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8. POWER PLANT COSTS 8.1. How much does a geothermal power plant cost? According to studies, an economically competitive geothermal power plant can cost as low as $3400 per kilowatt installed.(1) While the cost of a new geothermal power plant is higher than that of a comparable natural gas facility, in the long run the two are similar over time. This is because natural gas construction costs account for only one third of the total price of the facility, while the cost of the fuel at a natural gas facility represents two thirds of the cost. The initial construction costs of a geothermal facility, in contrast, represent two thirds or more of total costs. So although initial investment is high for geothermal, natural gas and geothermal are still economically comparable over a long term. Figure 27: Levelized Costs of Selected Technologies 8.2. How much does power from a geothermal power plant cost? California Energy Commission (CEC) 2007 estimates place the levelized (2) generation costs for a 50 MW geothermal binary plant at $92 per megawatt hour (3) and for a 50 MW dual flash geothermal plant at $88 per megawatt hour, which over the lifetime of the plant can be competitive with a variety of technologies, including natural gas.(4) According to the CEC report, natural gas costs $101 per megawatt hour for a 500 MW combined cycle power plant and $586 per megawatt hour for a 100 MW simple cycle plant. On average the cost for new geothermal projects ranged from 6 tp 8 cents per kilowatt hour according to a 2006 report, 40PDF Image | Geothermal 101
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