Geothermal Power is stable and low carbon, but what is its potential in Canada?

The only commercial geothermal power plant in operation in Canada is the Swan Hills Geothermal Power Project in Alberta. FutEra Power public report photo.

This article was published by the Canada Energy Regulator on May 31, 2023.

Geothermal energy has a small environmental footprint and is one of the few renewable energy sources that is always available, has low greenhouse gas (GHG) emissions, can operate at high capacity factors, and requires minimal land and fresh water.(1) However, resource exploration risk and capital costs for geothermal plants are high.(2) In 2021, the capacity cost for a geothermal power plant was estimated between US$4,500 to $6,050(3) per kilowatt (kW) of capacity, higher than most solar applications, coal, and natural gas, but lower than nuclear. In terms of the levelized cost of energy, geothermal energy costs US$56 to $93(4) per megawatt hour (MWh), which is competitive with coal, nuclear, and some solar applications.(5)

Almost all current geothermal applications in the country provide heating for hot springs, buildings, agriculture, or industry. The only commercial geothermal power plant in operation in Canada is the Swan Hills Geothermal Power Project in Alberta, commissioned in January 2023.(6)(7) Several other proposed geothermal power projects in British Columbia, Alberta, and Saskatchewan(8) could follow later in the decade (Table 1).

  1. Enbridge, “Geothermal Energy – What is it, where is it, and how do we capture it?
  2. IEA, “Renewable Energy Essentials: Geothermal.
  3. CAD $6,120 to $8,227 as of 24 May 2023 with 1 CAD = 0.735564005 USD exchange rate.
  4. CAD $76 to $96 as of 24 May 2023 with 1 CAD = 0.735564005 USD exchange rate.
  5. Lazard, “LAZARD’S LEVELIZED COST OF ENERGY ANALYSIS — VERSION 15.0”, October 2021.
  6. The Swan Hills Geothermal Power project has a natural gas unit (15 MW) and a geothermal unit (6 MW). The natural gas unit and geothermal facility were in service in September 2022 and January 2023, respectively.
  7. Razor Energy, “Canada first co-produced geothermal power project is operational”, March 22, 2023.
  8. Geothermal Canada, “Geothermal 101 – Current geothermal projects underway in Western Canada Sedimentary Basin, that will generate electricity and thermal energy”.
  9. Alberta, “Geothermal Resource Development.
  10. Alberta Energy Regulator (AER), “Geothermal Resource Development.
  11. BC Energy Regulator, “Geothermal.”
  12. Government of Nova Scotia, “Bill No. 149: Mineral Resources Act”, May 2016.
  13. Government of Yukon, “Geothermal resources legislation engagement 2022”.
  14. S.E. Grasby, at all “Geothermal Energy Resource Potential of Canada”, Geological Survey of Canada, NRCan, 2012, pages VIII to X and Figure 2, page IX.
  15. GLJ, “What is Geothermal Energy, What is Canada’s Potential”, GLJ.
  16. Enbridge, “Geothermal Energy – What is it, where is it, and how do we capture it?
  17. Geothermal power generation requires temperatures ranging from 100°C (212°F) to 250°C (482°F) to operate. A. Zoet, J. Bowyer, S. Bratkovich, M. Frank and K. Fernholtz, “Geothermal 101: The Basics and Applications of Geothermal Energy”, page 3, Dovetail Partners Inc, 12 September 2011.
  18. LDI Training, “The First Geothermal Plants Around The World”.
  19. A. Richter, “ThinkGeoEnergy’s Top 10 Geothermal Countries 2022 – Power Generation Capacity (MW)”, Think Geoenergy, 10 January 2023.

Facebook Comments

Be the first to comment

Leave a Reply

Your email address will not be published.


*