Incentives
In order to take advantage of potential for massive power plant expansion and low cost of electric power production we want to offer a variety of incentives that will help the local citizens and businesses. The long term strategic goal is to build power production capacity as demand increases and to enhance that growth with incentives for electricity beyond the existing market and help new markets for electricity to grow. Encouraging traditional large volume power consumers to move into the area is part of that plan, however new markets that have the potential for exponential growth like electric cars are ideal for incentives. These markets have great potential for growth and will increase base load demand as well. Also railroads with long-term low cost electricity available may find it economical to build more all electric trains.
Discount rate for local commercial businesses of $.04Kw/hr for buying a 10-20 year contract (limited number of contracts to 30% of power plant capacity)
Discount rate for metered geothermal or air source heating/cooling systems of $.04Kw/hr (limit of clients 10% capacity)
Discount rate for manufacturing companies that produce electric transportation products and or services of $.02Kw/hr (company must be within ten miles of power plant, limit 10% capacity) 10-20 year contract
To remain profitable the power plant company will limit how much of total electricity production capacity is sold at a discount rate for each incentive as mentioned above. New incentives may be offered as power production capacity increases.
Estimates for C.L.E.M. project (Closed Loop Energy Mine)
Size of power plant 160 Mw, 330 Mw 1,330 Mw
Size cost to build. $760 million, $1,440 million, $5,560 million
Tax Revenue/year $30.54 million, $62.9 million, $193.4 million
Finance payment (Quarterly $12million, $22.8 million, $88 million
Profit margin/year ($17.26million, $46.55million, $87.25 million)- maintenance
Employees 100, 150, 200
Time of construction 3, 4, 6 years
Tax rate for power plant 30%
10-20 year average price of electricity $.11Kw/hr-$.24Kw/hr
Interest rate for financing of power plant 3% Bonds 30 years
Average pay $60,000/year per employee
Running 8700 hr/year
Click here to see: Methods for C.L.E.M. Estimates
Geothermal Power Compared to Other Energy Types
Power Potential
Geothermal:
With 99% of the Earth's mass possessing a temperature greater than 1000 degrees Celsius there is far more energy stored in hot rocks than in all the fossil fuels combined. The recent MIT report on geothermal energy suggests that this source could provide as much as 10% of U.S. energy by 2050.
Coal, Natural Gas, Nuclear, Wind:
Fossil fuels are exhaustible, and extraction and supply costs are rising.
Space Required
Geothermal:
A geothermal canal can provide access to hundreds of square miles of hot rocks and produce massive amounts of electricity while requiring only minimal surface space for the power plant itself. In Massachusetts, where space is at a premium, this is highly attractive. A 160 MW plant using a heat canal, for instance, would require only ten acres.
Solar, Wind:
According to the DOE, a wind farm with the same electric generation potential would require 4600 acres, and over 1000 acres would be necessary for a solar array facility.
Emissions
Geothermal:
Since water is the fuel, there is no burning of any material, hence little if any CO2 emissions.
Natural Gas:
According to the EPA, the average emissions rates in the United States from natural gas-fired generation are: 1135 lbs/MWH of carbon dioxide, 0.1 lbs/MWH of sulfur dioxide, and 1.7 lbs/MWH of nitrogen oxides. In addition, the process of extraction, treatment, and transport of the natural gas to the power plant generates additional emissions.
Security
Geothermal:
Geothermal energy greatly reduces security concerns by tapping into a domestic source of power and reducing risks of potential attacks on power facilities.
Oil, Natural Gas and Nuclear:
The United States is highly dependent on foreign oil and natural gas. Nuclear plants constitute a high security risk.
Safety
Geothermal:
The deep earth closed loop Geothermal power is safe. Even a total system failure (caused perhaps by a terrorist attack) would result only in a release of hot water into the atmosphere.
Coal, Natural Gas, Nuclear:
The consequences from a meltdown at a nuclear plant (owing either to malfunction or attack) are dire. An explosion at a fossil-fuel burning plant would result in fire and the release of toxins into the atmosphere.
See emissions.