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

Costs of Energy generated 
Investment costs per installed megawatt can vary widely as Table 1.6 indicates, depending on the 
country, region, geology, infrastructure in place, and difficulty in exploring and drilling the field. The 
distance to the next transmission grid access point is also an important factor. As geothermal projects 
usually have a long and stable operation period with a utilization time of several decades, the figures 
presented in the table above would translate into the following actual levelized cost of energy (LCOE)
24
per kWh generated in several countries (Table 1.7). Only in very rare instances are official figures 
released by governments or private operators about actual LCOE for generation from geothermal 
resources. Therefore, in most cases an indicative price range will be provided with a relevant rationale.
T A B L E 1 . 6
Indicative Costs for Geothermal Development (50 MW ex generator capacity), in 
US$ Millions
PHASE / ACTIVITy
LOW 
ESTIMATE
MEDIUM 
ESTIMATE
HIGH 
ESTIMATE
1
Preliminary Survey, Permits, Market Analysis
16
1
2
5
2
Exploration
17 
2
3
4
3
Test Drillings, Well Testing, Reservoir Evaluation
18
11
18
30
4
Feasibility Study, Project Planning, Funding, Contracts, Insurances, etc.
19
5
7
10
5
Drillings (20 boreholes)
20
45
70
100
6
Construction (power plant, cooling, infrastructure, etc.)
21
65
75
95
Steam Gathering System and Substation, Connection to Grid (transmis-
sion)
22
10
16
22
7
Start-up and Commissioning
23
3
5
8