The Competitiveness of Geothermal Power as Seen by Steam Producer, Power Producer and Electricity Buyer

Abstract

This paper discusses three simple approaches representing each main concern to each parties in determining geothermal steam price : (i) Steam Field Investment Cost Based Approach, this approach determines the steam price based on investment cost in the steam field and is the main interest of the Steam Producer, (ii) Oil Price Based Approach, this approach determines the steam price through its competitiveness to the steam produced by oil, whichmay the interest of the Power Producer, and (iii) Electricity Price Based Approach, in this approach the steam price can be determined through calculation of oil-based power plant at certain electricity tariff. This approach is the main interest of the Power Purchaser.
Using each of the approaches a competitive geothermal steam price range could be determined which then each of them will give competitive investment cost range, expressed in USD/kW, in the corresponding steam field. These approaches are very useful guides for the Steam Producer to justify what is the minimum well capacity in the field and maximum investment cost of well to achieve a competitive geothermal steam price. The approaches are also useful guides to the Power Producer and the Electricity Buyer in determining electricity price before they decided to purchase geothermal steam or the electricity generated by geothermal power plant.