Conventional geothermal is about 4-5 cents/kWh, on par with natural gas in the US. The dominant capital cost is drilling a large well (you need volume), and so geothermal plants are generally only built in areas that require shallow (1km) wells.
Well costs are ~quadratic in depth. Given how much money has already been spent optimizing drilling for the oil&gas industry, along with how cutthroat that market is, I don't see the cost coming down significantly. As a result, deep geothermal will likely be limited to niche regions like Iceland. And you need deep geothermal to scale it past the existing locations.
I would love to be wrong, since geothermal checks all the boxes for renewables and is also suitable for base load power, but I don't see an obvious path forward short of a drilling tech miracle.
Conventional geothermal is about 4-5 cents/kWh, on par with natural gas in the US. The dominant capital cost is drilling a large well (you need volume), and so geothermal plants are generally only built in areas that require shallow (1km) wells.
Well costs are ~quadratic in depth. Given how much money has already been spent optimizing drilling for the oil&gas industry, along with how cutthroat that market is, I don't see the cost coming down significantly. As a result, deep geothermal will likely be limited to niche regions like Iceland. And you need deep geothermal to scale it past the existing locations.
I would love to be wrong, since geothermal checks all the boxes for renewables and is also suitable for base load power, but I don't see an obvious path forward short of a drilling tech miracle.
(source: Climate and Energy R&D group)