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• Type of project: expansion of an existing project will entail less exploration cost than a greenfield project (one that hasn’t been previously drilled), where specific resource locations are unknown • Plant size: the larger the plant, the less the cost per megawatt (economies of scale) • Well characteristics: depth, diameter, productivity, subsurface geology, rock formation properties • Site location and accessibility both influence exploration costs; costs tend to increase if the resource is located in a remote area • Exploration techniques, including geophysics, chemistry, and number of slim holes needed • Time delays • Ease with which the resource can be retrieved, influenced by permeability, depth of the reservoir, and pressure • Characteristics of the geothermal fluid/steam, including chemistry and temperature • Fluctuations in the costs of certain materials or services, such as drilling, cementing, or steel for well casing • Lease costs and lag time in obtaining leases and permits increase the costs associated with exploration • Competition for drill rigs, as has occurred in Nevada over the past year as both gold and geothermal exploration have expanded • Transmission costs • Tax incentives, such as the production tax credit (PTC) included in the 2005 Energy Policy Act (EPAct) • Financing: types of investors, interest rates, debt periods, rate of return • Resource availability and quality • Seasonal and weather variability Appendix GEA, 2009PDF Image | COMPREHENSIVE RENEWABLE ENERGY FEASIBILITY STUDY Sitka
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