The formed by the Pandit Deendayal Petroleum University

The
payback period for this technology depends on several factors:

·        
New home vs retrofit homes 14

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·        
The cost of the GSHP system 14

·        
Size of the house 14

·        
The energy efficiency of the technology
the GSHP system is replacing 14

The
estimated payback period of the GSHP system is about 2 to 3 years 14. The
capital cost is dependent on the site 14. For normal soil it costs about Rs 1
Lakhs to 1.5 Lakhs per tonne however the cost could be higher if the rock is
stumbled upon during boring 14.

2.1)           
Land Requirements for GSHP

These
are some of the requirements for the GSHP system:

·      In
order to achieve a constant supply of heat all year-round, the trenches are
required to be at least 2 meters in depth 14.

·      The length of the trench pipe
is required to be around 50-80m/kW or 10m of “slinky” coiled pipe/kW and the
distance between the trench and coil should be at least 5m 14.  

·      The
pipes for the boreholes need to be at least 20-50m/kW and have a depth of about
100-150m 14. Each borehole will need approximately 2-4 pipes and the diameter
of the pipe should be between 20-40mm for optimal performance 14.

 

1)    Key Developments

a)  
Center of
Excellence for Geothermal Energy (CEGE)

The CEGE
was formed by the Pandit Deendayal Petroleum University
(PDPU) on October 10th
2013 and consists of 5 research members 16. The organization was created in
order to tap into the potential of geothermal energy in Gujarat. By using
various techniques such as geochemical studies, magneto telluric (MT) analysis
and gravity survey, six areas were identified as potential geothermal hotspots
as shown in Figure 13 16. The regions are: Dholera, Unai, Gandhar, Tuwa,
Chabsar and Tulsishyam. However since Tulsishyam is a wildlife area, this
region is not being considered for further analysis 16.

The
geothermal space heating and cooling system using the GSHP technology was
developed by the CEGE and the PDPU with the help of the Green India Building
System and Services (GIBSS) 16.
This system was set up at the Swaminarayan Temple on December 13th 2016 16. The system provides
heating/cooling using geothermal energy as its source 16. The system produces about 32 tons of
refrigeration (TR) capacity of cooling for the assembly hall of the Swaminarayan
Temple 16. The heat
output is used as the input to Organic Rankine Cycle (ORC) for generating power
at a preliminary scale. The following are the benefits of this system:

·        
CO2 emission and carbon
footprint reduction 16

·        
Water consumption reduction 16

·        
20-50% savings in energy 16

·        
100% water savings 16

·        
No chemical usage 16

The ORC is similar to a conventional steam
plant but in this case, it uses the heat from the GSHP system as its input 16. Integrating this system
with the GSHP is a good way to use heat in order to produce electricity at a
preliminary scale as the ORC uses an organic liquid that has a lower boiling
point than water (around 77 to 80°C) 16. The temperature of the output of the heating side of the
GSHP is around 80°C which works for the ORC system 16. This system is just an example of what can
be done using the available geothermal resources in India 16.

a)      GeoSyndicate
Power Pvt. Ltd

The company is located in Mumbai and is
from I.I.T Bombay 17. The goal of this company is to encourage the use of
non-conventional energy technologies in order to provide low cost electricity
as well as high efficiency to the rural regions of India thereby reducing the
emission levels 17. In August 2010, the government of Andhra Pradesh signed
the country’s first geothermal power purchase agreement with GeoSyndicate in
order to develop a 25MWe plant by 2012 12. According to the report by
GeoSyndicate, geothermal power production is projected to be around 1500 MW in
the south east of Hyderabad and the Godavari basin 18.

2)    Support
from the MNRE and the States and types of funding and costs

·    
The state governments would be required to
assign a current agency that is well funded to act as a nodal agency in order
to develop and endorse geothermal energy in the state 10. Through these State
Nodal Agencies (SNA), geothermal energy project proposals would be sent to the
MNRE within a month from the date of submission by the agency wanting to do a project
10. The MNRE would take no more than 3 months to submit their decision to the
SNA and the SNA would take no more than a month to submit this decision to the
applicant 10.

·     
Provide suitable areas of land in order to
develop the project and maintenance of production wells, thus ensuring the
commercial feasibility of the project 10. The government should provide land
on lease at prices charged to the government departments 10.

·     
The Indian Renewable Energy Development
Agency (IREDA) is a Non-Banking Financial Institution that is a part of the
MNRE 15. The department is responsible for providing funds for projects
related to renewable energy as well as energy efficiency (in this case
geothermal projects) 10. The Agency is permitted to carbon credits that are
obtained by the utilization of geothermal heat and the generation of
electricity 10.

·     
The Ministry of Finance has provided 80%
depreciation for the installation of heat pumps during the first year of
installation 10. These are considered as energy saving devices under wasted
heat recovery equipment 10. A revenue ruling has been proposed to the Finance
Ministry with regards to import, excise relaxation & tax benefits on the
equipment needed for the preliminary installation of geothermal heating/cooling
plans including GSHP and geothermal power generation plans 10. This will
provide incentive to start up projects 10.

·     
Depending on the type of project, the
amount of funding is decided as shown by Table 1 below 10. Most of the
funding is given to the Innovation, Research and Development (R) and
Demonstration in the area of geothermal power generation and Geoexhange pumps 10.

Type of Project

Support
provided by MNRE

R
and Demonstration Projects 10

Phase
1: 50% of the deep drilling cost and in case of a failure will be used as a
grant in order to fund the site development as direct use of geothermal
heating/cooling 10.
Phase
2: After successfully completing phase 1, 30% of the remaining balance will
be used as subsidy 10.

Industrial
Projects 10

30%
of the capital cost for a maximum support of 9 Cr/MW 10.

Direct
heat/ GSHP (for heating/cooling) projects 10

30%
of the system cost for a maximum of Rs 50k/TR for the first 300 MWt capacity
(individual plant of more than 100 TR capacity), Rs 30k/TR for the next 400
MWt and Rs 10k/TR for the remaining 300 MWt target capacity of a total of
1000 MWt 10.

 

Table
1 – Funding for different types of projects

The type of funding
depends on the thorough analysis of the project with respect to: administrative
and technical compliance; stepping up the development of geothermal energy in
India; capability of overcoming technical and other obstacles; environmental
compatibility; project management capability. National Clean Energy Funds
(NCEF) provides the funding for projects that are found technically feasible 10.

·        
There are 3 types of projects as shown in
Table 1 above:

Ø   R
and Demonstration Projects: These projects involve research, designing,
development and the demonstration of the new technology that will be used and
how it can be hybridized with other renewable sources of energy 10. These
projects are submitted to the Ministry for financial approval 10. The power
produced in terms of Electrical Units which is defined by the Central Electricity
Regulatory Commission (CERC) will be incentivized according to the plan 10.

Ø   Industrial
Projects: These projects involve power production and its distribution to the
utilities in states for generating revenue 10.  The power produced in terms of Electrical
Units which is defined by the CERC will be incentivized according to the plan 10.

Ø   Direct
Heat/GSHP Projects: These projects involves the direct use of geothermal energy
for applications such as space heating, greenhouse gardening, cooking etc. GSHP
projects involves the development of heating/cooling using geothermal energy
for homes and other facilities 10.

·        
Type of costs involved include:

Ø   Machinery
and equipment cost used for producing power and in the R projects 10.

Ø   Digging
costs at potential sites for geothermal energy 10.

Ø   Costs
of contractual research, technical knowledge, and patents/licenses bought from
outside sources at market value and consultancy services used for research 10.

Ø   Operating
costs which involve material/supplies cost as a result of research 10.

The
cost of producing 1MWe using solar photovoltaics (PV) is around 25-30 US
cents/kWh and with government subsidy, the cost is around 13-15 cents/kWh 12.
A significant portion of this cost includes the cost of the support system and
maintenance 12. Solar pv also requires 1000L/MWe of fresh water and about 7
acres of land in order to produce 1MWe 12. In the case of geothermal energy,
the cost of producing 1 MWe is around 3-5 cents/kWh while requiring around 1
acre of land 12.

3)   
Projected Future of Global Geothermal Energy

For
this estimate, the ETP 2010 BLUE Map Hi-REN setup was selected as the basis for
the projection of geothermal power by 2050 19. The setup assumes that 75% of
the global electricity generation will come from renewable sources of energy
and estimates that 1400 TWh/year of electricity will be produced by using
geothermal sources which is 3.5% of the total global electricity 19. Figure
14 shows the contribution of India and China together. According to the ETP
2010 (IEA, 2010b), the 1400 TWh of geothermal electricity will reduce the
global CO2 emissions by 760 megatonnes (Mt) by 2050 as shown in
Figure 15 19.

Based
on the availability of geothermal resources in India, it is safe to say that
geothermal energy is a viable option that can be added to the renewable
resource list in order to reduce some of the usage of fossil fuels. India has
the potential of generating 10,600 MW of power from all the available
locations. The National Thermal Power Corporation (NTPC) is performing
feasibility studies for a 20 MW commercially viable power plant at Tattapani. The
GSHP technology has some serious advantages in terms of heating/cooling
efficiency that can implemented in buildings in order to replace conventional
heating systems and air conditioners. While it may not be possible for India to
completely stop using fossil fuels such as coal due to its abundance as well as
its cheap price, it is possible for India to reduce some of it by implement
geothermal energy. Using clean electricity reduces the CO2 emissions
as shown in Figure 15.