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

T A B L E O F C O N T E N T S
Foreword vii
Acronyms and Abbreviations 
viii
Acknowledgements 
1
Main Findings and Recommendations 
2
1 | 
GEOTHERMAL ENERGy FOR ELECTRICITy PRODUCTION 12
Introduction to Geothermal Energy 
13
Geothermal Resource Availability, Typology, and Uses 
14
Pros and Cons of Geothermal Energy 
19
Current Utilization of Geothermal Resources 
22
Geothermal Industry Snapshot 
25
The Largest Geothermal Fields of the World 
29
Future Utilization Scenarios 
29
Technology Overview 
32
Power Generation by Available Technologies 
32
Utilization of Residual Heat from Geothermal Power Plants 
35
Coproduction by Extraction from Geothermal Fluids 
37
Geothermal Power Economics 
38
Determination of Power Plant Size by Demand Analysis 
38
Respecting the Limits of Sustainability 
40
Investment Cost Estimates 
40
Costs of Energy Generated 
41
Comparison with Other Technologies 
43
Break-even Analysis for Geothermal Costs 
48
System Planning Challenges 
48
2 |
GEOTHERMAL PROJECT DEVELOPMENT PHASES AND RISKS 50
Development Phases of a Geothermal Power Project 
50
Phase 1: Preliminary Survey 
51
Phase 2: Exploration 
53
Phase 3: Test Drilling 
55
Phase 4: Project Review and Planning 
57
Phase 5: Field Development 
58
Phase 6: Construction 
60
Phase 7: Start-up and Commissioning 
61
Phase 8: Operation and Maintenance 
61
Environmental Issues 
62
Geothermal Project Risks 
66
Resource or Exploration Risk 
67
Risk of Oversizing the Power Plant 
70
Financing Risks due to High Upfront Cost and Long Lead Time 
70
Completion or Delay Risk 
71
Operational Risks 
71
Off-take Risk and Price Risk 
71
Regulatory Risk, Institutional Capacity Constraints, and Information Barriers 
72
Other Risks 
72

---

iv
G e o t h e r m a l H a n d b o o k : P l a n n i n g a n d F i n a n c i n g P o w e r G e n e r a t i o n