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

F I g u r E 2 . 5 
Krafla 60 MW Geothermal Power Plant in Northeast Iceland
Source | Courtesy of Landsvirkjun.
Phase 7: Start-up and Commissioning 
Start-up and commissioning of the power plant is the final phase before the plant starts regular 
operation. This phase usually involves resolving many technical and contractual issues with the 
supplier of the plant. The power plant engineering and construction company, often an engineering 
procurement, and construction (EPC) contractor gets its performance guarantees returned as soon 
as the plant passes the minimum performance conditions defined in the contract. In many countries, 
however, the industry standard is to return performance bonds at the end of the warranty period. 
Providing these guarantees and bonds involves extra costs for the project developer and the EPC 
contractor. Fine tuning the efficiency of the power plant and all other equipment, including the 
pressures from the wells, etc., can take several months to complete. Costs for this phase are part of 
the investments in Phase 6.