Can Geothermal Power Compete with Coal on Price?
An investment bank report says geothermal energy is now cheaper per kilowatt-hour than coal-derived power. But there are lots of caveats. By Christopher Mims Although the environmental benefits of burning less fossil fuel by using renewable sources of energy—such as geothermal, hydropower, solar and wind—are clear, there’s been a serious roadblock in their adoption: cost per kilowatt-hour. That barrier may be opening, however—at least for one of these sources. Two recent reports, among others, suggest that geothermal may actually be cheaper than every other source, including coal. Geothermal power plants work by pumping hot water from deep beneath Earth’s surface, which can either be used to turn steam turbines directly or to heat a second, more volatile liquid such as isobutane (which then turns a steam turbine). Combine a new U.S. president pushing a stimulus package that includes $28 billion in direct subsidies for renewable energy with another $13 billion for research and developme
