The cost of geothermal energy is extremely variable because every location is different. This is based on difficulties with the land as well as the variety of capital costs. Other things that may affect cost include geology rock formation, weather conditions, transmission of energy to the power grid, land permission and ownership, and site accessibility. The most recent estimate of the building of a geothermal plant is between $ 2.5 and $ 5.4 million per MW installed capacity.
Many other variables apply to the costs of geothermal activity. The portfolio of an energy company must be investigated. While the initial price of geothermal power purchased ranges from roughly $ 85 to $ 110 per MWh, there are often price escalations from year to year (one to two percent annually.) This increase is entirely based on the possibility of the success of geothermal energy, on how much geothermal energy will benefit existing power, and how much geothermal power is going to be used.
Large companies benefit more from the use of geothermal energy than small companies. The price difference for a large company with a geothermal portfolio is much less than that of a small company owning a portfolio, which will probably cause rates to increase.