Economics
Geothermal power requires no fuel, it is therefore immune to fuel cost fluctuations. However, capital costs tend to be high. Drilling accounts for over half the costs, and exploration of deep resources entails significant risks. A typical well doublet in Nevada can support 4.5 megawatt (MW) of electricity generation and costs about $10 million to drill, with a 20% failure rate. In total, electrical plant construction and well drilling cost about 2-5 million € per MW of electrical capacity, while the levelised energy cost is 0.04-0.10 € per kW·h. Enhanced geothermal systems tend to be on the high side of these ranges, with capital costs above $4 million per MW and levelized costs above $0.054 per kW·h in 2007.
Geothermal power is highly scalable: a small power plant can supply a rural village, though capital can be high.
Chevron Corporation is the world's largest private producer of geothermal electricity. The most developed geothermal field is the Geysers in California. In 2008, this field supported 15 plants, all owned by Calpine, with a total generating capacity of 725 MW.
Read more about this topic: Geothermal Power
Famous quotes containing the word economics:
“There is no such thing as a free lunch.”
—Anonymous.
An axiom from economics popular in the 1960s, the words have no known source, though have been dated to the 1840s, when they were used in saloons where snacks were offered to customers. Ascribed to an Italian immigrant outside Grand Central Station, New York, in Alistair Cooke’s America (epilogue, 1973)
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