Energy, economic and environmental (3E) analysis of geothermal-based plant operation for reliable power production in cold climates

Geothermal energy, as a wide-spread and low-/zero-carbon source, can help address ongoing and emerging global challenges associated with environmental issues and energy supply reliability. This research reports on an Energy, Economic and Environmental (3E) analysis of geothermal-based plant operation to address the long-term power demands of areas in cold climates with appropriate geothermal potential. A northern Canadian community-Fort Liard (FL), above a hot sedimentary aquifer in the Northwest Territories (NT)-was selected as a representative cold-climate area for this research. Three operational scenarios were considered for a 30-year lifetime: Scenario 1-a geothermal-based plant supplying FL's power needs; Scenario 2-the plant working at its maximum capacity continuously; and Scenario 3-the geothermal-based plant operating for eleven months, with a diesel facility employed only in June. The primary research's originality is to utilize real community data/information and system components prices/costs to derive 3E outcomes. The techno-energy analysis indicates that all three scenarios can deliver the stable baseload electric power required by FL. The Levelized Cost of Electricity (LCOE) for Scenarios 1, 2, and 3 is ~ 0.182, ~ 0.074, and ~ 0.176 CAD$/kWh, respectively, while FL's current diesel facility-excluding the government diesel subsidy-incurs a substantially higher LCOE of ~ 0.70 CAD$/kWh. Considering factors such as inflation and discount rates, the economic analysis indicates that for Scenarios 1, 2, and 3, the Internal Rate of Return (IRR) values are, respectively, 14.1, 27.8, and 14%, whereas the Return on Investment (ROI) times are, respectively, ~ 10.7, ~ 5.4, and ~ 10.8 years. Environmentally, Scenarios 1 and 2 have minor impacts, while Scenario 3 results in pollution due to utilizing the diesel facility in June. This 3E analysis can be extended to other remote, isolated, and cold-climate areas with favourable geothermal resources and similar geological and social conditions.