PEB 601 – DESIGN PROJECT

REPORT 2

GROUP Y: GARTH RATUSAU (CIVIL): 2016134427

AMINIASI LAILAI (CIVIL): 2016136572
CHARLOTTE BULIVOU (ELECTRICAL): 2014124474
PENI CIKAI (CIVIL): 2016137860
ASAELI SALADUADUA (CIVIL): 2016133755
MELI SENOKONOKO (CIVIL): 2016134654

1
1.0 INTRODUCTION

Fiji is an island nation in the South Pacific and lies between 177° E and 178° W Longitude and
12° to 22° S Latitude with a land area of 18,333 km2. It is part of the “Pacific Ring of Fire”, a
geological zone characterised by significant volcanic activity. This is why Fiji is identified by the
Geothermal Energy Association as one of 39 countries that could meet their electricity demand
solely by tapping the renewable energy from underground heat
Fiji is well endowed with a broad mix of renewable energy resources, including hydro, solar,
biomass, wind and geothermal energy. However, the exact potential of renewable energy has yet
to be fully assessed and made publicly available.
By the end of this century then, a mere 90 years from now, Fiji will need to have an
“

infrastructure that runs exclusively on renewably generated electricity, biofuels, and possibly
nuclear energy. What will we do when global consumption of fuel exceeds supply, will Fiji and
other Pacific island countries even get fuel delivered. Energy will be the constraining factor on
growth and material wealth in the future. ”

Fortunately, there is more than enough available renewable energy to meet all of our needs, if we
“

can harness it. Fiji is blessed with geothermal resources at a potentially large scale. Geothermal
electricity is scalable from 250kW to hundreds of MW. Geothermal electricity is proven
technology to be in use for more than 100 years.
As such a Geothermal-Hydro Hybrid Power Plant proposal will be done, which will be situated
“

at the Labasa Area (Waiqele Hot Spring). The power plant will be more than capable of
providing energy for the whole of Labasa and if possible the island of Vanua Levu. Thermal
springs in this area occur over a 19 km long NE-trending belt, 8 km south of the town of Labasa
(population 3000). In addition, there is a smaller group of hot (80°C) springs at Waiqele, 10 km
to the south of the town. About 10MW of energy is required to power the whole of Labasa.The
FSC supplies the required 10MW to Labasa using bi products of sugar cane.

Only geothermal can deliver base load power 24/7 sufficient to power our economy into the
future. Without geothermal, Fiji faces difficult choices in the future. Therefore, further
exploration should be achieved through detailed surface reconnaissance at the Waiqele hot spring
in Labasa

2
2.0 AIM

The aim of this project is to design a system that would substitute the supply of fuel imports with
“

geothermal energy and produce energy for the household, businesses and industries in Labasa
especially Waiqele Area. This project also recognizes an appropriate area that is most appropriate
for geothermal extraction, in making reasonable measure of vitality (power) to the current power
hold. In addition, to help the country in achieving a sustainable power source and help in the
lessening of carbon emissions.

3.0 PURPOSE

The purposes of this geothermal project are:

 To decide the geothermal capability of the prospect by collecting data from past and recent
surveys of geothermal potentials in Fiji
 To decides if an asset exists and propose locales for exploratory boring, and

 To build up a geothermal theoretical model of the region

 To decide the power is created and through transformation

 To decide the power transmission/transportation from the plant to the matrices and to the
clients.

 To recognize the geothermal and ecological effects, specialized vulnerability,

administrative limitations and conceivable monetary ramifications to Fiji (current and
what's to come)

 To apply the knowledge of mathematics, natural science and engineering fundamentals to

solve the energy crisis in Labasa Area (Waiqele).

 Designing and developing solutions that would meet the specific energy demand in Labasa
with appropriate consideration for public health and safety, cultural, societal, and
environmental considerations .

. ”

3
4.0 DESIGN BRIEF

There is minor significant data accessible which can be utilized to comprehend geothermal
frameworks in Fiji and can be utilized for encourage examination proposes. This project is
subsequently an endeavor to lessen this information hole by proposing a Hybrid Power Plant to
cater for energy demand in Labasa which can be a potential vitality asset.

In power engineering, the term 'hybrid' describes a combined power and energy storage
system. It does not mean a "method," such as the popular use of hybrid to mean a hybrid electric
vehicle like the Prius. Hybrid power systems, as the name implies, combine two or more modes
of electricity generation together, usually using renewable technologies such as Geothermal and
Hydro generators. Hybrid systems provide a high level of energy security through the mix of
generation methods.
The proposed System is based on the world’s first integrated, commercial-scale geothermal-hydro
power plant in North America (Cove Fort, Utah). The power plant combines the Binary System from
Geothermal and a Hydro generator. The geothermal power plant consists of an additional hydro
generator in the geothermal injection well, to increase the overall output of energy therefore
improving the plants operational efficiency. Before a geothermal power plant can be designed,
“

the available energy resource must be characterized to the maximum extent feasible.

The innovative generator technology captures the energy of the water flowing back into the earth
“

to generate additional electricity while also better controlling the flow of brine back into the
ground. The presence of the generator creates pressure against the brine flow, which reduces the
flow’s turbulence into the well, hence minimizing the likelihood of any potential damage to the
well. The result of this kind of innovation is that it can reduce operational and maintenance
expenses, while also having the potential to generate additional revenues.

FIGURE 1.0 HYBRID POWER PLANT

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5.0 PROBLEM STATEMENT
A small Pacific Island nation, additionally utilizes colossal measure of vitality for power,
transportation and cooking purposes. The fundamental wellspring of vitality for Fiji remains in
the utilization of non-renewable energy sources which is a noteworthy supporter of natural
issues, for example, environmental change and an unnatural weather change. Yet, Fiji fell short
of achieving its own renewable energy target of reaching 90% renewable energy electricity by
2012. However, the energy sector still has the potential to transmute Fiji’s energy sector. Fiji
presently expends around 100 million FJD worth of petroleum product per annum, which is
around 40% of the aggregate income. Thus, Fiji has been seeking after sustainable power source
ventures with the emphasis on geothermal vitality as one of the option. Geothermal vitality can
have an influence as it can possibly take care of the present demand of vitality without trading
off the earth. Geothermal resource utilization in many countries worldwide has shown substantial
benefits mainly in the form of clean and renewable energy.
However according to the Department of Energy it was seen that the majority of the villages and
communities in Vanua Levu prefer/ want the 24/7 power supply system and due to limitations
such as availability of funds, and constraints like the geographical locations of the outer islands
and the remoteness of some villages in Vanua Levu, the provision of electricity is either done by
the extension of the FEA power lines to villages within the reach of the Authority’s grid. The
other is either by stand-alone diesel generators; extensions Government Stations’ power supply;
or renewable energy systems like Solar and / or micro hydro projects.

6.0 ENERGY DEMAND

Like other Pacific Island countries, Fiji is substantially dependent upon imported petroleum-
based fuels. The fluctuation of the global oil supply affects not only the country’s energy security
but also energy prices.

6.1 Current consumption:

Fiji’s national energy demand of 138MW (peak period) is met by 52% from renewable energy
sources (mainly hydro) and 48% from imported mineral fuels. The renewable energy
contribution is mainly provided from hydro (85%) and biomass (14%). The hydro generated
energy is provided by the Monasavu (80MW), Nagado (2.5MW), and Wainikasou (6MW).
Fiji relies heavily to imported diesel fuel to meet the shortfall in energy requirement (for
electricity and transport), LPG (for cooking, an alternative to kerosene and burning wood) and
aviation fuel. Based on data collected by the Fiji Bureau of Statistics on the type of petroleum
product consumed, total petroleum products consumed (in litres) from 1979 to 2007 increased by
220.7%. The highest increases in consumption were recorded for Aviation fuels (1094%) and
LPG (436%). Diesel comprised the highest component of petroleum consumption accounting for
52% of total consumption.

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 FEA Network Load Demand
Division 2010 2015 2017

Central 471,000 553,000 653,000

Western 427,000 498,000 578,000

Northern 44,331 45,661 47,031

Total Energy Demand (in MWh) 942,331 1,096,661 1,278,031

The FEA’s mission is to focus on Renewable Energy, significant percentage of our nation’s
growing energy needs is being met by diesel generators. This in turn increases the cost of
supplying electricity to our customers and also has an adverse impact on the environment in
terms of carbon emissions.Labasa alone uses about $14 million worth of fuel annually.

The main power supply in Vanua Levu is the Fiji Sugar Corporation. The Fiji Sugar Corporation
reuses the bi-product from sugar cane as fuel to generate Electricity. The total power required to
power the whole of Labasa is about 10MW.

7.0 SYSTEM REQUIRMENT

In Fiji, it has been documented that over 55 sites have shown naturally occurring hot springs. Of
these, a preliminary study was carried out resulting in 5 sites being identified as potential
geothermal systems in Vanua levu. The power volume from these sites has been estimated at
Vanua Levu – 23MW. These are sites over which preliminary surveys were conducted being
geological mapping, geochemical analyses and temperature measurements.

Expected Power Volume

Geothermal
Number of Activity The environment of
Household Area geographical
Division <Premise of calculation>
convenience
Estimate Temperature and Volume
Temperature of Reservoir
(oC)

150oC - No problem for PS Reservoir Temp. –

Northern 3,000 Waiqele construction 150oC 8MW
(Vanua Boiling spring - No problem for
Levu) grid-connected Area – 2.5km x
system 1.5km

Thickness – 400m

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Waiqele hot spring groups are situated 2 km between Nakama town and Vatulovona
town.

7.1 Implementing Arrangements:

The implementation of renewable energy projects will involve the following agencies
with the relevant specific legislative responsibilities:

(i) Department of Energy – technical support in biodiesel.

(ii) Department of Mineral Resource – issuance of Mining Lease and License.
(iii)Ministry of Agriculture – technical support in biodiesel.
(iv) Fiji Electricity Authority – buys power from independent Power Producer (IPP) at
negotiated tariff.
(v) Native Lands Trust Board – acts on behalf of traditional landowners as custodian over
lands and has powers to grants lease on native land.

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8.0 BACKGROUND OF PROPOSED SITE(Waiqele hot Springs,Labasa)
Labasa is located in Macuata Province, in the north-eastern part of the island of Vanua Levu, and is the largest
town on the island. Labasa is a town in Fiji with a population of 27,949 at the most recent census held in 2007.
The town itself is situated on a delta framed by three waterways.

Hot springs are common surface manifestation of geothermal systems and are described as
discharge of heated groundwater from earth’s crust to its surface. Waiqele has an atmosphere
which is ordinary of Labasa with nearly dry season all throughout the year which is also one of
the benefits of implementing geothermal in the area. Waiqele encounters high temperatures and
moistness with infrequent direct precipitation.As shown in figure 2 Waiqele has the potential to
produce at least 6-19MW of power.

FIGURE 2.0 PROPOSED SITE LOCATION

Geothermal Electric (GEL), a private limited company incorporated in Suva. The company is
“

dedicated to exploring and developing Fiji’s most promising geothermal resources, at low cost,
to provide good returns on investment to the company’s shareholders and to make an effective
contribution to developing Fiji’s economy
Geothermal Electric Limited plans to develop the geothermal resources of the Labasa–Waiqele
region, Fiji’s second most promising geothermal site. Some of the output is planned to provide
power for nearby industry, including ethanol and bio-diesel fuels, and mining projects

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9.0 SYSTEM OVERVIEW

“
The very first evaluation of a prospect is achieved through detailed surface reconnaissance. It is
aimed at defining the resource by its key system characteristic namely: existence of a heat source
in the form of hot magmatic body near earth surface, existence of hydrological system,
characteristic of the geological setting and areal extent of the prospect. However, while the
surface measurement and mapping and evaluation of the surface manifestations provide great
insight as regards the resource characteristics and potential, results of the reconnaissance remain
inferences and are inconclusive. The initial employment of drilling in geothermal prospecting is
aimed at providing proof of exploitable steam and data required for further refining of the
conceptual model.”

1. Water heated by the earth is pumped

to the surface under pressure.

2. The binary power plant uses heat

extracted from the water to generate
electricity.

3. The cooled water or brine is returned

under pressure down the injection
well.

4. The downhole generator captures the

kinetic energy as the water flows
down the injection well and produces
additional electricity.

5. The water is then reheated in the

geothermal reservoir, closing the
systems loop. This process repeats.

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Project Development of a hybrid power plant

 Site survey
 Environmental impact assessment
 Geothermal resource assessment and site survey
 Water transportation corridor survey
 Development of project technical specification
 Land lease agreement and Permitting
 Appointment of engineering procurement and construction contractor
 Debt and equity finance tie-up
 Power purchase agreement
 Energy supply agreement 16- 50 MW hybrid power project
 Construction of power plant.
 Operation and maintenance.

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10.0 THE DRILLING PROCESS:

Actual breaking of ground is achieved by use of a rock bit. The bit is rotated underweight. The
“

bit both crashes and gouges the rock as it rotates. The broken rock pieces arising from the
drilling are lifted from the bore by floating them in a circulating drilling fluid. This process
continues until the well is completed.

The ultimate goal for drilling is to access the resource for exploitation. However, during the
resource development and exploitation drilling serves various purposes.

For the drill bit to perform it requires the rotary motion, water for cleaning the bit and hole
bottom and the force (weight) to crash the rocks. The drill string serves to provide essential
requirement for the bit to perform. The drill string is therefore an essential part of the rotary
process. It is the connection between the rig and the bit.”

Classification of wells
1. Exploration/discovery wells geological data or previous drilling records exist

2. Appraisal wells Describes the Waiqele reservoir boundaries;

drilled after the exploration wells
3. Production wells Known productive portions of the Waiqele
reservoir will be drilled
4. Work-over wells Re-entry of already drilled wells to deepen,
clean etc.

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Typical Drill Rig Machine
 Maximum Hoist Capacity (Hook Load)
Drawworks Typical Depth
Hoisting Rating
Power 6 lines 8 lines 10 lines 12 lines 14 lines
Rating
hp kw ft m lb ton lb ton lb ton lb ton lb ton
550 410 3,000 914 236,000 107 302,800 137 364,500 165
to to
8,500 2,591

750 559 7,000 2,134 314,200 143 403,100 183 485,300 220
to to
12,000 3,658

1000 746 10,000 3.048 437,300 198 526,700 239 609,500 277
to to
14,500 4,420

1500 1,119 12,000 3,658 708,100 321 819,300 327 922,900 419
to to
18,000 5,486

2000 1,864 13,000 3,962 919,200 417 1,064,100 483 1,198,600 544
to to
25,000 7,620

3000 2,237 16,000 4,877 1,484,360 673 1,671,960 756

to to
30,000 9,144

Geothermal-Hydro Hybrid Power Plant:

The geothermal binary cycle power plant is formed by two cycles:

i. Primary cycle that contains the geothermal fluid, and a

ii. Secondary cycle where the organic working fluid is enclosed.

The Primary cycle starts at the production wells and ends in the re-injection wells. In the
“

primary cycle, the temperature and the desired flow rates of geothermal fluid are determined by
the reservoir´s field properties. The geothermal fluid can be either water or steam. When the
geothermal fluid is water or brine, it is kept at a pressure above its flash point at fluid
temperature along the primary cycle in order to avoid flashing of geothermal fluid in the heat
exchangers. The geothermal fluid temperature, at the end of the primary
cycle, is not allowed to drop to the silica scaling point.”

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The basic thermodynamic process, where the vapour reaches a dry saturated condition in the
evaporator and is condensed in the condenser. A simple method for describing a binary power
cycle is to follow the T-s diagram.

Note:
Area under processes 1-2-3 represents the
heat transferred to the working fluid in the
preheater and evaporator, and the

Area under the processing curve of states 4-

5-6 represents the heat ejected in the
condenser. The difference between these
two areas is the network produced by the
cycle (the area enclosed by the cycle curve).

In the secondary cycle,

i. The working fluid enters the pump at state 6 as a saturated liquid and is compressed
isentropically to the operating pressure of the evaporator.

ii. The working fluid temperature increases during the isentropic compression process, due
to a slight decrease in the specific volume of the working fluid.

iii. The working fluid enters the preheater as a compressed liquid and leaves the evaporator
as a saturated vapour at state 3.

iv. Typically, in the heating-evaporating process, in the preheater the working fluid is
delivered to its boiling point. The preheater and evaporator are basically large heat
exchangers where the heat coming from the geothermal fluid is transferred to the working
fluid at a constant pressure.

v. The evaporator is the section where the working fluid is vaporized at a constant
temperature. This saturated condition ensures that no liquid droplets enter the turbine.

vi. The saturated vapour at state 3 enters the turbine where it expands isentropically and
produces work by rotating the turbine shaft connected to an electric generator. The
pressure and the temperature of the vapour drop during this process to the values at state
4, where vapour enters the condenser.

vii. At this state, vapour is usually superheated. In the condenser, vapour is condensed at a
constant pressure by rejecting heat into the environment. The working fluid leaves the
condenser as saturated liquid and enters the working fluid pump, completing the cycle.

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viii. The efficiencies of the turbine and the working fluid pumps modify the expansion and
compression process and are used to determine the real work in both components.

The thermodynamic states of the working fluid in the secondary cycle are shown in the P-h
diagram. Such a diagram helps in understanding the thermodynamic cycle and different states of
the working fluid.

Note:
Area under processes 1-2-3 represents the
heat transferred to the working fluid in the
preheater and evaporator, and the

Area under the processing curve of states 4-

5-6 represents the heat ejected in the
condenser. The difference between these
two areas is the network produced by the
cycle (the area enclosed by the cycle curve).

The main components of a basic geothermal binary cycle power plant are the preheater,
evaporator, turbine, condenser and working fluid pump.

Schematic diagram of a basic binary power cycle

The binary cycle consists of
the following four processes:
6 – 1 (Isentropic compression in the
working fluid pump);

1 – 2 – 3 (Constant pressure heat

addition in preheater and
evaporator);

3 – 4 (Isentropic expansion in a
turbine);

4 – 5 – 6 Constant pressure heat

rejection in a condenser).

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The main components of a basic hydro power plant are the Intake or Control Gates, The
Penstock, Water Turbines, and the Generators.

 The water flowing back into the

earth is lead to the water turbine
through the penstock.

 Here the hydraulic energy of water

is converted to rotational
mechanical energy by the turbine.

 The turbine is connected to the

generator through the turbine shaft
and hence mechanical energy is
converted into electrical energy by
the generator.

In the analysis of geothermal power plants, the most common and universally applicable
performance metric is w, the specific work output of the power plant, with typical units of J/kg.
This metric describes the amount of energy extracted as electrical power from each kilogram of
geothermal brine entering the plant. Neglecting losses in the electrical generator (which has
typical efficiency >98%), specific work output is calculated as:

W˙
total
w=
m˙brine

where total power output, W˙total, is the sum of the power output from the low pressure turbine
and the high pressure turbine

W˙total =W˙lpt +W˙hpt.

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11.0 COMPONENTS & ENERGY ANALYSIS

Components associated with the Geothermal – Hydro Hybrid Power Plant (preheater,
“

evaporator, turbine, condenser, pump, intake or control gates, penstock, water turbines,
and the generators) are steady flow devices and can be analyzed as steady flow processes. In
this analysis, the kinetic and potential energy changes are usually small relative to the work and
heat transfer terms and are usually neglected. The heat exchangers do not involve any work, and
the pump and the turbine are assumed to be isentropic. The heat exchangers are assumed to be
well insulated, and all the heat transfer is between the geothermal fluid and the working fluid.
The following presents the main equations for energy analysis along with a short discussion of
the main components. ”

11.1 Binary Power Plant Components:

1. Preheater and evaporator:

 The preheater and evaporator are the first components in a binary power cycle. They
receive the fluid from the geothermal production wells. These components are heat
exchangers where the geothermal fluid, as a heat source, transfers some of its energy to
the cold working fluid of the binary cycle.

 Point S1 is the entry of the geothermal fluid to the evaporator; at this

point, the temperature and mass flow of the fluid are determined by the
geothermal reservoir properties. Point S3 is the outlet of the geothermal
fluid from the preheater and this point has two temperature design
criteria. The first criterion is applied when the fluid coming from the
preheater is considered for further utilization. The second criterion is
associated with scaling problems; the outlet temperature must be kept as
high as possible in order to avoid scaling on the geothermal fluid side in
the heat exchangers.

 Point 1 is the entry of the working fluid, fed by the working fluid pump,
into the preheater; point 3 is the outlet of the working fluid vapour
towards the turbine. The condition at point 3 is determined by the cycle
and turbine requirements; for a binary cycle, this point would be saturated
or slightly superheated.

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Considering the entire package as a thermodynamic system where the amount of heat transfer to
the working fluid is equal to the heat losses from the geothermal fluid, the energy balance
equation is given as:

where:

If the heat capacity of the geothermal fluid is assumed to be known, in the energy balance the
enthalpy difference may be replaced by the difference in temperature:

where:

The temperature-heat transfer or temperature-enthalpy difference diagrams play a central role in

the design of heat exchangers (preheater, evaporator and condenser).

Temperature – heat transfer diagram

for preheater (PH) and evaporator;
Points 1-2-3 correspond to T1, T2 and
T3 and are known values obtained
from the working fluid process

17
The hot fluid must be cooled from the inlet temperature (TS1) to the outlet temperature (TS3),
“

whereas the cold working fluid must be heated from the inlet temperature (T1) to the outlet
temperature (T3). The direction of these processes is indicated by the arrows. The temperatures
and mass flow rates are assumed to be fixed. The abscissa represents the total amount of heat that
is passed from the geothermal fluid to the working fluid. It can be shown either in percentages or
in heat units. The minimum temperature difference in the heat exchanger, between the
geothermal fluid and the working fluid, is called the pinch-point, and the value of that difference
is designated the pinch-point temperature difference, ΔTpp. In the analysis of this diagram,
points 1, 2 and 3 are known from the cycle thermodynamics analysis. Therefore, the
preheater and evaporator may be analyzed as follows: ”

Preheater: Evaporator:

The pinch-point temperature difference is generally known from the manufacturer’s

specifications; this allows TS2 to be found from the known value for T2 as follows:

where:

2 Turbine:

The binary cycle turbine converts the vapour thermodynamic energy of the working fluid to
“

mechanical work on the turbine shaft; this shaft is coupled to the generator where electricity is
produced. The thermodynamic analysis of the turbine in binary cycles follow the same
assumption as for steam turbines.”

 Point 3 is the vapour inlet to the turbine,

and

 point 4 is the turbine exit.

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The ideal turbine is iso-pentane that means the entropy at the inlet point is the same as at the
“

outlet point. The vapour enthalpy change in the real turbine is the enthalpy change in the ideal
turbine multiplied by the turbine iso-pentane efficiency. The work output of the real turbine is
this enthalpy change multiplied by the working fluid mass flow through the turbine. ”

where:

It is important to note that the selection of the working fluid defines some parameters in the
turbine design.

3 Condenser:

The condenser is another heat exchanger in the binary cycle. The condenser exchanges heat
“

between the cooling fluid cycle and the working fluid vapour. The turbine exhaust vapour exits
the turbine and is led to the condenser where it is condensed by the cooling fluid. The condenser
may be water or air cooled. This process occurs at a constant pressure (isobaric condensation). ”

 At point 4, the vapour comes from the turbine.

 At point 5, the vapour reaches the dew point and it is at

this point that the condensation process starts.

 Point 6 is the condensed fluid, normally saturated liquid,

moving towards the working fluid pumps.

 Point CW3 is the entry of the cooling fluid and

 CW1 is the outlet of the cooling fluid, to and from the

cooling tower.

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The calculations for the condenser are roughly the same in both cases as the temperature profile
of cooling fluid (air or water) is very close to linear.

The condenser heat transfers between the working fluid and the cooling fluid can be expressed as
follows:

where:

The cooling fluid may be taken as having a constant specific heat CP-CF for the small
temperature range from inlet to outlet. To dissipate the required amount of waste heat, a cooling
tower with a specified range, TCW3 – TCW1, will need a mass flow rate determined by the
following equation:

where:

In the thermodynamics analysis of the condenser, the increase in the outlet temperature of the
cooling fluid and the condenser pinch point temperature are assumed.

Air-cooled condenser
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 4 Working Fluids:

Organic fluids are used as working fluids in binary cycles. The right selection of a working fluid
“

in binary cycle power plants is very important as it has a primary effect on the efficiency of the
power plant, the sizes of power plant components, the design of the expansion turbine, power
plant stability, safety, performance, economy and environmental concerns. Because of the low
temperature of the heat source, thermodynamic losses occurring in heat exchangers have a
significant impact on the overall efficiency of the cycle.
”

These inefficiencies are highly dependent on the thermodynamic properties of the working fluid.
“

A common characteristic of all working fluids used in binary cycle power plant is their low
boiling point. They also have critical temperatures and pressures lower than water. Because of
the low critical temperature, some organic working fluids can operate under supercritical
conditions in geothermal binary cycles. ”

This allows for a better match between the temperatures of the two fluids in heat exchangers.
“

Numerous fluids can be used as working fluids in binary cycle power plants, except for those
having too high or low critical temperature.”

Nevertheless, when a working fluid is selected, factors such as safety, health and environmental
“

impact issues should be considered. Because of their strong effect on the ozone layer depletion. ”

The determination of appropriate working fluids for use in binary cycle power plants is a
“

complex task and has a direct relationship with the heat recovery process in the thermodynamic
cycle. The working fluids can be classified according to their saturation vapour states, one of the
most important characteristics for working fluids in binary cycles. ”

In order to evaluate the performance of different working fluids, a simulation should be carried
“

out. For temperatures ranging from 80°C to 160°C, only Iso-pentane and n-Pentane can be
selected as a working fluid. These types of working fluids are selected when the reinjection
temperature is limited by the geothermal water chemistry or another design condition. ”

For reinjection temperatures between 40 and 80°C, the working fluid options are Iso-pentane, n-
pentane, isobutene, n-butane, R114 and R245fa. These fluids can be selected when the
geothermal fluid has no limitations on temperature and can be cooled down approaching the
condensing temperature.

Once the working fluid has been evaluated in accordance with the desired reinjection
temperature, the next step in the selection is to evaluate the turbine work output that can be
obtained.

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 Variation of the turbine inlet pressure of different working fluids with
the reinjection temperature of geothermal water

Turbine work output for different turbine inlet pressures with

different working fluids

Iso-pentane and n-pentane have a maximum point of turbine work output, and the maximum
work occurs in the range between 9 -10 bars. R245fa shows an increasing stable behavior for the
turbine work output, from 15 to 30 bars. For R114, iso-butane and the other working fluids
shown, the turbine work output increases at higher turbine inlet pressure until its critical pressure
is reached; the complete opposite behavior is observed for Iso-pentane and n-pentane.

Finally, to make a working fluid selection, the following parameters must be known:

i. the temperature available from the geothermal fluid (heat source),

ii. the reinjection temperature limit, if it exists,
iii. for the application, and the turbine inlet pressure which is defined by the manufacturer.

22
 iv. Also, consideration concerning safety, health and environmental factors should be
considered.

11.2 Hydro Power Components:

1. Intake or Control Gates:

These are the gates built on the inside of the hole, that will be drilled into the earth. The water
from the injection well is released and controlled through these gates. These are called inlet gates
because water enters the power generation unit through these gates. When the control gates are
opened the water flows due to gravity through the penstock and towards the turbines. The water
flowing through the gates possesses potential as well as kinetic energy.

2. Penstock:

The penstock is the long pipe or the shaft that carries the water flowing from the injection well
towards the power generation unit, comprised of the turbines and generator. The water in the
penstock possesses kinetic energy due to its motion and potential energy due to its height.

The total amount of power generated in the hydroelectric power plant depends on the height of
the injection well and the amount of water flowing through the penstock. The amount of water
flowing through the penstock is controlled by the control gates.

3. Water Turbines:

Water flowing from the penstock is allowed to enter the power generation unit, which houses the
turbine and the generator. When water falls on the blades of the turbine the kinetic and potential
energy of water is converted into the rotational motion of the blades of the turbine. The rotating
blades causes the shaft of the turbine to also rotate. The turbine shaft is enclosed inside the
generator. In most hydroelectric power plants there is more than one power generation unit.

There is large difference in height between the level of turbine and level of water in the injection
well. This difference in height, also known as the head of water, decides the total amount of
power that can be generated in the hydroelectric power plant.

The general formula for the determination of hydraulic power is as follow:

23
 where:
Ph = is the mechanical power produced at the turbine shaft (Watts),
ρ = is the density of water (1000 kg/m3),
g = is the acceleration due to gravity (9.81 m/s2),
Q = is the water flow rate passing through the turbine (m3/s),
H = is the effective pressure head of water across the turbine (m).

The hydraulic power is later transformed into mechanical power by the turbine. The mechanical
power available at the output of the turbine is determined as follow:

where:
ŋt = is the efficiency of the turbine
The determination of the hydraulic turbine efficiency is determined as follow:

where:
1 −1 RAω
𝛌𝐢 = [ − 0.0035 ] and 𝛌 =
λ + 0.089 Q

Q = is the flow rate of water,

ω = is the angular speed of turbine rotor,
R = is the radius of the hydraulic turbine blades (m) and
A = is the area swept by the rotor blades (m2).

24
 4 Generator:

It is in the generator where the electricity is produced. The shaft of the water turbine rotates in
the generator, which produces alternating current in the coils of the generator. It is the rotation of
the shaft inside the generator that produces magnetic field which is converted into electricity by
electromagnetic field induction. Hence the rotation of the shaft of the turbine is crucial for the
production of electricity and this is achieved by the kinetic and potential energy of water. Thus in
hydroelectricity power plants potential energy of water is converted into electricity.

Down hole Generator for a Geothermal Injection Well

The proposed hybrid power plant uses a downhole generator to recover the hydraulic head
energy of reinjection water so that additional electricity can be generated from under-pressured
reservoir injection. The innovative approach incorporates an off the shelf 400 hp electrical
submersible pump into an existing geothermal injection well to produce electricity and reduce
plant house power expenses. This pump as turbine project resulted in a sustainable generation of
250 kw. The system involves the modifying of one existing off the shelf downhole electrical
submersible geothermal pump to operate as a turbine generator. Modifications to the downhole
system include a valve to control flowrates, downhole pressure monitoring capability, and a
protective shroud for the pump/motor. A wellhead landing spool allows for power cables to
extend from the well without any release of geothermal fluids. An at-grade electrical facility was
constructed to interconnect the turbine generator with the local distribution system and provide
generator and system protection. The surface electrical equipment includes transformer,
switchgear, cabling, relays, and a medium voltage transmission system. The downhole pump can
be installed at a depth of 1,800 feet in an injection well and performance is being monitored to
develop benchmarks. If first downhole Turbine is a success, a second downhole turbine can be
installed to further increase the amount of energy produced.

25
12.0 GEOTHERMAL VIZ
Geothermal energy viz is however consist of two types. That is deep and shallow viz.
 Deep viz – deep viz are the deep geothermal energy that is far below underground and is
about few kilometres to reach. The deep geothermal energy is being harnessed for
generation of electricity power benefits. Waiqele underground heat source should be in
this range of deep geothermal energy.

 Shallow viz – The shallow geothermal energy can find beneath the ground surface under
our feet. The heat energy of shallow geothermal energy coming from the sun in the form
of solar radiation, which is absorbed by the ground every day. Many years ago, human
started to use this energy in which they built underground caves to keep them warm from
outside extreme temperatures during winter, summer, or rain, wind and so forth.

13.0 CONSTRAINTS

In a binary geothermal power plant, there are four real-world constraints that must be met to
“

ensure effective plant operation in practice. The first of these is a lower limit on the quality of
vapor as it exits the turbine, which prevents excessive damage to the turbine blades: ”

xturb ≥ 0.97.

Next, an upper limit of 2 MPa is chosen for the evaporator pressure to limit the mechanical
“

stresses in the plant components, as well as ensure the working fluid remains sub-critical
throughout the cycle: ”

P1 ≤ 2MPa.

Additionally, the outlet temperature of the geothermal brine, Tc, is constrained such that it
exceeds the working fluid temperature at the inlet of the preheater, T4, by at least the pinch-point
temperature difference. This ensures that effective heat transfer is physically possible throughout
the length of the preheater and evaporator:

Tc ≥ T4 +Tpp.

Finally, the problem of silica scaling (which is present to some extent in all geothermal power
plants) is addressed by placing an upper limit on silica saturation index (SSI). Silica Saturation
Index is defined as the ratio of amorphous silica concentration, S, to equilibrium amorphous
silica concentration, Seq, in the geothermal brine:

26
 S
SSI = .
Seq

Geothermal brine is assumed to be saturated with respect to silica (in the form of crystalline
quartz) as it exits the production well and enters the plant components. As the brine cools while
passing through the heat exchangers, the silica undergoes a transformation from crystalline
quartz to amorphous silica. If the actual concentration of amorphous silica significantly exceeds
the equilibrium concentration of amorphous silica at the brine temperature, precipitation on plant
piping can occur, potentially degrading plant performance. To calculate SSI, the concentration of
crystalline quartz in the brine as it enters the plant must first be determined. The equilibrium
concentration of crystalline quartz assuming no salinity of the brine, Qeq (in ppm), is calculated
by the correlation of Gunnarsson and Arnorsson:

Qeq ,

with:
Ta measured in degrees Kelvin.

The crystalline quartz transforms into amorphous silica as it cools, such that the concentration of
amorphous silica is equal to the equilibrium concentration of quartz at the brine inlet
temperature:

S = Qeq.

Finally, the equilibrium concentration of amorphous silica, Seq (measured in ppm), at the brine
outlet temperature is found using the correlation of Gunnarsson and Arnorsson:

Seq ,

where: Tc is measured in degrees Kelvin

Geothermal energy could reduce electricity supply costs on FEA’s grids. The World Bank has
“

agreed to provide technical assistance to identify 2-3 major sites for geothermal-based power
generation in Fiji.
”

27
Given Fiji’s great potential for geothermal energy development, the private sector has expressed
“

strong interest. However, barriers to investment need to be effectively addressed. ”

Firstly, the independent power producers (IPP) framework is insufficient. Uncertainties about to
“

tariffs and other conditions of power purchase agreements weigh heavily given significant
exploration risks. Geothermal power’s high investment costs and associated exploration risks
pose a persistent challenge from the perspective of both developers and financers. In many
markets, drilling costs are offset with public resources, either through government or multilateral
development banks. Uncertainty also remains with regard to licensing. Four special prospector
licences from the Department of Mineral Resources were pending while two others had lapsed.
Licensing has been under discussion in the review of the Mining Act initiated in 2014. Stricter
background checks of companies that apply for prospector licences may help to ensure that
licensees actually carry out the work after a licence is issued.
”

Lastly, technical capacity is insufficient in both the private and public sectors in Fiji; the
“

Department of Energy (DoE), FEA and the Department of Mineral Resources all lack personnel
with specific knowledge and experience in geothermal power development. Capacity building is
needed for the public sector to oversee geothermal development. ”

Effect of constrained re-injection temperature:

In real-world geothermal power plants, it is possible that the re-injection temperature of the
“

geothermal brine is constrained to a minimum value. This constraint is set for two reasons. First,
a minimum re-injection temperature can prevent the formation of silica scale. ”

Second, a minimum re-injection temperature can limit the decline in geothermal well
“

temperature, ensuring long-term effectiveness of the geothermal power plant. However, it is

possible that a more stringent constraint on re-injection temperature may be necessary to limit
long-term well temperature decline. ”

28
14.0 POWER PLANT ELECTRICAL & CONTROL SYSTEM

The geothermal resources can be divided into low- and high-temperature systems depending on
“

the temperature of the reservoir. The high temperature geothermal resource can be utilized for
electricity production. The utilization is mainly achieved by direct-steam or flashed steam
installation. On the other hand, from low-temperature geothermal resources it is also possible to
produce electricity by applying non-conventional methods of geothermal power generation, such
as binary cycle generation. ”

There are three kinds of geothermal power plants, depending on the temperatures and pressures
of the reservoir:
i. Dry steam reservoirs produce steam and very little water. The steam is piped directly
“

into the power plant to provide the force to spin the turbine, which is coupled to drive the
generator in order to produce electricity. The temperature and pressure of the reservoir
should be high enough to boil the fluid at the wellhead. These kinds of reservoirs are not
common.

ii. A geothermal reservoir that produces mostly hot water is called a hot water reservoir and
“

is used for a flash power plant. Hot water is brought up to the surface through the
production well where, upon being released from the pressure of the deep reservoir,
some of the water flashes into steam. The steam is then separated from the water in the
separator, and powers the turbines and generator for electricity production.

iii. A reservoir with low and medium temperatures is not hot enough to flash enough steam
“

but can still be used to produce electricity in a binary power plant. In a binary system the
geothermal water is passed through a heat exchanger, where its heat is transferred into a
second (binary) working fluid, such as iso-pentane, that boils at a lower temperature than
water. When heated, the binary liquid flashes to vapour, which, like steam, expands
across and spins the turbine blades. Then, the working fluid in the vapour state is
recondensed to a liquid and reused repeatedly. In this closed loop cycle, there are no
emissions to the air.

The electrical system of a power plant includes generator, transformer, transmission line
circuit breakers, switchgear/ substation, instrumentation system, protection system and
control system. Most often geothermal power plants are sited far from consumers. Hence, on
designing a geothermal power plant electrical system, great attention should be paid, especially
to the transmission line system and the effect of stability on the existing network system.

29
 Unit control and protection of a typical
turbine generator

1. Generator:

The purpose of an electrical generator is to produce electrical energy to some load but it must do
“

so within specified operating limits of frequency and voltage. When it operates in isolated mode
it is responsible for determining these parameters but when operating in parallel mode with other
generators it generally has only limited control, and the required mode of operation can be as
significant as the electrical load being supplied.
The load behavior affects the generator requirements. But the power system environment
“

condition, the characteristics of the prime mover and the generator control systems are all
relevant to the actual generator performance during steady duty or rated conditions and also
during transient, sub-transient, pre-transient and all dynamic conditions encountered.

30
 2. Power transformer:

The terminal voltage of the generator is medium voltage and power plants are often located far
from consumers. Hence, to decrease transmission line loss I2 R, the current magnitude must be
reduced to a minimum value. Power transformers are equipment that convert medium voltage to
high voltage with some core and winding losses. The capacity of the transformer is the same as
the generator and characterised by rated MOA, voltage and current capacity.
Different types of transformers are available depending on the use and place of installation. The
cooling system and type of tape changer are important for selecting a transformer type. Based on
the cooling system, transformers are divided as forced air cooled, forced water --cooled or
natural air-cooled. To adjust the fluctuation of voltage, power transformers often have tape
positions and can be on-load or off-load tape changers. The equipment is sensitive to voltage
fluctuations; therefore, transformers with on-load tape changers are common now. Figure 5
shows the use of transformers.

Simple generator with instrument

transformers

3. Switchgear, substation and circuit breaker:

The generator needs to connect and disconnect from the system during malfunctions and
maintenance periods. This can be achieved with either generator switchgear or a separate
substation, depending on the loads connected in the system at that point. Generally, there are
different kinds of substations depending on the voltage, the space available, the equipment to be
used, etc. Some of these are outdoor air insulated substations, outdoor gas insulated substations,
and indoor gas insulated substations. Of these, the outdoor air insulated one is the cheapest, but it
needs six times more space than gas insulated substations. As outdoor space is usually not a
problem in geothermal plants, air insulated outdoor substations can be constructed. But attention
should be paid to sulphite corrosion in copper materials used in the substation. In some places
salt contamination from the sea can cause problems in outdoor, air insulated switchgear. The
following items are important in designing the substation:
31
  Number of high-voltage transmission lines;
 Number of bus bars;
 Number of generating plants;
 Required reliability;
 Budget;
 Transmission company requirements.

The switchgear can disconnect the generator from the grid with a full load in case of emergency
shutdown. Different kinds of switching equipment are available such as metal clad, vacuum
circuit breaker, minimum oil, etc. For indoor switchgear, metal clad breakers are convenient, as
they take little space upon installation.

4. Protection relays:

Protection equipment is normally provided to reduce the consequences of an electrical failure or

fault and plant damage. As the plant can operate in small or large systems, the protection is
designed to be suitable for any system. This enables protection schemes to be developed for
specific sets of standard conditions related to a fault and these are often treated as independent
non-interactive systems dealing with specific electrical units such as generators, transformers,
distributions, etc.
Based on the type of equipment and how important it is, different types of protection relays can
be utilized. The most common relays are over current, differential, over voltage, under
impedance, distance protection relay, reverse power, etc. Protection relays operate when there is
fault in the system or in each piece of equipment for which the relay is selected to protect. Relays
are designed so that they can carry the fault current without damage and withstand the voltage
without damage to their insulation.
5. Auxiliary power supply:

Power supply is necessary for the plant auxiliary equipment, control room and steam field
equipment during generator off-line situations, generator start-up, normal generating situation or
generator run down. This power is usually obtained via an auxiliary transformer supplied from
the electrical system. If the power station is disconnected from the system, and there is no
isolated generation occurring, there will still be a requirement for auxiliary power to operate such
things as turbine/generator main lubrication oil pumps, steam field reinjection pumps and
essential control room power during the turbine run down period.
There has to be an alternative source of auxiliary power, apart from the DC battery and system
connection, forstart-up, run-down and off-line situations. A low voltage supply from a local
power utility or an emergency generator with automatic start-up and change-over to supply a
dedicated LV emergency service motor control center and the control room is the norm.

32
 6. Earthing:

Geothermal power stations and the associated substation and steam field distribution system will
always require some form of buried earthing system. The purpose of the earthing system is to:
 Enable electrical equipment protective devices to operate correctly;
 Make the site safe for people under electrical fault conditions;
 Make the site safe for sensitive electronic equipment, under electrical fault condition.

7. Instrumentation:

Instrumentation in a power plant is important and plays a major role for a safe and efficient
operation. Mostly instrumentation is related to the control system of the plant. In power plants
different parameters need to be measured and monitored whether they are within the limit or not.
In geothermal power plants, measurements are taken for proper operation of the plant and for
environmental protection.
For environmental impact, chemicals such as hydrogen sulphide (H2S) should be monitored. It
should not be in excess, endangering personnel health and possibly causing electrical equipment
damage. On the other hand, for the plant operation, pressure, temperature and flow measurement
is necessary. There are limits and constraints for normal operation and for minimum impact on
the environment. Turbine and generator instrumentation is also an important aspect in an
electricity generating plant. The measurements in this case include, but are not limited to, the
following parameters:
 Turbine – generator vibration and centring;
 Bearings oil level and temperature;
 Oil level and temperature in the gearbox;
 Temperature in the stator core and winding and rotor compartment;
 Active and reactive power of the generating unit, the reactive power is especially
important so the generator will not fall out of synchronisation;
 Finally, generator voltage, current, and frequency is also important.

8. Control Systems:

In a control system the input signal is used in some form or another to control the output
variable. The control path can be either open loop or closed loop. In an open loop control system,
the input signal is controlled to provide an output signal of some desired value.
In the case of a closed loop control system, the output signal as feedback is added to the input
signal for comparison. The comparator compares the output signal with the desired input signal
and if there is a difference the control signal force the output signal to come back into line.
Generally, in an open loop control system, the input signal is independent of the output signal but
is a function of calibration, whereas in a closed loop control system the input signal is influenced
by the output signal as the output signal, can be varied by environment and external conditions.

33
Open loop control system Closed loop control system

An overview of control system

34
15.0 POWER TRANSMISSION & DISTRIBUTION:

Electricity is generated at power plants and moves through a complex system, sometimes called
the grid, of electricity substations, transformers, and power lines that connect electricity
producers and consumers. Most local grids are interconnected for reliability and commercial
purposes, forming larger, more dependable networks that enhance the coordination and planning
of electricity supply.
In Fiji, the entire electricity grid consists of hundreds of thousands of miles of high-voltage
power lines and millions of miles of low-voltage power lines with distribution transformers that
connect thousands of power plants to hundreds of millions of electricity customers all across the
country. The stability of the electricity grid requires the electricity supply to constantly meet
electricity demand, which in turn requires coordination of numerous entities that operate
different components of the grid.

Fiji Electricity Authority (FEA) is responsible for electricity generation, transmission, and retail
of electricity on larger islands i.e. Viti levu, Vanualevu and Ovalau. Installed generation capacity
is approximately 237 Mega Volts comprising of 80Mega Watts from Monasavu Hydro, 40Mega
Watts from Nadarivatu hydro and 112Mega Watts of diesel capacity in 14 substations on the
three main islands.

Transmission and Distribution of Electricity

35
Transmission lines help in the movement of electricity from a power plant/power station to the
various substations. There are two types of transmissions lines which are underground cables and
overhead lines. Overhead lines are applicable in Fiji. FEA uses the Vitilevu Interconnected
System and that will also be used for this project. Overhead lines advantages include:
 Easy repair if damaged
 Not restricted to landscape
 Less chance of electrocuting people
 Lose less energy than if in they were underground as they do not have any good
conductors near them to transfer energy away as easily
 Cheaper to set up and maintain.

Distribution lines carries electricity from the substations to the consumer’s end. Distribution
lines in Fiji carry 33kilo volts and 11kilo volts.
According to the Fiji Renewable Readiness Assessment by the International Renewable Energy
Agency (IRENA), 2005, on the main island of Vitilevu FEA’s power infrastructure is essentially
characterized by the larger hydropower plants, whose generated electricity is transmitted via two
major 132-kV lines, connecting Wailoa with Vuda in the Western region and Wailoa with
Cunningham Road in the Central region, feeding 33-kV and 11-kV distribution networks. The
33-kV lines are still feeder lines into the individual supply areas in the Western and Central
regions and do not yet form a circular system around the coast of the main land.

The smaller systems in Vanua levu are 33-kV transmission systems that cover only the most
densely populated areas around the towns of Labasa and Savusavu, which are planned to be
interconnected in the near future to provide more flexibility of supply.

36
15.1 Distribution lines:
According to our research, in Labasa there are two distribution network and the maximum
voltage is 11kV, since we have created 8MW power supply from our design system, a 33kV
transmission line will be proposed to replace the existing lines in order to connect to the Fiji
Electricity Authority Grid.

The balanced equation

Heat energy = mechanical energy = electrical energy

Qin – Qout + Win – Wout = P2V2 – P1V1 + U2 – U1 + 0.5V22– 0.5V12+ G32 – G31

where:
 Q = heat energy in and out
 W = power in watts
 P = pressure
 V = volume
 U = internal energy
 V2 - V1 = Kinetic energy
 G3 = potential energy

37
16.0 FINANCIAL IMPLICATION

As the world faces shortages of fossil fuels, and the price of such fuels escalates, the production
“

of alternative energy sources such as geothermal and hydro becomes both commercially feasible
and essential to the Republic of the Fiji Islands, to support economic activities and future growth.
Ultimately, we will have to pay the cost of developing renewable electricity in the price we pay
for that power, geothermal is no different. Geothermal has a potentially large scale. Geothermal
electricity is scalable from 250kW to hundreds of MW. ”

The main barrier to greater utilization of geothermal energy for power generation is related to
“

financing. Like most other renewable energy technologies, the financing profile for geothermal
indicates a high up-front cost and relatively lower operating costs compared to conventional
thermal power generation projects. The high upfront capital requirement (a mid-range estimate is
close to US$ 6 million per MW), combined with relatively long lead time before returns on the
investment result in a high sensitivity to financing costs. In addition, unlike wind or solar, or
even hydropower, a significant portion of the upfront investment is required to determine the
resource viability; the level of uncertainty can be high. Obtaining the financing required to
overcome this geological exploration risk (or resource risk) is often considered the greatest
challenge.”

Stages of Geothermal Development:

The earliest and highest risk development stage (Resource Exploration) for geothermal is the
“

most difficult for raising capital. This is the stage that differentiates geothermal from other
renewable resources and the stages that have strong similarities to oil and gas exploration.
Financing in this stage presents the greatest challenge because of its uncertain opportunity for
returns and the lack of familiarity with the technology in the renewable energy financing market. ”

38
 1. Resource Exploration Stage:

Exploration is the underlying advancement stage and tries to find a geothermal asset that can
“

give adequate vitality to run a power plant and deliver power. This stage involves collecting
information from previous geological, geochemical and geophysical studies made in the area
with particular emphasis on mapping of young volcanic activity, thermal manifestations such hot
springs, steam jets, groundwater boreholes and even known traditional utilization of geothermal
resources. The existing scientific information are re-interpreted to determine the more detailed
investigation that need to be conducted. This stage begins with various kinds of prospecting and
field analysis and ends with the drilling of the first successful full-size commercial production
well. The costs under this category include the cost of desk top data review, detailed surface
study, infrastructure development and drilling of exploration wells. Depending on the whether
in-house capacity or external consultants are used, the duration, the methodology used,
remoteness of the resource, the detailed surface studies including the desktop may cost up to
about 2 million US$. This cost will vary from project to project and is greatly influenced by the
project’s remoteness and availability of drilling water.
”

2. Resource Assessment Stage:

Appraisal involves drilling extra wells and undertaking a feasibility study. Normally, 6 – 9
“

appraisal wells are drilled for study. From that point, a bankable achievability will be attempted
on the premise of which the prospect is endorsed for improvement. The feasibility study is
mainly a desktop study that would include reservoir simulation and undertaking a preliminary
design of proposed power plant. The feasibility study would cost about 4 million US$. After
successful discharge of steam from the initial wells, a comprehensive resource assessment is
prepared. This is now the feasibility stage of the project. The exploitable size of the resource is
established based on the conceptual model of the heat source, geological structure, fluids present
and reservoir characteristics. A development strategy has to be formulated together with the
conceptual design of the fluid collection and reinjection system (FCRS). The power station initial
design, location and interconnection to the power grid are established at this stage. The
feasibility study will yield project cost estimates, development timelines and the economic and
financial analyses under probable power demand scenarios. The final output of this phase is a
complete technical and financial feasibility study that can be used to solicit funding from
financiers for the development of the project.
”

39
 3. Power Plant Development Stage:

Upon successful negotiation and closure of financing for the project, the next stage involves
production and reinjection drilling, detailed design, procurement and construction of the power
plant.

16.1 OUTLINE OF FINANCIAL COSTS

16.2 What Is The Cost Of A Geothermal Power Plant?

Costs of a geothermal plant are heavily weighted toward early expenses, rather than fuel to keep
“

them running. Well drilling and pipeline construction occur first, followed by resource analysis
of the drilling information. Next is design of the actual plant. Power plant construction is usually
completed concurrent with final field development. According to studies, an economically
competitive geothermal power plant can cost as low as F$5400 per kilowatt installed and
probably $7000 to $10000/kWe for a small (<1Mwe) power plant. Operating and maintenance
costs range from $0.01 to $0.03 per kWh. Most geothermal power plants can run at greater than
90% availability (i.e., producing more than 90% of the time), but running at 97% or 98% can
increase maintenance costs. Higher-priced electricity justifies running the plant 98% of the time
because the resulting higher maintenance costs are recovered. ”

Labasa requires about 10MW of power. If 1kw is about $5400 than 10MW will be around $54 million to
$60 million Fiji dollar provided if the GEL company reduces the cost of survey and drilling

40
16.3 What Factors Influence The Cost Of A Geothermal Power Plant?

There are many factors that influence the cost of a geothermal power plant. In general,
“

geothermal plants are affected by the cost of steel, other metals and labor, which are universal to
the power industry. However, drilling costs may vary as well. Geothermal projects are site-
specific, thus the costs to connect to the electric grid vary from project to project. Also, whether
the project is the first in a particular area or reservoir impacts both risks and costs. The
acquisition and leasing of land also varies, because to fully explore a geothermal resource a
developer is required to lease the rights to 2,000 acres or more. Challenges to leasing and
permitting vary from project to project; especially on federal lands. These factors include:
”

 Size of the plant

 Exploration costs
 Installation cost
 Appraisal costs
 Production drilling costs
 Power plant construction
 Operation and maintenance cost
 Plant inefficiency cost
 Working capital
 Investment and financing cost
 Geothermal drilling risk
 Resource depth and permeability
 Tax incentives
 Time delays

41
16.4 POWER PLANT COST FACTORS

Size of Power Plant:

The project size determines the extent of economies of scale, and its type provides information
“

about the extent of new exploration, confirmation and infrastructure construction work needed to
build the project. There is a tension between the economies of scale of larger plants and the
requirement of regulatory or investment plans to undertake development in smaller steps. This
project most likely will not look at larger geothermal developments. The main reason is that Fiji
would most likely not be able to attract the funds required for a larger development until some
experience with the particular resource was gathered and the risks associated with a larger
development were able to be well quantified. Furthermore, a larger development may struggle to
obtain resource consents in Fiji, given the conservatism of regulatory authorities and their
preference for staged developments, for the same reasons. Oversizing the power plant is a risk
closely related to resource risk, but it acquires additional significance for two reasons. First,
oversizing the plant magnifies the resource risk by concentrating investment resources in a given
location—as opposed to spreading it out by building smaller plants in several geologically
independent fields. The second reason is related to sustainability of the geothermal operation.
Excessive plant capacity can lead to unsustainable extraction rates resulting in pressure drops or
even reservoir depletion. To produce a GWh (a giga watt hour, or one million kilowatts of
energy for one hour, an enormous amount of energy), a geothermal plant uses the equivalent of
about 1,046 square kilometers (404 square miles) of land. ”

Exploration costs:

Exploration is the initial development phase and seeks to locate a geothermal resource that can
“

provide sufficient energy to run a power plant and produce electricity. This phase begins with
various kinds of prospecting and field analysis and ends with the drilling of the first successful
full-size commercial production well. The costs under this category include the cost of desk top
data review, detailed surface study, infrastructure development and drilling of exploration wells.
Depending on the whether in-house capacity or external consultants are used, the duration, the
methodology used, remoteness of the resource, the detailed surface studies including the desktop
may cost up to about 2 million US$. The infrastructure is a one off (fixed) cost that entails
construction of access roads and water reticulation system. This cost will vary from project to
project and is greatly influenced by the project’s remoteness and availability of drilling water. It
is common practice to drill 3 – 4 exploration wells; one as a discovery and two as confirmation
wells.”

Installation cost:

Installation costs are all initial costs excluding transmission and distribution that are incurred in
“

the construction and commissioning of a power plant. The costs can be categorized into resource
exploration, appraisal, production drilling and plant construction costs.”

42
Appraisal costs:

Appraisal entails drilling additional wells and undertaking a feasibility study. Typically, 6 – 9
appraisal wells are drilled for study. Thereafter, a bankable feasibility will be undertaken on the
basis of which the prospect is approved for development. The feasibility study is mainly a
desktop study that would include reservoir simulation and undertaking a preliminary design of
proposed power plant. The feasibility study would cost about 2 million US$.

Production drilling costs:

Production drilling entails drilling to provide adequate temperature to operate a specific size of
“

plant at full capacity and reinjection wells. The energy output from individual wells is highly
variable, depending on the flow rate and the enthalpy (heat content) of the fluid, but is commonly
in the range 5-10 MWe and rarely over 15 MWe per well (2010 Survey of World Energy).
Productivity is affected by many variables including, well completion size, drilling fluids
employed, permeability (primary and secondary), understanding of the field, the development
phase, depth and the resource itself. The financial risk in geothermal lies in drilling and
exploring for it. A single 1000-metre-deep geothermal hole will typically cost F$7 million. A
typical exploration drilling program of 20 holes would cost F$140 million. Drilling risk increases
with the amount of electricity required to repay the drilling cost. A low drilling cost means that
smaller plants are financially viable and risks are lower. A high drilling cost means that only
large plants are financially viable and risks are much higher. Drilling costs vary according to
type of borehole, characteristics of the respective geological formation, and mobilization cost for
drilling rigs. As there are no suitable rigs available in Fiji, the cost associated with first drilling
would be relatively high due to the mobilizations cost. Relevant literature quotes typical drilling
cost at USD 1,200/m. Given a drilling depth of 500-1,000 m, an exploration well would typically
cost around USD 5 million. Overall, geothermal investment costs are typically below USD 4,000
per kW but may reach USD 6,000/kW for the smaller plants that are likely to be relevant for Fiji. ”

Power plant construction:

Rarely does one find cost of geothermal generation equipment stated alone. In addition, the cost
“

of plants would vary even for plants of the same size because they are designed to match the
resource characteristics in particular turbine inlet pressure. The price of generation equipment
including installation may range between F$5.5 million to about F$10.8 million. ”

Operation and maintenance cost:

The operation and maintenance cost factors may be categorized as ordinary O & M costs which
“

include staff, administrative and cost of spares, the plant inefficiency, reservoir management
costs and cost of capital associated with increased working capital. The rate of operation and
maintenance is fairly low for geothermal. The renewable energy cost of O & M is approximately
0.0557 FJ$ per kWh. ”

43
Plant inefficiency cost:

Power plants suffer failures and breakdown. They do not operate at design capacity over their
“

entire life but with time the efficiency decreases and the plants require timeout for inspection,
repairs, refurbishment, rehabilitation and overhauls. The timeout costs money for maintaining
staff and depreciation. This cost is captured through the capacity factor.”

Working capital:

Firms require funds in their normal day to day operations. Besides paying out debts that become
“

due, firms need to establish inventories of most critical spares. Experience has shown that lead
times for some key power plant parts can be in excess of half year and it is not unusual to receive
parts a year after making an order. Capital retained for this purpose will cost the company money
to secure. However, the cost of working capital is relatively small.”

Investment and financing cost:

Implementation and operation of the geothermal projects requires funds. Geothermal projects are
“

financed from equity, revenues accruing from the project and may include debt. ”

Equity:

Investors provide equity in the hope that they will make a return on their investment. The return
“

on equity (investment) constitutes a cost to the project. Investors are residual beneficiaries after
payment has been done to lenders/creditor and preferential shareholders. Since payment of
dividends is discretionary to the directors, investors offer the project a cushion in cash flow
management. They bear greater risk than the other financiers and for this reason they require a
higher return.”

Debt:

Geothermal projects are capital intensive; large sums of money are required for their
“

implementation. These sums of money are difficult to raise from a firm’s internal sources. In
addition, debt is much cheaper than equity. Further, firms prefer to lower their risk profile in a
project by adopting project finance where other investors in particular lenders/creditors are
invited to share profits and also bear some of the project risk. Thirdly, for most countries interest
arising from debt is a deductible expense for income tax purposes. This provides price advantage
normally known as a tax shield. There are many sources of debt which include local and
international commercial banks, bilateral and multilateral funding institutions, stock markets
(bonds) and pension schemes. ”

Revenues:

Revenue is another source of financing for a geothermal project. Revenues arise from the sale of
“

electricity. While in principle equity and debt are designed to finance drilling of wells, buy and
install the power plant, revenues are designed to generate resources used for operations,
maintenance, debt payback, and to generate profits for the investors. To a firm, revenue costs are
zero rated.”

44
Geothermal drilling risk:

Drilling risk increases with the amount of electricity required to repay the drilling cost. A low
“

drilling cost means that smaller plants are financially viable and risks are lower. A high drilling
cost means that only large plants are financially viable and risks are much higher. Geothermal
Electric’s drilling costs are low therefore the risks are considerably lower than for a high cost
drilling approach.

The time during which the estimated impacts occur is largely dependent on the timing of
expenditures from the proposed project. As the developers survey the geology of the site, fulfill
permitting requirements, complete leasing agreements, drill test wells, construct the plant, and
finally operate the plant; some portion of the total expenditures during each activity flow into the
local economy.

Understanding the unique characteristics of individual projects provides information in regards

to the timing of the economic impacts that will be felt locally. While the developers provided
information on the expected budget for each phase of the project, there is still uncertainty
surrounding the timeline when the first three phases of the project would be carried out. In
beginning to understand the potential timeline, it is important to recognize that the unique
characteristics of individual geothermal reservoirs describe their potential utilization.

Geothermal reservoirs vary in volume, temperature, pressure, and the state of the fluid (steam or
water). These are key factors in determining whether the resource is suitable for use in electricity
generation and the appropriate geothermal power plant technology to be applied.

45
Benefit Over 10 Years From Development Of Geothermal Electricity In Fiji
 Government debt increase $nil
 Government debt servicing increase $nil
 Capital expenditure by FEA/Nation $nil
 Savings on diesel imports $2.75 billion
 Annual FEA savings in 10 years’ time $425 million pa
 Reduction in domestic electricity pricing Approx. 12 cents per unit
 Income tax receipts Approx. $240 million
 Royalties to landowners $36 million

Geothermal Electric Limited’s (GEL) Plans

 Raise capital to fund exploration (2010)
 Undertake extensive exploration drilling
($3.5 million+) (2010 onwards)
 Develop strategic alliances with major power users (e.g. aluminium refineries, mining
companies)
 Develop projects using debt or royalties
($150 million to $400 million power lines)
($350 million per 100 MW power station)

Geothermal Electric Limited’s Target

 Save FEA $85 million pa on fuel within the next 4 years
 Save FEA $425 million pa on fuel in 10 years’ time
 Sell $530 million pa of electricity in 10 years’ time
 Help cut national fuel import costs by 50% over the next 10 years
 Help raise domestic exports by 250% over the next 10 years
 Help move Fiji from a fossil fuel based transport system to electric within 10 years
 Produce excellent returns on investment to shareholder

46
Government Assistance:
 GEL needs government assistance to pay for the exploration drilling (GEL has cut the
cost of the drilling from $50 million to $3.5 million)
 Government purchase of shares for $3.5 million
 Investment from FNPF of $3.5 million to purchase 16.15% of the company
 Government guarantee of F$3.5 million from a local bank
 Grant or loan of $1 million to speed up exploration and development
 Total investment required $4.5 million
 Assistance can be staggered (e.g. $2.5 million in year 1 and $2 million in year 2)

Current Status:
 GEL has done all the exploration geology
 Drill machine available in Suva, awaiting finance to undertake the drilling
 Debt finance after exploration available to:

i. Purchase land
ii. Purchase power plant
iii. Install power plant
iv. Connect to grid
v. Ongoing supervision of power plant

47
 Sustainable Energy Financing Facility

The Sustainable Energy Financing Facility is a financial product that allows farmers and
businesses to adopt sustainable energy technology in place of fossil fuel for the generation of
electricity. The facility is provided to encourage the development of locally owned sustainable
energy projects for the wider benefit of business enterprise, community and the environment.
Such projects also help rural dwellers obtain a cheaper and cleaner energy source for their long
term needs.

Financing is available the following sustainable energy sources including Geothermal Systems:

 Hydro
 Solar
 Coconut oil fuel
 Energy efficiency equipment
 Wind, biomass, biogas, wave, tide, and feasible geothermal systems

This facility also accommodates working capital for the purpose of providing consultancy,
design, supply, installation and maintenance/ repair services

Green finance describes a broad range of funding services for environment-oriented

technologies, projects, industries or businesses.
It includes environment-related financial products such as credit cards, loans and insurance that
would encourage customers to use more sustainable environment-friendly practices.
ADB has been active in providing assistance to developing member countries going green
through financial products and services offered by microfinance institutions (MFIs).
For instance, credit lines were offered by MFIs for households and microenterprises to have
energy efficient and environment friendly homes in Tajikistan.

Below are ADB microfinance projects related to green finance from 27 May 1983 to 30 June
2014.

Approved ADB Green Finance-related Microfinance Projects

Approval Type of Amount Approval
Country Title of Project
Number Project (US$) Date
Study on Rural Credit and 23 November
2449 TA KAZ 470,000
Savings 1995
Institutional Strengthening 22 December
1810 TA PHI 1,400,000
of Cooperatives 1992
28 November
1617 TA PHI Rural Credit 640,000
1991

48
16.5 COST IMPLICATIONS

•Reduced Exploration & Drilling costs:

Smaller scale power plants require less steam therefore slimmer wells can be drilled which are
cheaper and faster. And Binary plant turbines enable shallower drilling, further reducing overall
development costs and project risk –improves overall bankability

•Shorter project lead-time:

Lead times are vital for determining investment yields and quantifying initial equity expenditures
to cover all stages of geothermal development. Shorter lead time allows a lower investment
hurdle

•Reduced Operation & Maintenance costs:

Smaller capacity power plants have less turbine generators, therefore less O&M expenditure.

Electricity is the most important energy source in the modern age but also the most ephemeral, a
source that must be consumed as fast as it is produced. This makes modeling the economics of
electricity production more complex than carrying out the same exercise for other products.
Accurate modeling is important because it forms the basis for future investment decisions.

49
16.6 LIFE-CYCLE COSTING

Life-cycle cost (LCC) assessment involves the estimation of major expected costs within the
useful life of a power system. Life-cycle cost estimation facilitates investment decisions before
acquiring or developing assets associated with a power project. Life-cycle cost analysis allows
comparison of different investment alternatives and thus enables determination of the most cost-
effective system.

Cost Components of Energy Projects

The costs associated with the useful life of a project are categorized as initial cost, operation and
maintenance cost, and disposal cost.
The initial costs associated with a power project before commencement of construction activities
are typically the project site survey, land lease agreements, power purchase agreements, etc.

During the construction period

The costs are divided into two categories: (i) capital cost and (ii) noncapital cost. Capital costs
are associated with the procurement of physical assets, such as heat exchanger, turbine, and
pumps,etc. The noncapital costs are associated with services needed for the deployment of
physical assets, e.g., costs associated with legal services, testing, survey, research and
commissioning.. During the operation phase of the plant, the costs usually considered are
variable costs, operation and maintenance costs, debt servicing costs, etc.

Financing Charge
During the project construction and commissioning period, a part of the project cost is funded
through equity and the balance through a loan. The amount of the loan drawdown depends on the
equipment and services that have been supplied during the construction of the project. And the
corresponding interest on the loan is compounded on a monthly basis.

Debt
Debt is the amount of money loaned by a party to another party at a mutually agreed repayment
terms. Debt is characterized by several attributes, such as repayment period (or maturity),
repayment provisions, seniority, security, and interest rates. Debt maturity can be characterized
in terms of short-term (up to 1 year), medium-term (up to 5 years), and long-term (more than 5-7
years) loan repayment periods. The repayment of the proposed hybrid power plant is
characterized as long term due to the cost of implementation.ie.(more than 10 years).

Interest During Construction

Interest during construction is the accumulated monthly interest on the loan used to finance
construction and commissioning activities of a project. For example, a large geothermal power
project takes around five or more years for its construction and to become operational. The IDC
will depend on the phasing of equipment and services required during construction of the project
and the corresponding loan drawdown to finance the same.

Variable Cost
The variable costs associated with a plant are typically the cost of consumables and
the “operation and maintenance” costs.

50
Project Cost
The total cost of a power project considers three important components and these are: the
project’s capital and noncapital costs, the IDC and the financing cost. The project cost can be
calculated as:

16.7 NUMERICAL VALUES FOR LIFE CYCLE COSTING

Survey and Research costs

GEL has done all the Survey and research geology. Yet if another survey is required it would
sum up to $3.5million

Exploration Drilling costs

GEL has reduced the cost of exploration drilling from $50million to $3million. 5 exploration
drill will cost around $15 million

Production drilling costs

A single 1000-metre-deep geothermal hole will typically cost F$7 million. 4 production drilling
will add up to $28 million.

Power plant construction costs

The price of construction including installation may range between F$5.5 million to about
F$10.8 million.”

Operation and maintenance cost:

The operation and maintenance cost factors may be categorized as ordinary O & M costs which
“

include staff, administrative and cost of spares, the plant inefficiency, reservoir management
costs and cost of capital associated with increased working capital. The rate of operation and
maintenance is fairly low for geothermal. The renewable energy cost of O & M is approximately
0.0557 FJ$ per kWh. ”

The total estimated cost of the life cycle would be around $60 to $90million dollars and the
approximate backpay would take 10-20years if the current chanrge of electricity is also applied
to geothermal power.

51
17.0 TECHNICAL UNCERTAINTIES

Geothermal energy suffers from its technical uncertainties as described below.

1. Not Widespread Source of Energy:

 Since this type of energy is not widely used therefore the unavailability of equipment,
staff, infrastructure, and training pose hindrance to the installation of geothermal plants
across the globe. Not enough skilled manpower and availability of suitable build location
pose serious problem in adopting geothermal energy globally.

2. High Installation Costs:

 To get geothermal energy, requires installation of power plants, to get steam from deep
within the earth and this require huge one-time investment and require to hire a certified
installer and skilled staff needs to be recruited and relocated to plant location. Moreover,
electricity towers, stations need to set up to move the power from geothermal plant to
consumer.

3. Can Run Out of Steam:

 Geothermal sites can run out of steam over a period of time due to drop in temperature or
if too much water is injected to cool the rocks and this may result huge loss for the
companies which have invested heavily in these plants. Due to this factor, companies
have to do extensive initial research before setting up the plant.

4. Suited to Particular Region:

 It is only suitable for regions which have hot rocks below the earth and can produce steam
over a long period of time. For this great research is required which is done by the
companies before setting up the plant and this initial cost runs up the bill in setting up the
geothermal power plant. Some of these regions are near hilly areas or high up in
mountains.

5. May Release Harmful Gases:

 Geothermal sites may contain some poisonous gases and they can escape deep within the
earth, through the holes drilled by the constructors. The geothermal plant must therefore
be capable enough to contain these harmful and toxic gases.
52
 6. Transportation:

 Geothermal Energy cannot be easily transported. Once the tapped energy is extracted, it
can be only used in the surrounding areas. Other sources of energy like wood, coal or oil
can be transported to residential areas but this is not a case with geothermal energy. Also,
there is a fear of toxic substances getting released into the atmosphere.

Prevailing Problem Types and Countermeasures in Operation of Power Plants:

Different parts of the surface components of power generation system have associated different
problem flora. It is therefore expedient to divide the system into the following eight principal
portions:

Power house equipment:

 Comprising of turbine/generator unit complete with condenser, gas exhaust system.

Automatic control and communication system:

 Consisting of frequency control, servo valve control, computer system for data collection,
resource and maintenance monitoring, internal and external communication etc.

Cooling system:

 Cooling water pumps, condensate pumps, fresh water (seawater) cooling, or cooling
towers.

Particulate and/or droplet erosion:

 This is an erosion problem that is typically associated with the parts of the system where
the fluid is accelerated (e.g. in control valves, turbine nozzles, etc.) and/or abruptly made
change direction (e.g. via pipe bends, T-fittings or wanes).

Heat exchangers:

 These are either of the plate or the tube and shell type. These are generally only used in
binary and hybrid type conversion systems, and/or in integrated systems.

Gas evacuation systems:

 High temperature geothermal fluid contains a significant quantity of non-condensable

gases (C02, N2, H2S, and others). These have to be removed for instance from the
condensing plant for reasons of conversion efficiency. Some countries require the gas to
be cleaned of H2S or Hg to minimize atmospheric pollution.

53
Re-injection system:

 Comprising liquid effluent collection pipelines, injection pumps, injection pipelines,

injection wells and control system.

Chemical injection system:

 In order to reduce scaling of calcite in production wells sometimes a scale inhibitor is

injected through a capillary tubing down hole. Similar injection is applied with caustic
soda to neutralize acid wells to reduce the corrosivity. Acid is used for pH modification in
order to arrest the scaling of silica in waste water going to reinjection, for cases where the
water is supersaturated. Chemical control of pH by caustic soda and of biofilms is also
applied to the cooling water (turbine condenser/cooling towers).

POWER GENERATOR DEFAULT RISK

 The obligation of the power generator falls into two categories, the fuel supply and energy
conversion or power generation. Fuel supply entails availing steam or brine by way of
prospecting, assessing and drilling while energy conversion entails designing and
construction of the power plant, operating and maintaining it over the power purchase
agreement period.

 As it were, the generator bears the resource risk, construction, operations and maintenance
risks. In addition, by entering in a power purchase agreement, the generator is liable for
liquidated damages in the event they do not meet their obligation as stipulated in the
power purchase agreement. The construction risks can be in the form of delays or time
overruns, budget overrun or plant underperformance or malfunctions during
commissioning.

 Time overruns and plant underperformance attract penalties while budget overrun strain
the project capital needs and erode profitability. The plant design, construction delays and
underperformance risks are passed over by the generator to a qualified engineer-procure-
construct (EPC) contractor through a lump-sum, time based and turnkey contract. Time
and budget overruns are also mitigated by providing contingencies. The investors risk
paying penalties during periods of plant downtime. Proper operations of power plant
ensure revenues for all. However, prolonged breakdown and other downtime can
compromise a return on investment and the ability of the plant to service its loan and
generate sufficient funds to keep it in good operating conditions.

 The risk of operation and maintenance is therefore real and lasts for a long time. To
mitigate the risk, adequate budgets and stock of spares and consumables are required.
Proper preventive and maintenance schedules undertaken in time are essential.
Outsourcing overhauls can help reduce risks and attractive personnel benefits can help
recruit competent staff and retain them. The generator will employ various insurance
instruments to transfer risks related to their default

54
SYSTEM DEVELOPMENT DESIGN

55
Development Restriction: De-risking
 Exploration – high upfront costs, associated investment risks
 Lenders/financial institutions – not willing to invest in resource verification

Opportunity – World Bank [ESMAP]

 2015 – Fiji sought assistance of World Bank [TA]
 2016 – World Bank approved request via ESMAP
 2016 – Moratorium on Geothermal Exploration
 World Bank technical assistance
 Review geo-scientific data, establish exploration needs
 Assess demand & supply for Vanua Levu
 Further exploration studies, identify drill sites & prepare drilling plan
 Undertake ESIA
 Prepare a drilling & resource confirmation project, mobilize funds
[exploration stage]

ESMAP
 Proven viable resource – power plant development
 Plan preparation
 Financial structure
 Assist with funds mobilization [production stage]
Opportunity - Technology
 Cost of renewable energy technology will decline – increase in manufacturers/suppliers
due to demand
 Proven geothermal developers
 Binary system – applicable to the Pacific [low temp]
 Possible to economically develop minimum 1MW plant

 small scale [less CAPEX, smaller footprint]

56
Principle 1 - Develop An Integrated Planning Process:
(a) Promote the development of appropriate regulatory guidelines including standards to
meet the needs of producers, suppliers and users.
(b) Promote 100% electricity usage from RE sources by 2050.
(c) Promote energy data reporting both in supply and demand across all sectors.

Principle 2 - All Energy Resources Will Be Developed By The State For The Betterment Of
All Citizens.
a) The State should be an active participant in the development of all energy resources.

b) The State should empower landowner participation in the development of all energy
resources ensuring landowner interest in this project is equitable.

c) The State will review and define properly in law, the ownership and beneficial interest of
its citizens in all energy resource development.

Principle 3 - Promote A Conducive Environment For Long Term Sustainable Economic

Solutions In The Supply Of All Energy Sources.
a) Ensure appropriate legal and financial frameworks are in place for energy sector
development by private sector participants.

b) Promote public-private partnership in energy sector development

Principle 4 - Encourage Involvement Of The Private Sector In The Development And

Provision Of Energy Services.
a) Provide incentives for private sector investment through appropriate fiscal regimes.

b) Promote a competitive energy and electricity market environment for the expansion of
independent power providers and distribution.

c) Promote the efficiency and robustness of the Electricity Service Industries through
market reforms

d) Promote corporatisation and commercialization mechanisms for power utility and

Independent Power Producers to facilitate improvements in power production,
transmission, distribution and retail by relevant entities.

57
 e) Government shall continue to play an important role in the regulation of retail
competition, including issues of prices control and market ownership in the Electricity
Supply Industry and allow for a lower tariff for rural electricity users based on Long run
marginal cost.

Principle 5 - Ensure Energy Resources Are Developed And Delivered In An

Environmentally Sustainable Manner.

a) Minimize the adverse impact of energy production, distribution and consumption within
the framework of the Environmental Act and other appropriate legislation and laws
including Environment Impact Assessment (EIA) of energy projects.

b) Support international action on reduction of greenhouse gases and ozone depleting

substances from energy standpoint.
c) Promote and support efforts in the conservation and maintenance of forests and
appropriate marine resources, aquifers as carbon sinks.

Principle 6 – Promote Efficient Systems And Safety In Energy Supply In All Sectors
(Transport, Residential, Commercial/Industrial And Agriculture).

a) Promote policy and regulatory framework for greater use of appropriate, cost effective
and energy efficient modes of transportation including public transport.

b) Ensure minimum energy performance standards for electrical equipment, and adoption of
building energy codes and other Standards for safety.

c) Ensure safe transportation of energy products and wastes

d) Promote best practise energy supply systems for agriculture industries

58
18.0 PRINCIPLES OF GEOTHERMAL POWER GENERATION
Steps for development:

A. General Study:
 Preliminary screening (Environment, Rights, etc.)

B. Reconnaissance:
 Geology,
 Geophysics,
 Geochemistry,
 Modelling

C. Pre-feasibility Study:
 Deepening the studies and model update

D. Feasibility Study:
 Test well Development,
 Reservoir Evaluation,
 Power Plant Design and overall Economic Analysis

E. Field Development,

F. Construction

G. Start-up and Commissioning

H. Operation and Maintenance continuous resource monitoring

59
 Tenement Map – Vanua Levu

CAPACITY FACTOR IMPLICATIONS

•Maximize the capacity factor:

A high capacity factor (CF) is a crucial parameter for geothermal power plants. How to
maximize the CF, it is the key to success where smaller scale power plants tend to have less
capacity factor.

•Save time for maintenance:

Air cooling systems are slightly less effective compared with water cooling, however
maintenance time is reduced.
Scale is another key factor for maintenance time. There are several approaches for this problem
(ex: chemical, physical, etc.). Installing a 2ndheat exchanger outside of the power generators is
one solution.

60
19.0 ENVIRONMENTAL & SOCIAL IMPACT

The Government of Fiji is placing a high priority on minimising greenhouse gas emissions at a
time when South Pacific nations are concerned about global warming.
Geothermal power plants are very environmentally “friendly”. As such they can add to Fiji’s
considerable achievements in maximizing the use of renewable energy with minimal
environmental impact.
The main environmental advantages of geothermal are as follows.
 Clean air: The proposed Waiqele Geothermal power plant may meet the world’s
most stringent standards for clean air.

 Greenhouse gases: The proposed Waiqele Geothermal power plant may emit
very small amounts of “greenhouse gases”: about 0.14 kg of carbon per
megawatt hour while diesel plants emit about 6000 times more -- about 880 kg.
This huge difference is highly significant: power plants in the United States of
America, for example, release more than 40% of that country’s total emissions of
carbon dioxide, the main global warming pollutant.

Geothermal power plants emit only a tiny

fraction (1/6000) of “greenhouse gases”
compared with conventional power plants.
This plant in New Zealand is a similar size to
the first plant to be installed by Geothermal
Electric Limited once suitable flows of hot
water at Savu Savu have been reached.

 Other emissions are very low, or zero: Geothermal plants typically emit only
about 0.20 kg of sulphur per megawatt hour while diesel plants emit about 100
times more -- about 23 kg (but see note below). Nitrogen, which is a significant
pollutant emitted by diesel plants, is virtually nil from geothermal plants. These
emissions are particularly significant because sulphur dioxide and nitrogen
oxides form “acid rain”.
 [Note: Geothermal power plants in Fiji are expected to emit much less sulphur
than the 0.20 kg quoted above, because on present indications it appears likely
that sulphur dioxide gas will be zero, or close to it.]

61
 Industrial development will produce very low emissions: Fiji’s present
continuous generating capacity is similar to that of a 112 MWe geothermal
power plant in the United States of America owned by Ormat. A conventional
power station of that capacity produces -- each year -- 630,000 tonnes of
greenhouse gases and toxic emissions. Taking into account that about half of
Fiji’s power production is from emission-free hydro, if geothermal replaced the
present diesel power generation about 300,000 tonnes of greenhouse gases and
toxic emissions less would be produced than is produced today.

 More significantly, if geothermal powers new mines, metal refining plants and
other industries for the Waiqele Area and also the whole of Fiji, the greatly
increased electricity production will be achieved with only one six-thousandth
(1/6000) of the increase in emissions that would occur with a conventional
power station.

 No transport-related hazards or emissions: Environmental hazards of

accidental fuel oil spills and the environmental side-effects of oil transportation
(200,000 tonnes per year in the above example) are eliminated.

 Only heat is removed, not water: When geothermal water is pumped back into
the earth, the result is that the underground geothermal reservoir retains the same
amount of water. Therefore, the power station never runs out of water and any
other places that use hot water (such as hot springs resorts and cooking places)
continue to receive exactly the same quantity as they always have. Returning the
water underground instead of draining it at the surface also ensures that animals
and plants in nearby creeks are not affected by the temperature of the water or
any minerals contained in it.

Pumping geothermal water back into the ground from the

power plant ensures that the same amount of hot water as
before remains available for traditional community uses, such
as cooking. In the binary power generation systems to be
installed by Geothermal Electric Limited, all water is returned
underground. The only component removed is heat.

62
Geothermal energy is seen as a viable form of energy in Fiji because it is clean and it is
“

renewable. Another advantage of geothermal energy is that it can be extracted without burning a
fossil fuel such as coal, gas or oil. The Vanua Levu Geothermal fields produce only about one
sixth of the carbon dioxide that a natural gas fueled power plant produces. Binary geothermal
plants release essentially no emissions. Unlike solar and wind energy also produced in Fiji,
geothermal energy is available constantly. Lastly, geothermal energy is relatively inexpensive;
savings from direct use can be as much as 80 percent over fossil fuels. ”

More important, the study identified several environmental characteristics unique to geothermal
power:

 Pollutant formation may be independent of the power production rate;

 Effluent pathways may change abruptly generating hazards that have not been
anticipated;
 Pre-operational testing and random bore holes contribute negatively to the overall impact;
 Waste water may be discharged at temperatures high enough so that utilization of the
waste heat becomes both practical and imperative.

These parameters have been taken into consideration in the installation of the proposed Waiqele
“

modern geothermal extraction technology for which it is recognized that exploitation of

geothermal energy has an impact on the environment but lower than other available sources of
energy.

The environmental effects of the proposed Waiqele area geothermal energy production may then
be analyzed from different perspectives which include:

 Environmental pollution such as air quality, water quality, underground contamination

and chemical or thermal pollution;
 Adjacent terrain changes such as Waiqele area land subsidence; third, social impacts such
as conflicts with cultural traditions and archaeological sites and social-economic
disruptions;
 The consequences of large scale industrial activity in Waiqele area such as high noise
levels, industrial accidents and the generation of industrial waste.

Environmental pollution:

The extent to which geothermal exploitation affects the environment is proportional to the scale
“

of its exploitation. In general, the environmental effect is more significant in plants with
geothermal direct-use applications and potentially greater in the case of conventional back-
pressure or condensing power-plants. This is particularly relevant in regards to air quality.
Although the consequences of air quality pollution may be high, the probability of such events is
considered low for which it is deemed an acceptable risk.

An analysis of the Argonne National Laboratory concluded that geothermal waters pose a large
“

potential risk to water quality, if released into the environment, due to high concentrations of
toxics including antimony, arsenic, lead, and mercury but that the risk of release can be virtually
eliminated through proper design and engineering controls. None the less, the release of toxic
substances, especially hydrogen sulfide remains of concern.

63
Terrain changes:

The use of geothermal energy sources requires the drilling of deep holes (boreholes) around the
“

Waiqele area and the insertion of pipes for pumping high-temperature fluids out from the
ground. The rocks that contain high temperature fluids also contain minerals, which tend to form
residues inside the pipes and production equipment. If the rocks contain radionuclides, such as
radium, the mineral scale, production sludge, and waste water will contain Technologically-
Enhanced, Naturally-Occurring Radioactive Materials (TENORM). The primary radionuclides
produced with the geothermal fluids are radium-226 and radium- 228.

The study of the Argonne National Laboratory has indicated that effective removal of these
“

contaminants may not be feasible in an industrial scale. Geothermal power plants usually re-
inject the hot water that they remove from the ground back into wells but a small amount of
water may evaporate and not be returned to the ground with the potential for ground collapse and
sink holes. The withdrawal and re-injection of geothermal fluids also may trigger or increase the
frequency of seismic events. However, these are micro seismic events that can only be detected
by means of instrumentation. The likelihood of a major seismic event is very small never having
been documented.

Large scale industrial activity

Large scale industrial activity has numerous environmental consequences even when all the
“

variables have been addressed and the negative effects neutralized. Accidents are inevitable in
this setting and geothermal energy extraction poses a small but definitive risk of groundwater
contamination, especially during the drilling of wells and extraction of hot water or steam. This
problem was identified in New Zealand as early as 1975. There are reliable technical solutions
that minimize this risk such as reinjecting used water back into the ground through separate wells
instead of discharging the used water into surface waters thus preventing underground minerals
or pollutants from entering surface waters. Installation of pipelines to transport geothermal fluids
and construction of ancillary structures also affect animal and plant life and the landscape.

64
19.1 SOCIAL IMPACT
Local communities, governments and local organizations have increased awareness of the effect
“

of large scale industrial activity in their environments. The expectation is that there will be a
complete disclosure of all the potential impact of the industrial activity. Because of the large
number of variables involved in an operation such as geothermal energy extraction,
consideration of all the possible consequences of the activity may not be possible which may
lead to community opposition to geothermal energy projects.

In particularly sensitive areas, the development of geothermal sources may not be feasible. In
“

addition, there is an increasing conflict of interest between the growth of the tourism industry,
population growth and resort community development with their high demands for water and the
needs of the geothermal plant.

Technical capacity is insufficient in both the private and public sectors in Fiji; the Department of
“

Energy (DoE), FEA and the Department of Mineral Resources all lack personnel with specific
knowledge and experience in geothermal power development. Capacity building is needed for
the public sector to oversee geothermal development.

Environmental Management Act was enacted to protect natural resources and to promote
“

waste management and general pollution control. It established the National Environment
Council in Fiji, which approves the National Environment Report and the National
Environmental Strategy, monitors implementation of the Strategy, advises the government on
international and regional environmental commitments and treaties, and facilitates discussion of
environmental matters. The Department of Environment of Fiji, among others, coordinates and
implements environmental impact assessment procedures for all energy projects as well as waste
management and pollution control, including emissions from power plants.
Uncertainty also remains with regard to licensing.
 Four special prospector licences from the Department of Mineral Resources of
Fiji were pending while two others had lapsed. Licensing has been under
discussion in the review of the Mining Act initiated in 2014. Stricter background
checks of companies that apply for prospector licences may help to ensure that
licensees actually carry out the work after a licence is issued.

Mineral (Exploration and Exploitation) Bill states that all mineral resources, including
“

geothermal resources, in or under any land in Fiji are the property of the State, and no persons
are allowed to carry out any activities involving the prospecting, exploration and development of
minerals without a relevant licence.
There are different types of licences prescribed by the Bill:
• Prospector’s rights to prospect for minerals and mark out areas for a proposed mining lease;
• Exploration licence to explore the specified area and mark out and apply for a development
licence or mining lease;

65
• Development licence to develop the specified area and apply for a mining lease or to retain the
mineral resources within the specified area;
• Mining lease to perform mining activities within the area specified in the lease.
For each type of licence, the Mineral Bill outlines the application process, criteria for granting
the licence, and the terms, conditions and statutory requirements attached to the licence. The Bill
also includes provisions for compensations paid for land, cultural and external disruptions, and
royalty payments to the government from development licence holders and mining leaseholders,
as well as health and safety requirements for any mining activities

Fiji based Geothermal Electric Limited Fiji proposes “a public-private partnership that
could result in electricity being sold for between 18 cents and 21 cents per unit.

Geothermal Electric Limited Fiji CEO Timothy Daniel said the partnership would provide a
reasonable rate of return to investors and dividends to the Government. He said the
investment would be supercharged for the State because savings on diesel from a 10
megawatt geothermal plant in Vanua Levu would deliver an additional rate of return of 1200
per cent each year. GEL has proposed a $4million public private-partnership, which was
equivalent to how much the nation sent out of the country to pay for electricity every 10
days.

Sustainability Concerns

Although geothermal energy itself is considered highly sustainable, there exists a sustainability
concern associated with how we use it. Studies show that without careful management of
geothermal reservoirs, they can become depleted, rendering a geothermal power plant useless
until the reservoir recovers.

With the advancement in geothermal energy technologies, this sustainability concern is

becoming less of an issue. Efforts are now made to inject geothermal fluids back into reservoirs
as soon as the thermal energy has been utilized, thus reducing the chance of a well becoming
depleted. Thus these sustainability concerns will be highly considerate in the safe construction of
the geothermal power plant in the Waiqele area.

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19.2 SOCIAL, ENVIRONMENTAL AND POLITICAL JUSTIFICATION OF THE PROPOSED HYBRID POWER
PLANT IN WAIQELE

Most of the residents in areas with geothermal manifestations know that natural heat can be used for a
number of practical applications. Many such residents also know that geothermal development may
bring about important benefits in the project area, whereas others are concerned with the impact that
large projects (especially those for electric generation) may cause on environment and economy of the
area. Therefore, different positions form in the public opinion in areas where a geothermal project is
about to start, with a number of people supporting, others encouraging in a conditional way, and still
others opposing implementation of the project in their territory.

19.2.1 SOCIAL JUSTIFICATION OF GEOTHERMAL PROJECT IN WAIQELE

In a Fijian society, no development initiative exists without a however slight possibility of impact on
ecosystem and people of the area concerned: even less so when initiatives of wide interest are involved.
This will be applied to the implementation of the geothermal project in Waiqele, especially those for
electrical generation. Indeed, when an important project is planned for implementation in a populated
area such as Waiqele, a debate begins among politicians, public administrators, economic lobbies,
“green” groups, and indigenous communities, on whether or not, and in the affirmative on how, such
project should be carried out. In brief, realization of any important project depends in many instances
on its acceptance by the people residing in the proposed project area. Two definitions have been
proposed in recent years for social acceptance of geothermal projects:

i) "Social acceptability is attained if the project activities do not result in drastic changes from the
regular conditions of the area, and if the affected sectors can see some advantages issuing from
the project " (De Jesus, 1995).
ii) "Social acceptability of a profit - purported project is the condition upon which the technical
and economical objectives of the project may be pursued in due time and with the consensus of
the local communities; consensus to be gained by acting in consonance with the dynamic
conditions of the environment, and in the respect of the people's health, welfare, and culture”
(Cataldi, 1997).

Some significant differences between these two definitions; however, both of them stress that
social consensus depends primarily on avoidance of detrimental impacts on environment and
people in Waiqele.
As a consequence, to win social acceptance of this project, geothermal operators should carry
out a number of "external" actions, among which (depending on the location, type, and size of
the project) they may consider some or all of the actions mentioned below.

Public relations and information campaign

This action may include:

a) During the planning stage of the Hybrid project: Contacts with public administrators of Waiqele
area, not only to provide them with information on the project objectives, but also to start
having an idea of the people's attitude towards the new initiative;
b) Preparation of public opinion through a plain and timely information campaign.

67
c) Presentation to regional Labasa Town authorities, public administrators, and important entities
of Waiqele area, of a brochure outlining the project objectives, the environmental measures in
program, and the social benefits that the project is expected to produce; i.e a 24/7 supply of
clean and renewable energy.
d) During the implementation stage of the project the Periodical dissemination of information on
the activities should be conducted in programs through meetings with local chiefs and villagers,
and by means of media.
e) Promotion of project - related scientific meetings in the work area; Guided visits to drilling sites
and plants for local students (Waiqele Secondary Schools) and other interested people.
f) Creation in the work area of a "demonstration facility", equipped with posters, models, photos,
and leaflets of the project;
g) Encouragement to implementation of territorial development plans and new economic or social
initiatives that might have positive impacts onto the project objectives.
h) Consideration for Fijian traditions, culture, and modes of thinking of the Waiqele communities.
i) Prevention and minimisation of adverse effects on environment and people Planning project
activities according to a block structure for all main phases of work helps implementing a careful
Environmental Impact Study (EIS) before the project starts.
j) Identification measures will be taken for Waiqele before the execution of the project, when
activities reach the drilling stage, or when construction of plants and infrastructures is about to
start, a number of private land owners, and in some instances also entrepreneurs with other
interests in the project area, always appear to warn the project operator on possible
detrimental impacts on their properties or activities. Muttering then grows among people in the
area, which gradually undermines the favourable climate mentioned above, and strengthen the
position of those who had opposed the project since before its inception. This may cause
additional operation difficulties, with consequent time delays and budget inflation for the
project. To reduce these difficulties, the project experts should be prepared to adopt technically
equivalent alternatives for the siting of major works such as drillings, gathering system, re-
injection pipes, plants, and infrastructures; in this way, the project administrator will have a
number of alternatives at hand during negotiations for rights of way, prandial servitudes, and
purchase of portions of land, which are always necessary in any type of project. In all such cases,
availability to pay fairly higher amounts for some commodities, and quick payments, result in
saving delays to the project works. In particular instances, if disputes arise during negotiations
for a given commodity, arbitration to settle issues in amicable way should be preferred to any
legal action.

k) Project should benefit the Waiqele Community especially when large projects for geothermal -
electric generation are involved, social acceptance depends on the public perception that the
new initiative will bring direct benefits to the residents in the area concerned. To this end, some
or all of the following measures can be taken.

• Steady or temporary hiring of native workers

• Use of local firms for the execution of as many as possible parts of work;
• Training and steady hiring in the project firm of qualified natives (scientists, engineers and
technicians);
• When the project is to be implemented in a remote area, the camp for personnel should be
equipped with cafeteria and recreation facilities;
68
 • Cession at low price (or at no cost, if possible) of residual steam or hot water for use in public
buildings, social centres, and other facilities of public interest;
• Sponsorship of cash contribution to cultural, sport, and folklore events held in the project
area.
• Grants to native scholars and students for research, or publication of works on important
aspects of development perspectives, history, traditions, and culture of the project area4.

MAIN ISSUES OF POSSIBLE CONCERN IN GEOTHERMAL PROJECTS

• Restrictions in the use of areas and properties (land occupation, crossing of fields, cutting of plants,
digging of trenches, modification of paths, construction of roads and plants, etc.)

• Levelling of working areas (to construct drilling yards, store equipment and materials, and erect
plants);

• Noise (due circulation of heavy trucks, drilling-rig motors, well testing, fluid production, and other field
works)

• Disposal of residual material during and upon completion of drilling (mud, cuttings, oil drainings, and
fluids of different nature)

• Uncontrolled blowouts of wells

• Scaling in the drilling area and along pipes (by leakages of hot water, water-steam mixtures, and
condensate)

19.2.2 ENVIRONMENTAL JUSTIFICATION OF GEOTHERMAL PROJECT IN WAIQELE

Environmental impact When underlining that geothermal is a “friendly to the environment” type of
energy, we are not telling the complete truth. First, it has significant impacts to the environment; and
second, if some type of impact is “friendly” or not depends on the point of view of the local residents of
the impacted community. Taking into account that people usually do not have a clear understanding of
what types of impacts are coming with the introduction of this “new” energy source, there is primarily
no resistance during the initial phases of development, i.e. exploration, investigation, and project design
phases. The differing opinions of local people depend on several local factors, including socio-economic
conditions, cultural background, and individual or group interests. When news spreads about the
possibility of having a geothermal project initiated in a given area, many residents eulogize natural heat
with terms like clean, cheap, friendly, benign, green, and sustainable; thus creating a favorable climate
for the implementation of the project. However, individual and collective attitudes towards geothermal
development usually change with time as the project reaches the drilling stage, and work begins for
plant construction

Sites for temporary works and permanent plants can be selected as much as possible in correspondence
to unused or less fertile areas. The areas used for temporary works can be later restored (or even
improved) by planting appropriate vegetal species.

• Drilling areas can be minimized by drilling two to five directional wells from the same yard.

69
• Major noise sources (steam venting, drilling-rig motors, plant machinery, etc.) can be greatly reduced
by an adequate design and/or by acoustic insulation of the noisiest equipment.

• Residual waters are usually re-injected into the original reservoir, which enables not only to dispose of
undesirable chemicals, but also to prevent or greatly reduce subsidence.

It has been proven that geothermal energy has numerous advantages in comparison with most other so
called alternative energy sources. However, it is also true that alternative energy sources, such as wind
and biomass, have quicker development rates during recent years than geothermal. There are many
reasons for such a situation. The primary reason is the weak political and public acceptance of
geothermal energy as a “normal” and “friendly” energy source. The lack of social acceptance of
geothermal energy partly stems from fear. It is probably strange to start with a background of fear
towards geothermal energy use. However, depending on the culture, the fear exists.

In contrast, when geothermal energy is in question, the initial phases of development often begin with
visits from highly educated people and strange foreigners; test drillings (often on residential properties)
with dirty, noisy equipment; and without contact with, or involvement of the local people. Then, steam
or hot water comes to the surface, again resulting in dirty surroundings (bad smell, scaling, corrosion of
used materials), and sometimes unregulated flow of water through the property. As a result, difficult
questions arise:

• What shall happen with the balance of the underground water with this large artificial flow? The
balance is important for many reasons, including fresh water supply, and crop irrigation. Scientists are
saying to the locals that there is no reason for fear because the steam or hot water is coming from
deeper horizons, but is this true? Doesn’t the water from upper layers move down to deeper layers?

• Is it certain that emptying the underground water reservoirs will not trigger additional earthquakes?

Is the word of a scientist who doesn’t live in the region, a good guarantee that natural balances will not
be disturbed?

After the initial completion of a geothermal system, local people and politicians have, in front of their
eyes, a system of irregularly located boreholes, a “forest” of pipelines passing through properties in a
“strange” way, and projects that require frequent visits from foreigners. Therefore, in the initial phase of
development, benefits are not obvious, and appear to be outweighed by negative changes to the
surroundings. Indeed, undesirable effects may result from these activities:

(i) on ecosystems (air, land, flora, fauna, and superficial and underground water);
(ii) human health (from water pollution, noise, and gas emission); and
(iii) economy (detrimental impact on some production activities, tourism, and damages to crops
and private properties) (Cataldi, 2000).

Moreover, reaction often grows against landscape modifications and alteration of natural features of
cultural or religious interest, caused by civil and industrial works; and by changes in the use of public
areas resulting from project activities. For all the above reasons, opposition by residents in the project

70
area often increases as the project proceeds, especially in areas with resources suitable for geothermal-
electric generation. Thus, the number of people who label geothermal energy with terms such as costly,
polluting, and dangerous for people's health also increases. Furthermore, in areas with different energy
options, opposition to geothermal development can be used as reinforcement by parties interested to
foster the use of energy sources other than natural heat.

19.2.3 POLITICAL JUSTIFICATION OF GEOTHERMAL PROJECT IN WAIQELE

Political acceptance Political acceptance is very important because real geothermal development cannot
begin without strong State support. However, this is one of the weak points of the public treatment of
geothermal energy, due to several reasons:

• Development of a geothermal project lasts for a long time, i.e. the results are realized after 10 or more
years from the beginning of activities. That is too long a period for local politicians needing “quick
results”, and even for the State having on hand other “quicker and cheaper” possibilities.

• Technologies mostly use products and equipment designed for other uses, so essentially there does
not exist a “geothermal” industry needing political support for its existence and further development,
except for geothermal heat pumps where the development is fastest.

• There is no widely accepted strategy for scientific and commercial promotion of the “new” energy
resource. It is understood as important only in a few (rich) countries at higher cultural levels, and with
good State organization.

19.2.4 CONCLUSION TO JUSTIFICATIONS

Social, Environmental and Political justification is an important requisite for the smooth implementation
of geothermal projects, especially those for electrical generation. The three main conditions to win
project justification by communities residing in the work area are:

i) minimization of environmental impact;

ii) avoidance of adverse effects on people's health; and
iii) creation of direct benefits for local populations.

To meet these conditions, the project owner should be prepared to bear specific burdens in the form of
external costs, whose amounts (depending on the site, type, and size of the project) range, on the
average, between 1-2% and 2-4 % of the total construction cost, for direct use projects and multi-
purpose projects, respectively. Though modest in relative terms, these are sizeable amounts in cash
terms. However, not only they enable attaining the objective of the social consensus, but also produce
notable return benefits for the project owner. Therefore, the three mentioned justification is the mutual
convenience of both resident communities and project developers.

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20.0 POWER PLANT DESIGN PARAMETERS

The most important power plant design parameters are:

 Resource

1. Steam conditions: Optimum turbine inlet steam pressure. Gas (% NCG) in steam.
2. Size (thickness and areal extent), and long term capacity, and natural recharge.
3. Temperature and pressure of deep resource fluid.
4. Chemical composition (liquid and gas phase) of deep fluid.
5. Geology, stratigraphy, lithology and geothermal reservoir properties (faults, fractures,
formation porosity, mineral alteration types and age, type of permeability).
6. Reservoir permeability.
7. Thickness of production/injection zones.
8. Well productivity/injectivity.
9. Two phase zones.
10. Reservoir response to production/injection.
11. Natural state modelling, computer simulation of reservoir, and model predictions.
12. Reservoir monitoring and management.

 Accessibility

1. Topography of resource area.

2. Remoteness from population centres.
3. Closeness to nature parks and environmentally restricted areas.

 Market

1. Size, type and security of market.

2. Proximity of market.
3. Accessibility to existing power transmission lines, substations.

 Permits etc.

1. Resource concessions.
2. Exploration permits.
3. Drilling permits.
4. Development permits.
5. Environmental Impact Assessment.
6. Building and other permits.

 Pre and post investment studies, business plan

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21.1 CONCLUSION

“In the future global economy, there will be nations that are “haves” and “have-nots”, as there
are today. Above all else, energy and its availability will determine the individual fate of
nations.” (Matthew Huggan, Chairman, Geothermal Electric Limited.)
Geothermal resources have the potential to be developed to supplement Fiji’s presently
“

predominant Hydro Electricity Power (HEP) generated energy supply. This could only be made
possible once the economic viability of geothermal resource is assessed and proven through this
assessment programme. This is particularly important for Vanua Levu where the prospects for a
significant sized HEP potential is severely limited. There is potential for private sector
involvement in this area in any prospect is identified and proven viable.

If sufficient geothermal resources can be discovered soon to provide the electricity required by
“

mining and minerals processing, Fiji can become a highly competitive location for this industry -
- competitive enough to attract industries despite the long distance from other countries, much as
Iceland is using its geothermal resources to process minerals from as far away as South America.

For this reason, geothermal energy will not “simply produce more electricity” to reduce our
“

reliance on imported fuel -- it will go much further than that. It will be the key to Fiji’s ability to
transform its economy and greatly increase the wealth of its people.

If geothermal electricity in Fiji is successful, Fiji can secure its energy supplies and industrial
growth for the future, and choose to be one of the “haves”.

The conclusion is simple: Fiji needs more capacity to generate electricity if the nation’s economy
is to develop strongly, but also needs to reduce the amount of diesel fuel used.

We are fortunate that geothermal energy is potentially able to provide that capacity.

73
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
Hunt, I., 2000: Electrical planning and design for geothermal power project, Proceedings
of the World Geothermal Congress 2000, Kyushu - Tohoku, Japan, 3183-3188.

 Gonsalves, D., and Knox, A.L., 1988: Geothermal power plant design with operation and
maintenance in mind. Geothermal Resources Council, Trans., 2, 385-387.

 Bronicky, L., 2000: Innovative geothermal power plants, fifteen years of experience.
Proceedings of the World Geothermal Congress 2000, Kyushu - Tohoku, Japan, 2089-
2095.

 Lund, J.W., and Freeston, D.H., 2000: World-wide direct uses of geothermal energy
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 Autar, R.K., 1996. Fiji geothermal resource assessment and development

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 DiPippo, R., 2012. Geothermal power plants: principles, applications, case studies and
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 Bruhn, M., 2002. Hybrid geothermal–fossil electricity generation from low enthalpy
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 Healy, J., 1960. Hot springs and geothermal resources of Fiji. New Zealand Dept. Sci.
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 Becken, S., 2005. Harmonising climate change adaptation and mitigation: the case of
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 Lienert, B. R., and M. E. Cox. "Variations of self-potential close to hot springs in the
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 Narayan, Paresh Kumar, and Baljeet Singh. "The electricity consumption and GDP nexus
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