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

Operational risks
In addition to risks typical for any power plant, such as equipment breakdowns, a geothermal facility 
faces risks during the operational phase that are unique to the geothermal sector. These risks are 
mostly related to steam field operation and maintenance. In areas where wells have to be worked over 
frequently and many make-up wells have to be drilled (for example due to heavy scaling from silica 
saturation or corrosion), the costs of these activities can significantly affect the O&M costs and the 
overall power generation costs. 
In addition, similar to the case of oversizing the power plant, improper steam field operation practices 
can lead to pressure drops and—in extreme cases—depletion of the geothermal reservoir.