Geothermal Power Economics

Glossary

Capital cost:

Capital costs are the one-time costs incurred on project acquisition, drilling, construction, and equipment needed to bring a project to a commercially operable status.

Levelized power cost:

The present value of the total cost of developing and operating a geothermal power plant over its economic life divided by the total power generated over the same period, costs being levelized in real dollars (i.e., adjusted to remove the impact of inflation).

Make-up well cost:

Cost of drilling “make-up” wells as needed during project operation.

Operations and maintenance (O&M) Cost:

Those expenses used for the day-to-day operation of a power facility. The major categories include personnel, general and administrative, insurance, supplies and services, well maintenance, and equipment maintenance costs.

Power capacity:

The maximum output of power from a power plant, commonly expressed in megawatts (MW).

Definition of the Subject and Its Importance

Geothermal power is the rate...