Geothermal handbook: PlanninG and Financing power Generation t e c h n I c a L r e p o r t 2 / 2

BENEFITS OF gEOThErMAL ENErgy.
Geothermal energy has many attractive qualities stemming from 
its renewable and fossil-fuel free nature, as well as the ability to provide stable and reliable base-
load power at a relatively low cost. Once a geothermal power plant is operational, it will produce a 
steady output around the clock, usually for several decades, at costs competitive with other base-load 
generation options, such as coal. Technological risks involved are relatively low; geothermal power 
generation from hydrothermal resources—underground sources of extractible hot fluids or steam—is 
a mature technology. For medium sized plants (around 50 MW), levelized costs of generation are 
typically between US $0.04 and 0.10 per kWh, offering the potential for an economically attractive 
power operation. Development of a domestic renewable energy resource provides the opportunity to 
diversify sources of electricity supply and to reduce the risk of future price rises due to increasing fuel 
costs.