Energy Creation (Minato-ku, Tokyo), a venture firm that deals with energy, announced a scheme that enables a community or local firm to introduce "warm water binary power generation" without initial investment March 6, 2019.
Binary power generation uses a mechanism that uses the heat of lower-than-100°C underground warm water, hot spring, etc, evaporates a medium with a low boiling point and activates a turbine generator. It is a kind of geothermal power generation, and electricity generated by binary power generation can be sold by using the feed-in tariff (FIT) scheme. The FIT tariff set for binary power generation is ¥40/kWh (until fiscal 2020).
The new scheme is expected to be used for the development of small-scale binary power plants that are targeted at municipalities, business operators and individuals having a right to use warm water and operated mainly by right holders.
The name of the service is "Warm Water Binary Power Generation Operated Mainly by Communities." Energy Creation raises investment capital and installs/operates power plants. Therefore, local power producers do not need to invest their money and can start a power generation business without knowhow to run a power plant.
The amount of power generated by warm water binary power generation facilities to be installed is expected to be 65kW at the generation end and 49kW at the transmission end in the case of warm water at a temperature of 90°C. A profitability will be secured by installing multiple warm water binary power generation facilities with an output of less than 50kW (low-voltage connection, which enables to easily connect to a power grid) in one area and leveling fixed costs.