Economics of Geothermal Heat as an Alternate Fuel

Geothermal energy can substitute for and compete with other fuels, but until now it has been used only in special situations where it costs much less than alternate fuels. Geothermal heat is expected to be developed where it can: (1) compete with alternate fuels, (2) replace scarce fuels, (3) be more environmentally acceptable, or (4) is especially adapted to local needs. Economic problems in development include the often high capital costs of wells and gathering systems and the long lead-times required for electric generating plants. The large investment and long payout times for large industrial uses adversely affect the economics.