An Analysis on Geothermal Electricity Competitiveness

Abstract

This paper discusses geothermal electricity competitiveness through a combination of three different approaches i.: refers to steam field investment cost that might be applied to steam producer, ii. Refers to oil price that may of interest of power producers, which has options to utilize oil fired steam, and iii. refers to electricity price, which is of interest and concern of electricity end user. By analyzing through these three approaches then the competitive geothermal steam price range can be estimated, which also corresponds to the competitive investment range of the geothermal well per kilowatt. This analyses is of useful tools for Steam Producer to justify what is the minimum well capacity in the field and the maximum investment cost of well to achieve a competitive geothermal electricity price. As drilling cost on production well is more or less the same, then capacity of each well will be as important aspect to achieve competitiveness of its steam price. The discussion also covers briefly how to level geothermal steam to the fuel oil whilst subsidy is still an issue