Geothermal Power Development
Factors affecting the cost of geothermal power development and production are often poorly understood by persons not directly involved in geothermal project development and power production. Many articles dealing with geothermal costs incorporate restrictive assumptions and thus lead to oversimplified conclusions that do not correctly reflect site-spesific particularities.
In order to help the clients better understand the structure and parameters affecting the cost of geothermal power development, our service breaks down the cost of power into its major components and analyzes the varous factors influencing each cost component.
Levelized cost of geothermal power corrosponds to sum of two major components. The levelized cost of capital investments and operation / maintenance costs.The levelized cost of capital investment corrosponds to the cost associated with the reimbursement of initial capital investment ( site exploration & development and power plant construction) and its related financial returns, divided by the total output of the facility throughout the entire payback period. Operating and maintenance costs consist of fixed and variable costs directly related to the electricity production phase. In the most cases, the levelized costs of capital investment represents a major part of the levelized cost of energy og geothermal projects.
Both these components are affected by e series of parameters. Accordingly, the levelized cost of geothermal power has a large range of variability. In the first step of Geothermal Power Development Project Enerjimak identifies the details of major cost components and key parameters influencing cost.
Details about our Geothermal Power Development Project. (Denizli/Turkey)