Are Engineered Geothermal Energy Systems a Viable Solution for Arctic Off-Grid Communities? A Techno-Economic Study

Abstract

Deep geothermal energy sources harvested by circulating fluids in engineered geothermal energy systems can be a solution for diesel-based northern Canadian communities. However, poor knowledge of relevant geology and thermo-hydro-mechanical data introduces significant uncertainty in numerical simulations. Here, a first-order assessment was undertaken following a “what-if” approach to help design an engineered geothermal energy system for each of the uncertain scenarios. Each possibility meets the thermal energy needs of the community, keeping the water losses, the reservoir flow impedance and the thermal drawdown within predefined targets. Additionally, the levelized cost of energy was evaluated using the Monte Carlo method to deal with the uncertainty of the inputs and assess their influence on the output response. Hydraulically stimulated geothermal reservoirs of potential commercial interest were simulated in this work. In fact, the probability of providing heating energy at a lower cost than the business-as-usual scenario with oil furnaces ranges between 8 and 92%. Although the results of this work are speculative and subject to uncertainty, geothermal energy seems a potentially viable alternative solution to help in the energy transition of remote northern communities.

Keywords

• FRACSIM3D
• shear displacement–dilation model
• poroelasticity
• levelized cost of energy
• Monte Carlo method
• geothermal energy