Role of regulatory delays in the development of geothermal energy in the United States
It is widely believed that one reason for the relatively slow growth in geothermal generating capacity has been the complexity of permitting procedures that characterize many phases of geothermal exploration and development. Although several investigators have examined the procedures involved in obtaining the necessary permits for geothermal development, little attention has been given to quantitative appraisal of the costs of permit delays. This investigation was designed to provide such a quantitative analysis. A two-part cash-flow model was constructed to define the cost and timing of the major activities in the exploration and development process. The first part of the generalized model, EXPLORATION, describes the distribution of costs for the exploration phase. This part of the model is designed to simulate the cost structure of a program, starting with grass roots exploration, that results in discovery of one 200-MW reservoir. The costs are summarized on a yearly basis and entered in the DEVELOPMENT portion of the model. DEVELOPMENT is a cash flow model of the entire exploration-development-production sequence over a forty-five year period. It was demonstrated that lengthy delays would result in lowering of expected return on investment that would be significant when compared with effects of simulated changes in royalties or bonus bids. Changes in return on investment were found to be largest for delays late in the development program, especially for higher-temperature reservoirs.
- OSTI ID:
- 7098000
- Resource Relation:
- Other Information: Thesis (Ph. D.)
- Country of Publication:
- United States
- Language:
- English
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29 ENERGY PLANNING
POLICY AND ECONOMY
GEOTHERMAL ENERGY
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ECONOMIC IMPACT
USA
COST
ENERGY MODELS
EXPLORATION
INVESTMENT
PERMITS
ADMINISTRATIVE PROCEDURES
ENERGY
ENERGY SOURCES
NORTH AMERICA
RENEWABLE ENERGY SOURCES
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