An Economic Evaluation of Southern New Mexico's Low-Temperature Geothermal Resources

Abstract

An economical model ahs been developed to evaluate the costs associated with developing low temperature geothermal resources for commercial greenhouses. Three southern New Mexico sites, the lower Animas Valley, the Las Cruces East Mesa, and Truth or Consequences, have been analyzed to compare development costs and delivered energy costs on an equivalent basis. The economical analysis utilizes a levelized cost method that calculates the annual levelized life cycle costs of geothermal energy development. Levelized geothermal cost have been developed for four different thermal loads at the three locations. For comparative purposes, levelized natural gas costs were also calculated. Geothermal energy has a competitive advantage relative to natural gas for supplying larger thermal loads.