by offering loans and
guarantees. This usually takes place on market terms, but in certain cases also in the
form o f loans with equity features. N EFC O s share o f total financing is usually between
25 and 30 per cent.
With priority being given to projects having a m ajor Nordic environmental effect, the
main emphasis is on w ater and air pollution. Financing may, for example, involve:
com panies m anufacturing environmental equipm ent and equipm ent for improved
energy efficiency,
com panies offering planning services in the environm ental and energy sector;
projects concerned with the modernisation o f industrial and energy production
plants, with environm ental benefits;
projects providing environmental services, such as w ater purification.
A Nordic partner should participate in the projects on a long-term basis. Generally, this
implies participation in an enterprise, and the emphasis is on various kinds o f direct
investment. NEFCO co-opcrates i.e. with the national environmental assistance
programmes o f the Nordic coutries.
NEFCO also adm inisters what is known as the Grant Financing Facility, under which
funding is channelled into urgent environmental projects in neighbouring regions to the
N ordic area, so as to facilitate or accelerate measures o f environmental remediation.
NEFCO is an investment fund with a capital o f ECU 80 million.
NOPEF
The Nordic Project Fund (NOPEF) promotes the internationalisation o f Nordic
companies. NOPEF grants favourable loans to feasibility studies for international
projects and foreign investments with a Nordic interest.
N O PEFs ordinary loans are interest-free and can cover 50 per cent o f the budgeted cost
o f a feasibility study. Loans should be repaid if the project is implemented.
The loans can be used for part-financing feasibility studies and preparatory business
activities for project identification under the borrow ers own suspices and for
information activities among Nordic firms. Loans are granted for projects which can
lead to project deliveries or investments with Nordic participation in countries outside
the EU and Efra.
N EPEFs activities are partly funded by the Nordic Council o f Ministers. NOPEF has
taken part in 1,500 projects and has had widespread experience o f project exports and
508
A nnex 5.3
internationalisation. During the 1990s, NOPEF has been involved in projects in over
fifty countries.
N O PE Fs loans within the framework o f the Baltic Investment Programme (BIP)

promote the establishment o f small and medium-sized com panies in the Baltic
countries. The loans are interest-free and can cover 60 per cent o f the budgeted cost o f a
feasibility study.
NOPEF represents JOP (Joint-Venture Programme, Phare-Tacis) within the EU, the
purpose o f which is to pave the way for new enterprises and business co-operation
across national boundaries in Central and Eastern Europe. In addition, NOPEF
adm inisters a Danish Trust Fund for Danish firms and consultants taking part in projects
o f Nordic interest in neighbouring regions to the Nordic area.
N O PEFs annual lending amounts to 3.5MECU and loans outstanding in 1997 totalled
some 9MECU.
FU N D S C O M M IT T E D TO SU PPO R T G E O T H E R M A L A C T IV IT IE S
NI B
YEAR PROJECTS TOTAL ITEMIZED

SUPPORTED SUPPORT UTILIZATION SUPPORT
(E C U ) (E C U )
1991-1995 1 945,900 Direct uses 854,600

1 Research & Technology 91,300
1996-2000 1 486,600 Direct uses 451,100

1 Research & Technology 35,500
GRAND TOTAL 4 1,432,500
509
A nnex 5.3
NDF
YEAR PROJECTS TOTAL UTILIZATION ITEMIZED

SUPPORTED SUPPORT SUPPORT
(E C U ) (E C U )
1991-1995 1 558,800 Direct uses 511,900

1996-2000 1 194,400 Direct uses 178,000

NEFCO

(E C U ) (E C U )
1991-1995 2 227,500 Direct uses 227,500
1996-2000 1 210,500 Direct uses 210,500
NOPEF

(E C U ) (E C U )
1981-1985 1 10,900 Combined uses 10,900
1986-1990 4 172,900 Combined uses 172,900
1991-1995
1996-2000 1 47,900 Combined uses 47,900
510
A nnex 5.4
Annex 5.4
M ARKET SITUATION FOR GEO THERM AL ELECTRICITY GENERATION

AND DIRECT HEAT USES
A nnex 5.4
INDEX
1. M ARKET SITUATION IN CENTRAL AND SOUTHERN AM ERICA

FOR GEO THERM AL ELECTRICITY G E N E R A T IO N .............................. 514
1.1 Central A m erica........................................................................................................... 515
1.2 South A m erica ...............................................................................................................518
1.3 Central and South American M arket considerations...................................... 519
2. M ARKET SITUATION FOR DIRECT HEAT USES IN OTHER

EUROPEAN C O U N TR IES.......................................................................................522
513
A nnex 5.4
1. M ARKET SITUATION IN CENTRAL AND SOUTHERN AM ERICA

FOR GEO THERM AL ELECTRICITY GENERATION
The geothermal market in the last few years has shown that the present higher grow rate
markets are located in South-eastern Asia, in these areas Japanese, American and new
Zealand operators and developers have a dominating position.
As a consequence one o f the main areas w here the geothermal resources could offer in
the future, high opportunities for the EUROPEAN operators is Central and Southern
America.
The potential perspectives and the possible future opportunities were discussed in the
seminar El papel de las fuentes de energia nuevas y renovables en el desarrollo
sustentable de America Latina y el Caribe : el caso de la geoterm ia held in Santiago
del Chile in late 1995.
It was organized by CEPAL(United Nations) and DG XVII (European Community)

with the presence o f institutional representatives from ten countries o f the region, from
European Comm unity-D.G.XVII, Indonesia and The Philippines, various international
public and private firms, research agencies, individual experts and national and
international promotion and financing agencies.
Some considerations emerged by the Seminar as:
a generalised interest toward the exploitation o f the geothermal resources o f the

continent by different American and extra european firms.
the request for regulatory and legislative national frameworks which guarantee the
private investors investments and profits
the trend toward the com plete privatisation o f the sector from the early phases
(assessm ent and exploration o f the resources) to the subsequent ones (field
development, plant installation, operation) with systems such as BOOT, BOO.
the opinion that central and southern America could be a good chance for the
European operators, who in the past have contributed considerably to the initiation
o f geothermal activities: however, in many cases (esp. South America) this
involvement has not followed actual realisations. The necessity to favour the
creation o f strong consortia with joint com plementary financial and technical
capabilities is so evident.
514
A nnex 5.4
Following the boost o f the above initiative CEPAL and UE D G XVII promoted the
implementation o f a bridging project in order to prepare a successive w ider project
aimed at stim ulating a Regional program o f technical Assistance to identify and
promote actions and pilot projects, and support the national m anagem ent capabilities in
geothermal operations.
This bridging project entitled Desarrollo de los Recursos Geotrm icos en Am erica
Latina y en el Caribe has been recently finished. The main contents o f the study are:
a) The elaboration o f a questionnaire form to identify the different factors (Technical,

legal, political, economical, etc.) which influence positively and negatively the
developm ent o f local initiatives and the exploitation o f the existing geothermal
resources.
b) The identification (through reasonable hypothesis, and selection on the basis o f

feasibility considerations) o f some general initiatives in the geothermal sector and o f
some projects which could be o f mutual interest for local and European firms.
c) To elaborate the scheme o f the above m entioned future Technical Assistance

Regional Program (PRAT)
The indications contained in the above point b) identified some projects, not yet started
and/or assigned, which have been planned and considered as a priority by local
institutional Authorities.
The following projects and initiatives could offer actual short term future work
opportunities, mentioned in brackets, for European operators ; also if the real
im plem entation o f many o f them still requires the solution o f some requirem ents and
conditions (legal, financial etc.)
1.1 Central America
EL SALVADOR
Berlin geothermal field (Plant installation, ..possible concession for further

developments)
In this field, whose potential has been estimated to be about 100 MWe, are presently
installed 8 MWe.
Feasibility studies for 1x50 M W e or 2x25 M W e condensation units have been
finished already (BID and WB funds).
The im plem entation o f the plant 2x30 MW is ongoing and has been assigned to the
Japanese firm Fuji. Studies for further expansion are expected.
San Vicente geothermal field (Surface surveys, exploration drillings, feasibility

studies,)
515
A nnex 5.4
The feasibility study has been suspended for contractual problems. Local Authority
CEL is deciding the regulatory framework for the field im plem entation (direct
charge or concession to private developers). Geophysical surveys, three exploration
wells, tests (com pletion o f feasibility studies) are specific work opportunities
together with the possible field concession.
Chinam eca geothermal field (possible concession)
Detailed surface surveys are presently underway for the assessm ent the field
potential in order to assign the field concession.
For the above open initiatives preliminary intention o f interest seems to have been
expressed by local and North American private operators. The definition o f regulatoiy
schemes regarding the ownership o f resource, and the generation/sell o f energy are in
progress.
NICARAGUA
National geothermal m aster plan (studies and surveys)

The plan has been already financed by BID and tenders for engineering
com panies/consultancy services have been issued, awarding is underway (february
1998).
G ranada-M asaya-Nandaim e geothermal area (studies/surveys, drilling services,

equipm ent supply)
Preliminary prospections were performed around 1980, financed by Italian co

operation funds. Local governm ent asked for funding from EU for a prefeasibility
study in the area. Feasibility study (engineering services, studies and surveys,
services and supply o f equipm ent for exploratory wells) are foreseen as work
opportunities.
El Hoyo-M onte Galan geothermal area. This area has been studied at a prefeasibility
stage in the lgSOs. It was recom m ended as a high priority. Since then no activity has
been performed but the area remains a prim ary quality target.
Considering the high potential o f the country mixed local/foreign consortia and
Northern American investors have expressed interest to acquire concessions in some
geothermal areas o f the Country. This behaviour is also subsequent to some trends in
the governmental energy policies, presently not officially established, which envisage
the assignment o f concessions fo r generation to private investors.
516
A nnex 5.4
COSTA RICA
Rincon de la Vicja geothermal field (exploratory drillings, plant installation)

A fter the conclusion o f the prefeasibility study financed by BID, the exploitation
should be implemented through exploratory wells and tests in the short term, while
the following plant installation (in the medium term) will be achieved from the
installation o f a successive num ber o f sm aller nodular units as opposed to one
single 55 MWe unit.
Tenorio geothermal field (surveys, exploratory drillings tests)

The prefeasibility study has been completed by ICE (Instituto Constarricense de
Electricidad) and Italian Cooperation funds. The next stage (feasibility study)
including exploration drilling will be financed by ICE funds and consultancy
services opportunities could occur for European operators.
M iravalles geothermal field (consultancy services, plant supply)

The medium -long term binary cycle power plants could be implem ented as a
cascade system to com plem ent the existing units. Further expansion will be
financed under BOT contracts
Local recent legislation foresees that the early phases (exploration, evaluation o f the
field) are in charge o f ICE while the generation o f electricity and management o f the
plants can he assigned to private investors committed to sell energy to ICE
GUATEMALA
Zunil II geothermal project (engineering services, equipm ent supply)

The feasibility study should be assigned.
A matitlan geothermal area (engineering services , equipm ent supply

Following the completion o f the feasibility study the installation o f a 25 MWe
pow er plant should be assigned through an international tender. The
implementation o f a provisional back-pressure unit o f 5 MW is underway on behalf
o f a M exican Company. It is probable that the field will be assigned under a
concession contract to possible private investors. The final possible potential o f the
field could be much higher than the currently proven potential.
Tecuamburro geothermal project (engineering services, equipm ent supply)

Probable opportunities could follow after the conclusion o f the feasibility phase
(wells, tests) and in the long term for plant installation. After the drilling o f a first
exploration deep slim hole the area looks like the most promising in the country.
San Marcos geothermal project (engineering services)

A fter the conclusion o f the prefeasibility study the feasibility phase has been
planned for which technical and financial assistance has been asked to EU.
517
A nnex 5.4
The legal framework relevant to the exploitation o f the geothermal resources has not
been completely defined but private investments in the energy generation seem possible
under BOO contracts.
HONDURAS
Projects for small scale generation such as Plantanares and El Tigre are possible future
initiatives but are not yet well defined
SA N T A LUC IA
La Soufricre-Qualibu (engineering services, plant installation)

The previous feasibility activities need to be integrated before the installation o f a 10-
20 MWe power plant. The main problem o f the field is linked to the high acidity o f the
fluids found in the first well.
1.2 South America
The implementation o f the geothermal exploitation in South America has been delayed
in comparison with central America. Presently, in spite o f many efforts and expenses in
the early phases such as studies, surveys, drillings, only a very small (0.67 MWe) pilot
binary cycle well head power plant has been installed in all the subcontinent (Copahue-
Argentina).
No exist projects ready to start or are ready to be implemented in short term.
The few initiatives which have some probability o f being implemented in the medium-
long term are as follows:
C O L O M B IA
Las Nereidas-Nevado del Ruiz project (engineering services, exploratory drillings):

The public-private com pany Geoenergia A ndina has a program m e to perform the
feasibility o f the field (drillings and tests) for the subsequent installation o f a medium
size power plant.
PERU
Tutupaca-Challapalca project (surface studies and surveys, drillings)

Only prcfeasibility studies have been performed in this field . All the feasibility
activities have yet to be conducted. The public agency CENERGIA is looking for
private investors which are interested in charging (concession) for the whole project.
International co-operation for funding the early phases o f exploration is to be
encouraged in order to stimulate private interest thus m inimising the m ining risk.
518
A nnex 5.4
B O L IV IA
Laguna Colorada project (m arket study, plant installation?)

A feasibility study was completed in 1990. Due to the long distance o f the plant from
the users and to the availability o f a cheap energy supply alternative (natural gas), the
installation o f a generation plant may not be attractive investment. It is advisable
therefore to carefully evaluate any investment through a devoted and focused market
study. The project is presently managed by the Secreteria de Energia del Ministerio de
Desarrollo Econoniico .
C H IL E
El Tatio project
This project has a long history and exploration wells already exist. A feasibility study
was performed in 1975, and updated in 1982. Both studies recom m ended the
im plem entation o f a 15 MW power plant. The estimated total potential (30 MWe) has to
be checked the context in o f the present condition. Doubts on the economic convenience
o f a power plant installation still exist due to the lack o f a nearby market. Nevertheless,
the existence about 30 km away o f a substation near the big copper mine o f
Chuquicam ata (electrically self sufficient) could make the project attractive if a larger
resource was discovered. Interest in the concession for the field has been expressed by
private foreign investors provided that proper legislation is established by the local
government.
1.3 Central and South Am erican M arket Considerations
The grow rate and local interest o f geothermal resources and the consequent potential
business opportunities for European operators are very different in Central and Southern
America.
In Central America geothermal resources are extensively exploited and in some

countries represent a noteworthy share o f the electricity energy supply. Energy policies
for the Governm ent geothermal sector are alm ost exclusively devote to this kind o f
application, with very low interest in direct use applications.
High enthalpy geothermal potential, not yet exploited does exist and is broadly
estimated to be 1,700 MWe as m arketable resources (plants in construction,
planned and proven resources).
519
A nnex 5.4
Some non-technical problem s in developm ent (mainly delays and lack o f funds) have
been caused by the previous state m anagement o f the whole sector, but these difficulties
should be progressively lessened by the privatisation processes already introduced or
established.
The status o f the electricity grid system is generally favourable and a certain amount o f
local experience and expertise .exist.
The region offers the competition from other renewable energy sources although
traditional options can be limited. Geothermal energy is an indigenous precious
resource which could supplem ent energy supply.
The international co-operation programm e have in the past helped to sustain the birth
and growth o f the geothermal market especially in the early assessm ent and exploratory
phases. In the future, and despite the privatisation processes, it is advisable that the
support from international co-operation/financing Agencies or national support entities
can be m aintained especially for the early phases o f the exploration where the mining
risk represents the main disincentive for the private investor. In Costa Rica this
criterion appears to be the policy which will be adopted.
From the above considerations Central American countries appear on the whole
to be an area where the European geotherm al operators could find real short and
medium term work opportunities. The present and the incom ing local energy
policies will, however, considerably reduce the previous projects im plem ented
from international financiation and tendering. Private investm ent as BOT, BOO,
will be the key tools for the developm ent o f this m arket according to the results of
models which range from fully com prehensive concession o f the field and the
production sale to interm ediate schemes.
Private investors comprise o f strong international technical-financial Consortia

(mainly North American and Asian) are already present and commercially active in
the countries where by contrary there is a still general reticence o f most European
operators to the adopt such schemes. This approach could strongly condition their
future presence and business opportunities.
The Southern American countries offer slow progress in the exploitation o f the high
geothermal potential which has been estimated to be about 700-1000 MWe as
M arketable resources (value rather indicative due to the fact that a feasibility stage is,
in many areas, lacking or incomplete).
The recent deep changes in former energy institutions, with the generalised shift to
privatisation and the concom itant reduction in governmental presence strongly affected
these geothermal programs.
The main problem which will affect the progress o f geothermal activity in South
American countries is the lack o f a genuine interest. The energy supply options are, in
general, diverse both with fossil fuels and renew able resource alternatives so that
geothermal energy is often in competition with cheap options such as hydroclectricity
and natural gas.
520
A nnex 5.4
The use o f this latter resource is in strong developm ent in the region with the
construction o f large scale gas pipe lines and distribution networks (Chile, Argentina)
M oreover, many promising geothermal fields are located in high Andean areas which
arc relatively remote from the main centres o f electricity consumption, which therefore
require high costs for the relevant grid connections.
Given this situation economic and financial oriented market studies on the existing or
evident geothermal fields would be a useful step in order to a reactivating interest. Also
a strategic option o f developing small-size plants in decentralised areas should be
carefully analysed possibly lead to key pilot schemes, as a precursor to more
widespread investment. These tasks probably require the support o f international co
operation or at least national ones.
From the considerations above the Southern American Countries appear to be an

uncertain m arket for geotherm al European operators. Supplem entary engineering
services to com plete the feasibility stages, studies o f the m arket situation
(com petitiveness ) and on pilot alternative options appear, at the moment, to be the
most im m ediate and appropriate short term action.
Support from the European Union for the above activities could be a good opportunity
to open possible future penetration by the European operators in this relatively under
developed area.
521
A nnex 5.4
2. M ARKET SITUATION FOR DIRECT HEAT USES IN OTHER EUROPEAN

COUNTRIES
M arket situation o f other European countries, formerly as C E E s and CIS, is

characterised by very high potential especially for the direct uses application both due
to the presence o f high am ounts o f geothermal resources and to the tradition o f using in
greenhouses and district heating applications. Some projects are outlined here both for
those not yet started and/or assigned which have been planned and considered as a
priority by local institutional Authorities, (these could represent genuine short-term
future market chances for European operators).
PO L A N D (Engineering services, equipm ent supply, concession)
Investigations and feasibility study for the plant have been recently completed (with
WB funds) for the m odernisation o f the district heating system in the cities o f
Skierniewice and Zyrardow and for the substitution o f coal-fired heat plants with
geothermal ones. The engineering and the following im plem entation o f all the
geothermal plant com ponents, up to the existing heal distribution network, together with
the rehabilitation o f this one, are planned in the near future. Private developers are
looking for concessions.
R U SSIA (Engineering services, field developm ent, plant im plem entation)
In the autonomous republic o f Kamtchaka, project has recently started for the
reconstruction o f a 40 MWc geothermal power plant in Mutnovky geothermal field with
EBRD loan.
A second 40 MWe plant has been planned for the year 2 0 0 1.
Opportunities for engineering services, well drilling, plant m anufacturing and installing
are forecast.
G E O R G IA (Equipm ent supply, well and pipeline rehabilitation, concession)
Rehabilitation works on four district heating station in Tbilisi are planned (replacing old
equipm ent as well as reconstruction) together with the improvement o f the Lisis
geothermal field exploitation (well rehabilitation, pipeline construction/repearing, m eter
equipm ent etc). Moreover, the implementation o f a geothermal heat supply system is
planned in the Zugdidi-Tsaishi area from the exploitation o f local geothermal resources.
The project could be supported by EBRD adopting a concession scheme with the
participation o f a private developer.
522
A nnex 5.4
M a c e d o n ia (Engineering services, com ponent supply)
A national geothermal m aster plan is starting, with the support o f the Italian
cooperation, for the rehabilitation o f the existing district heating and agroindustry
plants.
In the medium term opportunities for engineering services and plant com ponents supply
are forecast.
U K R A IN A (Engineering services)
In autonomous republic o f Crim ea are presently installed five geothermal heating plants
for a total installed pow er o f 12 MWt. A detailed master plan for renewable sources o f
energy (geothermal on included) has recently started (TACIS funds).
The implementation in other regions o f Ukrtaina (western and central-eastern sides) o f
geothermal heat supply systems has been study at prefeasibility level. One the other
hand the National Energy programm e o f Ukraine up to year 2010 adopted by the
Ukrainian Governm ent stress the role and importance o f heat and electricity production
through geothermal resources. Funds are looked for by international agencies. In short
term opportunities are forecast in engineering services and well rehabilitation.
523
A nnex 6.1
Annex 6.1
COM PARISO N WITH THE W HITE PAPER FOR A COM M UNITY

STRATEGY AND ACTION PLAN. ENERGY FOR THE FUTURE:
RENEW ABLE SOURCES OF ENERGY
/
525
A nnex 6.1
The sensibility o f the world public opinion on the necessity to coniugate the economic
development with the safeguard o f the environm ent has grown considerably in the
recent decades tens. The Rio Conference (1991), and the Kyoto Conference (Decem ber
1997) highlighted this as a prioritary issue.
The European Union is often in leading positions in the promotion and implementation
o f measures in this direction devoting specially programs, efforts and funds to the
im provement o f renewable energy sources.
The growth o f their contribution is one o f the most effective ways to reduce the
environmental damage caused by the combustion o f polluting fossil fuels.
From the European side this position was recently reafferm ed at the Leeds Castle
summit o f the European Environment ministers (April 1998).
The W hite Paper o f the EU Commission delineates a com munity strategy and an
action plan in favour o f renewable energy sources.
This docum ent represents an important land mark for the future o f energy policy in
Europe. It establishes the overall target to double the present share o f renewables in the
EU s gross inland energy consumption to 12% by 2010.
This goal appears to be very ambitious but can be realistic if suitable and effective
actions (underlined in the document) are put in place. It is based on specific studies,
forecasts, debates between European institutional authorities, operators and experts in
the field o f energy. 1
This above growth o f use o f RE will amount reduce C 0 2 emissions about 400 Million
tons per year which represents more than 8% o f present total emissions.
The White Paper seems to assign a secondary role to the geothermal resources in the
above strategic objective.
The growth by 2010 from the present geothermal contribution foresees additional 500
MWe in the production o f electricity and 3700 MWt in heat production o f which 1750
MWt by low enthalpy fields and 1950 MWt by heat pumps. The share by 2010 o f
geothermal resources in the total RE contribution indicated in the docum ent is 1% for
electricity and 1.2% for heat production.
To draft the Blue Book an inventory was conducted through direct and indirect contacts
with national energy institutions responsible for energy policy and planning.
These forecast led to think that by 2010 the geothermal resources contribution could
reach absolute and relative values in line but fairly higher than the W hite Paper ones.
According to the above forecasts, as reported in Chapter 5, by year 2010 the electricity
production from geothermal energy in EU could increase o f about 400 MW for a total
M a d rid C o n fe re n c e , 1994
E u ro p ean E n erg y to 2 0 2 0 . A sc e n a rio A p p ro a c h , E u ro p ean C o m m issio n , 1996
G reen p ap er: e n e rg y fo r th e fu tu re: re n e w a b le so u rc e s o f e n e rg y 1996
S itges A L T E N E R C o n fe re n c e , 1996
T E R E S II, E u ro p ean C o m m issio n , 1997
526
A nnex 6 .1
installed capacity o f about 1,2 GW e fairly in line with White Paper.

Regarding heat production, the foreseable market scenario for EU countries (in the
period 2000/2010), is lower, only about 1,1 GW t higher than present heat production,
for a total thermal installed capacity share by 2010 in EU o f about 2 ,1 GWt.
This heat production, as stated in the report (chapter 5.3) is expected to grow if energy
policy decision focusing on reducing o f energy demand and hence CO 2 emission will be
built up and incentivated in a near future. M oreover this share is expected to grow
considerably (even double it) if the developm ent o f geothermal heat pumps will be
strengthened and expanded in all EU countries.
The White Book foresees long and medium term measures and cam paigns together with
short term measures, for take o ff renewables.
Some o f the key actions underlined are political/legislative - fiscal/finance - targeted
projects - consum er information . These actions are common to all the RE as well as
geothermal energy.
Geothermal energy requires also specific measures as reported in the conclusions o f the
Blue Book (chapter 6). Due to the relative weakness o f an industrial/economic
pushing system, its visibility, also in official occasions, appears lower than the
other RE.
527
F O R F U R T H E R IN F O R M A T IO N , P L E A S E C O N T A C T :
DC! X V II/C 2 - U nit fo r R atio n al U se o f E n erg y (R U E ) an d R en e w a b le E n erg y S o u rc es (R E S )

E u ro p e a n C o m m issio n
W e tstra a t 200 , ru e de la Loi
B ru x elles B -1 0 4 9 B russel
B elg iu m
F ax: + 3 2 2 -2 9 5 .0 1 .5 0
E-Mail, info@ bxl.dgl 7.cec.be
World Wide Web http://europa.eu.int/en/comm/dgl7/dgl7home.htm
The overall objective o f the Community's Energy Policy is to help ensure security o f energy supplies
fo r European citizens and businesses at competitive prices and in an environmental compatible way.
DG XVII initiates, co-ordinates and manages energy policy actions at European level in the fields o f
solid fuels, oil and gas, electricity, nuclear energy, renewable energy sources and the rational use o f
energy. The most important actions concern the security o f energy supply and international energy co
operation, the integration o f energy markets, the promotion o f sustainable development in the energy
field and finally the promotion o f energy research and technological development through
demonstration projects. DG XVII manages several programmes as SYNERGY, SAVE, ALTENER and
THERM1E. More information is available in D G X V IIs pages on EUROPA, the Commission's server
on the World Wide Web.
Publications DG XVII - 98/032

European Commission
Blue book on geothermal resources
Luxembourg: Office for Official Publications of the European Communities
1999 561 pp. 21 x 29.7 cm
ISBN 92-828-5803-0
Price (excluding VAT) in Luxembourg: EUR 27

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EUROPEAN COMMISSION

Cataloguing data can be found at the end of this publication.

Luxembourg: Office for Official Publications of the European Communities, 1999

European Communities, 1999

GEO THERM AL RESOURCES

P lant in op eration 1997

Electricity G eneration Direct heat use

Electricity is presently produced from geothermal produced steam in 21 countries all

COM PETITIVENESS OF G EO TH ERM AL ENERGY

The quantification o f externalities is a crucial aspect if geotherm al energy is to be fairly

M ARK ET SITUATION AND PERSPECTIVES

The greatest expansion in electricity generation in Europe is predicted for Iceland,

Electricity generation market scenario to 2010

ACTIONS IN FAVOUR OF THE GEO THERM AL ENERGY

The EU action plan should have two goals:

to increase the exploitation o f geothermal energy in the EU and associated countries;

This action could be focused specifically at Latin Am erican and Chinese

2. To favour National Geotherm al A ssociations, and the European Branch of IGA,

3. To support the newly created EGEC (European Geotherm al Energy Council)

5. To prom ote the environm ental benefits o f geotherm al energy through

tax exem ptions or reductions for RE products;

6. G eotherm al energy should be included in specific "target projects" and

7. To establish an insurance system for EU countries in order to cover the

integration o f geotherm al energy in national and regional New and Renewable

Special attention should be paid to the possibilities offered by the rapid

With education as well as financial and technical support, a significant

9. Prom ote directives in order to acknowledge RE investm ents (including

decrease the cost for ground loop installation (standardised technologies

provide low interest loans for GHP installation;

A Strategie Plan fo r the Development

Geothermal energy is more firmly established as a commercial energy source in Europe

The study has been organised in two sections:

2. The Annexes include surveys o f geothermal resources in European countries and in

A Strategic Plan fo r the Development

Chapter 1: Geothermal resources and their uses

L GEO THERM AL RESOURCES AND THEIR USES 1

2. TECH NICAL ISSUES 12

3. THE CASE FO R GEO THERM AL ENERG Y AND

4. C OM PETITIVENESS OF GEO THERM AL ENERG Y 28

6. ACTIONS IN FAVOUR OF THE GEOTHERM AL SECTOR 66

ABBREVIATIONS, DEFINITIONS AND UNITS 77

Table 1.1 Geothermal utilisation for electricity generation and direct

Table 1.2 Geothermal utilisation for electricity generation in non-

Table 1.3 Geothermal utilisation for heat production in non-European

Table 2.1 Equipment and main components for electricity generation 15

Table 2.2 Equipment and components for thermal utilisation 16

Table 3.1 CO 2 emission in g/kWh from low-temperature geothermal

Table 4.1 Geothermal investment costs (estimated for the reference

Table 4.2 Main assumptions for the assessment o f 55MW geothermal

Table 4.3 Operation & M aintenance costs (55Mw geothermal power

Table 4.4 Electricity generation: comparison between geothermal and

Table 4.5 Electricity generated in EU from five RE resources 44

Table 4.6 Electricity generation: comparison between geothermal and

Table 4.8 Comparison o f m ean values o f external costs for

Tabic 5.1 Installed capacity for period 1991-1995 and forecast to

Table 5.3 Forecast for geothermal electricity generation market to

Tabic 5.4 Thermal capacity installed in the EU, Iceland, Switzerland

Table 5.5 G eotherm al capacity installed and energy production in

Figure 1.1 The major uses o f geothermal resources at low-medium-