Geothermal and the Nature Island....

Dominica....slow and steady leads the race.

In reply to Ayenmol

Good stuff.

Geothermal is particularly attractive to utilities because unlike many other renewable energy sources, it is not intermittent. Once the assets are commissioned, they can provide 'baseload' capacity. Of course the upfront CAPEX is very high, but its very mature technology.

There is also massive potential in St Lucia....and possible Grenada and SVG also. The major barrier is the high upfront costs.

How long a payback period for a venture like that?

In reply to camos

Don't think there is a typical number. Its very much about context and economies of scale, but the primary metrics for assessing energy projects are Levelized Cost of Energy (LCOE), Internal Rate of Return (IRR) and NPV. I would say payback under 15 years for large scale projects for the traditional utility may be acceptable. If the NPV is positive over the life of the asset (most utility projects are 20-30 years) then it is considered a viable project also.

The world is changing as utilities are forced to have higher RE penetration, so the risk of stranded assets is pretty high ...especially considering the high capital cost of generation expansion projects which are really long term investments. Its an awkward time. Lots of energy investors are worried about not recovering their investsments.

In reply to Cheeks

The only concern is that it will be turned over to the Island's owners after 20 years....so how much will they have to put in for maintenance and repair at that point?

Otherwise. This is really encouraging and gives us small islands independence in what is a very necessary resource.

Self dependency in crucial areas of consumption is what every country should strive to achieve.

In reply to camos

Geothermal energy is often touted as a sustainable and long-term solution for heating, cooling, and power generation, but like any energy source, it comes with its own set of considerations, costs, and challenges.

The Cost of Geothermal Systems
For residential heating and cooling, the cost of geothermal systems can range from $40,000 to $75,000, depending on factors like the type of heat pump and the installation method. Horizontal heat pumps, which are less expensive at around $35,000, require substantial land space for trenching. On the other hand, vertical heat pumps, priced around $60,000, are more suitable for smaller properties but involve deeper drilling, hence the higher cost. These systems are a long-term investment, with outdoor components like ground loops lasting up to 50 years, while indoor components typically last 25 years before requiring replacement.

Risks and Challenges
While geothermal HVAC systems are durable, they are not without risks. One notable concern is the freezing of heat transfer fluid (HTF) during extreme cold weather, which can lead to pipe expansion, cracks, or leaks. Proper system design and maintenance are critical to avoiding such issues. On a larger scale, exploratory drilling for geothermal energy is as complex as drilling for oil or gas, with a level of uncertainty and significantly less energy density in the resource compared to fossil fuels.

Environmental Impacts
Despite being a cleaner energy source compared to fossil fuels, geothermal energy technologies are not free from environmental concerns. Air and water pollution, land subsidence, and the disposal of hazardous waste are pressing issues. Additionally, most geothermal power plants require substantial amounts of water for cooling or other operational needs, which can strain local water resources. Proper site selection and environmental safeguards are essential to mitigate these impacts.

Commercial Feasibility
Geothermal power projects, such as the Swan Hills co-produced geothermal and natural gas power project completed in 2023 at a cost of $49 million, highlight the significant upfront investment required. On average, it takes 5 to 10 years for a geothermal power plant to break even and recover its initial costs, making it a long-term commitment that demands careful planning and financial backing.

The Trade-off
Geothermal energy offers undeniable benefits, such as reduced greenhouse gas emissions and long-term cost savings in residential and commercial applications. However, its initial costs, environmental challenges, and technical risks must be weighed carefully. For homeowners and developers alike, the key lies in understanding these trade-offs and implementing strategies to maximize efficiency while minimizing environmental harm.