The cost of building a new geothermal power plant is roughly $2.5m to $4.5m per MW installed capacity.
The price of geothermal power when purchased through a power purchase agreement (PPA) currently ranges from roughly $85 to $110 per MWh, often with an escalator (e.g. 1% or 2% per year).
The price increase passed on to the rate payer depends on the current energy portfolio of each utility company. Will geothermal replace fossil-fired (e.g. coal) plants? Or will geothermal supplement the existing portfolio? What percentage of power will come from geothermal? For example, if a large utility company currently supplies 9000 MW to its customers, adding a 20 MW geothermal plant to its portfolio will have little effect on electricity rates. Conversely, if a small, rural utility company supplying 100 MW chooses to replace 20 MW from coal with geothermal, rates will probably increase noticeably.
The cost of geothermal power is highly variable and dependent on such factors as rock formation geology (e.g. depth, temperature, water chemistry), site accessibility, cost of capital, local weather conditions (which affect the thermodynamic efficiency of the plant), permitting, land ownership (public v. private), transmission (getting the electricity into the grid), etc.
The cost of building a new geothermal power plant is roughly $2.5m to $4.5m per MW installed capacity.
The price of geothermal power when purchased through a power purchase agreement (PPA) currently ranges from roughly $85 to $110 per MWh, often with an escalator (e.g. 1% or 2% per year).
The price increase passed on to the rate payer depends on the current energy portfolio of each utility company. Will geothermal replace fossil-fired (e.g. coal) plants? Or will geothermal supplement the existing portfolio? What percentage of power will come from geothermal? For example, if a large utility company currently supplies 9000 MW to its customers, adding a 20 MW geothermal plant to its portfolio will have little effect on electricity rates. Conversely, if a small, rural utility company supplying 100 MW chooses to replace 20 MW from coal with geothermal, rates will probably increase noticeably.