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and cost to connect to the electric grid will vary from plant to plant. A company must factor in costs of obtaining knowledge of a resource, including rock formation, temperature, and chemistry. To fully explore a geothermal resource a developer leases exclusive rights to the geothermal resource (DOI 2009). Leasing and permitting can greatly influence the upfront costs and can contribute to time delays -- especially on federal lands, home to 90% of geothermal projects. Financers of geothermal projects take an upfront risk, sometimes investing millions of dollars just to find out whether a geothermal reservoir will be profitable. Research also indicates that risks change over time, and for resource risk there is a learning curve effect on drilling success rates (Sanyal and Morrow 2012). The risks can be offset by certain tax incentives and federal sureties, which are discussed more in section 4: Policy. 7.2. How do costs compare between geothermal and other technologies? A geothermal project competes against many other renewable and non-renewable power developments as well as all other projects that use similar commodities and services (DOE 2008 Geo. Tomorrow). Geothermal is capital intensive, which can present challenges to initial financing. The upside to this is that essentially the entire resource base is paid for upfront. Fossil fuel plants such as natural gas and coal have high fuel costs, especially if they are imported. But once a geothermal project is completed, the fuel is free. This also means geothermal energy can act as a price stabilizer, offsetting effects of volatile fossil fuel power markets. For a 55 7. Power Plant CostsPDF Image | Green Machine Series 4000
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