The unit production cost of geothermal energy will decrease over time as the industry gains experience andmore geothermal plants are commissioned, making it more competitive as a renewable energy source. For example, experience from the shale gas industry shows that the cost of wells can be reduced by up to 50% due to economy of scale and the establishment of a large service industry. The same will happen to geothermal energy projects as the industry grows and matures.
Figure 1. The investment index versus commissioning date for renewable and fossil fuel based energy projects.
However, the electricity consumed by heat pumps to lift the temperature of the water produced from shallow geothermal wells to that required by the district heating network can both increase the operating expense of a geothermal plant and contribute to the emission of greenhouse gases. This can be overcome through the use of onsite windmills and/ or photovoltaic cells to supply renewable electricity to the geothermal plant and the heat pumps.
All investments in energy projects after 2020 should be based exclusively on renewable energy sources, which will be beneficial to both the global climate and the price that the consumer pays for energy. Those decision makers who are courageous enough to take this step will be viewed as visionaries.
Lars Andersen, firstname.lastname@example.org For further information please contact:
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