An update of the cost of geothermal power curves utilizing the GELCOM Model

Recognizing that the choice between building a conventional versus a hydrothermal power plant typically hinges on the busbar cost of electricity for each option, DGHT commissioned the development of the GELCOM Model in 1977. This cost of energy model was subsequently used for developing curves for cost of hydrothermal electricity at a number of known reservoirs in 1979. Due to the dynamic nature of energy economics and technical advances in identifying, retrieving, converting, and delivering various energy types, DGHT decided it would be prudent to run the model again utilizing the most recent information available. In addition to gathering new data concerning the resource, engineering design and financial characteristics, EER checked and, where appropriate, revised assumptions used in GELCOM. The potential impacts of a number of R and D programs on the parameter of the model were also estimated. The cost of power curves, generated from data derived from this run of the model, indicate that approximately 10,000 MWe of hydrothermal electric power can be generated with a levelized busbar cost below 40 mills/Kwh (in constant 1981). When the benefits of a successful R and D program are considered, about 13,000 MWe of hydrothermal electric power can be expected to be generated for a levelized busbar cost below 40 mills/Kwh. At below 40 mills/Kwh, hydrothermal energy is competitive with coal and nuclear energy on the West Coast, where it is most abundantly found, and significantly less expensive than oil