Conceptual Planning of the Extension of Balcova District Heating System

Abstract

The conceptual modeling of district heating systems (technical, economic and political feasibility) is a most important step in realizing this type of geothermal projects. Only projects that have economic analysis that is sensitive to the field developments with known field properties and conceptual planning could provide the basis for correct decisions on investments. Otherwise, big risks would be involved.
In this study, conceptual modeling suggested for geothermal district heating systems is applied to the Balcova System-2 and technical and economic feasibility of the system are investigated. The new system covers an area of a potential of 3917 dwellings. The total space heating area in the extension is around 310700 m2. The most important factor that affects the economy of district heating systems is the ratio of participation by the dwellings in the area. In the study, different participation ratios (26%-100%), participation fees (1250$-1500$) and participation years (2-5) are considered, and monthly payments for the energy consumed are calculated. Results of the analysis indicated that reasonable ROR's could be obtained with 1250$ of participation fee, 20$ of monthly payments and average drilling costs. Applying conceptual planning to the Balcova System-2, unit area cost is cut by half, capacity cost is reduced 63% and unit area operation cost is lowered by 37% with respect to the original Balcova district heating system. Besides, in the light of this study, Geothermal Energy Regulation draft would be evaluated for its chapter titled "Essentials of Operation of Geothermal Systems".