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 1 . 1 1
Screening Curve Levelized Cost (US$ per kWh)
CAPACITy FACTOR
0%
20%
40%
60%
80%
100%
MSD HFO
∞
0.25
0.17
0.14
0.12
0.12
Steam Turbine HFO
∞
0.31
0.21
0.17
0.15
0.14
Steam Turbine Coal
∞
0.23
0.14
0.11
0.09
0.08
Combustion Turbine NG
∞
0.13
0.09
0.08
0.08
0.08
Combined Cycle NG
∞
0.16
0.10
0.07
0.06
0.06
Combined Cycle LNG
∞
0.18
0.12
0.10
0.09
0.08
Combined Cycle FO# 4
∞
0.21
0.14
0.12
0.11
0.11
Combustion Turbine FO# 4
∞
0.23
0.19
0.18
0.17
0.17
Small Wind Turbine
∞
0.20
0.10
Large Wind Turbine
∞
0.14
0.07
Small Hydropower
∞
0.19
0.10
0.07
Large Hydropower
∞
0.20
0.10
0.07
Geothermal
∞
0.24
0.12
0.08
0.06
0.05
Source | Fernando Lecaros.
F I g u r E 1 . 2 0
Levelized Costs of Energy (US$/kWh) as a Function of the Capacity Factor
Source | Authors.
Cost 
US
$ 
/ kWh 
Capacity Factor
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
MSD HFO
Steam Turbine HFO
Steam Turbine Coal 
Combustion Turbine NG
Combined Cycle NG
Combined Cycle LNG
Combined Cycle FO#4
Combustion Turbine FO#4
Small Wind Turbine
Large Wind Turbine
Small Hydropower
Large Hydropower
Geothermal
0% 20% 
40% 
60% 
80% 
100%

---

48
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 
Break-even Analysis for geothermal Costs
The preceding analysis was based on an investment cost of US$ 3,000/kW for geothermal. However, 
Table 1.6 provides a range of investment cost estimates according to the different development 
activities of a typical 50 MW geothermal plant. These estimates are between US$ 2.8 and 5.5 million 
per installed megawatt, which translates to US$ 2,800 to 5,500 per installed kilowatt.
Given this variability of geothermal investment costs, a useful question to ask is: how high can the 
investment cost of geothermal become before it ceases to be economically competitive? This can be 
accomplished by comparing geothermal with other base-load technologies, such as steam turbines on 
HFO or coal, medium-speed diesels on HFO, and eventually large hydropower plants. 
Using the method outlined above and based on fuel costs as listed in Table 1.9, economic break-even 
investment costs for geothermal could be in the range of:
• 
US$ 8,900 per kW installed, as compared to steam turbines on HFO
• 
US$ 7,000 per kW as compared to MSD 
• 
US$ 5,200 per kW as compared to steam turbines on coal
• 
US$ 4,400 per kW as compared to large hydropower with a capacity factor of 60 percent