This paper presents an evaluation of the cost of electric power from Enhanced Geothermal Systems (EGS), that is, reservoirs with sub-commercial permeability enhanced by hydraulic stimulation. The parameters in this exercise reflect the conditions encountered at the Desert Peak EGS project in Nevada, but the results should be applicable, at least qualitatively, to any EGS project. The approach taken is to : 1) use numerical simulation to evaluate energy recovery versus time over an assumed 30-year project life for various system configurations (number and spacing of wells, assumptions about stimulation effectiveness, etc; 2) estimate the levelized power cost for each configuration, based on capital cost, O&M cost, the cost of money and inflation rate (using Monte Carlo sampling to address uncertainties); 3) determining the sensitivity of levelized cost to the cost components, interest and inflation rates, and resource characteristics (maximum practical pumping rate, reservoir characteristics, and the depth to thereservoir at the site); and 4) estimating future EGS costs and considering the possible technology improvements that could be made by that time.

This paper presents an analysis of power generation prospects from Enhanced Geothermal Systems (EGS), specifically, reservoirs with subcommercial permeability enhanced by hydraulic stimulation. EGS is also known as “hot dry rock” or “hot fractured rock” systems. The performance under consideration here is the net electrical power delivered as a function of time over the 20-to-30 year life of a power plant. Although the parameters in this exercise generally reflect conditions encountered at the Desert Peak EGS project in the State of Nevada, United States, the conclusions are applicable, at least qualitatively, to any EGS project.