The Competitiveness of Geothermal Power Compared to Conventional Methods of Electricity Generation in Iran

Abstract

Despite the high potential of geothermal energy in Iran, only 100 MW of geothermal power will be produced in 2017, Because noticeable amount of subsides have allocated to fossil fuels plants in recent years. This study aims to compare final cost of geothermal electricity with electricity cost of other kinds of prevalent power plants in Iran. The levelized cost method includes investment, operation and maintenance, fuel and pollution costs of each technology which produce electricity. Comparison of final costs of electricity on export price of fules and externalities costs reveals that high capacity factor, independence on fossil fuels and low emission costs, would make geothermal power plants competitive with other power plants in Iran. This study suggests that the liberalization of energy prices has a significant effect on geothermal power development in Iran and could provide the possibility for exporting more natural gas to foreign countries.

Keywords

• geothermal power
• energy price liberalization
• competitiveness
• levelized cost of electricity