Financial evaluation


Prime cost of the geothermal energy for direct use.

The prime cost of the obtained geothermal energy for procession or direct use depends mainly on the temperature of the source (water, steam), and the remoteness of the location. Resources, whose temperature are below 100 and rise on the surface can be easily used for direct heating. If the resource has a temperature of over 100 C , it is necessary to drill to a depth, as there is a direct ratio relation between temperature and water.

The prime cost depends also on the fact whether the source is used in a local heating system or for electric energy production.

The table below shows the costs for deriving steam or hot water if not situated more than 1 km. from the source.




Costs (steam)


Costs (hot water)

(>150C) High temperature sources


- -

(100-150C) Average temperature sources




Low temperature sources

- -



Costs are in euro per a tonne.

Prime cost of 1 kW/h of geothermal energy

The prime cost of the obtained energy depends on both, the temperature of the source and on the size of the installation.



High temperature sources


Average temperature sources


Low temperature sources


Installations up to 5 MW






(5-30 MW)




They are not used

Installations over 30 MW




They are not used


The prime cost is calculated in euro per kW/h

Relation risk-costs during construction of geothermal installation

Before the construction of geothermal installation starts, it is necessary to do a survey to determine the most appropriate place for drilling.

The more comprehensive and detailed the survey, the less risk there is in finding the wrong location.


Costs are in million euros.

The most important factors influencing the prime costs of the geothermal energy are:

•  The temperature and depth of the resource. A resource that is nearer the surface costs less to drill. The higher the temperature of the geothermal source the higher its energy capacity.

•  Kind of the resource (steam, two phase and water). If the source is dry steam, then the expenditure for its utilization are lower.

•  The chemical composition of the water. If there are chemical active gases dissolved in the water then that shortens the term of installation exploitation.

•  Capacity of the resource.

•  Size of the installation. As it is with the other types RES technologies, the bigger the unit the lower the prime cost of 1 kW/h.

•  The available infrastructure in the region. Is the installation near the national grid?

•  Topography of the place. If the geothermal source is located on a terrain with difficult access the costs for installation construction will be higher. The pipeline will need to be longer and that will result in a drop in the pressure and increase the prime cost of the produced energy.

•  Indirect costs - management costs, legal costs, insurance, ecological approvals, concessions, etc.