Processes 10 00289 v2
Processes 10 00289 v2
Processes 10 00289 v2
Article
The Use of Geothermal Energy for Heating Buildings as an
Option for Sustainable Urban Development in Slovakia
Andrea Senova * , Erika Skvarekova , Gabriel Wittenberger and Jana Rybarova
Faculty of Mining, Ecology, Process Control and Geotechnologies, Institute of Earth’s Resources,
Technical University of Kosice, Park Komenskeho 19, 040 01 Kosice, Slovakia; [email protected] (E.S.);
[email protected] (G.W.); [email protected] (J.R.)
* Correspondence: [email protected]; Tel.: +421-55-6022985
Abstract: The use of geothermal energy (GE) and the green economy in the environment of Slovak
municipalities and towns is significant, due to the reduction in the negative influences and impacts
of human society’s constant consumer lifestyle. The authors highlight the use of modern scientific
knowledge, practical experience, and ever-improving technologies in the field of renewable energy
sources RES. The aim of this contribution is to draw attention to the under-utilization of GE’s
potential in Slovakia. Given the country’s commitment to meeting emission limits under EU carbon
neutrality agreements by 2050, the use of this resource is very pertinent. Slovakia has significant
geothermal resources that are not currently sufficiently utilized. The article suggests using GE to heat
housing units of the housing estate near the geothermal source. Three scenarios (60 ◦ C (pessimistic),
65 ◦ C (conservative), and 70 ◦ C (optimistic)) were considered in our energy balance and economic
advantage calculations. The green economy offers a sustainable way of using the earth’s resources.
The financial calculations regarding the amount of investment, the expected financial return and the
possible values of the saved emissions confirm the possibility of the further use of GE technology.
The information under consideration can be used in other significant territories, which may be a
Citation: Senova, A.; Skvarekova, E.;
theme for further research in this field.
Wittenberger, G.; Rybarova, J. The
Use of Geothermal Energy for
Keywords: geothermal energy; renewable technology; thermal energy; investment
Heating Buildings as an Option for
Sustainable Urban Development in
Slovakia. Processes 2022, 10, 289.
https://doi.org/10.3390/pr10020289
1. Introduction
Academic Editors: Sergey Zhironkin,
The necessity of achieving net zero global CO2 emissions by 2050, to achieve the
Radim Rybar and Kody Powell
target set in the Paris Agreement, has stimulated interest in the use of low-carbon energy
Received: 16 December 2021 technologies, including geothermal energy. The constant exploitation of natural resources,
Accepted: 28 January 2022 excessive waste generation, the emission of harmful substances into the atmosphere (COx,
Published: 31 January 2022 SOx, NOx, etc.), seas, oceans, and soils lead to negative and often permanent changes.
Publisher’s Note: MDPI stays neutral Climate change is manifested by an increase in average temperatures, changes in the nature
with regard to jurisdictional claims in of the climate, more frequent occurrences of extreme weather (melting of glaciers and
published maps and institutional affil- permafrost, landslides, extreme drought and heatwaves, torrential rains, sudden flooding,
iations. and others). There are changes in biodiversity, the migration of animal species, extinc-
tion, excessive deforestation, changing soil composition, and the contamination of water
resources (increasing the acidity of the oceans). Population migration is another important
manifestation of these changes [1]. However, despite various climate agreements, CO2
Copyright: © 2022 by the authors. emissions reached an all-time high of 35 billion tons per year in 2019. The unprecedented
Licensee MDPI, Basel, Switzerland. nationwide COVID-19 crisis that began in China at the end of 2019 has rapidly frozen
This article is an open access article
emissions growth. All these reasons, among others, have led to increased interest in the
distributed under the terms and
research and development of sustainable and renewable energy (RES) technologies.
conditions of the Creative Commons
Man, through his anthropogenic activity, significantly influences conditions on the
Attribution (CC BY) license (https://
planet. At present, the greatest emissions are generated by the burning of coal; for instance,
creativecommons.org/licenses/by/
more than 14 billion tons were burned in 2018. Emissions from this source totaled more
4.0/).
than 12 billion tons in 2018. This ranking is followed by natural gas and its increasing
consumption level of almost 8 billion tons, as well as cement production. The EU is the
world’s largest importer of energy, relying on imports for 50% of its energy needs. With
an energy demand forecast to grow 1–2% a year, this figure will rise, within the coming
20–30 years, up to 70%. Europe’s energy needs are growing relatively fast compared
to other parts of the world. Climate change has encouraged the inclusion of modern
RES technologies in the program, to mitigate the negative impacts of fossil fuel energy
production. Europe is being forced to invest in new technologies [2,3]. The overall EU
average of RES production in 2019 was 20%, meeting its target for 2020. Iceland has the
largest share of RES energy at almost 80%, thus meeting the target above the set limit.
This was mainly helped by the geographical relief and nature of the landscape and the
wide use of energy from geothermal and water sources—geothermal power plants and
hydroelectric power plants. Norway meets about 73% of its energy needs from RES
especially due to the hydroelectric power plants made possible by the mountainous profile
of the landscape, offering a bountiful supply of rivers with a high falling gradient. Of the
other EU countries, Sweden’s share is almost 60%, Finland’s, about 43%, and Latvia’s, 40%,
followed by Denmark, Austria, etc. Included in the leading countries that have not (yet)
met their commitments is Slovenia, which produced more than 20% of its energy from
RES in 2019, but the target for 2020 is 25%. Other such countries are Ireland, Belgium, the
Netherlands, Luxembourg, the United Kingdom, and Poland. Poland relies mainly on coal
production and, therefore, has long had a problem with air pollution. In 2019, Slovakia
produced almost 20% of its total energy from RES, thus meeting its 2020 target [4].
Geothermal energy, as a renewable energy source, can be an important resource for
numerous regions of Europe. The development of geothermal energy facilities gives people
the potential to gain better control of their own local energy resources and take advantage
of a secure, environmentally friendly and domestic source of energy. This energy from
within the Earth can be used for different purposes to improve environmental quality
and protect public health and safety. The technological and sustainable development of
this type of energy will help to solve the world’s energy needs and the requisite chal-
lenges [5]. For geothermal electricity production, the highest concentration of resources on
the European continent is located in Italy, Iceland and Turkey; the present exploited value
is only 0.3% of the whole renewable market. The possibilities for geothermal energy to
expand its penetration in Europe are mainly from using the enhanced geothermal system
(EGS). Some areas have been critically investigated regarding geothermal resource base
assessment, recoverable EGS estimates, in-depth research on EGS technologies and the
current performance, the designing of suburb-facing systems, drilling technology eco-
nomics, the conversion of energy using enhanced geothermal systems, the effect of this
technology on the environment, and the analysis of enhanced geothermal systems and
their sustainability [6,7].
Slovakia should take advantage of the potential geothermal resources it has, which
are currently used to a minimal extent. It is important to use energy resources efficiently
because the price of energy, in general, is rising [8].
Is geothermal energy renewable? Geothermal energy has often been described as a
renewable energy resource. However, on the time scale normally used in human society,
geothermal resources are not, strictly speaking, renewable. They are renewable only if the
heat extraction rate does not exceed the reservoir replenishment rate. Exploitation through
wells, sometimes using down-hole pumps in the case of non-electrical uses, leads to the
extraction of very large quantities of fluid, and consequently to a reduction or depletion
of the geothermal resources that are in place [9]. Geothermal localities can be subdivided
into two categories: springs and deep boreholes. Springs are locations where geothermal
water naturally flowed out or is still flowing out from the aquifer onto the earth’s surface.
The category of deep boreholes accounts for all the localities where there are not, nor have
there ever been any natural springs, but where geothermal waters have been found during
hydrocarbon exploration and exploitation [10,11].
Processes 2022, 10, 289 3 of 17
The drilling works enable geologists to establish the rock composition of an investi-
gated area, along with other data that are connected to the tasks needed in the eventuality
of a geothermal energy plant [12]. Geothermal fields, as opposed to hydrocarbon fields,
are generally systems with a continuous circulation of heat and fluid, where fluid enters
the reservoir from the recharge zones and leaves through discharge areas (hot springs,
wells) [7]. Heat production from GE is widespread in many countries of the world. The
largest geothermal central heating systems are in the USA and China; in Europe, it is mainly
found in France, Germany, Iceland or Turkey [13]. Slovakia has the greatest potential for
GE in Central and Eastern Europe [3].
The aim of this article is to demonstrate how to carry out an analysis of an area
examined in terms of the availability of a site suitable for GE domestic heating systems, the
availability of distribution networks, and energy needs. We provide a case study of how
a GE system can be used from the perspectives of investment efficiency, environmental
impact, and meeting user needs. Practical information and advice on procedures can help
other cities in terms of future perspectives.
groundwater creation and flow as well as its protection. This requires very close
monitoring, documenting and registering their basic characteristics and parameters. The
total Those
usable amounts
usable ofquantities
groundwater in Slovakia,
also includeasusable
documented in 2018ofinthermal
amounts all categories,
water as an integral
represent 77,175.07 l.s−1.
part Those
of groundwater and, for the sake of completeness, part of the
usable quantities also include usable amounts of thermal water as an integral
mineral waters, in
particular the usable
part of groundwater and,quantities ofofmineral
for the sake waters
completeness, approved
part by the
of the mineral Hydrogeological
waters, in Com-
mission
particular[19]. Figurequantities
the usable 1 showsofthe prospective
mineral areas of by
waters approved geothermal waters in the Territory of
the Hydrogeological
Commission
the [19]. Figure 1 shows the prospective areas of geothermal waters in the
Slovak Republic.
Territory of the Slovak Republic.
Figure 1. Prospective areas of geothermal waters in Slovakia [19]. 1) 10/4; 2) Klippen belt; 3)
Figure 1. Prospective
prospective areas of geothermal
areas where hydrogeothermal evaluation waters
has been in Slovakia
carried out; 4) [19]. (1) 10/4;
prospective areas (2) Klippen belt;
(3) prospective areas where hydrogeothermal evaluation has been carried out; (4) prospective areas
where hydrogeothermal evaluation is being carried out; 5) prospective areas where
hydrogeothermal evaluation has not yet been carried out.
where hydrogeothermal evaluation is being carried out; (5) prospective areas where hydrogeothermal
evaluation has
In order tonot yetthe
create been
bestcarried
possibleout.
conditions for the use of geothermal energy, re-
gional hydrogeothermal evaluations are carried out by determining the quantity of geo-
In order
thermal watersto create
and the best
geothermal possible
energy in theconditions for the use ofareas
defined 27 hydrothermal geothermal
or struc- energy, regional
tures of Slovakia [20].evaluations
hydrogeothermal Current geothermal conditions
are carried out in
bySlovakia are mapped
determining out and of geothermal
the quantity
waters and geothermal energy in the defined 27 hydrothermal areasbeen
reviewed in detail. There are currently 27 prospective geothermal areas that have or structures of Slo-
defined (Figures 1 and 2).
vakia [20]. Current geothermal conditions in Slovakia are mapped out and reviewed
in detail. There are currently 27 prospective geothermal areas that have been defined
Processes 2022, 10, 289 (Figures 1 and 2). 6 of 18
Figure2.
Figure 2. Partial
Partialmap
mapof geothermal wells in
of geothermal Slovakia.
wells in Slovakia.
A large proportion of geothermal reservoirs provide water with a temperature of up
A large proportion of geothermal reservoirs provide water with a temperature of
to 135 °C, which is optimal for use for heating buildings or for recreational purposes.
to 135 ◦ C,
upGeothermal which
energy (GE)isisoptimal for use
not primarily used for heating
for efficient buildings
electricity or for Modern
generation. recreational purposes.
technologies also make it possible to generate electricity using a binary cycle [13].
Geothermal energy (GE) is not primarily used for efficient electricity generation. Modern
technologies also make it possible to generate electricity using a binary cycle [13].
2.3. Methodology for Determining the Suitability of Geothermal Well Usage in the Monitored Area
(Podtatranska Basin)
Hydrogeologically, the projected well is situated in explored territory in the Poprad
River Basin. It has a left-hand tributary from the High Tatras and the right-hand tributary
is mainly from the Levoča Hills. Water management is important in the area since the
surface waters of the tributary of Poprad and the groundwater from its alluvia are often
used for drinking water supply. Water quality in the river is influenced by industrial
enterprises and local agglomerations. The area of the Sub-Tatran Basin under
Processes 2022, 10, 289 7 of 17
2.3. Methodology for Determining the Suitability of Geothermal Well Usage in the Monitored Area
(Podtatranska Basin)
Hydrogeologically, the projected well is situated in explored territory in the Poprad
River Basin. It has a left-hand tributary from the High Tatras and the right-hand tributary is
mainly from the Levoča Hills. Water management is important in the area since the surface
waters of the tributary of Poprad and the groundwater from its alluvia are often used for
drinking water supply. Water quality in the river is influenced by industrial enterprises
and local agglomerations. The area of the Sub-Tatran Basin under investigation offers
the use of several types of RES in different locations of the territory, in order to reduce
negative environmental impacts, especially in terms of reducing emissions or replacing the
combustion of fossil fuels. Fossil fuel heating is one of the largest sources of CO2 emissions.
The best solution is the use of thermal energy from geothermal sources.
Geothermal energy is an available local, strong energy source that is characterized
by stability of supply, regardless of current climatic conditions. Geothermal energy is
a long-term and sustainable energy source. Based on the geological construction of the
surrounding area and the conditions of geothermal wells that have already been realized, it
is possible to expect a well yield in the range of 20–30 L·s−1 , with a total mineralization of
about 3–5 g·L−1 and a water temperature at the surface of 60–70 ◦ C. One definite point of
uncertainty, according to the study, may be the depth of the collectors; therefore, the study
recommends counting on the final mining depth being 2800 m [21].
Based on analyses of the available data, we assume that there is potential for the
practical use of GE in the monitored Podtatranska Basin. GE may replace the combustion
of natural gas in the supply of housing units under the current model. This creates ideal
conditions for:
• Limiting the use of energy derived from fossil and conventional fuels;
• Reducing CO2 emissions, (NOx, CO, SO2 , TZL)
• Stabilizing heat prices,
• Obtaining a stable, green, and renewable energy source.
The aim of the methodological procedure (Figure 4) is to choose the appropriate
technology to cover the energy needs of the chosen location—a housing estate—based
on sustainability, local availability, and affordability, and with a positive impact on the
environment, as an exemplary model of energy independence for towns and villages.
The methodology begins with the search for theoretical knowledge in the field of RES
energy. This draws attention to the call for a transition to renewable and sustainable energy
sources within the European Union, which aims to achieve carbon neutrality by 2050.
Following a subsequent evaluation and the selection of appropriate information, the
individual available RES technologies were evaluated for:
• The area of energy coverage of household needs;
• The types and principle of operation; and
• A large-scale and stable supply for the population throughout the year.
From the information found, geothermal energy appears to be the most suitable
form of energy. With the subsequent selection of the site and the examination of existing
technologies covering the energy needs of the housing estate, it is possible to proceed
with an evaluation of the most appropriate RES technology. Our research has shown that
the technology used has the best potential and the appropriateness of the subsequent
investment is confirmed by further calculation.
Processes 2022, 10, 289 8 of 18
Figure4.4.Flowchart
Figure Flowchartmethodology
methodologyfor
forthe
thework
workof
ofdetecting
detectingaasuitable
suitableGE
GEsource.
source.
Theprocessing
The methodology begins
of the with the
geothermal search for was
contribution theoretical
based on knowledge
data frominthe
the field of
technical
Processes 2022, 10, 289 RES energy.
study This drawswell
of the geothermal attention
GTK-1,towhich
the call for a transition
is publicly availableto [21].
renewable andsite
A specific sustainable
(GTK-1,
9 of 18
Figure
energy5)sources
has been designated
within in which Union,
the European to carrywhich
out theaims
geothermal wellcarbon
to achieve under investigation.
neutrality by
Residential
2050. houses (in a housing estate with a population of 5500) were selected that met the
requirements
Followingforathe use of geothermal
subsequent evaluationenergy from
and the the borehole.
selection To determine
of appropriate the yieldthe
information, of
To determine
aindividual the yield
geothermalavailable
source for of a
heatinggeothermal source
the estimated for heating
capacity needed the estimated capacity needed
RES technologies were evaluated for: for the source was compared
for the
with thesource
heatingwas compared
volume of 3 with the
boiler heating
rooms in volumeyears
previous of 3 boiler rooms
(average in previous
of years years
2015–2017).
•(average
The area of energy
of years coverage of household needs;
2015–2017).
• The types and principle of operation; and
• A large-scale and stable supply for the population throughout the year.
From the information found, geothermal energy appears to be the most suitable
form of energy. With the subsequent selection of the site and the examination of existing
technologies covering the energy needs of the housing estate, it is possible to proceed
with an evaluation of the most appropriate RES technology. Our research has shown that
the technology used has the best potential and the appropriateness of the subsequent
investment is confirmed by further calculation.
The processing of the geothermal contribution was based on data from the technical
study of the geothermal well GTK-1, which is publicly available [21]. A specific site
(GTK-1, Figure 5) has been designated in which to carry out the geothermal well under
investigation. Residential houses (in a housing estate with a population of 5500) were
selected that met the requirements for the use of geothermal energy from the borehole.
Figure 5. Location of the proposed GTK-1 well area under investigation [21].
Figure 5. Location of the proposed GTK-1 well area under investigation [21].
The calculation of the energy potential of the geothermal source was based on the
following parameters: yield, mineralization, and water temperature at the surface. Given
that it is not possible to determine the exact temperature of geothermal water on the basis
of current knowledge, three variants of geothermal water temperature (60 °C, 65 °C and
70 °C) have been considered when calculating the energy potential.
Processes 2022, 10, 289 9 of 17
The calculation of the energy potential of the geothermal source was based on the
following parameters: yield, mineralization, and water temperature at the surface. Given
that it is not possible to determine the exact temperature of geothermal water on the basis
of current knowledge, three variants of geothermal water temperature (60 ◦ C, 65 ◦ C and
70 ◦ C) have been considered when calculating the energy potential.
2.4. Procedure for Calculating the Chosen Technology’s Potential Using Geothermal Energy
A methodological procedure was used to evaluate the use of the suggested possi-
bilities regarding suitable RES technology with the best potential and lowest subsequent
investment, with a recalculation, determination, and proposal as to whether the given
system (investment) is suitable. The procedure for calculating the investment technology
chosen, using geothermal energy, is as follows:
• Calculation of the Return on Investment (ROI)
ROI is the most frequently used parameter for the assessment of the economic effi-
ciency of investments. It is the total income that results from concrete investments, divided
by the amount of investment funds. This indicator is completely time-independent [22].
cumulative incomes
Return on Investment ROI = (1)
total investments
n n o
NPV = ∑ (−I + CF i ) /(1 + a)i (3)
i=1
where:
NPV—net present value;
I—investments;
CF—cash-flow;
a—update rate;
i—current year;
n—project duration.
If the NPV of the first project is higher than the NPV of the second project, and
vice versa—the ROI of the first project is smaller than the ROI of the second project
(NPV1 > NPV2; ROI1 < ROI2). In this case, there is no precise mathematical formula
defining which of the two projects is better. The volume of investments and the risk level
of the project will probably play the most important role. The intuition and experience of
the project evaluator, as well as other arguments, can influence investment decisions.
• Calculation of Payback Period (pBp)
A payback period is the project’s duration, from its beginning until the point when
the cumulative cash flow becomes positive. Although in the case of some projects, the
assessment results based on the payback period may seem interesting, this indicator does
Processes 2022, 10, 289 10 of 17
not say anything about the project’s future course from the viewpoint of its cash-flow
development. This could be either positive or negative.
• Calculation of Emission Values for Natural Gas Heating
The CO2 emission factors needed to calculate CO2 emissions from the operation
of buildings (heating, hot water preparation and the operation of other appliances) are
country-specific or operational (and also different for each IPCC1 category) and are derived
from specific fuel characteristics. Average CO2 emission factors are used for natural gas,
hard coal, lignite by region of origin (Slovak, Ukrainian and Czech), and coke. Due to these
reasons, emission factors should be revised each year [23,24].
The values of the weighted arithmetic mean of the qualitative parameters of natural
gas, distributed in the territory of the Slovak Republic by SPP—distribúcia, a.s, were used
according to the method followed in [25]. Density, calorific value, combustion heat and
Wobbe number are given for the business unit, i.e., m3 at 15 ◦ C, pressure 0.101325 MPa,
and relative humidity ϕ = 0. The formula used for the conversion of units: 1 kWh = 3.6 MJ.
Annual consumption of MNG NG at a calorific value of 34,848 MJ/m3 [26]:
Table 2 shows the values of total annual heat production and NG consumption for the
years 2015 to 2017.
Processes 2022, 10, 289 12 of 17
Table 2. Total heat production and consumption of natural gas in the selected location, (source:
elaborated by authors).
These pollutants would be eliminated annually for a housing estate with about 5500 res-
idents. The calculation of emissions in NG heating was recalculated according to the
literature [23] (see Table 3).
• Energy balance of geothermal well
Geothermal wells offer a number of positive options in terms of reducing negative
environmental impacts in the long term. The presumed energy potential of the well could
supply the housing estate with hot water intended for heating and hot service water
preparation in full coverage, but a certain amount of natural gas usage is still envisaged by
heating, to cover possible failures of the energy system.
We considered the following values:
- The specific weight of salt water of 1025 kg·m−3;
- Specific water heat cv = 4.18 MJ m−3 K−1 ;
- Temperature difference (for pessimistic, conservative, and optimistic scenarios) ∆t = 42,
45 and 55 K.
The energy balance of a geothermal well at 3 different geothermal water temperatures
was determined as shown in Table 4.
The energy potential of geothermal water from the proposed well has been calculated.
Since the energy potential of water heated by the earth’s core is its heat output, the heat
output formula has been used (2). The energy potential has been calculated for three
temperature scenarios. Table 4 shows that as the geothermal water temperature rises, the
energy potential and annual amount of thermal energy increase. Due to the large range
of processed data, the evaluation of the energy potential by the authors in a conservative
scenario of the implementation of a geothermal well with a water temperature of 65 ◦ C is
given in Table 5.
Table 5. Evaluation of the energy potential of a geothermal well in a conservative scenario with a
water temperature of 65 ◦ C.
The results of Tables 4 and 5 clearly show how the energy potential and the annual
amount of thermal energy increase with increasing geothermal water temperature. Using
data from the technical study of the geothermal well, the energy balance of the geothermal
source GTK-1 was calculated for three temperature scenarios (pessimistic, conservative,
and optimistic) of geothermal water.
3.2. Assessment of the Economic Feasibility of Using GE and the Payback Period of the
Implemented Project
The assessment of economic profitability was recalculated by calculating the net
present value, and the return-on-investment method was used. We considered two
variants—a pessimistic and an optimistic scenario.
In the calculations, we considered the following input data:
1. Quantity delivered to GE per year;
2. Credit financing up to 90% of the realized investment;
3. Interest rate—0.75%;
4. Loan maturity—12 years;
5. Annual increase in operating costs—by 1% per year;
6. Discount rate—7.5%.
In Table 6, the recalculation of the evaluation of the economic efficiency of the imple-
mented geothermal project for the pessimistic scenario is shown.
Based on the economic assessment, and assuming Tables 6 and 7 have the considered
inputs, we came to the following partial conclusions:
- The project would achieve a return of 16.4 years in a pessimistic scenario.
- The project would achieve a negative cash flow in the years 2022 to 2025 until, in 2026,
the cash flow would reach a positive value, which would increase in subsequent years.
- The project would achieve a return of 7.4 years in an optimistic scenario.
- In an optimistic scenario, the project would achieve a high positive cash flow from the
beginning, which would increase in subsequent years.
Processes 2022, 10, 289 14 of 17
Table 6. Calculation of the evaluation of the economic efficiency of the implemented geothermal project for the pessimistic scenario.
Pessimistic Scenario
1. Total Investment Costs (EUR) 2,459,687
2. Credit Share of Total Investment 90%
3. Credit Amount (EUR) 2,213,718
4. Interest Rate 0.75%
5. Credit Payment Period (Years) 12
6. Annual Operating Costs (EUR) 29,129
7. Annual Savings on NG (EUR) 228,843
8. Discount Rate 7.5%
9. Year 2022 2023 2024 2025 2026 2027 2028 2029 2031
10. Number of Year 1 2 3 4 5 6 7 8 9 10
11. Year Annual Sales/Operating CF (EUR) 228,843 228,843 228,843 228,843 228,843 228,843 228,843 228,843 228,843 228,843
12. Annual Increase in Operating Costs - 1% 1% 1% 1% 1% 1% 1% 1% 1%
13. Operating Costs (EUR) 29,129 29,421 29,715 30,012 30,312 30,615 30,921 31,231 31,543 31,858
14. Annual Depreciation (EUR) 187,252 187,252 187,252 187,252 187,252 187,252 128,745 128,745 90,307 90,307
15. Credit Repayment (EUR) 184,477 184,477 184,477 184,477 184,477 184,477 184,477 184,477 184,477 184,477
16. Credit Balance (EUR) 2,213,718 2,029,242 1,844,765 1,660,289 1,475,812 1,291,336 1,106,859 922,383 737,906 553,430
17. Annual Interest on the Credit (EUR) 16,603 15,219 13,836 12,452 11,069 9685 8301 6918 5534 4151
18. CF (EUR) −4141 −3049 −1960 −873 210 1291 60,876 61,950 101,459 102,527
19. NOPAT (CF–Income Tax 19%) (EUR) −4141 −3049 −1960 −873 170 1046 49,310 50,180 82,182 83,047
20. Discounted FCF (EUR) −1270 −236 657 1425 2052 2476 −3871 −3113 −6253 −5397
21. NPV (EUR) −247,239 −247,475 −246,818 −245,393 −243,341 −240,865 −244,736 −247,849 −254,102 −259,498
22. Payback Period (Years) 16.4
Processes 2022, 10, 289 15 of 17
Table 7. Calculation of the evaluation of the economic efficiency of the implemented geothermal project for the optimistic scenario.
Optimistic Scenario
1. Total Investment Costs (EUR) 2,459,687
2. Credit Share of Total Investment 90%
3. Credit Amount (EUR) 2,213,718
4. Interest Rate 0.75%
5. Credit Payment Period (Years) 12
6. Annual Operating Costs (EUR) 29,129
7. Annual Savings on NG (EUR) 283,420
8. Discount Rate 7.5%
9. Year 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
10. Number of Year 1 2 3 4 5 6 7 8 9 10
11. Year Annual Sales/Operating CF (EUR) 283,420 283,420 283,420 283,420 283,420 283,420 283,420 283,420 283,420 283,420
12. Annual Increase Operating Costs - 1% 1% 1% 1% 1% 1% 1% 1% 1%
13. Operating Costs (EUR) 29,129 29,421 29,715 30,012 30,312 30,615 30,921 31,231 31,543 31,858
14. Annual Depreciation (EUR) 187,252 187,252 187,252 187,252 187,252 187,252 128,745 128,745 90,307 90,307
15. Credit Repayment (EUR) 184,477 184,477 184,477 184,477 184,477 184,477 184,477 184,477 184,477 184,477
16. Credit Balance (EUR) 2,213,718 2,029,242 1,844,765 1,660,289 1,475,812 1,291,336 1,106,859 922,383 737,906 553,430
17. Annual Interest on the Credit (EUR) 16,603 15,219 13,836 12,452 11,069 9685 8301 6918 5534 4151
18. CF (EUR) 50,436 51,528 52,617 53,704 54,787 55,868 115,453 116,527 156,036 157,104
19. NOPAT (CF-Income Tax 19%) (EUR) 40,853 41,738 42,620 43,500 44,378 45,253 93,517 94,387 126,389 127,254
20. Discounted FCF (EUR) 40,585 38,519 36,542 34,651 32,845 31,121 22,775 21,674 16,805 16,053
21. NPV (EUR) −205,384 −166,865 −130,323 −95,672 −62,827 −31,706 −8931 12,743 29,548 45,601
22. Payback Period (Years) 7.4
Processes 2022, 10, 289 16 of 17
The payback period of the project in the optimistic scenario is very attractive and
is advantageous for the specified parameters. A higher share of credit financing has a
significant effect on the payback period.
The presented data create a synergy for the final conclusion that the implementation
of this project will be an effective investment in the future.
4. Conclusions
Geothermal wells offer a number of positive options for reducing negative environ-
mental impacts in the long term. In theory, the projected energy potential of the well would
be able to supply the modeled housing estate with warm water intended for heating and
the preparation of hot service water. One of the most burdensome aspects of today’s society
is energy. In particular, energy in households, especially heating and cooling, contributes
significantly to negative impacts on the country as a whole. In the case of Slovakia, there is
currently a system of supported RES and limited use of fossil resources. In the case of the
specific location of the Podtatranska Basin, we propose to use the potential of geothermal
energy for heating domestic housing units (housing estates). This will help to limit the
combustion of natural gas and, in the long term, save money on the purchase of NG and
achieve increased energy security and stability. The use of geothermal energy for housing
estate heating will bring a number of benefits to this area. GE can also be used in a com-
bined way (heating and electricity production) for greenhouse heating for growing crops
and flowers, for fish farming, etc. Primarily, it will offer an ecological benefit in the form
of significant emission reductions in the combustion of processes (NOx, SO2 , CO, TZL).
Currently, the city’s thermal economy burns natural gas and coal. Geothermal energy is a
highly ecological source; immediately after heating use, it will be drained off to a nearby
surface stream. Another benefit will be that it will reduce dependence on the imports of
primary heat sources (NG and coal) and replace them with a renewable energy source.
Finally, the use of geothermal energy will lead to a lower heating bill for the inhabitants of
the housing estate.
Currently, the aim is to use RES technology that contributes as much as possible to
reducing the negative consequences of energy use on the global climate system. The topic
is vital, according to current developments in energy policy in the EU and around the
world. At the end of October 2021, the UN World Climate Summit was held in Glasgow;
it highlighted the need to address the issue of reducing emissions in energy production.
Our contribution, in terms of the use of geothermal energy, highlights a clean renewable
resource and is therefore highly relevant for future generations.
Author Contributions: Conceptualization: A.S. and E.S.; methodology: A.S. and E.S.; software:
G.W. and J.R.; validation: A.S. and E.S.; formal analysis: A.S. and E.S.; investigation and resources:
A.S. and G.W.; data curation: A.S. and E.S.; writing—original draft preparation: J.R. and G.W.;
writing—review and editing: A.S. and E.S.; visualization: A.S. and E.S.; supervision: A.S. and E.S.;
project administration and funding acquisition: G.W. and J.R. All authors have read and agreed to
the published version of the manuscript.
Funding: This research received no external funding.
Institutional Review Board Statement: Not applicable.
Informed Consent Statement: Not applicable.
Data Availability Statement: Data sharing is not applicable to this article.
Acknowledgments: This work is supported by the Scientific Grant Agency of the Ministry of Educa-
tion, Science, Research, and Sport of the Slovak Republic, project KEGA 048TUKE−4/2021, Universal
educational—competitive platform.
Conflicts of Interest: The authors declare no conflict of interest.
Processes 2022, 10, 289 17 of 17
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