Marginally Competitive Pricing of Geothermal Resources for Electric Power Production
- Key words
- Economics; Electric Power; Pricing; Baseload; Cast Elements; Competitive Price; Calculated Price; Hydrothermal Resources; Western Coal; US DOE
- Location
- United States
- Conference
- Geothermal Resources Council Transactions
- Year
- 1979
- Session
- Economics; Energy markets
- Language
- English
Abstract
In the absence of imposed price regulation, the cost competiveness of geothermal electric energy may be determined at its point of delivery to a major transmission corridor. At this point, its total energy cost - including "fuel" cost, power plant cost, and apportioned transmission cost - competes with those costs of the least expensive available alternative type baseload generation. This paper discusses a mathematical approach for estimating a geothermal resource price - escalating over time - which will ultimately provide marginally competitive electric energy at the transmission corridor. Examples are provided for pricing 300°F and 500°F hydrothermal resources where western coal is the lowest alternative type of generation.
Copyright 1979, Geothermal Resources Council. Readers who download papers from this site should honour the copyright of the original authors, and may not copy or distribute the work further without the permission of the original publisher.