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“The resource risk in connection with the financing of geothermal projects can be subdivided into questions of: resource existence, resource size, deliverability, cost of development and operation, environmental constraints, management and operational problems, and resource degradation.” GEA resources for section 7: Handbook on the Externalities, Employment, and Economics of Geothermal Energy (October 2006); Factors Affecting Cost of Geothermal Power Development (August 2005) Geothermal Basics: Q&A 7. Power Plant Costs All types of electricity generation have capital costs as the project is being planned and constructed, as well as operating and maintenance (O&M) costs once the plant is producing. According to Sanyal and Koenig (2011, p. 1): The DOE’s new Transparent Cost Database contains thousands of estimates from more than 100 published studies and DOE program-planning or budget documents, part of ongoing road- mapping efforts for various technologies. 7.1. What factors influence the cost of a geothermal power plant? The costs for individual geothermal projects and for all power projects change over time with economic conditions. There are many factors that influence the cost of a geothermal power plant. Some are universal to the power industry, including the cost of steel, other metals, and labor. Environmental policies, tax incentives, and financing options all factor in and are often influenced by competing markets. Size of the plant, the specific geothermal technologies that a company chooses, cost of drilling, 54PDF Image | Green Machine Series 4000
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