Definition of the Subject and Its Importance
Geothermal power is the rate of extraction of geothermal energy, whether expressed as heat energy or equivalent electrical energy, and is expressed as Watt or an equivalent unit. The extraction of geothermal energy, and therefore geothermal power capacity , is dependent not only on the technological barriers to this energy extraction but also on the economic barriers. Power generation from geothermal energy, therefore, requires consideration of the economics of geothermal power. This entry considers power cost as the main economic criterion rather than the power price or project profitability because, unlike price or profitability, cost is substantially independent of the corporate culture of the developer and operator, financing mechanism, local market forces, and government policies. The most comprehensive measure of the...
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Abbreviations
- Capital cost:
-
Capital costs are the one-time costs incurred on project acquisition, drilling, construction, and equipment needed to bring a project to a commercially operable status.
- Levelized power cost:
-
The present value of the total cost of developing and operating a geothermal power plant over its economic life divided by the total power generated over the same period, costs being levelized in real dollars (i.e., adjusted to remove the impact of inflation).
- Make-up well cost:
-
Cost of drilling “make-up” wells as needed during project operation.
- Operations and maintenance (O&M) Cost:
-
Those expenses used for the day-to-day operation of a power facility. The major categories include personnel, general and administrative, insurance, supplies and services, well maintenance, and equipment maintenance costs.
- Power capacity:
-
The maximum output of power from a power plant, commonly expressed in megawatts (MW).
Bibliography
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Sanyal, S.K. (2013). Geothermal Power Economics . In: Kaltschmitt, M., Themelis, N.J., Bronicki, L.Y., Söder, L., Vega, L.A. (eds) Renewable Energy Systems. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-5820-3_232
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