The graph below comes from “Geothermal Handbook: Planning and Financing Power Generation,” World Bank, 2012. Authors Magnus Gehringer and Victor Loksha write: “To better understand the nature of the risks that are specific to geothermal power, it is helpful to consider the project cost and risk profile through the various stages of project development."
The graph shows the various stages of geothermal project development and the cost and risk profile in each stage.
GEA’s Ben Matek adds, “The economics of geothermal power most closely resemble mining, oil, and gas, rather than that of other renewables; it is a resource that needs to be explored, drilled, and ‘extracted.’” High capital costs and accounting for subsurface risks in the early stages of development are key barriers that the industry is learning how to address. Meanwhile, solar and wind never had these barriers.
The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.