Transcript Slides

Non Technical Barriers in Developing
Geothermal District Heating in the Paris Basin
Pierre UNGEMACH and Miklos ANTICS
GPC IP
Paris Nord 2, 14, rue de la Perdrix, Lot 109, B.P. 50030
95946 ROISSY CDG CEDEX, FRANCE
e-mail: [email protected]
[email protected]
OUTLINE
1. MILESTONES
2. STATUS
3. TECHNICAL SHORTCOMINGS
4. NON TECHNICAL OBSTACLES
5. CONCLUSIONS
MILESTONES (1)
 1960’s Pre-oil shock
first attempt – abandoned
 second attempt successful doublet completion

 1973-1978 Post first oil shock
four completed doublets
 enforcement of legal framework

 1979-1986 Post second oil shock
51 completed doublets
 >90% success ratio
 first well damage symptoms

 late 1980’s Early exploitation stages
thermochemical (corrosion/scaling) damage
 equipment failure

MILESTONES (2)
 1990’s Technological/managerial maturation



technological improvements (R&D stimuli)
debt renegotiation
abandonment of 21 non economic/severely damaged doublets
 2000’s Follow-up. Where to go next?



Privatisation
Co-generation
Future prospects (development vs. sustainability issues)
PARIS BASIN DISTRICT HEATING SCHEME
operating
abandoned
Location of the geothermal district heating sites in the Paris Basin
PARIS BASIN DISTRICT HEATING
DOUBLET COMPLETION/ABANDONMENT STATUS
Completed
doublets
20
15
10
5
90
0
75
-5
Abandonned
doublets
80
85
95
00
05
Year
PARIS BASIN GEOTHERMAL HEATING
STATUS
31/12/2006
Target
Achieved
1985
1990
2000
2006
Operating doublets
55
43
34
34
Installed capacity (MWt)
360
260
227
200
2,000
1,455
1,240
1,000
Unit Capacity (MWt)
6.5
6.0
6.7
5.9
Unit Yield (GWht/yr)
36,000
33,800
36,200
29,400
Artificial lift wells
49
36
27
20
Self flowing wells
6
7
7
14
Co-generation doublets
-
-
1
19
Heat Production (GWht/yr)
TECHNICAL SHORTCOMINGS
 Corrosion/scaling damage
 thermochemically sensitive geothermal brine causing well
damage (corroded casing, reservoir plugging) and
equipment failure
 Equipment failure




Downhole production pumps
Injection pumps
Heat exchanger plugging
Regulation malfunctioning
 Consequences
 Productivity losses
 Frequent/prolonged doublet shutdown
NON TECHNICAL BARRIERS
FINANCIAL
 Massive debt charges
 Investment
10 M€
 OM costs
0.6 M€
 Equity
5-10 %
 Debt
90-95 %
 Low fossil fuel costs
 MWht natural gas < 30 €
 Consequences
 Debt repayment charge >50-60% of revenues
 Near to bankruptcy state
NON TECHNICAL BARRIERS
SELECTED FINANCIAL FIGURES
Item/doublet
A1
A2
D1
D2
(1)
(1) (2)
-1
(1) (2)
Total heat supply (MWht/yr)
58,000
43,500
48,888
51,000
40,000
31,000
- geothermal
39,500
32,500
42,000
41,000
26,000
15,000
- back-up boilers
18,500
11,000
6,000
10,000
14,000
16,000
- geothermal coverage %
68
75
87.5
80
65
48
Heat selling price (€/MWht)
38
37
38
39
41
41
2131
1598
1808
2006
1646
1285
Expenditure (10 €/yr)
2061
1607
1764
1886
1492
1349
- debt charge
1082
1037
1052
1159
656
488
- power
133
108
157
90
85
79
- back-up fuels
508
302
165
274
384
439
- maintenance
247
224
281
268
276
252
- heavy duty workover provision
55
37
61
50
38
38
- overhead
37
37
49
44
53
53
70
-9
44
120
154
-64
3
Revenues (10 €/yr)
3
3
Balance (10 €/yr)
B
C
NON TECHNICAL BARRIERS
OPERATOR’S EXPERTISE
 Geothermal operators lacking
 Mining experience (well maintenance/workover,
downhole production pumps, corrosive/scaling
fluids handling)
 Heating experience in operating GDH grids,
under retrofitted schemes, combining several base
load, backup/relief energy sources and fuels
 Managerial/entrepreneurial skills

No integrated management structure. Unclear
definition of intervening parties duties and
commitments. Inefficient marketing/negotiation of
heat sales and users’ subscription contracts
NON TECHNICAL BARRIERS
FISCAL (1)
 VAT 19.6 % applicable to GDH operators whereas
gas and electricity producers benefit from a 5.5 %
rate. This is clearly unfair.
 IMPACT:
Sector
€ (VAT free)
€ (VAT included)

building heating, geothermal grid
445
528

building heating, gas fired boilers
445
518

individual gas heating
449
506

individual electric heating
445
520
NON TECHNICAL BARRIERS
FISCAL (2)

Local, so called, professional tax penalises GDH grids serviced under
lease/concession contracts (non deductible infrastructure neutral
costs).
Prejudice: GDH grid serving 5,000 equivalent dwellings #70,000 €/yr.
 Ecotax exemption for individual users (families) arguing that
ecologic taxation do not apply to them whereas they
represent ca 25% of total energy consumption (heat+power)






domestic uses (families):
transports
corporates, transports
tertiary sector
industry
agriculture
residential
Fuels (Mtoe's/yr)
34
24
25
10
26
18
Electricity (TWh/yr)
119
58
8
91
131
30
NON TECHNICAL BARRIERS
IMAGE
 GDH difficult to apprehend & comprehend
 GDH remains esoteric and somewhat exotic
compared to other RE and fossil fuel sources
 GDH regarded, in the early days, as a poorly
reliable, costly and, occasionally, hazardous
technology

More efforts required to attract a wider
social acceptance and public awareness.
NON TECHNICAL BARRIERS
CONCLUSIONS/RECOMMENDATIONS
 Most NT obstacles, if not yet totally removed,
are being progressively overcome
 WHAT IS NEEDED MOST

Operators side. More integration, less
dissemination, by grouping several GDH grids into
single management structures with a well defined
mining/heating synergy
 State side. A clearly stated (and applied)
environmental policy explicitly by favouring RES via
relevant regulation, fiscal incentives and ecologic
taxation.
 Overall. Gain wider social acceptance via
selectively targeted actions.