Pricing and Usage of Geothermal Energy of the Paratunsky and Pauzhetsky Geothermal Fields, Kamchatka, Russia

Abstract

Kamchatskburgeotemia SUE operates most of the geothermal fields of Kamchaka, except Mutnovsky, to sell geothermal energy (hot water and steam) to consumers. Paratunsky hot water fields and Pauzhetsky high temperature field allow to produce and sell 4.81 million ton of hot water and 0.88 million ton of steam annually.
Nevertheless the significantly lower (2.5-14.5 times less) market price for geothermal energy, compared to oil-based energy supply, reduces the possibilities for geothermal project development. This is due to current price law regulations, which applied single rules to all energy markets (coal, gas, oil and geothermal - Federal Law, 1995; Order, 2008). These single rules did not account for production development fund deductions and restricted profit rate, which cut geothermal prices.
Hence, the price issue regulation for geothermal is critical for future geothermal development in Kamchatka. In the case of geothermal price question resolution, the most feasible geothermal projects are: 1. Transportation of the unused 240 kg/s 120 oC hot separated water from Pauzhetsky geothermal field for district heating of the Ozernaya village and fishery, located 30 km away, and replacement of the inefficient Pauzhetsky power plant turbine; 2. Kick off Upper-Paratunsky field to yield 270 kg/s hot water at 80oC to Elizovo and Viluchinsk cities and local applications (full scale greenhouses and ski resort).