Description:
This paper presents an analysis of the sensitivity
of the cost of geothermal power to: (a) capital
cost; (b) operations-and-maintenance (O&M)
cost; (c) make-up well drilling cost; (d) resource
characteristics (well productivity and its rate of
decline); (e) development and operational
options (installed plant capacity, number of years
of make-up well drilling, and project life); and
(f) macro-economic climate (interest and
inflation rates). The power cost here represents
levelized cost (in cents per kilowatt-hour) over
the project life, the capital cost being amortized
over 30 years; any royalties, tax burden, or tax
credit are ignored. A range of development
sizes, from 5 to 150 MW, is considered. The
economy of scale in both capital cost and O&M
cost, as well as the higher productivity decline
rate due to increased installed capacity, are taken
into account.
