Geothermal Power for the Entrepreneur in India with EcoUrja

Geothermal Power for the Entrepreneur in India

G.Subhash, Deepak Mishra and Himadri Banerji

1. Introduction

1.1. Geothermal power (from the Greek roots geo, meaning earth, and thermos, meaning
heat) is power extracted from heat stored in the earth. This geothermal energy
originates from the original formation of the planet, from radioactive decay of
minerals, and from solar energy absorbed at the surface opportunity.
1.2. NHPC has been engaged as the nodal agency by Ministry of New & Renewable Energy
(MNRE) for development of Geothermal Power in India.

1.1. Geothermal energy is the earth’s natural heat available inside the earth. This thermal
energy contained in the rock and fluid that filled up fractures and pores in the earth’s
crust can profitably be used for various purposes. Heat from the Earth, or geothermal
Geo (Earth) + thermal (heat) — energy can be and is accessed by drilling water or steam
wells in a process similar to drilling for oil. Geothermal energy is an enormous,
Disclaimer: This is not a prospectus. This is an initial information document and the information presented here is subject to changes. Investment decision should not be based on this
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underused heat and power resource that is clean (emits little or no greenhouse gases),
reliable (average system availability of 95%), and homegrown (making us less
dependent on foreign oil).

1.2. Several geothermal provinces in India characterized by high heat flow (78-468
mW/m2) and thermal gradients (47-100o C/km) discharge about 400 thermal springs.
After the oil crisis in 1970s, the Geological Survey of India conducted reconnoiters
survey on them in collaboration with UN organization and reported the results in
several of their records and special publications (G.S.I., 1987; G.S.I., 1991, These
investigations have identified several sites which are suitable for power generations
well as for direct use. These provinces are capable of generating 10,600 MW of power.

1.3. Though geothermal power production in Asian countries like Indonesia, Philippines
has gone up by 1800 MW in 1998, India with its 10,600 MW geothermal power
potential is yet appear on the geothermal power map of the world Availability of large
recoverable coal reserves and a powerful coal lobby is preventing healthier growth of
non-conventional energy sector, including geothermal.

1.4. However, with the growing environmental problems associated with thermal power
plants, future for geothermal power in India appears to be bright. Several IPPs engaged
in non-conventional energy projects are frantically searching for foreign financial
institutions to develop geothermal based energy sources.

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1.5. Geothermal resources range from shallow ground to hot water and rock several miles
below the Earth's surface, and even farther down to the extremely hot molten rock
called magma. Mile or more-deep wells can be drilled into underground reservoirs to
tap steam and very hot water that can be brought to the surface for use in a variety of
applications.

1.6. India has reasonably good potential for geothermal and potential geothermal
provinces can produce 10,600 MW of power. But yet geothermal power projects has
not been exploited at all, owing to a variety of reasons, the chief being the availability
of plentiful coal at cheap costs.

1.7. However, with increasing environmental problems with coal based projects, India will
need to start depending on clean and eco-friendly energy sources in future one of
which could be geothermal.

2. History of Geothermal Energy

2.1 Geothermal energy was used by ancient people for heating and bathing even today,
hot springs are used worldwide for bathing, and many people believe hot mineral
waters have natural healing powers.

2.2 Using geothermal energy to produce electricity is a new industry. A group of Italians
first used it in 1904. The Italians used the natural steam erupting from the earth to
power a turbine generator.

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2.3 The first successful American geothermal plant began operating in 1960 at The Geysers
in northern California. There are now about 60 geothermal power plants in five
western states, with many more in development. Most of these geothermal power
plants are in California with the remainder in Nevada, Hawaii, Alaska, and Utah.

3 Geothermal Energy Resources of India

3.1 Geothermal energy, in the broad sense, is the heat in the earth and released by
conduction at an average heat flux of 60 mW/m2. There are four major types of
geothermal energy resources.

1) Hydrothermal

2) Geopressurised brines

3) .Hot dry rocks

4) . Magma

3.2 All the geothermal provinces of India are located in areas with high heat flow and
geothermal gradients. The heat flow and thermal gradient values vary from 75–468
mW/m2 and 59–234°C respectively. Additional exploration studies and reservoir
modeling have been carried out between 1995 and 1998 to understand the reservoir
characteristics.
3.3 Thermal gas discharges from several thermal provinces recorded high helium
concentration varying from 0.5–6.9%.High 4He content in the thermal gases is
obliterating the presence of primordial helium.
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3.4 Pilot power plants, commissioned at certain thermal discharge sites, proved the power
generating capacity of these provinces. The estimated power generating capacity of
the thermal discharges is about 10,600 MW.
3.5 The available geophysical and geochemical data are sufficient to identify sites for
undertaking deep drilling projects, and to commission binary power plants.
4 The seven major geothermal provinces of India
1. Himalayas
2. Sohana
3. Cambay
4. Son- Narmada-Tapi rift zone (SONATA)
5. West coast
6. Godavari
7. Mahanadi.
5 The Himalayas Province
6 This is one of the most promising provinces in the coldest part of the country and
contains about 100 thermal springs with surface temperatures as high as 90o C
discharging > than 190 tones /h of thermal water.
6.1 Post Tertiary granite intrusive are responsible for the high temperature gradient (> 100o
C/km) and heat flow (> 468 mW/m2) recorded in the 500 m drill-hole in this province.
Geothermal reservoir between depths 1 and 3 km was delineated from magneto-telluric
recordings (Singh and Nabetani, 1995).
6.2 The first and the last pilot binary 5 kW power plant using binary fluid was
successfully operated by the Geological Survey of India at Manikaran which proved the
power producing capability of this province.
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7 Cambay Province:
7.1 Situated in a failed arm of a rift (Sheth and Chandrasekharam, 1997), this province forms a
part of the Cambay basin with > 500 m of post Cretaceous sedimentary formation overlying
the well known Deccan flood basalts. Besides deep seated faults, which brackets the basin,
older granite intrusives ( ~ 955 Ma)
7.2 Such as those at Tuwa and Miocene- Pliocene basic intrusives, contribute partly to
the high thermal gradient (> 60o C) and heat flow value (>80 mW/m2) of this basin.
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8 West coast province
8.1 This province is located within the world famous Deccan flood basalts of Cretaceous age.
Attenuation and foundering of the continental crust prior to the outpouring of the large
volume of lavas along the coast (Chandrasekharam and Parthasarathy, 1978) resulted in the
development of several faults and graben structures (Chandrasekharam, 1985) which are
channeling thermal waters.
8.2 This province enjoys a thin lithosphere of 18 km thickness (Pande et.al., 1984) thereby
rendering this province as one of the most promising sites for exploitation. The thermal
discharges are saline with Cl content varying from 800 ppm to little over 1500 ppm (
Ramanathan, 1993)
9 SONATA province:
9.1 This province extending from Cambay in the west to Bakreswar in the east is an area with
very high heat flow and geothermal gradient and encloses the well known Tattapani
geothermal province spreading over an area of about 80,000 sqm/
9.2 Nine thermal springs are discharging waters at 90o C. These waters, compared to those of
west coast, are low in Cl content (60 - 70 ppm) and the chemical composition of the thermal
discharge is controlled by water-rock interaction.
9.3 Based on thermal gradient and experimental results, estimated reservoir temperatures are as
high as 217o C at 3 km depth. (Chandrasekharam and Antu, 1995). In certain bore holes
drilled by the Geological Survey of India, thermal discharge was not encountered but the
recorded thermal gradient in these bore holes exceed 100o C/km (K. Muthuraman, G.S.I.,
personal communication). Such sites are best suited for experimenting HDR projects
(Chandrasekhar am, 1996).

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9.4 The pressure of the thermal discharge is 5 kg/cm2 and the estimated life of the reservoir is
about 20 years (Pitale et.al., 1995). It is unfortunate that a power plant is yet to be
commissioned at Tattapan.
10 Bakreswar province
10.1 Bakreswar-Tantloi thermal province falls in Bengal and Bihar districts and marks the
junction between SONATA and Singbhum shear zone. High His gas is encountered in all the
thermal discharges (water and gases) and it is proposed to install a pilot plant to recover Him
from the thermal manifestation of this region. The Helium discharge is 4 l//h (Nagar et.al.,
1996).
11 Godavari province:
11.1 Godavari valley in Andhra Pradesh is a northwest-southeast trending graben filled with
Gondwana sedimentary formations. The lower Gondwana group of roks consist of
sandstone, shale and clays and are exposed towards the southwestern part of the graben and
hosts 13 thermal discharges with surface temperature varying from 50 to 60o C.
11.2 This graben falls within zone II (100 - 180 mWm2) on the heat flow map of India and has a
thermal gradient of 60o C/km (Ravi Shanker, 1988). Two thermal springs, Bugga and
Manuguru, discharging 1000 l//m of water, were studied in detail. Talchir sandstone, which
forms a unit in the lower Gondwana group, is the reservoir rock with an effective porosity of
35%.
11.3 The storage capacity of the sandstone is 35 x 106 m3 which is expected to yield thermal
discharge for about 75 years. Geochemical thermometers indicate reservoir temperatures in
the range of 175 and 215o C. The reservoir is reported to be at a depth of 2.5 km. It has been
estimated that 38 MW power can be generated from this province (Chandrasekharam and
Jayaprakash, 1996).
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12 Applications of Geothermal Energy

• Power generation
• Cooking
• Space heating
• Use in green house cultivation
• Crop drying

12.1 Electricity Generation: The thermal efficiency of geothermal electric plants is low,
around 10-23%, because geothermal fluids do not reach the high temperatures of
steam from boilers. The laws of thermodynamics limit the efficiency of heat engines in
extracting useful energy.
12.2 Exhaust heat is wasted, unless it can be used directly and locally, for example in
greenhouses, timber mills, and district heating. System efficiency does not materially
affect operational costs as it would for plants that use fuel, but it does affect return on
the capital used to build the plant. In order to produce more energy than the pumps
consume, electricity generation requires relatively hot fields and specialized heat
cycles. Because geothermal power does not rely on variable sources of energy, unlike,
for example, wind or solar, its capacity factor can be quite large – up to 96% has been
demonstrated. The global average was 73% in 2005.
12.3 Direct Applications: In the geothermal industry, low temperature means temperatures
of 300 °F (149 °C) or less. Low-temperature geothermal resources are typically used in
direct-use applications, such as district heating, greenhouses, fisheries, mineral
recovery, and industrial process heating. However, some low-temperature resources
can generate electricity using binary cycle electricity generating technology.

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13 Scenario of India
13.1 India has reasonably good potential for geothermal; the potential geothermal provinces
can produce 10,600 MW of power. Though India has been one of the earliest countries
to begin geothermal projects way back in the 1970s, but at present there are no
operational geothermal plants in India. There is also no installed geothermal electricity
generating capacity as of now and only direct uses have been detailed.
13.2 Thermax capital goods manufacturer based in Pune, has reportedly entered
an agreement with Icelandic firm Reykjavík Geothermal. Thermax is planning to set up a
3 MW pilot project in Puga Valley, Ladakh (Jammu & Kashmir). Reykjavík Geothermal
will assist Thermax in exploration and drilling of the site.

14 Potential Sites in India
Puga Valley (J&K)
Tatapani (Chhattisgarh)
Godavari Basin Manikaran (Himachal Pradesh)
Bakreshwar (West Bengal
Tuwa (Gujarat)
Unai (Maharashtra)
Jalgaon (Maharashtra)

15 Potential Geothermal regions/sources in India

Province Surface Reservoir Heat Flow Deg. Thermal gradient
Temp Temp Deg. C C
Deg. C
Himalaya >90 260 468 100
Cambay 40-90 150-175 80-93 70
West 46-72 102-137 75-129 47-59
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coast
Sonata 60 – 95 105-217 120-290 60-90
Godavari 50-60 175-215 93-104 60

SL.NO Geothermal Estimated(min.)reservoir Status
Field Temp(Approx)
1 Pugageothrmal 240oC at 2000m From geochemical
field and deep
geophysical studies
(MT)
o o
2 TattapSarguja 120 C - 150 C at 500 Magnetotelluric
(Chhattisgarh) meter and 200 Cat 2000 survey done by
m NGRI
o
3 TapobanChamoli 100 C at 430 meter Magnetotelluric
(Uttarakhand) survey done by
NGRI
o
4 CambayGarben 160 C at 1900 meter Steam discharge
(Gujrat) (From Oil exploration was estimated
borehole) 3000 cu meter/day
withhightemperatu
re gradient.

5 BadrinathChamol 150oC estimated Magneto-telluric
i (Uttarakhand) study was done by
NGRI.
Deep drilling
required to
ascertain
geothermal field
6 SurajkundHazarib 110oC Magneto-telluric
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agh (Jharkhand) study was done by
NGRI.
Heat rate 128.6
mW/m2
7 ManikaranKullu 100oC Magneto-telluric
(H P) study was done
byNGRI.
Heat flow rate 130
mW/m2
8 Kasolkullu(HP) 110oC Magneto-telluric
study was done by
NGRI

16 Geothermal Companies who have reported entry into the field recently.

• LNJ Bhilwara

• Tata Power

• NTPC

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17 Power Generation Technology

17.1 Method of Heat Extraction:

18 Process of Power Generations
18.1 High Temperature Resources: High temperature geothermal reservoirs containing water
and/or steam can provide steam to directly drive steam turbines and electrical generation
plant. More recently developed binary power plant technologies enables more of the heat
from the resource to be utilised for power generation. A combination of conventional flash
and binary cycle technology is becoming increasingly popular.
18.2 High temperature resources commonly produce either steam, or a mixture of steam and
water from the production wells. The steam and water is separated in a pressure vessel
(Separator), with the steam piped to the power station where it drives one or more steam
turbines to produce electric power. The separated geothermal water (brine) is either
utilised in a binary cycle type plant to produce more power, or is disposed of back into the
reservoir down deep (injection) wells.
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18.3 The following is a brief description of each of the technologies most commonly used to
utilise high temperature resources for power generation.

18.4 Dry steam Power Plant Dry steam power plants use very hot (>455 °F, or >235 °C) steam
and little water from the geothermal reservoir. The steam goes directly through a pipe to a
turbine to spin a generator that produces electricity. This type of geothermal power plant
is the oldest, first being used at Lardarello, Italy, in 1904.

19.5 Flash Steam Power Plant: This is the most common type of geothermal power plant The
steam, once it has been separated from the water, is piped to the powerhouse where it is
used to drive the steam turbine. The steam is condensed after leaving the turbine, creating
a partial vacuum and thereby maximizing the power generated by the turbine-generator.

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18.5 The steam is usually condensed either in a direct contact condenser, or a heat
exchanger type condenser. In a direct contact condenser the cooling water from the
cooling tower is sprayed onto and mixes with the steam. The condensed steam then
forms part of the cooling water circuit, and a substantial portion is subsequently
evaporated and is dispersed into the atmosphere through the cooling tower. Excess
cooling water called blow down is often disposed of in shallow injection wells. As an
alternative to direct contact condensers shell and tube type condensers are sometimes
used, as is shown in the schematic below.
18.6 In this type of plant, the condensed steam does not come into contact with the cooling
water, and is disposed of in injection wells.Typically; flash condensing geothermal
power plants vary in size from 5 MW to over 100 MW. Depending on the steam
characteristics, gas content, pressures, and power plant design, between 6000 kg and
9000 kg of steam each hour is required to produce each MW of electrical power.

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18.7 Small power plants (less than 10 MW) are often called well head units as they only
require the steam of one well and are located adjacent to the well on the drilling pad in
order to reduce pipeline costs. Often such well head units do not have a condenser,
and are called backpressure units. They are very cheap and simple to install, but are
inefficient (typically 10-20 tonne per hour of steam for every MW of electricity) and can
have higher environmental impacts.
18.8 Binary Cycle Power Plants: In reservoirs where temperatures are typically less than
220o C. but greater than 100o C binary cycle plants are often utilised. The reservoir fluid
(either steam or water or both) is passed through a heat exchanger which heats a
secondary working fluid (organic) which has a boiling point lower than 100o C. This is
typically an organic fluid such as Isopentane, which is vaporised and is used to drive the
turbine. The organic fluid is then condensed in a similar manner to the steam in the
flash power plant described above, except that a shell and tube type condenser rather
than direct contact is used.

18.9 The organic fluid is then condensed in a similar manner to the steam in the flash power
plant described above, except that a shell and tube type condenser rather than direct
contact is used. The fluid in a binary plant is recycled back to the heat exchanger and
forms a closed loop. The cooled reservoir fluid is again re-injected back into the
reservoir.

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19 Technological Issues with Geothermal Developments

19.1 Whether geothermal energy is utilized for power production or for direct use
applications, there are issues in geothermal utilization that often have technical
implications.
19.2 Geothermal fluids often contain significant quantities of gases such as hydrogen
sulphide as well as dissolved chemicals and can sometimes be acidic. Because of this,
corrosion, erosion and chemical deposition may be issues, which require attention at the
design stage and during operation of the geothermal project. Well casings and pipelines
can suffer corrosion and or scale deposition, and turbines, especially blades can suffer
damage leading to higher maintenance costs and reduced power output.

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19.3 However, provided careful consideration of such potential problems is made at the
design stage, there are a number of technological solutions available. Such potential
problems can be normally overcome by a combination of utilising corrosion resistant
materials, careful control of brine temperatures, the use of steam scrubbers and
occasionally using corrosion inhibitors.
19.4 Provided such readily available solutions are employed, geothermal projects generally
have a very good history of operational reliability. Geothermal power plants for example,
can boast of high capacity factors (typically 85-95%).
20 An Alternate Source of Geothermal Energy
20.1 Geothermal -An alternate source of energy" focuses on the present status of exploration
& utilization of these energy resources in India and world over. The exploration and
exploitation of geothermal resources got a boost following the 1973 oil crisis world over.
R & D activities were directed towards exploration & exploitation of various types of
geothermal resources such as hydrothermal, geopressurised, hot dry rock, magma.

20.2 Scope and Objective of the Study
• Relationship and the importance of the topic to the broad area to which it belongs
• The current status of the technology in the world and in India, Market sizes and their
potentialities.
• Assessment of technology, resource parameters such as energy, raw material,
infrastructure etc., to arrive at preferred technology options available in the country
• Short term and long term economic aspects of preferred options along with their
feasibilities

• For implementation of preferred technology options - identifying critical inputs such as
occurrence and availability of raw material, capital goods and human resources required
and their, expected benefits etc.
• Technology development-identifying the requirements of inputs and expected benefits.
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• Action plan for implementation of recommendations along with identification of
• List of available technology for Indian Industry
• The agencies/group/individuals for implementation.
• Expected impact of recommendations; if implemented.
21 Methodology
21.1 The Techno-Market Survey was conducted through extensive literature survey on the
subject relating to the exploration, electric and non-electric utilization of geothermal
resources in India and the world over and the constraints in the system approach for its
exploration & exploitation. The various possibilities of its utilisation have been explored.
• Present technological statues of exploration & utilization scenario in India as well as in
world has been synthesised and evaluated in the light of ongoing R & D work towards
optimum utilisation of the resources in the India
21.2 Limitations:

• The study is based on published literature, mail survey, a limited number of personal
visits and interviews.
• The details of technical and economic parameters are limited to the extent of
information that could be gathered during the survey.
• The information of world scenario and evaluation thereof is based upon the published
literature and the information collected through survey & literature requests.
• The information on commercial aspects of the technologies was provided only by a few.

22 Input sources required the to Development of Geothermal projects

22.1 To move forward in investigating the potential of geothermal power projects, studies are
required to quantify and reduce project risks. EcoUrja provide consultancy services in this
direction.

22.2 The consultancy will involve the review and updating of any previous studies based on new
data and techniques. This will include updated concept designs, costing, and studies into
potential customers. These will form inputs to the pre-feasibility study to determine if the
project is suitable for further commercial development.
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23.1 Scope of the Study
• Studies into the development of geothermal resources in the Province will require input
from several engineering and related disciplines. Studies will be based on past reports
and other available data, including fieldwork.

23.2 The consultant will carry out the following tasks:

1. Geological Studies
• Research and collect any geological information from the area.
• Review the assessment of the geological conditions for the main works and the
interpretation of results for the latest trends in harnessing geothermal resources.
• Identify need for any further site investigations to be carried out for next stage of
project implementation.
• Preliminary assessment of availability, quantity and properties of potential construction
materials (site visit and make estimation of deposit). .
• Identify the best locations for the geothermal prospects.

2. Topographical Studies
• Review of topographical data and confirm additional topographical data requirements
for next stage of project implementation
• Digitalize contour map for the project site, potential sites, transmission line and access
road.
• Establish a general assessment and identification of suitable locations employing best
techniques for seismic and test-drilling activities based on recent available geological
information.
3. Environmental Impact Studies
• Conduct a preliminary assessment of the potential environmental impact from
construction of the geothermal power station and associated works, and provide advice
as to whether further studies and activities may be required for full EIA.
4. Social and Development Analysis

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• Conduct a preliminary assessment of the potential impact of the project on the
surrounding region and general from a social perspective, including resettlement, and
state any development outcomes that will be achieved by the construction of the
proposed geothermal power station. Provide advice as to what further studies and
activities may be required.
5. Civil Design Investigation
• Review current project layout arrangement.
• As appropriate, explore alternative project arrangement and confirm best option for
development using digitalized contour maps.
• Prepare concept design for the power station and associated infrastructure.
• Prepare a General Arrangement drawing showing project features in sufficient detail to
enable preliminary cost estimates to be updated.
• Construction schedule based on client requirements.
6. Electrical and Mechanical Design Investigations
• Determine station arrangements.
• Determine transmission systems requirements.
• Concept designs for the power station and transmission systems allowing for the
transmission of electricity.
7. Cost Estimate and Financial Analysis
• Provide cost estimates based on the concept designs and delivery approach.
• Carry out financial analysis based on the cost estimates and current financial parameter.
• Take into account potential earnings through the Clean Development Mechanism.
8. Project Implementation Schedule
• Provide a tentative project implementation program identifying major project activities,
cost and duration based on current practices.
9. Risk Assessment
• Undertake a project implementation risk assessment and implications to the project in
light of available information.

24 Keys Inputs Required for Geothermal power projects Development.
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• What are the policies, technological, and economic market drivers for geothermal
power
• Which regions are poised for the greatest growth in geothermal capacity worldwide
• What is the market outlook for geothermal conversion technologies
• What impact will EGS and other breakthrough technologies have on geothermal
capacity worldwide
• What are the primary cost considerations for geothermal project development

25 Cost, Price and Challenge

25.1 Unlike traditional power plants that run on fuel that must be purchased over the life of the
plant, geothermal power plants use a renewable resource that is not susceptible to price
fluctuations.
25.2 New geothermal plants currently are generating electricity from 0.05$ to 0.08$ per kilowatt
hour (kWh) Once the capital costs have been recovered price of power can decrease below
0.05$ per kWh.
25.3 The price of geothermal is within range of other electricity choices available today when the
costs of the lifetime of the plant are considered.
25.4 Most of the costs related to geothermal power plants are related to resource exploration
and plant construction. Like oil and gas exploration, it is expensive and because only one in
five wells yield a reservoir suitable for development.
25.5 Geothermal developers must prove that they have reliable resource before they can secure
millions of dollar required to develop geothermal resources.

26 Drilling
• Although the cost of generating geothermal has decreased by 25 percent during the last
two decades, exploration and drilling remain expensive and risky.
• Drilling Costs alone account for as much as one-third to one-half to the total cost of a
geothermal project.

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• Locating the best resources can be difficult and developers may drill many dry wells
before they discover a viable resource. Because rocks in geothermal areas are usually
extremely hard and hot, developers must frequently replace drilling equipment.
• Individual productive geothermal wells generally yield between 2MW and 5MW of
electricity each may cost from $1 million to $5 million to drill.
• A few highly productive wells are capable of producing 25 MW or more of electricity.

27 Challenges
• There are some challenges to address when financing geothermal power projects,
including the high risk of development and permitting issues. These challenges can impact
both developers and investors and, if not addressed, can sideline a geothermal power
project.

28 High-Risk Development
1) In the exploration and drilling stage, geothermal developers must target investors who are
comfortable with the high levels of risk and long development time horizons related to
geothermal power projects.
2) The high risk and significant investment required to find and prove the geothermal resource
is unique to geothermal power projects and substantially changes a project's level of
certainty as well as the required development time.
3) Geothermal power projects also compete for capital (and drilling rigs) with mineral, coal,
oil, and gas exploration projects.
4) The higher overall risk of geothermal power plants has led to limited utility investment in
geothermal power project development. However, some municipal utilities, in contrast to
larger utilities, are considering geothermal investments.
5) Four main challenges persist for developers to encourage utilities to move forward with
geothermal project:

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1) Familiarity—utilities and regulators may be unfamiliar with the technology
2) Investment metrics—utilities' approved rates of return may not be sufficient to
accommodate the project's initial high risk
3) Regulators—some regulators may hesitate to commit ratepayer funds to potentially risky
development without a mechanism for avoiding risk
4) Competition—by the time utilities' rates of return are sufficient to warrant investment
(i.e., construction), other entities may offer financing to developers at more attractive
rates.

29 Transmission
1) Geothermal power plants must be located near specific areas near a reservoir because it
is not practical to transport steam or hot water over distances greater than two miles.
2) Since many of the best geothermal resources are located in rural areas, developers may
be limited by their ability to supply electricity to the grid.
3) New power lines are expensive to construct and difficult to site. Many existing
transmission lines are operating near capacity and may not be able to transmit electricity
without significant upgrades.
4) Consequently, any significant increase in the number of geothermal power plants will be
limited by those plants ability to connect, upgrade or build new lines to access to the
power grid and whether the grid is able to deliver additional power to the market.
5)
30 Advantages of Geothermal Energy
1) Significant Cost Saving : Geothermal energy generally involves low running costs since it
saves 80% costs over fossil fuels and no fuel is used to generate the power.
2) Reduce on Fossil Fuels: Dependence on fossil fuels decreases with the increase in the
use of geothermal energy. With the sky-rocketing prices of oil, many countries are
pushing companies to adopt these clean sources of energy.
3) Environmental Benefits: Being the renewable source of energy, geothermal energy has
helped in reducing global warming and pollution. Moreover, Geothermal systems does
not create any pollution as it releases some gases from deep within the earth which are
not very harmful to the environment.

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4) Direct Use: Since ancient times, people having been using this source of energy for
taking bath, heating homes, preparing food and today this is also used for direct heating
of homes and offices.
5) Job Creation and Economic Benefits: Geothermal energy on the other hand has created
many jobs for the local people.

31 Disadvantages of Geothermal Energy:

1) Not Widespread Source of Energy: Since, this type of energy is not widely used
therefore the unavailability of equipment, staff, infrastructure, training pose hindrance
to the installation of geothermal plants across the globe.
2) High Installation Costs: To get geothermal energy, requires installation of power plants,
to get steam from deep within the earth and this require huge one time investment and
require hiring a certified installer and skilled staff needs to be recruited and relocated to
plant location. Moreover, electricity towers, stations need to set up to move the power
from geothermal plant to consumer.
3) Can Run Out Of Steam : Geothermal sites can run out of steam over a period of time
due to drop in temperature or if too much water is injected to cool the rocks and this
may result huge loss for the companies which have invested heavily in these plants.
4) Suited To Particular Region: It is only suitable for regions where temperatures below
the earth are quite low and can produce steam over a long period of time. For this great
research is required which is done by the companies before setting up the plant.
5) May Release Harmful Gases : Geothermal sites may contain some poisonous gases and
they can escape deep within the earth, through the holes.

32 What are the opportunities to develop geothermal energy resources in India

1) Of late, IPPs involved in non-conventional energy sources, are showing keen interest in
geothermal energy resources, thanks to the awareness brought by those organizations
working in this field such as the IITs (Chandrasekharam, 1995) and the GSI.
2) One-time investment and low maintenance cost, low area requirement, and incentives
given by the Govt. for non-conventional energy sector is attracting many IPPs in India.

document alone.

Delhi London Madrid
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Even IPPs who are involved in solar Photovoltaic and solar thermal power business are
frantically exploring partners to finance geothermal projects.
3) M/s EcoUrja Solar who are involved in solar Photovoltaic and Solar Thermal projects,
are keen to develop geothermal projects in Gujarat and expand their activities to other
states as well.
4) Since all the thermal provinces are located in rural areas with excellent communication
system, power projects as well geothermal based industries are going to reduce
congestion in Urban areas and improve socio-economic status of the rural public.

document alone.

Delhi London Madrid
www.EcoUrja.com

Geothermal Power for the Entrepreneur in India with EcoUrja

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