Economic Constraints to the Development of Geothermal Power in the Cascades

Abstract

Economic constraints to the development of geothermal power in the Cascades region are composed of limitation which are unique to the region itself and limitation which are generic to the development of all geothermal resources. Lack of knowledge about Cascades resources and the preponderance of volcanic strata will result in high drilling and development costs. The electrical market is constrained by sufficient electrical supplies capable of meeting regional demand through the turn of the century, lack of transmission interties with other regions, and lower avoided cost compared to central and southern California. Perceive lack of proven geothermal technology limits utility interest and raises required rates of return to investors in geothermal resources.