The construction of conventional scale geothermal power plants (50-150 MW) requires large number of wells and therefore high investment cost of drilling. Those initial phases of the development need to be completed and the availability of steam has to be confirmed, before the decision to build a power plant can be taken. This development requires long term view. Typically, it takes from 5 to 10 years to complete.
An interesting alternative approach of „modular„ development has been tested in various projects. Modularity means the option to scale up power generation little by little. Starting with smaller sized wellhead power plants from 5-10 MW which can serve as a pilot project and then expanding as the drilling continues and steam becomes available. This approach is also appealing for developers, investors, and governments, due to the fact that it speeds up the construction time and enable earlier return on investment. Furthermore, this staged development approach makes the financing easier and more attractive to investors as the revenues start to flow in much earlier, which can be used to finance the additional module investment.
The topic of direct use for heating/cooling and other residential uses is increasingly discussed in Latin America. Energy cascade can be connected to the generation plant. The direct use is though limited to only local community in the vicinity of the power plant. Good examples of food dehydration using geothermal can be found for example in Iceland, Guatemala and Mexico. Lately increased discussion has taken place of deriving rare metals out of geothermal brine.
ENORCA helps geothermal concession owners to start their exploration work.
You may require drilling services based on meter-rate, or the traditional day-rate. But integrated contracts are becoming more and more a norm in the procedure of geothermal drilling.
Geothermal Drilling Projects usually involve multiple contractors and suppliers. Various portions of the drilling job are tendered out to different contractors or suppliers. This process requires extensive overhead for the developer/employer and increases the level of complication.
The process of procuring drilling equipment for geothermal drilling can be different, and is based both the geological location (market), and the type of development company involved. The approach is largely depending on the market situation having in mind the availability of drilling equipment in the particular market, and if the equipment is in close proximity to the project area.
If the company is a public entity, then a formal and open tendering procedure is usually required. If the company is a private company tendering is not required by law, but is very often the preferred approach in order to obtain the best possible prices for the drilling campaign. Further the procurement approach is characterized by the level of knowledge and expertise of drilling procurement within the tendering entity. While the oil & gas industry have big procurement departments specialized in drilling exploration, having experienced engineers, then very often the “geothermal procurement units” do not have their own infrastructure and expertise for handling all procurement preparation. There are though few exceptions in this respect. These are bigger utility companies who already have electricity generation using geothermal resources.