WRIGHT, PHILLIP M., and DENNIS L. NIELSON, Univ. of Utah Research Institute, Salt Lake City, UT; JOHN GEYER, John Geyer and Associates, Vancouver, WA

ABSTRACT: Economic Realities of Geothermal Power Generation

The geothermal industry in the U. S. has been depressed for the past decade, largely as a result of the low price of natural gas. Geothermal energy projects have an investment profile similar to oil and gas with high risk and capital costs early in the project life. A number of institutional factors have been responsible for the modest growth in electrical generating capacity over the past several years. In conjunction with the competitive bid process, utilities have endeavored to create a mix of energy resources. Some utilities have a target mix of renewables and, in geographic areas where geothermal resources are present, this often means large amounts of geothermal energy. The cost of this electricity is slightly higher than coal or natural gas, but there are several advantages to eothermal plants. Power plants are of modular design, are a proven technology, and have on-lineavailability of 95% or better. The emission of greenhouse gasses is low. The cost of the fuel supply is not dependent on world markets. Geothermal resources will benefit from least cost planning with externalities.

AAPG Search and Discovery Article #90987©1993 AAPG Annual Convention, New Orleans, Louisiana, April 25-28, 1993.