geothermal power plant projects in central america - Orkustofnun

NPV Capital Cash Flow 16% NPV Net Cash Flow 20%MUSD6040200-201 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32YearSingle Flash CycleTemperature Resource: 240°CMass Flow : 300 kg/sNet power Output : 27.7 MW-40-60-80-100-120-14060Single Flash CycleTemperature Resource: 240°CMass Flow : 600 kg/sNet power Output : 55.5 MWMUSD40200-20-40-60-80-100-120-1401 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32YearFIGURE 41: Accumulated net present value for: a) Scenario 1 (27.7 MW): 300 kg/s and 240°C;b) Scenario 2 (55.5 MW): 600 kg/s and 240°C6.4.4 Allocation of fundsFigure 42 illustrates the allocation of funds from the initial year through the planning horizon. Theallocation of funds is illustrated for two single-flash power plant projects: scenario 1 for 240°C, and300 kg/s (27.7 MW); and scenario 2 for 240°C, and 300 kg/s (55.5 MW). The chart shows how paidtaxes, financial cost, repayments, paid dividend and cash movement change over the planning horizonof 32 years.6.5 Results for multiple resource scenarios and three power plant technologiesKnowledge of the quality and quantity of the geothermal resources in question is key to the success ofgeothermal projects. A major problem for investors is that the quality and quantity of a resource canonly be estimated and not proven before explorative drilling. In the early stages of geothermal energyprojects, the risk of the resource is very high, and explorative drilling is very expensive (Wendel andHiegl, 2010). In consequence, the feasibility of a project can only be recognized if the coupled flowrate and temperature accomplish the expectations of the investors.The contour maps of IRRs of FCFE from three technologies of power plant investment are presentedin this section. This kind of contour map can be a practical tool for decision makers in order toevaluate the project profitability for different expected geothermal resources. Based on the contourlines, an investor who knows the results of a geothermal field evaluation can identify the profitabilitymeasures. Previously selected as the discount rate in Section 6.3.7, the MARR for equity required for ageothermal investor is 20%; the MARR for a geothermal project is 16%.50