Document Type : Review Article

Authors

University of Mohaghegh Ardabili

Abstract

Geothermal energy is a non-carbon renewable source from the earth's internal energy. This energy is considered reliable today and has a high potential to reduce the threat of climate change. In the case of geothermal energy, factors that increase the risk of investing in this sector can be mentioned to higher investment costs, longer payback times than other renewable power plants, and the uncertainty of the size and quality of the resources before the completion of the well drilling operation. The average payback time in geothermal energy systems is 5.7 years, longer than wind and solar energy. According to these factors, the risk of investing in geothermal technology will increase. Also, unlike renewable wind and solar energies, it is not dependent on climate change, so it has higher reliability than other renewable energies. Also, by combining this energy with other renewable energies, its performance can be optimized. For example, in an optimal geothermal-solar hybrid power plant, solar energy provides 48% of the total energy. In this case, the Levelized Cost of Energy (LCOE) is reduced from 225 $ per MWh (only with geothermal source) to 165 $ per MWh. In this study, while studying the economic effects of geothermal systems, an attempt has been made to address the challenges in this field and present the policies implemented in some countries. It seems that by providing incentive policies and an appropriate roadmap, it is possible to help attract investment in the operation of geothermal systems.

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