Geothermal Development in Central America

Transcription

1 Geothermal Development in Central America

2 CENTRAL AMERICA NET GENERATION TOTALS FOR YEAR 2016 (GWh) Guatemala El Honduras Nicaragua Costa Rica Panamá 1. 11% of energy generated from renewable sources comes from Geothermal in Central America. 2. Geothermal generation in El Salvador and Costa Rica are the highest in the region with 1467 and 1339 GWh respectively. They represent more than 75% of total Geothermal generation in the region 3. Geothermal generation in El Salvador and Nicaragua represents 45% and 30% of total renewable energy generation respectively 4. In 2016, total regional generation from Wind, Solar and Biomass was double that of Geothermal 5. Total solar generation in the region increased 100% in 2016 while Geothermal generation increased 1.7% Salvador Hydro Geothermal Wind Biomass Solar Biogas Thermal

3 COSTA RICA

4 COSTA RICA The first evaluations of the geothermal resources of Costa Rica were made during when, at the request of ICE, a mission of experts from the United Nations recommended that a detailed study be carried out at Las Pailas (on the slope of the Rincón de la Vieja volcano) and at Las Hornillas (on the slope of the Miravalles volcano).

5 COSTA RICA The Instituto Costarricense de Electricidad (ICE) with a loan assigned by the Interamerican Development Bank (IDB) studied the possibility of using geothermal energy and three phases were established: 1. The pre-feasibility studies of Guanacaste Province ( ) 2. Electric Power Generation and Resource Assessment ( ) 3. Feasibility studies of the Miravalles Geothermal Field ( )

6 MIRAVALLES INSTALLED CAPACITY: 163MW Commercial production of electricity using geothermal steam began at Miravalles in early 1994, when Unit 1, a 55-MW single-flash plant, was commissioned. The following year, ICE completed the installation of a 5-MW wellhead unit. Then, two temporary 5-MW wellhead plants came on line as part of an agreement between ICE and the Comisión Federal de Electricidad de México (CFE). The two temporary units were disassembled in April 1998 and April 1999 and returned to CFE. Unit 2, the second 55-MW plant, started production in August In March 2000, Unit 3, a 29-MW single-flash private plant, started delivering electricity to the national grid, and finally Unit 5, a 19 MWe binary plant, increased the total installed capacity at Miravalles to 163 MWe.

7 MIRAVALLES Plant Name Power (MW) Owner Start-up Date Shut-down Date Unit 1 55 ICE Mar-94 Wellhead Unit 1 5 ICE Jan-95 Wellhead Unit 2 5 CFE Sep-96 Apr-99 Wellhead Unit 3 5 CFE Feb-97 Apr-98 Unit 2 55 ICE Aug-98 Unit 3 29 ICE (BOT) Mar-00 Unit 5 19 ICE Jan-04

8 LAS PAILAS INSTALLED CAPACITY: 35MW The pre-feasibility study at Las Pailas was commissioned by ICE and carried out by GeothermEx, Inc. from April 1999 with the final report being delivered in December Las Pailas has a binary unit with a production of 35 MWe (42 MW gross) installed in The installed unit is of binary type, with two modules and operating with steam and brine. In this field was implemented the concept of "square" (small quadrant), which contains two, three or four wells with directional drilling. This reduces costs of surface pipe connection; land used, and allows the underground access to not permissible sites as national parks. The Instituto Costarricense de Electricidad (ICE) has announced that the Geothermal project Las Pailas II (55 MW unit), currently under development, is expected to be ready by 2019.

9 BORINQUEN Borinquen I is planned to start operation in 2023, with 55 MW potential and will be the first stage of the new ICE geothermal field. Borinquen II will have the same capacity, and is expected to be incorporated into the National Electric System in 2025.

10 GUATEMALA

11 GUATEMALA The Guatemalan central government began to identify and explore the geothermal resources in 1972 through the government owned electric developer (INDE) with initial finance from several world development organizations. In 1981, a regional reconnaissance study was carried out in order to identify and prioritize all of the geothermal resources in Guatemala. The result of the survey identified 13 geothermal areas, of which 7 areas were selected as the most promising for electrical generation with temperatures ranging from C: Amatitlán, Tecuamburro, Zunil I, Zunil II, San Marcos, Moyuta, and Totonicapán.

12 ZUNIL INSTALLED CAPACITY: 28MW In 1977, INDE decided to carry out surface exploration studies in the Zunil area, located in the eastern department of Quetzaltenango. The studies covered an area of 310 km2 and based on the initial results, the Zunil area was divided into two areas, Zunil I and II. Deep exploration in the Zunil I geothermal field began in The field was estimated to produce sustainable steam and brine to supply a 24 MWe binary power plant for 25 years. In 1999, though a power purchase agreement (PPA) between INDE and Ormat Inc., a 28 MWe (installed capacity) geothermal power plant was commissioned (Orzunil). Under the terms of the contract, INDE manages the production of steam and brine to the power plant and purchases the energy generated by Orzunil. Shortly after Orzunil began operations, the production of geothermal water in relation to steam began to drop due to the fact that the reinjection of steam condensate and brine from the plant was not providing pressure support to the reservoir. Declining reservoir pressures has prevented plant operation at full capacity.

13 ZUNIL On January 22, 2014, Orzunil signed an amendment to the PPA with Instituto Nacional de Electrificacion ( INDE ) for its Zunil geothermal power plant in Guatemala. The amendment extended the term of the PPA from 2019 to The PPA amendment also transferred operation and management responsibilities of the Zunil geothermal field from INDE to Orzunil for the term of the amended PPA. Ormat plans to improve the heat supply to gradually increase generation, subject to monitoring and assessment of the geothermal reservoir.

14 AMATITLAN INSTALLED CAPACITY: 24 MW INDE began the reconnaissance of the area by Electroconsult was contracted to carry out surface exploration studies over an area of approximately 170 km2. Deep exploration of the resource soon followed and in 1993 WJEC was contracted to supervise drilling and testing operations of 4 deep exploration wells. The results confirmed the existence of a deep chloride rich geothermal system with a temperature of 285 C. Resource assessment concluded that the Amatitlán reservoir has an estimated production capacity of 50 MWe for 30 years.

15 AMATITLAN A 5 MW backpressure unit was purchased from Mexico s Comision Federal de Electricidad (CFE) and was commissioned by INDE on November The plant was decommissioned in 2007 after operation of the field was handed over to a private developer. In 2001 Ormat Inc. was awarded the concession of the Amatitlán geothermal field. In 2006 the company began phase one of construction with a binary power plant with an installed capacity of 24 MWe. The plant was officially commissioned in August 2007.

16 EL CEIBILLO The resource was first discovered in the 1990 s when Bloteca, S.A., a private company that manufactured construction blocks, drilled into the resource and discovered a low temperature reservoir with a temperature of C. Two wells where used to produce hot water and used in the block curing process. The El Ceibillo geothermal project reported potential is an estimated 25 MW. In 2010, US Geothermal Inc through its Guatemala-based subsidiary won a geothermal energy rights concession which includes 24,710 acres (10,000 hectares) of energy rights located in the centre of the Agua and Pacaya twin volcano complex.

17 EL CEIBILLO On January 10, 2017, the Guatemalan government, through the National Electrical Energy Commission (COMISIÓN NACIONAL DE ENERGÍA ELÉCTRICA-"CNEE"), announced that it is preparing to issue an RFP later this year for 420 megawatts of power, of which 40 megawatts is to be reserved specifically for geothermal energy. When the RFP is issued, the El Ceibillo project will be bid into the process. U.S. Geothermal announced that its wholly owned subsidiary, U.S. Geothermal Guatemala S.A., has been awarded a $825,319 grant from the U. S. Trade and Development Agency. The grant provides funding for a feasibility study on the El Ceibillo Geothermal Power Plant Project. The scope of the study is to update the resource evaluation, power plant design, financial analysis, environmental and regulatory review, and EPC technical specifications and bid package evaluations, in order to advance the Project to a construction-ready state. They expect the study to begin by the end of 2017 with scheduled completion by the end of 2018.

18 MITA GEOTHERMAL PROJECT Cerro Blanco is a moderate temperature geothermal system that was discovered in 1997 during gold exploration in south-eastern Guatemala. Exploration studies have been made and four production wells have been drilled. Studies contemplate production capacity from these four wells alone of approximately 7 MW. While more test work is required on the geothermal resource, these studies suggest there may be sufficient pressure and entropy at exploitable levels to support the fully licensed capacity of 50 MW. Bluestone Resources Inc. announced that closed the acquisition of the Mita Geothermal Project from Goldcorp Inc., effective May 31, 2017.

19 OTHER AREAS AREA TOTONICAPAN ZUNIL II TECUAMBURRO MOYUTA SAN MARCOS POTENTIAL N/A 50 MW 50 MW 30 MW 50 MW

20 HONDURAS

21 PLATANARES INSTALLED CAPACITY: 35 MW Four pumped production wells The first studies of the geothermal system at Platanares were conducted by Los Alamos National Lab in the late 1980s, when a study of six prospective hot spring sites within Honduras was performed under a grant from USAID. Those sites were: Platanares, San Ignacio, Azacualpa, Pavana, Sambo Creek, and El Olivar. Los Alamos National Lab then conducted geologic and geophysical mapping at Platanares, followed by the drilling of core wells. The drilling of these wells indicated the high potential of Platanares. In spite of the promising results indicating the likely existence of medium to high enthalpy geothermal resources, no further exploration was carried out until 2005, when, due to the passing of a law providing financial incentives for electric power generation by renewable sources, geothermal exploratory work was resumed by ELCOSA (Electricidad de Cortes, S.R.L.), a private Honduras company.

22 PLATANARES by ELCOSA (Electricidad de Cortes, S.R.L.), a private Honduras company. In 2013, Ormat signed a Build, Operate, and Transfer (BOT) contract for the Geotérmica Platanares geothermal project in Honduras with ELCOSA for approximately 15 years from commercial operation date (COD). Since then, Ormat initiated extensive exploration studies, including geophysical surveys and detailed geologic mapping and also drilled some production and injection wells. The energy generated by Platanares will be marketed under the 30-year energy purchase agreements signed with the national electricity company of Honduras, the National Electric Energy Company (ENEE). Ormat Technologies, Inc. announced on September 26 th, that its 35 MW Platanares geothermal project in Honduras has commenced commercial operation.

23 OTHER AREAS AREA POTENTIAL AZACUALPA PAVANA PUERTO CORTES SAN IGNACIO SAMBO CREEK 20 MW 20 MW 20 MW 20 MW 5 MW

24 NICARAGUA

25 NICARAGUA In 2016, Geothermal generation represented approximately 15% of total energy and around 30% of energy derived from renewable sources 2. Geothermal generation growth in 2015 was 2.5% and in 2016 was 4% 3. Installed Capacity 149 MWs Hidro Geo Eólica Biomasa Solar Térmica

26 NICARAGUA Geothermal surveys started in Nicaragua in An exploration program in the western part of the country was carried out in the early 70 s that led to the selection of ten geothermal areas: Momotombo, San Jacinto, El Hoyo Monte Galán, Granada-Masaya-Nandaime, Cosiguina, Casita - San Cristóbal, El Ñajo, Managua-Chiletepe, Masaya- Tipitapa and Ometepe with an estimated power potential in the order of 1100 MWe.

27 MOMOTOMBO INSTALLED CAPACITY: 77MW Electricity generation using geothermal steam began in 1983 when a 35 MWe condensing type unit was commissioned in Momotombo. The second 35 MWe condensing type unit was installed and commissioned in March As a result of an international bid, ORMAT signed a 15-year concession and power purchase agreement (PPA) contract with Nicaraguan Electric Company (ENEL) in March 1997 to exploit the Momotombo field and manage the power plant for improving reservoir management and increasing the power output. A 7 MW ORMAT Energy Converter (OEC) unit was installed in October The installed capacity of the plant increased to 77 MWe.

28 MOMOTOMBO Actual generation has been below installed capacity since 1986, ranging from a brief output of up to 69 MWe in 1990, to a low of 8 MWe in 1999 due to reservoir pressure decline. Ormat restored generation to a peak of 37 MWe in 2002 after installation of the binary unit and well remediation, but output gradually declined to about 22.5 MWe. Since 2013, Momotombo Power Company (MPC) is the owner/operator of the concession for the next 15 years. MPC initiated a complete assessment of wellfield performance and well conditions to assess the feasibility of increasing generation to 42 MWg.

29 SAN JACINTO TIZATE INSTALLED CAPACITY: 72MW The first geoscientific studies in the area of the San Jacinto Project concession were conducted in From 1969 to 1971, the United States Agency for International Development implemented a geothermal exploration program over the western part of Nicaragua, managed by Texas Instruments Inc. Based on the results of this program, the San Jacinto-Tizate area was identified as having a high priority for development. The UNDP estimated the field development potential to be on the order of 100 MW. Through the late 1970's and early 1980's further geophysical surveys and surface studies were undertaken by a number of agencies. This work indicated that a high temperature (250 C to 300 C) resource existed in the San Jacinto-Tizate area. In late 1992, Intergeoterm, a joint venture company owned by ENEL and Burgazgeoterm, a wholly-owned subsidiary of Gazprom (a Russian gas company), began work on a feasibility study for development of the San Jacinto Project concession for power generation.

30 SAN JACINTO TIZATE The San Jacinto Project is currently being developed under an exploitation agreement (the San Jacinto Exploitation Agreement ) between PENSA and MEM. The term of the San Jacinto Exploitation Agreement signed in 2001 is for 25 years, extendable for an additional 10-year term. The generation license held by Polaris Enery Nicaragua S.A. (PENSA) allows for generation of 72 MW from the San Jacinto Project for a 30-year term that commenced in December Polaris Energy Nicaragua S.A. (PENSA), has the concession rights for the development of a 40 km2 area in the San Jacinto-Tizate geothermal field. A 10 MWe power plant with 2x5 MW back pressure units was operated from June 2005 to April The project expansion works began in 2008 for a new 2x36 MW condensing units power plant. In December 2012, the installed capacity of the power plant was brought to 72 MWe: (PHASE I : 36 MW Fuji Condensing Unit commissioned in January 2012 and PHASE II: 36 MW Fuji Condensing Unit commissioned in December 2012). A binary unit is also planned under Phase III to add an additional 10MW to the 72MW project.

31 COSIGUINA Nicaragua will enhance its renewable energy generation capacity under a $46.1 million project with financing from the Inter-American Development Bank (IDB). The project will finance the following activities: a. Feasibility level exploration of the Cosigüina field including the drilling of three commercial diameter exploration wells with an average depth of 2,000 meters (phase 1: three wells and phase 2: two wells) also includes construction of new access roads and extending the water supply pipeline, considering the location of the new wells. A Final Feasibility Report will be prepared that will allow the private sector concession phase to proceed. b. Development of a mechanism to attract private investment for the implementation of geothermal projects. This activity will help the MEM structure a competitive bidding process for awarding the exploitation concession to a private investor once the feasibility of the geothermal resource is demonstrated.

32 CASITA-SAN CRISTOBAL The Project will be developed by Cerro Colorado Power S.A., as a public private partnership between Cerro Colorado Corporation (a Panamanian subsidiary of Polaris Infrastructure Inc.) and Empresa Nicaragüense de Electricidad (ENEL). Cerro Colorado Power is also the geothermal field concessionaire. The Project has already prepared Environmental Impact Studies required by Environmental and Natural Resources Ministry (MARENA). On June 2017, MARENA renewed the exploitation environmental permit to Cerro Colorado Power which had expired in December 2016.

33 CASITA-SAN CRISTOBAL The Government of Nicaragua with the support of the World Bank intend to use World Bank funds (through the Scaling-up Renewable Energy Program and International Development Association) and other funding, to undertake exploratory drilling works to help confirm the geothermal resource of the field and to mitigate the resource risk in advance of developing the first 35MW operational power plant in the Casita-San Cristobal geothermal field. The Project has two components for development: Geothermal resource confirmation (exploration phase) and Steam field and power plant development (production phase). The exploration drilling program is estimated to cost US$40 million and the total Project costs are estimated to be between US$4.2 and US$5.0 million per installed MWe. Steam field and power plant development is estimated to cost between US$ million.

34 OTHER AREAS AREA TELICA - EL ÑAJO EL HOYO MONTE GALAN MANAGUA - CHILTEPE TIPITAPA CALDERA DE MASAYA CALDERA DE APOYO MOMBACHO OMETEPE POTENTIAL 78 MW 159 MW 111 MW 9 MW 99.5 MW 153 MW MW 146 MW

35 EL SALVADOR

36 EL SALVADOR The exploration of geothermal resources in El Salvador began in the mid 1960s with the aid of the United Nations. The geothermal reconnaissance of the country provided 18 areas classified as lowland high-enthalpy areas. Five priority sites have been identified for their geothermal power potential. These are: Ahuachapán, Cuyanausal, San Vicente, Berlín and Chinameca. Estimates from the Instituto Italo-Latino Americano indicate that there is a total of 644 MWe of geothermal power potential in El Salvador.

37 AHUACHAPAN INSTALLED CAPACITY: 95MW In 1966, with assistance from the United Nations Development Programme, El Salvador s Government identified the Ahuachapan region as a priority area for geothermal development. First well was drilled in It was a waterdominant reservoir with a depth between 600m and 1500m, and proved to be feasible for commercial exploitation. The Ahuachapán Geothermal Project was then launched in 1972 with funding from the World Bank. The first singleflash unit of 30MWe came online in In 1976, a second 30MWe single-flash unit was added, thereby doubling the generating capacity. In 1981 a 35MW unit, this time doubleflash, came online, bringing the total capacity to 95MWe.

38 BERLIN INSTALLED CAPACITY: MW Geothermal exploration began in the 1960s by the United Nations, the Government of El Salvador, and the national electric utility company, Comisión Ejecutiva Hidroeléctrica del Río Lempa (CEL). During exploration, six wells were drilled to depths between 1,400m and 2,300 m. However, development of the Berlín site was soon stopped, despite finding temperatures up to 230 C, due to low permeability. In the late 1970s and early 1980s, five more exploratory wells were drilled to depths between 2,000 and 2,380m. All of the wells proved to be productive, with temperatures of 300 C, and estimated potential of 5-11MW each. However, the El Salvador civil conflict which spanned the rest of the 1980s decade, coupled with the overall financial crisis that Latin America faced during that time, interrupted all new power projects by CEL.

39 BERLIN In 1992, however, at the end of the civil war, geothermal development recommenced with the installation of two 5MW plants at Berlín. Funding assistance was provided by the governments of France and Belgium. In 1996, CEL secured financing from the Inter-American Development Bank for a 56MW (two 28MW units) condensing facility at Berlín. This plant was completed on July 10, Two major additions have been placed online ]: a single flash 44 MW units (commissioned in 2006), built by ENEL Green Power under a shareholder agreement with La Geo (that has since been disbanded) and a bottoming cycle binary unit for 9.4 MW (on line in 2008).

40 CHINAMECA In 2015, CEL announced an investment of over $330 million for the different stages of development; prefeasibility, feasibility, development and implementation of the Chinameca project. The Chinameca Geothermal Field has a size of around 99 sq. kilometers, and is located in the hills The Limbo and The Pacayal, south of the city of Chinameca, in the department of San Miguel. Wells are expected to have a temperature between 240 and 260 degrees Celsius; drilled at a depth between 1,800 and 2,000 meters. CEL also announced that they hoped to start with a generation of 8-10 MW by 2017, and complement it with other geothermal turbines and reach an installed capacity of around 50 MWe by 2019.

41 SAN VICENTE San Vicente concession was awarded in May 2001 to Orpower 7, a subsidiary of Ormat, specifying the development of a 50MW geothermal power plant. Currently San Vicente 7, Inc., a subsidiary of LaGeo, has the concession and has made exploration work including drilling of commercial wells with depths up to 2500 m and temperatures about 240 C. The government has announced the intent of constructing a 30 MWs power plant

42 OTHER AREAS AREA CALUCO COATEPEQUE CHAMBALA OBRAJUELO OLOMEGA CONCHAGUA POTENTIAL 15 MW 70 MW 26 MW 20 MW 11 MW 13 MW

43 PANAMA

44 PANAMA The potential for geothermal power in Panama has been studied on several occasions since the 1970s, and five main areas for potential geothermal power generation have been evaluated since: Barú-Colorado Valle de Antón Coiba Island Tonosí Chitre de Calobre The different studies varied in conclusions, placing the entire geothermal potential for Panama between 100 MW and 450 MW. In August 2006, the firm West Japan Engineering Consultants, Inc. presented an estimate of the geothermal potential of Panama for the Baru-Colorado area as 24 MW, and for the Valle de Anton area 18 MW.

45 CONCLUSIONS - Importance of Initial Government, Multilateral and Cooperation Funding - Part of the national energy policy - Political will - Clear Concession Rules - Incentives to produce and clear procedures (clear mechanisms to achieve Power Purchase Agreements)