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 1 . 9
Generation of Electricity Using Geothermal Energy in Iceland by Field, 1969 to 2009, Orkustofnun
Source | NEA 2010.
Electricity Generation
(GWh/year)
1
3
5
6
2
7
4
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
1974 1979 
1984 
1994 
1999 
2004 
2009
(1) Bjarnarflag 3.2 MW
(7) Hellisheidi 213 MW
(6) Reykjanes 100 MW
(5) Husavik 2 MW
(4) Nesjavellir 120 MW
(3) Krafla 60 MW
(2) Svartsengi 76.4 MW
Year
sources away from the increasingly scarce and environmentally problematic hydropower; and pursue 
international leadership in geothermal development based on the know-how established at home.
geothermal Industry Snapshot 
The geothermal industry is small relative to its conventional peers, but it contains numerous well 
established producers. In 2010, the global geothermal power industry had operational power 
plants with an installed capacity of around 11 GW, producing about 70,000 GWh that year. Based 
on revenues from electric power generation, the total turnover of the geothermal industry can be 
estimated to be between US$ 3.5 and US$ 7 billion per year. 
The geothermal power industry based on hydrothermal resources can be characterized as fully mature 
in terms of technology and its phase in the industry development cycle, but it has fairly attractive 
prospects for further growth in the medium to long term. 
To understand the geothermal industry and its market structure, it is useful to start by breaking the 
geothermal power production process into components (or phases), each representing a separate line 
of company operations. The proportion of overall cost for each component is illustrated in Figure1.10, 
which is based on the case of Iceland and shows drilling (including test drillings)
13
and the power plant 
construction to be the two largest components in terms of cost or value added. 
13
The share of drilling costs at 34% in Figure 1.10 reflects the Icelandic experience. Internationally, this share tends to be somewhat higher 
(e.g., about 45% of the total project investment, as shown in Table 1.6).

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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