THE ECONOMICS OF GEOTHERMAL POWER

This article, based on a rapporteur's report, is a synthesis of papers read before the United Nations Symposium on the Development and Utilization of Geothermal Resources, held at Pisa, Italy, in 1970. It covers a broad cross-section of experience in exploiting geothermal energy, especially in Hungary, Iceland, Italy, Japan, New Zealand, the Union of Soviet Socialist Republics and the United States of America     

THE INDUSTRIAL ECONOMICS OF COPPER PROCESSING

Developing countries have increased their activity in smelting and refining of copper in order to retain a greater proportion of the value added and to achieve more control over production and marketing. This article examines the technology and economics of copper smelting and refining and considers the advantages and disadvantages to developing countries of increased investment in copper ore processing.
Les pays en développement ont accru leur activité dans le domaine de la fonte et du raffinage du cuivre dans le but de conserver une part plus grande de la valeur ajoutée et d'établir un contrôle plus efficace sur la production et la commercialisation de cette ressource. Cet article étudie les aspects techniques et économiques de la fonte et du raffinage du cuivre. Il compare les avantages et désavantages, pour les pays en développement, de la croissance des investissements dans le traitement du minerai de cuivre.
Los países en desarrollo han incrementado las actividades de fundición y refinado de cobre con el objeto de retener una porción mayor del valor agregado y de ejercer más control sobre la producción y el mercado. Este artículo examina la tecnología y economía de la fundición y refinado del cobre y considera las ventajas y desventajas de mayores inversiones en el procesado del mineral de cobre por los países en desarrollo.     

THE ECONOMICS OF CO-OPERATION IN SHARED WATER RESOURCES DEVELOPMENT

This article assesses the various methodologies that have been used to devise equitable approaches in the joint utilization of water resources shared by two or more countries. Noting that no single technique is applicable in all or even most situations, the article first presents a review of the approaches taken in three cases, the basins of the Uruguay, the Senegal and the Yaguaron rivers. Next, the issues raised in these cases are examined, and the three major steps in the sharing of benefits and costs in projects for the development of shared water resources are discussed. The article concludes with a number of observations concerning the present and probable future status of shared water resource negotiations. Cet article évalue les différentes méthodes que l'on emploie pour définir les manières équitables d'utiliser conjointement les ressources en eau communes à deux ou plusieurs pays. Tout en soulignant qu'il n'existe pas de technique qui puisse s'appliquer à toutes ou presque toutes les situations, l'article dans un premier temps passe en revue les méthodes utilisées dans trois cas: les bassins des fleuves Uruguay, Sénégal et Yaguaron. L'article examine ensuite les questions soulevées dans ces cas et discute des trois mesures importantes adoptées dans le partage des coûts et bénéfices dans le cas de projects conçus pour la mise en valeur des ressources en eau communes. L'article conclut par un certain nombre d'observations sur l'état actuel et l'avenir probable des négociations en matière de ressources en eau communes. Este artículo evalúa varias metodologias usadas para establecer formas de la utilización conjunta y equitativa de recursos hídricos compartidos por dos o más países. El artículo señala que no hay una técnica única aplicable a la mayoría de los casos y revisa los procedimientos seguidos en tres casos: las cuencas de los ríos Uruguay, Senegal y Yaguaron. Luego se examinan los asuntos saltantes en los tres casos y se discuten los tres pasos a seguirse en la participación de beneficios y costos de los proyectos de desarrollo de recursos hídricos compartidos. El artículo concluye con algunas observaciones concernientes a las negociaciones presentes y futuras sobre uso de recursos hídricos compartidos.     

THE ECONOMICS OF RENEWABLE ENERGY SYSTEMS FOR DEVELOPING COUNTRIES

In many parts of the Third World, projects are being developed to test such renewable energy systems as biogas plants and solar cell arrays for powering pumps and grinders. Virtually nowhere, however, has adequate work been done to determine if these systems are worth their costs. This paper outlines the cost-benefit techniques which allow systems to be evaluated from the standpoint of individual buyers (financial analysis) and the society as a whole (economic analysis). Special attention is given to problems of particular importance in reviewing energy systems, including local measurement of costs and benefits, determination of investors' discount rates, shadow-pricing and allowance for social costs. Detailed cost-benefit analyses are provided for two representative systems: a family-scale Indian biogas plant and a 5.5 kW solar cell irrigation pump on the borders of Lake Chad. The family-scale biogas plant does not appear to be profitable in either financial or economic terms under any plausible sets of assumptions. The solar cell pump has positive net benefits by economic (if not financial) measures, but is unlikely soon to be competitive with diesel power for most applications. At best, some of these devices might ultimately become competitive with expensive commercial energy. Such devices will therefore be of interest first to people now using substantial amounts of such energy – that is, the relatively wealthy. Only much later might significant benefits begin to filter down to the poor. In the light of these findings renewed attention should be given to meeting basic energy needs through less sophisticated systems. By finding systems whose benefits are commensurate with their costs, and whose costs are within reach of the poor, it may be possible to provide more energy to those most in need of it. Dans de nombreuses parties du Tiers Monde, des projets sont en cours d'exécution en vue d'évaluer des systèmes en matière d'énergie de remplacement, tels que des usines de gaz de fermentation et des assemblages de cellules solaires pour activer pompes et broyeurs. Toutefois, il semblerait qu'il n'y ait eu nulle part aucune étude valable permettant de déterminer si ces systèmes justifient leur coût. Cet article relève les techniques de coût-utilité qui permettent d'évaluer ces systèmes du point de vue des acheteurs individuels (analyse financière) et de la société dans son ensemble (analyse économique). En analysant ces systèmes, l'article souligne des problèmes d'importance particulière, y compris l'évaluation locale des coûts et profits, la détermination des taux d'actualisation d'investissement, l'estimation des prix virtuels et l'établissement de marges de coûts sociaux. Des analyses détaillées de coût-utilité sont présentées pour deux systèmes concrets: une usine de gaz de fermentation indienne à l'échelle de la famille, et une pompe d'irrigation à cellules solaires de 5,5 kW sur les rives du lac Chad. L'usine de gaz de fermentation à l'échelle de la famille ne semble ni financièrement, ni économiquement rentable quelque soient les termes plausibles des hypothèses. La pompe à cellules solaires offre des profits positifs nets selon des critères économiques (sinon financiers) mais, dans la plupart des cas, elle ne semble pas pouvoir concurrencer le moteur diesel dans un proche avenir. Au mieux, quelques-unes de ces installations peuvent à la longue concurrencer l'énergie commerciale à prix élevé. Par conséquent, elles seront d'intérêt particulier tout premièrement aux usagers de grande quantité de cette énergie, c'est-à-dire ceux possédant des moyens relativement élevés. Ce n'est que bien plus tard que les classes défavorisées pourront commencer à bénéficier sensiblement des profits qui en résulteront. Sur la base de ces données, les organisations s'intéressant aux classes défavorisées peuvent se pencher à nouveau sur la manière de répondre aux besoins essentiels en matière d'énergie en utilisant des systèmes plus simples: bois appartenant aux villages, fours à bois améliorés, pompes et broyeurs à pédales ou à bras, pompes foulantes hydrauliques, etc. En conçevant des systèmes dont les profits sont proportionnels aux coûts et dont les coûts sont à la portée des classes défavorisées, il se peut que l'on puisse mettre plus d'énergie à la disposition de ceux qui en ont le plus besoin. En muchas partes del Tercer Mundo se han llevado a cabo proyectos para ensayar sistemas de energía renovables tales como plantas de biogas, y celdas solares para operar bombas y molinos. Sin embargo practicamente en ninguna parte se ha hecho el esfuerzo apropiado para determinar si estos sistemas valen lo que cuestan. Este artículo esboza las técnicas de beneficio-costo para evaluar dichos sistemas desde el punto de vista del usuario individual (análisis financiero) y del de la sociedad como un todo (análisis económico). Se da especial atención a los problemas de importancia particular en el análisis de sistemas de energía, incluyendo mediciónes locales de costos y beneficios, determinación de la tasa de descuento del inversionista, precios-sombra y costos sociales. Detallados análisis de beneficio-costo se proveen para dos sistemas representativos: una planta de biogas en escala familiar y una bomba de agua operada por celadas solares de 5.5 kW al borde del Lago Chad. La planta de biogas a escala familiar parece no ser rentable financieramente ni económicamente bajo ninguna serie de hipótesis realistas. La bomba de celdas solares tiene un benefico económico positivo (aunque no financiero), pero es poco provable que sea competitivo con el motor diesel para la mayoría de las aplicaciones. En el mejor de los casos, alguno de estos sistemas pueden ser competitivos con una energía comercial cara. Estos sistemas en consecuencia serán de gran interés primeramente para las personas que hacen uso intensivo de energía, esto es, las personas relativamente adineradas. Pueda qui solo mucho despues beneficios significativos lleguen a los pobres. A la luz de estos resultados debe ponerse renovada atención a satisfacer las necesidades básicas de energía a través de sistemas menos sofisticados. Pueda que sea posible proveer mas energía a los que más necesitan de ella si se buscan sistemas cuyo beneficios sea proporcionados a sus costos y que dichos costos esten al alcance de los pobres.     

WATER SUPPLY DILEMMAS OF GEOTHERMAL DEVELOPMENT IN THE IMPERIAL VALLEY OF CALIFORNIA1

Abstract: There are four known geothermal resource areas in the Imperial Valley that have a combined potential of over 4,000 megawatts of electrical energy for 25 years. Water resources available to support geothermal enerfy development are imprted Colorado River water, agricultural waste waters, Salton Sea water, and groundwater. In addtion, geothermal power plants can produce their own cooling water from steam condensate. Nevertheless, the relatively high water requirements of geothermal facilities along with a series of real and potential constraints may cause water supply dilemmas involving both the acquistion and use of cooling water. Important constraints are institutional policies, water supply costs, technical problems, and impacts upon the Salton Sea. These constranits and related dilemmas are examined in light of relevanty information on the valley's water resources, geothermal resources and energy technologies, cooling water requrements, and water supply options.     

THE ECONOMICS OF DEEP SEA NODULES: AN APPRAISAL OF RECENT ESTIMATES

The metal resources of deep sea nodules are attracting investment from many international corporations. Commercial interest in nodule mining is related to, but not governed by, existing estimates of economic profitability of the first generation ventures. Mr. Chacko reviews some of the latest published figures on costs and revenues, and these are updated and put on a comparable basis. He then argues that more attention should be paid to the long-term objectives of corporate policy in analysing the future development of the nodule mining industry.     

THE PRODUCTION OF WATER FROM GEOTHERMAL RESERVOIRS: SOME ECONOMIC CONSIDERATIONS1

ABSTRACT: Liquid dominated geothermal systems are expected to account for most of the growth in geothermal energy production in the coming decades. Production of water from such systems could significantly augment fresh water supplies. The feasibility of water exploitation is clouded by potential problems related to seismic impacts, land subsidence and the composition of geothermal brines. If these problems can be overcome at little cost, desalination of brines may be feasible. Estimates of water production costs are presented for a variety of desalination technologies, plant sizes and brine water compositions. These estimates show that production costs will range from $139.10/A.F. to $436.00/A.F. at the plant boundary. Economies of scale and brine composition are important determinants of cost. Production costs are substantially in excess of the value of water in alternative uses. However, in certain unique situations, it may be efficient to desalt brines for use in upgrading the quality of municipal water, industrial process water and irrigation water. Unique situations aside, geothermal brines are not likely to provide an economical source of fresh water in the absence of striking changes in the patterns of supply and demand for water.     

POLITICAL ECONOMICS OF OFFSHORE OIL

The exploration of offshore areas for hydrocarbons has involved new technical and economic considerations and has posed new problems, not the least of which has been the changing relationship between companies and governments. In this article, the authors present an analysis of the different perspectives and policies which emanate from national governments on the one hand and from transnational oil companies on the other. The issues examined include the considerations involved in establishing exploration legislation, post-discovery problems, the impact on revenues of increased production, the interests of companies in developing fields and the overall economic environment within which decisions have to be agreed.     

ECONOMICS OF CONTROLLING NATURAL SALT SOURCES IN THE ARKANSAS RIVER BASIN1

ABSTRACT: The methodology underlying, and the estimates incorporated in the Corps of Engineers' economic evaluation of the Arkansas River Basin Chloride Control Project are evaluated and judged deficient in several ways. An improperly specified alternative cost analysis probably results in overestimates of the total regional demand for water, the demand for Arkansas River Water, and the cost-savings realized with the project in place. The quantitative effect of these errors is not determined. However, other adjustments are identified which are evaluated using the Corps' data. These adjustments reduce B/C from 2.64 to 0.57; principally as a result of corrections for over-estimates of cost-savings in steam-electric generation, and for use of improper discounting procedures and gross output-earnings ratios.     

MULTIPURPOSE EXPLORATION AND DEVELOPMENT OF GEOTHERMAL RESOURCES

This article is based on an address delivered before the Symposium on the Development and Utilization of Geothermal Resources, held at Pisa, Italy, 22 September to 1 October 1970     

MULTIPURPOSE EXPLORATION AND DEVELOPMENT OF GEOTHERMAL RESOURCES

This article is based on an address delivered before the Symposium on the Development and Utilization of Geothermal Resources, held at Pisa, Italy, 22 September to 1 October 1970     

NUCLEAR POWER IN THE USSR

This article examines the role of nuclear power in the USSR. Since the beginning of development of power reactors in the Soviet Union in the 1950s, their contribution had grown to six per cent of all electric power by 1980. Reactor development has proceeded rapidly, with a number of reactor designs in use. Fast breeder reactors and designs for specialized applications are under development. It is anticipated that the Contribution of nuclear power will continue to grow.
Cet article étudie le rôle de l'énergie nucléaire en URSS. Depuis le début de la construction des réacteurs nucléaires en Union Soviétique dans les années 50, leur part dans la production totale d'électricité a atteint six pour cent en 1980. La construction des récteurs s'est faite rapidement, avec divers types de réacteurs. Actuellement, on procède à la construction de surrégénérateurs à neutrons rapides ainsi que de réacteurs pour des besoins spéciaux et on prévoir que la part de l'énergie nucléaire continuera à croitre.
Este articulo examina el papel de la energía nuclear en URSS. Desde el comienzo del desarrollo de los reactores nucleares en la energía nuclear ha crecido hasta representar el seis por ciento de la potencia eléctrica en 1980. El desarrollo de reactores ha sido rápido y diferentes dise˜os está en uso actualmente. Se encuentran en desarrollo los reactores regeneradores rápídos y también dis˜os para applicaciones especializadas. Se anticipa que la contribución de la energía nuclear va continuar en aumento.     

GEOTHERMAL ENERGY IN TRANSITION

At a time when future sources of energy are under close scrutiny, both in terms of availability and suitability, geothermal energy ranks among the candidates for inclusion in any appraisal of alternative forms of supply. The use of geothermal energy for the production of electricity and for supplying domestic and industrial heat is a comparatively recent phenomenon, and its application remains closely constrained by favourable geological conditions. Yet exploration in several countries shows that geothermal energy may emerge as an important adjunct to total energy supply in many localities. McNitt outlines some of the economic and technological parameters of this energy source. Small scale geothermal power stations are more economic and less capital intensive than conventional plants, which make them of particular interest for developing countries with small electricity systems and competing demands on limited capital resources. The principal capital expenditures in the development of geothermal sources include exploration, steam production, installation of generating plant and the cost of effluent disposal. The wider use of low grade geothermal heat is also examined, in addition to the environmental problems occurring to the development of geothermal energy. The scope for technical co-operation in the development of geothermal energy is substantial, and it is likely that this source of energy will undergo more intensive development on the local scale in the future.     

AN ANALYSIS OF WATER RESOURCES CONSTRAINTS ON POWER PLANT SITING IN THE MID-ATLANTIC STATES1

ABSTRACT: Expansion of the electrical generation system in the Pennsylvania-Jersey-Maryland power pool will impact, and be constrained by, inland water availability. Future interpretations of the Federal Water Pollution Control Act Amendments of 1972 regarding evaporative cooling towers for coastal power plants, offshore siting and energy centers, and the policies and public acceptability of low flow augmentation reservoirs are some of the issues examined in this paper using scenarios generated by the Brookhaven National Laboratory Regional Energy Facility Siting Model (REFS). REFS is a multicommodity, transshipment-location linear programming model used here to allocate power plants among counties in a power pool under a minimization of cost objectives. The solutions are sensitive to the water resources assumptions in the model. For the year 2000, the amount of low flow augmentation allowed in the region's river basins and whether off-shore siting becomes a reality are the two water resources related issues which most affect the scenarios. The results show that decisions regarding specific water problems can have region wide implications for water and nonwater related issues.     

AUBURN DAM: A CASE STUDY OF WATER POLICY AND ECONOMICS1

ABSTRACT: This paper provides a critical analysis of the Bureau of Reclamation's Auburn-Folsom South project in California. While this massive $1.5 billion project is temporarily halted for redesign for earthquake hazard, it is timely to examine its justification on economic grounds. The key finding is that several major benefit categories, irrigation and recreation, have been grossly overstated. In addition, the Bureau failed entirely to estimate the cost of use on the free-flowing American River, or a probability-weighted estimate of catastrophic loss. Revised estimates indicate that the project is not economically justified. In addition, the project has unattractive distributive effects. The implications of this case study for current revisions in U.S. water policy are explored. The Auburn study basically provides support for the U.S. Water Resource Council's draft manual of procedures for evaluating federal water resource projects.     

A REVIEW ON DECISION MODELS IN ECONOMICS OF REGIONAL WATER QUALITY MANAGEMENT1

ABSTRACT The literature on decision models in economics of regional water quality management is reviewed and classified.     

REUSE OF POWER PLANT COOLING WATER FOR IRRIGATION1

ABSTRACT: Current water quality policies in California require disposal of saline blowdown waters from power plants in sealed evaporation ponds to avoid degradation of ground waters. This policy highlights the conflict between increased energy demands, increasing scarcity of water, and environmental priorities. Saline blowdown waters can be used for the irrigation of salt tolerant crops, albeit with some reduction in yields. The results of experiments intended to specify these yield reductions are reported. If such irrigation is carefully managed, the soil profile can be used to store residual salts and ground water degradation will be avoided, provided that irrigation ceases before the salts are leached to the ground water. An analysis of discharge below a carefully managed irrigation project shows that the downward movement of salts below the root zone is no worse than with conventional methods of disposal. Thus, irrigation reuse with blowdown water is shown to be a viable means of saline water disposal while maintaining existing standards of ground water quality protection. Further analysis demonstrates the economic feasibility of such irrigation reuse by showing that it is significantly less costly than the evaporation pond alternative.     

OCEAN THERMAL ENERGY - PROSPECTIVE RENEWABLE SOURCE OF POWER

This paper presents a general overview of the problems relating to the harnessing of ocean thermal energy. Emphasis is laid on resources, technology, and environmental impact. It is stressed that the production of power from ocean thermal energy is technologically feasible, economically competitive with other alternative energy systems and not unduly harmful to the environment. Discussion centers on an assessment of the exploitable energy contained in ocean thermal gradients as well as the fundamentals of the technology needed to utilize this potential energy source. The theory of operation, materials and construction considerations and biofouling are examined for the closed- and open-cycle ocean thermal plant designs. A historical review of attempts to harness this source of energy is presented with emphasis on current reasearch. The potential this energy source has for effects on and damage to the ocean environment is examined.