IC 8230 Geothermal Power - An Economic Evaluation (09606410-6e44-4126-9f3d-daa3f14bc795)

Geothermal plants are competitive with conventional units. A geothermal plant can produce electric energy for 6.70 mills per kwhr, compared with 6.96 mills for coal, 6.74 mills for oil, and 7.04 mills for gas. These costs include fixed and variable charges. Potential for geothermal power exists in the Western United States, Alaska, and possibly Hawaii. Assuming that the current downward trend in cost per kilowatt of coal will cease and that the relative cost of gas and oil, already trending upward, may rise considerably more, geothermal energy will be utilized where available, in producing electric energy. It will be used in California first because it is directly competitive with gas-and oil-fired installations there. A long-term appraisal is difficult because little is known about the sources of geothermal power and the electric generating capacity which the steam fields will support. However, a market for geothermal steam-generated electricity exists within the Western States.