Project Romania

Introduction

 

According to the strong interest in the European Union, of electricity and heat generation based on renewable energies, there is the high possibility, that the project will be financed by the EU fund for renewable energies and will increase the electricity- and heat - production from geothermal resources in Oradea. This project will also reduce emissions of air pollutants, including CO2 emissions.

 

Description of the project

The project consists in connection of a Powerplant getting the necesary energy from a terrestrial heat-probe, working with the well known stimulated geothermal system (SGS) or also known as the enhanced geothermal system (EGS). The connection has to be established to an already existing geothermal well. This geothermal power-plant has to be built next to the well. It will prepare the hot water for electricity generation. For the economy of an EGS plant however, from today's point of view, also the sale of the "rest-heat" is substantial beside the generation of electricity.
So, warm water has to be supplied to an existing district heating net based on the geothermal energy source available in the area.

Presently, in Oradea, geothermal energy covers about 50,000 Gcal/year, about 5% of the annual consumption of heat in Oradea city. The rest of 95% is supplied mainly by combined heat and power (CHP) plant. The CHP plant is selling the heat at about 26 €uro/Gcal. The financial gap between this price and the price paid by final consumers (18 €uro/Gcal) is currently subsidized by the Municipality. Heat and hot water from the geothermal resources could be sold to customers at approx.17 €uro/Gcal.

 

Aim of the project

The aim of the project is to replace the use of heat and electricity from current plants, by geothermal energy available in the area. The main advantages achieved by project implementation are:

· Use of renewable energy resources: using the geothermal energy for covering a part of electricity and heat consumption of Oradea city leads to savings of fossil fuels; meanwhile the production costs and the selling price for electricity and heat is significantly lower than before the project implementation;

· Environmental impact: replacing the use of fossil fuels in the current facilities by using geothermal energy for electricity and heat generation will lead to important reduction of pollutant emissions.

 

Economic evaluation of the project

The project could be implemented in two stages. The first one, led to a financial investment of about €uro 25,000, which covers all the fees and costs for documentations, organizing existing data from the wells drilling and so on. The second phase, consisting of a currently unknown amount, will raise the total financial effort to an approximate amount of €uro 15'000'000, including all auxiliary expenses. It's highly estimated that the total financial effort can be drastically reduced, since there are already lots of drilling data available. Project costs will be listed detailed in a seperate table.

 

Project savings

The project is expected to lead to the following savings:

· Primary energy: using a renewable source of energy, the project will reduce fossil fuel consumption, mostly coal, of the CHPP facility in Oradea city; these savings are estimated at about 42,000 Gcal/year.

· Labor, maintenance: installing new, more reliable, fully automatic equipment, other financial savings will be generated; the project uses terrestrial heat probes as heat exchangers, a proven technology that reduces thermal loses and minimizes spare part costs; nevertheless, these savings were not determined separately and are included in the above figures.

 

Financial evaluation

The analysis of the cash flow for the next 10 years has to be made based on 2008/2009 energy prices. The evaluation of the feasibility of this project will be performed taking into consideration the interresting status of this project for the EuropeanUnion as well as the following ROMANIAN ENERGY EFFICIENCY FUND Strauss Building, 2A Johann Strauss Street, 6th floor, sector 2, RO - 020312 Bucharest 30 phone: 021 233 88 01; fax: 021 233 88 02; e-mail: office@free.org.ro, http://www.free.org.ro/

Criteria: The full financial analysis will be presented at time in a seperate table. given in table 2. Considering the high financial investment at the start of about €uro 15'000'000 and the annual financial savings, the simple payback period is estimated at 15 years.

 

Financing

The financing of the project will be covered as follows: in the first phase 100 % covered by the EU. Maybe there can be requested also a partition from the Romanian Energy Efficiency Fund.

 

Expected Impact

Annual fuel savings, estimated at about 6,000 tep, will have a positive environmental impact by reducing pollutant emissions. Considering that the CHPP facility uses coal and natural gas to generate heat, annual CO2 emission reductions are estimated at about 15,000 tons. Moreover SO2, NOx and particulates reductions are significant.

As long as the subsidies for the domestic heating are provided, the use of a cheaper electricity and heat source will also lead to financial savings for the municipality and, eventually, for electricity and heat customers.