SEMINÁRIO REDES ENERGÉTICAS DO FUTURO: desafios para a Macaronésia Ribeira Grande, 13 de Dezembro de 2011 USE OF GEOTHERMAL RESOURCES IN THE AZORES ISLANDS: A CONTRIBUTION TO THE ENERGY SELF-SUFFICIENCY OF A REMOTE AND ISOLATED REGION COMPANY PROFILE SOGEO - Sociedade Geotérmica dos Açores Started its activity in 1990, following the work of previous regional government institutions in the development of geothermal projects Capital share of 17,8 M€ owned by EDA, the power utility of the region, 50,1% still owned by the regional government Results in 2010 > turnover of 15,4 M€; net income 6,9 M€ COMPANY PROFILE SOGEO - Sociedade Geotérmica dos Açores Focuses its activity on geothermal power generation, exploration of high-temperature resources and provision of waterwell drilling services Produced over 173,5 GWh, in 2010, which represents a growth of 7,3% over the previous year Contributed with 38,8% of the power production of São Miguel island, corresponding to 20,4% of power production in The Azores GEOTHERMAL POWER GENERATION Origin of geothermal energy AZORES ISLANDS Geotectonic setting – triple junction Main tectonic structures in the Azores region: CMA – Mid Atlantic Ridge; ZFNA – Northern Azores Fault Zone; ZFEA – Eastern Azores Fault Zone; RT – Terceira Rift; FG – GLÓRIA Fault Source: Gaspar (1996) AZORES ISLANDS Volcanoes and geothermal manifestations GEOTHERMAL POWER GENERATION Model of a hydrothermal reservoir Source: GEO-DOE AZORES ISLANDS Ribeira Grande Geothermal Field SÃO MIGUEL GEOTHERMAL PROJECT Ribeira Grande Geothermal Field Pico Vermelho sector Caldeiras sector Cachaços-Lombadas sector SÃO MIGUEL GEOTHERMAL PROJECT Drilling Geothermal Wells SÃO MIGUEL GEOTHERMAL PROJECT Ribeira Grande Geothermal Plant Phase A (1994) Phase A Installed capacity 2 x 2,5 MW 2 Geothermal wells CL1 and CL2 X 2,5 MW Phase B 2 X 4,0 MW Phase B (1998) Installed capacity 2 x 4,0 MW Wells CL1, CL2, CL5, CL6 and CL7 Injection of effluent the in well CL4 CL1 CL2 CL5 CL6 CL7 CL4 SÃO MIGUEL GEOTHERMAL PROJECT Ribeira Grande Geothermal Plant SÃO MIGUEL GEOTHERMAL PROJECT New Pico Vermelho Geothermal Plant One generation unit, binary cycle, air-cooled condensing system 10 MW Geothermal fluid provided by five production wells PV2 PV3 PV4 Injection in two geothermal wells PV7 PV8 PV5 PV6 SÃO MIGUEL GEOTHERMAL PROJECT New Pico Vermelho Geothermal Plant GEOTHERMAL PROJECT IN SÃO MIGUEL Generation technology AIR PUMP AIR-COOLED CONDENSER SEPARATOR PREHEATER TURBINE VAPORIZER PRODUCTION WELL INJECTION WELL ALTERNATOR SÃO MIGUEL GEOTHERMAL PROJECT Production results Production (GWh) 200 180 Ribeira Grande 160 Pico Vermelho 140 120 Ribeira Grande Phase B Pico Vermelho Ribeira Grande Phase A 100 80 60 40 20 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 AZORES ISLANDS Contribution by source of energy 1990 Diesel 21,8% Wind 0,1% Geothermal 1,3% Hydro 4,2% Diesel 8,3% Wind 4,0% 2010 Geothermal 20,4% Hydro 3,7% Oil 72,6% Oil 63,6% Power production in the Azores still relies mainly on oil. The penetration of renewable sources grew more than five times in the last 20 years, as the result of the strategic options considered for the energy policy of the region. SÃO MIGUEL GEOTHERMAL PROJECT Evolution of the contribution 500 Produced Power (GWh) 450 400 350 300 250 Oil 5,7% 200 150 100 50 0 55,5% Hydro Geothermal 38,8% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 In the last two decades, the geothermal source represented most of the effort to support the growth of the demand. With the expansion of the geothermal project, the new wind farm and the contribution from the hydro plants, renewable sources will attain clearly the majority of the generation. GEOTHERMAL POWER GENERATION Sustainable development “Geothermal plants provide long-term, stable, wellpaying jobs, produce nearly zero air emissions and associated health impacts, and supply millions of euros to local and reliable, state economies through decades of secure, domestic, renewable energy production.” Adapted from “A Handbook on the Externalities, Employment, and Economics of Geothermal Energy” SÃO MIGUEL GEOTHERMAL PROJECT Consistent operational results Key factors: Highly productive wells; Excess of production capacity available at the wellheads; Successful application of scale inhibition. Operating statistics for the Pico Vermelho power plant Indicator Unit Production 2009 2010 Actual Forecast Actual GWh 98.7 95.5 100.5 Average output MW 11.3 10.9 11.5 Availability % 99.2 99.5 99.4 % 112.6 109.0 114.8 Load factor(1) (1) Compared to the contracted power output The average annual output of the Pico Vermelho plant has been approximately 15% greater than its contractual capacity. Over 15 years of consistent production provided the attribute of guaranteed power to geothermal. SÃO MIGUEL GEOTHERMAL PROJECT High reliability and availability 12000 120 10000 100 8000 80 6000 60 4000 40 2000 20 0 Availability & Load Factor (%) Produced Energy (MWh) Pico Vermelho geothermal plant Production monthly results (2010) 0 J F M A Production Forecast (MWh) M J J Production (MWh) A S O Availability (%) N D Load Factor (%) The total stoppage time of the Pico Vermelho plant has been, in average, about 50 hours per year. SÃO MIGUEL GEOTHERMAL PROJECT Base-load source of energy 60 São Miguel island Sunday, 16th of January, 2011 50 Power (MW) 40 Oil 38% Hydro 6% 30 20 Geothermal 56% 10 0 0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 Source: EDA (2011) 0:00 SÃO MIGUEL GEOTHERMAL PROJECT Recent production records Diesel 0,2% APRIL, 2011 Geothermal 46,8% Oil 45,9% Hydro 7,1% In the month of April 2011, the contribution from the geothermal source attained two historical records: was the highest ever reached and for the first time it surpassed generation from fossil fuels. SÃO MIGUEL GEOTHERMAL PROJECT Environmentally friendly CO2 Emissions (g CO2/kWh) 1200 1000 893 955 800 599 600 400 200 91 0 Geothermal Natural Gas Oil Coal Source: Bloomfield et al. (2003) In São Miguel, a total of 160 thousand tones of CO2 emissions are avoided every year. Native vegetation grows within the sites of the geothermal plants, showing their compatibility with the environment. SÃO MIGUEL GEOTHERMAL PROJECT Environmentally friendly SÃO MIGUEL GEOTHERMAL PROJECT Environmentally friendly SÃO MIGUEL GEOTHERMAL PROJECT Self-sufficiency comparable to references 30% 27,1% 26,0% 23,4% 20,7% 20,1% 20% 15,0% 15% 12,4% 10% 8,9% 7,2% 5,2% 5% 4,6% 2,7% 1,9% 1,6% 0,4% es zo r A St at es ia U ni te d op y Et hi It al o M ex ic al a ua te m es ia G do n nd In Ze al a ui N ew G N ew Pa pu a C os ta R ne a ic a a en y K ua s ar ag N ic ne or ili pp i Ph El Sa l va d an d 0% Ic el Share of geothermal source 25% Source: Compiled by Earth Policy Institute with data from different sources GEOTHERMAL PROJECTS IN THE AZORES CONCLUSIONS The geothermal project in the Azores is an extremely succeeded demonstration of the advantages of the use of geothermal resources: creates high-skilled jobs, generates business locally, avoids importation of fossil fuel and is environment-friendly. For the overall Azores region, the geothermal contribution of about 23% is comparable to the results observed in geothermal-rich countries such as Iceland, where geothermal contributes 25% to the power system. Based on the excellent production results achieved in the last decade, it is a considered the main vector of the government policy of maximizing the utilization of renewable energy sources: 50% in 2015 is the objective.