Australian Geothermal Industry Working with Investors - Defining the Key Parameters Contributing to the Long Run Marginal Cost of Geothermal and Providing a Comparison Benchmark on the Key Unknowns

Abstract

The development of the Australian geothermal industry is unique as, especially in the early exploratory phases, the industry is driven by capital investment raised via equity markets. This equity is supported in some instances by grants provided by the Commonwealth Government through its Geothermal Drilling Program (GDP) and, in the case of the commercial demonstration of the technology, via the Renewable Energy Development program (REDP). The costs involved in the deep exploration phase are significant, as are those involved in the commercial demonstration of the technology. It is understood by the industry that until it has been able to prove the commercial reality of its projects, all funding is required to come from equity markets or government grants.