Geothermal Power Disputes: Quantifying Production Loss

Commonly, the projected power output and subsequent profitability of a geothermal power plant is based on data taken from the feasibility study provided to the project’s lenders during the exploratory stage of the project. Due to the upfront investment risks in geothermal power plants, it is largely accepted that the main purpose of a feasibility study is to build a business case for funding support from private, public, or institutional bodies. In this paper I highlight the pitfalls of relying on traditional feasibility study data for geothermal power plants and give examples of various post-feasibility study factors that directly affect profitability. This includes, but is not limited to; projected well production, ambient temperature, internal consumption, plant availability and government pricing legislation.