Cost to build a geothermal power plant

Geothermal power plants are an integral part of renewable energy and have the potential to generate clean and sustainable power.

Geothermal plants use steam from geothermal sources to produce electricity. The steam can be used directly, or it can drive a turbine and produce additional electricity. Geothermal technology is mature and well-proven, with more than 100 plants currently in operation around the world, generating over 10 GW of electricity.

The first geothermal plant was built in 1904 by Pacific Gas & Electric Company near Larder Lake, California. The plant had an output of 0.35 MW and was used to supply hot water for a nearby hotel and spa.

Cost to build a geothermal power plant

Geothermal power plants are safe to operate. The most significant hazards associated with geothermal energy production are similar to those found in other industrial or mining operations, but they are inherently less dangerous than nuclear power plants.

The cost of geothermal energy per kilowatt-hour (kWh) is higher than the cost of electricity generated by coal, natural gas and hydropower, but considerably lower than the cost of electricity generated by nuclear power. According to the U.S. Energy Information Administration, the average cost of electricity generated from geothermal sources is $0.13 per kWh compared with $0.08 per kWh for coal and $0.05 per kWh for natural gas generation. The cost varies depending on location, resource quality and market conditions.


Geothermal energy is an affordable way to generate electricity.

Geothermal power plants are used to extract energy from the heat in the earth’s interior. The heat is extracted from wells that are drilled down into the earth, where temperatures can reach as high as 400 degrees Fahrenheit (200 degrees Celsius). Geothermal projects generally consist of a well, piping system, and a power plant.

The cost to build a geothermal power plant depends on several factors:

Size of the plant: The larger the plant, the more expensive it will be to build.

Distribution network: Some areas have less demand for electricity than others, so there may not be enough money available for an extensive distribution network. In these cases, smaller plants can be built.

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