Economic Performance Indicators for a Geothermal Aquatic Center in Victoria, Australia

Boxiang Fu, Graeme Beardsmore () and Rachel Webster
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Boxiang Fu: Faculty of Science, University of Melbourne, Parkville, VIC 3010, Australia
Graeme Beardsmore: School of Geography, Earth and Atmospheric Sciences, University of Melbourne, Parkville, VIC 3010, Australia
Rachel Webster: School of Physics, University of Melbourne, Parkville, VIC 3010, Australia

Energies, 2023, vol. 16, issue 5, 1-16

Abstract: The Gippsland Regional Aquatic Centre (GRAC) opened in the town of Traralgon, Victoria, Australia early in 2021. The GRAC utilizes a geothermal energy heating system as an alternative to conventional natural gas furnaces. We have examined 12 full months of heat production from the geothermal system of the GRAC and compared its economic performance against equivalent heat production by natural gas. The geothermal system—the first of its kind in Victoria—operated at >95% availability over its first year of operation. Our economic assessment indicates that the breakeven price for the geothermal energy is about 35% the equivalent price of natural gas and the payback period for the geothermal system is about five years. The results justify the initial capital outlay by Latrobe City Council and are likely to stimulate further development of geothermal heat systems in the region.

Keywords: geothermal energy; economic performance analysis; levelized cost of heat; payback period; Australia; Gippsland (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
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