Phase IV - Resource Production and Power Plant Construction
GEA Development Phase IV: Resource Production and Power Plant Construction
The information for this page was taken directly from Geothermal Reporting Terms and Definitions: A Guide to Reporting Resource Development Progress and Results to the Geothermal Energy Association (GEA, November 2010)
Phase IV - Criteria
In reporting a Phase IV geothermal project to the GEA the developer must ascertain whether or not the project being reported meets the following specified criteria. The development criteria are divided into three different subsections of geothermal Phase IV development (Resource, Transmission, and External Development). It is not necessary that a geothermal project meet all of the criteria listed. The number of criteria that a project must meet in each subsection of geothermal Phase IV development is specified below.
1. Resource Development Criteria
For a project to be considered a Phase IV project at least two of the following Resource Development criteria must be met.
- Plant Equipment on Order
- The majority of equipment required to construct the proposed geothermal power plant has been ordered.
- Plant Construction Underway
- The developer has issued a notice to proceed to the EPC contractor to begin on-site construction.
- Production and Injection Drilling Underway
- Development drilling underway and at least 50% of the resource to be used for the power plant has been confirmed.
2. Transmission Development Criteria
For a project to be considered a Phase IV project the Large Generator Interconnection Agreement must be signed. If the transmission of power from the project to the end user requires point-to-point service through one or more utility networks then all of the following criteria must be met for the project to be considered a Phase IV project.
- Large Generator Interconnection Agreement Signed
- The developer and the identified utility have entered into a contractual agreement where the utility has agreed to accommodate the transmission of the power from the developers geothermal development project. In turn, the developer allocates a specific amount of money to get the power from its geothermal development project to the point of delivery.
- Transmission System Service Request Studies Completed
- In the event that a Transmission System Service Request has been submitted (see Phase III Transmission Development), the studies of the tending impacts of granting the request to the developer by the utility will have been completed.
3. External to Resource Development Criteria
For a project to be considered a Phase IV project all of the following Resource Development criteria must be met.
- Plant Permit(s) Approved
- the permits necessary to the construction of a geothermal power plant at the geothermal resource have been approved and granted to the developer by the appropriate state and federal agencies.
- EPC Contract Signed
- the developer and an identified contractor have entered into a contractual agreement where the contractor will design and construct the geothermal power plant, the steam gathering system, and transmission lines as well as procure the necessary materials.
- PPA Secured
- At this phase of geothermal development the developer and the identified power purchaser must have entered into a legal agreement regarding the purchasing of electricity from the provider by the host where that electricity is provided via the planned geothermal power plant.
Phase IV - Terms & Definitions
The following terms and their definitions are to be applied to geothermal projects which are in the Phase IV stage of geothermal development.
- Confirmed Resource Estimate
- A Confirmed Resource is a geothermal project that has undergone extensive exploration testing and drilling so as to construct, with a high degree of confidence, an accurate characterization of the geothermal reservoir as well as to give an accurate estimation of total recoverable commercial energy.
- Specifically, as mentioned above, the developer of a geothermal project must fulfill two of the criteria listed in the Phase IV Resource Development Category, the “Large Generator Interconnection Agreement” criteria listed in the Phase IV Transmission Development Category must be met, and all of the criteria listed in the Phase IV External Development Category. The developer must identify to GEA which of those criteria, in their respective categories have been met.
- It should be noted that the Confirmed Resource Estimate should not be used as a value to indicate the potential installed capacity of a geothermal power plant. Rather, it is the estimated value of the subsurface geothermal resource.
- Confirmed Planned Capacity Addition (PCA) Estimate (MW)
- The Phase IV Confirmed Planned Capacity Addition (PCA) estimate is that portion of a Confirmed Resource that the developer deems to be viable for the economic production of electricity under existing economic conditions. Also, the Confirmed PCA estimate should represent the potential capacity that is currently controlled by the developer, and not the total capacity that the developer intends to control and produce in the future. In other words, if the developer were to utilize the geothermal resource under its control to produce electricity via a geothermal power plant the Phase IV Confirmed PCA estimate would be the power plants estimated installed capacity. If the developer were expanding a currently operating plant the Phase IV Confirmed PCA estimate would be the estimated capacity to be added to the plants current installed capacity.
Phase IV - Projects
GEA Annual US Geothermal Power Production and Development Reports