Geothermal, like bioenergy-fired electricity and hydropower, is among the cheapest forms of “always on” renewable generation where good resources exist, with costs as low as USD 0.04/kWh for the most competitive brown-field projects. Geothermal electricity generation is a mature, “always on” generation technology that utilises steam or hot water from geothermally active areas to provide highly competitive electricity where high-quality resources exist. Enhanced geothermal techniques can also make geothermal viable in areas without good resources.
Between 2007 and 2019, the LCOE of geothermal varied from USD 0.04/kWh for second-stage development of an existing field to as high as USD 0.17/kWh for greenfield developments in remote areas. The global weighted-average LCOE increased from around USD 0.05/kWh for projects commissioned in 2010 to around USD 0.07/kWh in 2019, although given the low level of new capacity additions, annual weighted-averages are quite variable.