Transcript Document 7200451

REIA2000 Conference
Renewable Energy in the Americas
Organization of American States
Washington DC, USA
December 4, 2000
FINANCING OF PRIVATE
GEOTHERMAL POWER GENERATION
Lucien Y. BRONICKI
ORMAT International Inc.
1962
P17a (spl)
0012
Installed Geothermal Capacity (~8,000 MWe)(**) and
Worldwide Potential* (~60,000 MWe)(*)
COUNTRY
INSTALLED ELECTRICAL
GENERATION CAPACITY
USA
The Philippines
Mexico
Canada
South & Central America
Western Europe, incl. Iceland
Other European countries
Indonesia
Japan
P. R. China
New Zealand
Africa, incl. Kenya
Others
MWe
2,300
1,900
850
-360
970
40
590
550
30
440
60
10
POTENTIAL FOR
ELECTRICAL GENERATION
MWe
12,000
6,000
1,500
250
2,000
1,200
500
16,000
2,400
6,700
1,200
6,500
3,700
* Hot Fractured Rock Excluded
* * As of August 2000
1396
SOURCE: US DOE and World Geothermal Congress 2000
1. RESOURCE DISTRIBUTION
Worldwide Geothermal Energy Distribution
Areas where Geothermal Projects are in Operation or Planned
Geothermal areas where ORMAT plants are in operation
1949
Geothermal areas where ORMAT plants are planned
3. COSTS
Average Capital and Delivered Costs
22000
Capital Cost
(US$/kW)
Solar Photovoltaic
4000
Solar Thermal Power
3000
Biomass - Energy
Forestry Energy Crops
Geothermal
2000
Nuclear
Land-based Wind Energy
Hydro Power
Coal
Wind
Waste Heat
1000
Gas
Cost of delivered
energy (US$/kWh)
Active Solar Air
& Water Heating
Biomass - Landfill
Gas from Wastes
0
0
0.02
‫תשע"ו‬/‫אייר‬/‫י"ב‬
1587
0.04
0.06
0.08
0.10
0.12
0.14
SOURCE: SHELL and DOE
0.16
0.18
0.20
0.86
4
0.88
2. TECHNOLOGY
Conventional Geothermal
Steam Power Plant
Consumes Water:
Aquifer Depletion, Power reduction
Effluents or Expensive Abatement
Plume
Visual Impact
Water Treatment Needed:
Use and Disposal of Chemicals
1391
ORMAT Geothermal
Power Plant
All Fluids Reinjected:
Sustainable, No Power Reduction
No Emissions (No Abatement Needed)
No Plume (Air Cooled Condensers)
Low Profile
Not Sensitive to Quality of Brine &
Steam
5. ORMAT EXPERIENCE: A MATURE TECHNOLOGY
Distributed Renewable Energy and Resource Recovery
700 MW of ORMAT Power Plants in operation in 20 countries
During the last decade, ORMAT’s power plants have already avoided the emission of
12 million tons of CO2 and saved 4 million tons of fuel
THAILAND, since 1989
Geothermal, Heat Recovery, Biomass, and Solar
1470
Applications of
ORMAT Energy Conversion Technology
GEOTHERMAL
Wabuska, USA
SOLAR
1987
1953
1979
WASTE HEAT
BIOMASS
Minakami, JAPAN
Ein Boqeq, ISRAEL
1998
Lengfurt, GERMANY
1999
ORMAT Geothermal Power Plants
USA
In Developed Countries
1984
Azores Islands
1994-1998
600 kW
New Zealand
Wabuska Power Plant
1989
Iceland
Phase I: 5.5 MW
Phase II: 8.5 MW
1989
Sao Miguel Power Plant
2.6 MW
Bay of Plenty Power Plant
3.9 MW
1955
Svartsengi Power Plant
Private Geothermal Power Generation
Makes Good Business Sense:
1759
•
Large Scale Projects are supplying commercial electricity to national
power grids.
•
The technology is Field Proven in industrial and less developed
countries
•
Geothermal is competitive with fossil fuels
•
The projects work economically with private financing in the industrial
countries
•
Private/Public partnership in developing countries
•
Work with governmental and multilateral agency support
•
Smaller scale plants are providing power to national and local, as well as
to rural “mini-Grids
ORMAT Modular Geothermal Power Plants
In Developing Countries
Leyte Optimization,
The Philippines
1997
Olkaria, KENYA
2000
49 MW
1st phase: 8 MW
Financing: Equity ORMAT 80% ,
EPDCI (Japan) 10% & Itochu 10%
Term Loan: US Exim Bank
1957
Financing: all equity by ORMAT
Insurance: MIGA
CASE HISTORY:
Financial Structure of the ZUNIL Project
24 MW
1933
1999
LESSONS FROM PUBLIC-PRIVATE PARNERSHIP PROJECTS
In Developing Countries
Project Hurdles
•
•
•
•
Commercial and financial barriers
Credit issue barriers
Institutional barriers
Power legislation barriers: changes after contract signature such as
dispatchability
• Standards, specifications and lengthy and costly reviews:
• Fixed soft costs disproportionate to small project size
• Micro-management of the project rather than
enforcement of specifications
1959
Project Opportunities
• Accelerating renewable energy deployment by public-private partnership
Public Sector Role:
Now:
1. Subscribe to political risks, streamline and unify procedures
2. Assure correct and stable institutional framework
3. Assist developing countries in assessing local & rural needs
4. Provide performance specification
Future:
1. Reduce subsidies for fuel and unnecessary grid
2. Level the playing field: internalize renewable external
benefits or use market mechanism for carbon trading
Private Sector Role:
1. Provide all or part of equity investment
2. Provide the construction loans
3. Guaranty specifications performance and electricity prices
1960
4. Provide technology transfer, O&M training and supervision