anz seize grkoa, page-14

Ohmygod, if worst comes to worst, I'm going to try to bump up the SP to keep my options in the money. I'm sure I won't be alone in this action.

Blythefan, I do appreciate that transmission costs can seem large when quoted in isolation, however please consider the other capital costs when installing a widely-quoted 500MW plant. All up, excluding transmission infrastructure, it is likely that the cost to build a 500MW plant will reach $2B. Taking your estimate of $1.25M per kilometre, the full cost of infrastructure will amount to a mere ~30% increase in capex. Transmission losses are estimated at 7%, though the thermal efficiency offered at target depth will give GDY a production avantage somewhere in the region of 110%, due to the increased power output of the heat engine.

So in my opinion, transmission is of no significant consequence if the quality of the resource is exceptional. For the increased capex of 30%, you get an increased power output of about 100%, effectively halving the full cost of production.

Shane, the heat loss can be up to 10C. Considering that increasing the O.D target temperature of 210C to 270C increases output by 100% (according to the widely used model developed by the MIT), you can appreciate why every degree counts.