Editing Geothermal energy (section)

==Economics==
{{update|section|date=November 2020}}
As with wind and solar energy, geothermal power has minimal operating costs; capital costs dominate. Drilling accounts for over half the costs, and not all wells produce exploitable resources. For example, a typical well pair (one for extraction and one for injection) in [[Nevada]] can produce 4.5 [[megawatt]]s (MW) and costs about $10&nbsp;million to drill, with a 20% failure rate, making the average cost of a successful well $50 million.<ref name="econ101">{{Citation
| date =October 2009
| title =Geothermal Economics 101, Economics of a 35 MW Binary Cycle Geothermal Plant
| location =New York
| publisher =Glacier Partners
| url =http://www.glacierpartnerscorp.com/geothermal.php
| access-date =2009-10-17
| archive-url =https://web.archive.org/web/20100501143651/http://www.glacierpartnerscorp.com/geothermal.php
| archive-date =2010-05-01
| url-status =dead
}}</ref>

[[File: Sonoma Plant at The Geysers 4778.png|thumb|A power plant at The Geysers]]

Drilling geothermal wells is more expensive than drilling oil and gas wells of comparable depth for several reasons: 
* Geothermal reservoirs are usually in igneous or metamorphic rock, which is harder to penetrate than the sedimentary rock of typical hydrocarbon reservoirs.
* The rock is often fractured, which causes vibrations that damage bits and other drilling tools.
* The rock is often abrasive, with high quartz content, and sometimes contains highly corrosive fluids.
* The rock is hot, which limits use of downhole electronics.
* Well casing must be cemented from top to bottom, to resist the casing's tendency to expand and contract with temperature changes. Oil and gas wells are usually cemented only at the bottom.
* Well diameters are considerably larger than typical oil and gas wells.<ref>{{cite web|url=https://www1.eere.energy.gov/geothermal/pdfs/drillinghandbook.pdf |first1=J. T. |last1=Finger |first2=D. A. |last2=Blankenship|title=Handbook of Best Practices for Geothermal Drilling Sandia Report SAND2010-6048|publisher=Sandia National Laboratories |date=December 2010 }}</ref>

As of 2007 plant construction and well drilling cost about €2–5&nbsp;million&nbsp;per&nbsp;MW of electrical capacity, while the [[levelised energy cost|break-even]] price was 0.04–0.10&nbsp;€ per&nbsp;kW·h.<ref name="Bertani" /> Enhanced geothermal systems tend to be on the high side of these ranges, with capital costs above $4&nbsp;million per&nbsp;MW and break-even above $0.054 per&nbsp;kW·h.<ref>
{{Cite journal
 | first1 = Subir K. | last1 = Sanyal
 | first2 = James W. | last2 = Morrow
 | first3 = Steven J. | last3 = Butler
 | first4 = Ann | last4 = Robertson-Tait
 | title = Cost of Electricity from Enhanced Geothermal Systems
 | url = http://pangea.stanford.edu/ERE/pdf/IGAstandard/SGW/2007/sanyal1.pdf
 | journal = Proceedings, Thirty-Second Workshop on Geothermal Reservoir Engineering
 | date = January 22–24, 2007
 | place = Stanford, California}}
</ref>

Between 2013 and 2020, private investments were the main source of funding for [[renewable energy]], comprising approximately 75% of total financing. The mix between private and public funding varies among different renewable energy technologies, influenced by their market appeal and readiness. In 2020, geothermal energy received just 32% of its investment from private sources.<ref>{{Cite web |date=2023-02-22 |title=Global landscape of renewable energy finance 2023 |url=https://www.irena.org/Publications/2023/Feb/Global-landscape-of-renewable-energy-finance-2023 |access-date=2024-03-21 |website=www.irena.org |language=en}}</ref><ref>{{Cite web |date=February 2023 |title=Global landscape of renewable energy finance 2023 |url=https://mc-cd8320d4-36a1-40ac-83cc-3389-cdn-endpoint.azureedge.net/-/media/Files/IRENA/Agency/Publication/2023/Feb/IRENA_CPI_Global_RE_finance_2023.pdf?rev=8668440314f34e588647d3994d94a785 |website=International Renewable Energy Agency (IRENA)}}</ref>

=== Socioeconomic benefits ===
In January 2024, the [[Energy Sector Management Assistance Program]] (ESMAP) report "Socioeconomic Impacts of Geothermal Energy Development" was published, highlighting the substantial [[Socioeconomics|socioeconomic]] benefits of geothermal energy development, which notably exceeds those of wind and solar by generating an estimated 34 jobs per megawatt across various sectors. The report details how geothermal projects contribute to skill development through practical on-the-job training and formal education, thereby strengthening the local workforce and expanding employment opportunities. It also underscores the collaborative nature of geothermal development with [[Local community|local communities]], which leads to improved infrastructure, skill-building programs, and revenue-sharing models, thereby enhancing access to reliable electricity and heat. These improvements have the potential to boost [[agricultural productivity]] and [[food security]]. The report further addresses the commitment to advancing gender equality and social inclusion by offering job opportunities, education, and training to underrepresented groups, ensuring fair access to the benefits of geothermal development. Collectively, these efforts are instrumental in driving domestic economic growth, increasing fiscal revenues, and contributing to more stable and diverse national economies, while also offering significant social benefits such as better health, education, and community cohesion.<ref>{{Cite web |author=((Energy Sector Management Assistance Program (ESMAP))) |date=2024-01-19 |title=Publication: Geothermal Energy: Unveiling the Socioeconomic Benefit |url=https://openknowledge.worldbank.org/entities/publication/d63d3c50-2bd0-46d7-a94d-999c6b0f359e |publisher=The World Bank Open Knowledge Repository |access-date=2024-04-06}}</ref>