The Karkar Geothermal Power Plant (Karkar GTPP) ( hy, Կարկառի երկրաջերմաէլեկտրակայան) is a proposed

geothermal power plant Geothermal power is electrical power generated from geothermal energy. Technologies in use include dry steam power stations, flash steam power stations and binary cycle power stations. Geothermal electricity generation is currently used in 2 ...

to be constructed in

Armenia Armenia (), , group=pron officially the Republic of Armenia,, is a landlocked country in the Armenian Highlands of Western Asia.The UNbr>classification of world regions places Armenia in Western Asia; the CIA World Factbook , , and ' ...

. The plant will be the first of its kind in Armenia and will be situated at the

Karkar Karkar may refer to: * Karkar, Selseleh, a village in Iran *Karkar Island, an island in Papua New Guinea * Karkar language, a language spoken in Papua New Guinea * Karkar Rural LLG, a local-level government in Papua New Guinea * Karkar Morghi Deli ...

site in the southernmost province of Armenia, Syunik. Initial studies envisage the construction of a 28-30 MW capacity geothermal power plant with an annual electric output of 250 million kilowatt hours (kWh) according to data provided in 2016. The Karkar GTPP will allow for the production of

heat In thermodynamics, heat is defined as the form of energy crossing the boundary of a thermodynamic system by virtue of a temperature difference across the boundary. A thermodynamic system does not ''contain'' heat. Nevertheless, the term is ...

to be used in the heating of

greenhouses A greenhouse (also called a glasshouse, or, if with sufficient heating, a hothouse) is a structure with walls and roof made chiefly of transparent material, such as glass, in which plants requiring regulated climatic conditions are grown.These s ...

, residential buildings, and industrial sites. Commissioned in 2008-2009, the Karkar GTPP is a unique project in Armenia in that it does not possess an analogue in the region, and positively differs from other energy producing

power plants A power station, also referred to as a power plant and sometimes generating station or generating plant, is an industrial facility for the generation of electric power. Power stations are generally connected to an electrical grid. Many pow ...

in its renewability of

resources Resource refers to all the materials available in our environment which are technologically accessible, economically feasible and culturally sustainable and help us to satisfy our needs and wants. Resources can broadly be classified upon their av ...

, independence from imported energy sources, as well as its minimal environmental impact.

Site selection

The Karkar site was selected for exploratory drilling on the basis of field investigations for the prospective sites of Jermaghbyur and Karkar, which were recognized as the most promising by both local and international geothermal experts. In 2006, the

World Bank The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...

(WB) Energy Invest PIU contracted Ameria CJSC, a professional advisory and insurance services company registered in Armenia to draft a detailed

feasibility study A feasibility study is an assessment of the practicality of a project or system. A feasibility study aims to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats pr ...

for the construction of the Karkar GTPP. The study was executed in the framework of a governmental plan aimed at diversifying energy sources in Armenia, and achieving greater independence from foreign imported energy sources. The results of the feasibility study demonstrated the possibility of constructing a flash type geothermal power plant functioning on the basis of 6 production

boreholes A borehole is a narrow shaft bored in the ground, either vertically or horizontally. A borehole may be constructed for many different purposes, including the extraction of water ( drilled water well and tube well), other liquids (such as petrol ...

at 2.5–3 km depth, and 2 boreholes for return flow at 3 km depth with an installed capacity of 25 MW. The necessary investment was estimated in the amount of 17.6 billion

AMD Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets. While it initially manufactur ...

, with specific costs per kilowatt of installed capacity at US$1564. At the time of the study, the annual average electricity production was thought to be 199.4 million kWh. That number has today grown to 250 million kWh. The study demonstrated the strategic importance and effectiveness of using geothermal energy in Armenia for the provision of heat supply and the generation of electric power. The field investigations at the prospective sites, which included field scoutings,

magnetotelluric Magnetotellurics (MT) is an electromagnetic geophysical method for inferring the earth's subsurface electrical conductivity from measurements of natural geomagnetic and geoelectric field variation at the Earth's surface. Investigation depth ra ...

(MT) sounding and 3D MT studies, along with independent interpretations of the results of these studies, were supported under the Geofund 2: Armenia Geothermal Project financed by the GEF and were completed in 2012.

Exploratory Drilling

The Geothermal Exploratory Drilling Project (GEDP) is a new project consisting of two independent stages, which aim to confirm the suitability of the geothermal resource at the Karkar field for electric power generation. If confirmed, future steps will include involvement of the private sector in the development of a geothermal power plant. Geothermal resources differ from other renewable energy sources, such as

wind Wind is the natural movement of air or other gases relative to a planet's surface. Winds occur on a range of scales, from thunderstorm flows lasting tens of minutes, to local breezes generated by heating of land surfaces and lasting a few ho ...

, solar and

hydro Hydro from Ancient Greek word ὕδωρ (húdōr), meaning ''water''. Hydro may also refer to: Energy technologies * Water-derived power or energy: ** Hydropower, derived from water ** Hydroelectricity, in electrical form * "Hydro", AC mains ...

in that the commercial exploitability of a geothermal field largely depends on its meeting of certain specific parameters of

temperature Temperature is a physical quantity that expresses quantitatively the perceptions of hotness and coldness. Temperature is measurement, measured with a thermometer. Thermometers are calibrated in various Conversion of units of temperature, temp ...

and

pressure Pressure (symbol: ''p'' or ''P'') is the force applied perpendicular to the surface of an object per unit area over which that force is distributed. Gauge pressure (also spelled ''gage'' pressure)The preferred spelling varies by country and e ...

. These parameters may be considered with sufficient confidence only upon viable assessment of the results of exploratory drillings. The GEDP was implemented with the support of the World Bank. On Monday, 8 June 2016 the

Board of Executive Directors approved a US$8.55 million grant for the realization of the first stage of the project, with Arthur Kochnakyan appointed as the World Bank Task Team Leader for the project. The objective of the Government of Armenia is to construct a geothermal power plant at the Karkar site upon confirmation of the availability of exploitable geothermal resources. With a total potential for geothermal power currently estimated at approximately 150MW, indigenous Armenian geothermal resources have the potential to become an affordable source of

base load The base load (also baseload) is the minimum level of demand on an electrical grid over a span of time, for example, one week. This demand can be met by unvarying power plants, dispatchable generation, or by a collection of smaller intermittent e ...

electricity, in turn contributing to the country's

energy security Energy security is the association between national security and the availability of natural resources for energy consumption. Access to (relatively) cheap energy has become essential to the functioning of modern economies. However, the uneven d ...

Initial stage

Initial exploration consists of drilling of three separate wells 1500 m deep, which will require the use of the US$9 million provided by the

Climate Investment Funds The Climate Investment Funds (CIF) is a multilateral fund established to finance and scale climate pilot projects in developing countries. Established in 2008 at the request of the G8 and G20, the CIF administers a collection of programs that hel ...

and the 2 million AMD supplied by the Government of Armenia. The much-needed involvement of commercial investors for the funding of the resource validation phase of the project has been greatly deterred by a combination of high capital requirements, with drilling costs typically ranging between US$2 and US$5 million per well, highly uncertain results, and the time required for its completion. The R2E2 Fund, a non-profit organization established by the Government of Armenia in 2005 with the specific objective of promoting development of

renewable energies Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...

and energy efficiency markets in Armenia, will be responsible for the implementation of the project. The Fund has the required capacity and necessary experience in implementing Bank financed projects. July 2016 saw the construction of the first slim well for exploratory purposes. An access road to the Karkar site was previously constructed to allow for the transportation and installation of rig pads required for drilling of the slim well(s), as well as other infrastructures. Should primary drilling yield positive results, a full feasibility study of the area will be completed to provide necessary information regarding the type of geothermal technology to be installed at the site. The feasibility study will also allow for the determination of future economic and financial performance estimates, as well as for helping find solutions to issues ranging from compliance with environmental and social safeguards to legal and regulatory concerns. The contribution of the Government of Armenia to the project is expressed in the form of land provision, support in obtaining all the necessary permits, co-financing of taxes, supporting the construction of

transmission lines In electrical engineering, a transmission line is a specialized cable or other structure designed to conduct electromagnetic waves in a contained manner. The term applies when the conductors are long enough that the wave nature of the transmis ...

and the infrastructure demanded at the site, as well as the provision of

tax exemptions Tax exemption is the reduction or removal of a liability to make a compulsory payment that would otherwise be imposed by a ruling power upon persons, property, income, or transactions. Tax-exempt status may provide complete relief from taxes, redu ...

. During a policy seminar held on 23 September 2016 regarding "The Challenges of Energy Security in Armenia", Deputy Minister of Energy Infrastructures and Natural Resources of Armenia, Areg Galstyan, announced that the first results of exploratory drilling of geothermal sources were due in 2016. In a latter interview given on 27 October 2016, the same deputy minister informed journalists of the completion of the appraisal of geothermal resources in the Karkar site with optimistic first results for the survey, particularly with regards to compliance of specific temperature and pressure requirements. A final assessment of the area's geothermal power capacity is to be drafted on the basis of the results obtained upon completion of the exploratory drilling stage.

Second stage

The second stage of GEDP envisages the construction phase of the geothermal power station. Initial construction costs of the geothermal power plant are projected to be US$90 million to 110 million, which are to be subsidized by public and private capital (i.e commercial debt and equity) in accordance with a specific financing plan of the Government of Armenia. An international tender is to be announced based on the final results of the exploratory drillings to attract investors for the development of the plant, where priority will be given to the lowest bidder. In the event of its construction, the Karkar Geothermal Power Plant is set to occupy an approximate area of 1.5 hectares, which will include

piping Within industry, piping is a system of pipes used to convey fluids (liquids and gases) from one location to another. The engineering discipline of piping design studies the efficient transport of fluid. Industrial process piping (and accompa ...

and parking areas, warehouses and maintenance facilities, a fluid storage house, workers' quarters, and associated facilities pursuant to the building footprint of the future plant. A total of 4 to 10 production and

injection well An injection well is a device that places fluid deep underground into porous rock formations, such as sandstone or limestone, or into or below the shallow soil layer. The fluid may be water, wastewater, brine (salt water), or water mixed with indus ...

s with casing diameters of 18 5/8 inches at the surface narrowing to 7 inches at 1250 meters are to be drilled and installed to harness the heat of the rocks situated at similar depths. The heat trapped by these rocks reach temperatures of 99 °C at depths of 920 meters, escalating towards 250-300 °C at 2500–3000 meters as demonstrated by the Jermaghbyur borehole data.

References

{{reflist, 2 Geothermal power stations in Armenia Proposed geothermal power stations Proposed renewable energy power stations in Armenia

Site selection

Exploratory Drilling

Initial stage

Second stage

See also

References