Actually Scientific American headlines their article this way:
Can Geothermal Power Compete with Coal on Price?
The article goes on to say this:
Although the environmental benefits of burning less fossil fuel by using renewable sources of energy—such as geothermal, hydropower, solar and wind—are clear, there's been a serious roadblock in their adoption: cost per kilowatt-hour.
That barrier may be opening, however—at least for one of these sources. Two recent reports, among others, suggest that geothermal may actually be cheaper than every other source, including coal.
"Opening," you say? A closer look below the fold.
The Geysers geothermal field was brought in by the legendary B. C. McCabe when Saudi light was maybe $5 a barrel and gas went for about 35 cents. Since there was no boiler and no fuel needed to generate power, the price of the electricity sold to Pacific Gas and Electric was set at a discount to the going rate at the time.
At that rate, the profits were so extraordinary that B. C.'s company along with the Geysers was stolen from him along with The Geysers in a hostile takeover by Union Oil Company. Broke the old man's heart. Filled his bank account but broke his heart. McCabe's other ventures all failed and the underground Paul Bunyan of the West disappeared into history. McCabe's legacy was trashed by the usurpers over the following decades and geothermal power fell out of favor and was mostly forgotten.
Today even the exemplary folks at Scientific American do a bang-up job providing a load of misinformation:
only 13 U.S. states have identified geothermal resources.
Yah sure and I can see Russia from my house.
It gets worse, much worse:
Makovich says. "Here's the catch: if you look at actual electric production of geothermal in the U.S., it runs 62 percent of the time."
Glitnir bank, a financier of geothermal in Iceland and elsewhere, claims that geothermal plants are operational up to 95 percent of the time
academics in the field claims that in aggregate, geothermal plants in the U.S. produce power about 80 percent of the time.
In other words, whatever grabs you. Name your number.
Well there are those upfront costs but try this on from the Western Governors Association:
The assumed 50-year life of a coal-fired power plant allows planners to spread the cost of their construction across an even longer period of time than geothermal plants, which are assumed to last less than half that long.
The very first geothermal power plant in Larderello, Italy, has been operating for over a century without any loss of power and is now being expanded.
Tax laws, both federal and state, have favored inferior renewable energy as well as oil and natural gas.
Financing has generally been ultra-expensive for "high risk" geothermal. US Geothermal discussed briefly in the Scientific American article, formed a unique partnership with Goldman-Sachs for their Raft River project in Idaho. US Geothermal got the glory and Goldman-Sachs got the gold.
Here is a description of development of an oil field in "iceberg alley:"
At the 874-million-barrel Hibernia oil field -- situated 350 kilometers east southeast of Newfoundland in 90 meters of water -- the outer walls of the cement-filled, gravity-base production structure are reinforced with ice teeth to withstand the impact from a six-million-ton iceberg.
At the 370-million-barrel Terra Nova oil field, situated 35 kilometers east of Hibernia, a consortium led by Petro-Canada has designed the first-of-its-kind, double-hulled FPSO vessel that is capable, in short notice, of disengaging its nine anchors and moving out of the path of an oncoming iceberg.
Such are the challenges of producing oil and gas in the harsh and unforgiving conditions of the North Atlantic, otherwise known as "iceberg alley." Temperatures average five degrees Celsius; winds howl at 35 kilometers per hour; fog banks frequently prevent helicopters from landing on offshore facilities.
Pip Rudkin is to icebergs on the Grand Banks what Red Adair is to oil field fires. Manager of environmental services for Provincial Airlines in St. John's, Rudkin specializes in protecting offshore facilities and rigs from icebergs, growlers and bergy bits; interception methods include lassoing, towing and water cannons.
Between March to May 2000, Rudkin's team identified 800 icebergs in iceberg alley, tracked 83 by air, satellite and radar, and diverted 43.
"Hibernia can't move out of the way," Rudkin said. "Hibernia's last resort is to withstand the impact of an iceberg."
See here.
Now imagine US Geothermal trying to cut a deal with Goldman-Sachs to finance geothermal development in Iceberg Alley.
Might tell you something about why geothermal power is struggling in the fog while fossil fuels fill the atmosphere with greenhouse gases.
Best, Terry