Theistareykir Geothermal Power Plant - Challenges in Project Management During Design and Construction

Abstract

The geothermal area at Theistareykir in north east of Iceland has great potential for geothermal utilization, with an estimated capacity of up to 200 MWe. Preparation work and research on the sustainable utilization of geothermal energy at Theistareykir began in 1999 by an association founded by local municipalities and regional utility companies, later merged into the National Power Company of Iceland, Landsvirkjun. The objective was to harness the geothermal resource in a sustainable way. In 2011 a break through milestone was achieved in the project when Landsvirkjun signed a contract with local consulting company for tender and detail design Theistareykir project. The following years preparations works were carried out at site. In 2015 a contract for turbine, generator and cold end was signed and construction at site started. From 2016 production drilling continued for 90 MWe. In end of 2017 unit 1 started commercial operation and unit 2 started commercial operation in spring of 2018. Today the Theistareykir geothermal power plant operates at 90 MWe. This paper summarizes the challenges and solutions the Landsvirkjun project team went through during the design, planning and construction of Theistareykir , 90 MWe, geothermal power plant in NE-Iceland, such has Landsvirkjun’s approach to project management as a responsible owner of the project and experienced operator of 16 Power Plants, break-down of the construction works in separate tendering processes, how a comprehensive project risk assessment and communication schedule for all stake holders was conducted and finally but not least Landsvirkjun’s approach to health safety and environmental issues during the construction.