USE OF GEOTHERMAL RESOURCES IN THE AZORES ISLANDS: A CONTRIBUTION TO THE ENERGY SELF-SUFFICIENCY OF A REMOTE AND ISOLATED REGION



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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) Installed capacity 2 x 2,5 MW Geothermal wells CL1 and CL2 Phase A Phase B 2 X 2,5 MW 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 Injection in two geothermal wells PV2 PV3 PV4 PV7 PV8 PV5 PV6

SÃO MIGUEL GEOTHERMAL PROJECT New Pico Vermelho Geothermal Plant

GEOTHERMAL PROJECT IN SÃO MIGUEL Generation technology PUMP AIR AIR-COOLED CONDENSER SEPARATOR PREHEATER TURBINE ALTERNATOR VAPORIZER PRODUCTION WELL INJECTION WELL

SÃO MIGUEL GEOTHERMAL PROJECT Production results Production (GWh) 200 180 160 140 120 100 Ribeira Grande Pico Vermelho Ribeira Grande Phase A Ribeira Grande Phase B Pico Vermelho 80 60 40 20 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Diesel 21,8% AZORES ISLANDS Contribution by source of energy 1990 2010 Wind 0,1% Geothermal 1,3% Hydro 4,2% Diesel 8,3% Wind 4,0% 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 Produced Power (GWh) 500 450 400 350 300 250 Oil 55,5% 200 150 100 50 0 Hydro Geothermal 5,7% 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 state economies through decades of reliable, 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 2009 2010 Actual Forecast Actual Production GWh 98.7 95.5 100.5 Average output MW 11.3 10.9 11.5 Availability % 99.2 99.5 99.4 Load factor (1) % 112.6 109.0 114.8 (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.

Produced Energy (MWh) SÃO MIGUEL GEOTHERMAL PROJECT High reliability and availability Pico Vermelho geothermal plant Production monthly results (2010) 12000 10000 8000 6000 4000 2000 120 100 80 60 40 20 Availability & Load Factor (%) 0 J F M A M J J A S O N D 0 Production Forecast (MWh) Production (MWh) Availability (%) Load Factor (%) The total stoppage time of the Pico Vermelho plant has been, in average, about 50 hours per year.

Power (MW) SÃO MIGUEL GEOTHERMAL PROJECT Base-load source of energy 60 São Miguel island Sunday, 16 th of January, 2011 50 40 Oil 38% 30 20 10 Hydro Geothermal 6% 56% 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 0:00 Source: EDA (2011)

SÃO MIGUEL GEOTHERMAL PROJECT Recent production records Diesel APRIL, 2011 0,2% Oil 45,9% Geothermal 46,8% 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.

CO2 Emissions (g CO2/kWh) SÃO MIGUEL GEOTHERMAL PROJECT Environmentally friendly 1200 1000 893 955 800 600 599 400 200 0 91 Geothermal Natural Gas Oil Coal Source: Bloomfield et al. (2003) In São Miguel, a total of 160 thousand tones of CO 2 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

Share of geothermal source SÃO MIGUEL GEOTHERMAL PROJECT Self-sufficiency comparable to references 30% 27,1% 26,0% 25% 20% 23,4% 20,1% 20,7% 15% 15,0% 12,4% 10% 8,9% 7,2% 5% 5,2% 4,6% 0% 2,7% 1,9% 1,6% 0,4% Iceland El Salvador Philippines Nicaragua Kenya Costa Rica Papua New Guinea New Zealand Indonesia Guatemala Mexico Italy Ethiopia United States Azores 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.