What does it cost to develop a geothermal power plant?
Costs of a geothermal plant are heavily weighted toward early expenses, rather than fuel to keep them running. Well drilling and pipeline construction occur first, followed by resource analysis of the drilling information. Next is design of the actual plant. Power plant construction is usually completed concurrent with final field development. The initial cost for the field and power plant is around $2500 per installed kW in the U.S., probably $3000 to $5000/kWe for a small (<1Mwe) power plant. Operating and maintenance costs range from $0.01 to $0.03 per kWh. Most geothermal power plants can run at greater than 90% availability (i.e., producing more than 90% of the time), but running at 97% or 98% can increase maintenance costs. Higher-priced electricity justifies running the plant 98% of the time because the resulting higher maintenance costs are recovered.
