Abstract

An assessment of eight geothermal direct-heat projects for which confident cost and production data exists indicates that low-temperature geothermal resource can, in certain instances, provide an inexpensive, reliable source of direct-heat energy. The analysis examines the retrofit investment decision separately for private firm and local government investors. It compares the economics of geothermal and conventional energy supplies, and explores the sensitivity of these comparative results to changes in the underlying assumptions. Investors are warned that geothermal direct-heat applications projects have not been uniformly successful. Three of the eight projects do not appear to be economical when compared to conventional alternatives even though all eight are the most advanced of 22 demonstration projects originallly funded by DOE. 6 references, 1 figure, 6 tables.

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