Geothermal development and production of electricity in the Southwestern United States

A computer simulation model (GIRORA-Electric) is developed to study the economics of power generation from high temperature geothermal resources. GIRORA-Electric is a discounted cash flow investment model which evaluates the rate of return on producers' capital investment. This model consists of two major submodels: the exploration and development of a geothermal anomaly by a producer; and the purchase of geothermal fluid by a utility developer. The primary output of the model is a calculated rate of return on the capital investment earned by the geothermal producer. The results of the sensitivity analysis of the model subject to changes in physical and economic parameters are given. Using the results of the economic analysis, the high temperature geothermal sites (temperatures greater than 150/sup 0/C) in the Southwestern United States are examined for economic viability for power generation. The total amount of power that can be brought on line in the Southwest Region is estimated under three different scenario assumptions. An econometric model is developed to estimate the total demand for electricity in the Southwest Region. From this demand and supply estimates, the amount of geothermal energy that can be utilized is also estimated.