Geothermal power is a renewable source of energy that can be put to a number of uses both commercially and for domestic purposes. However, before geothermal power can be used as an energy source, its costs and benefits need to be taken into account.
Generally, the capital costs for generation of geothermal power are more than the cost of operating the systems that generate geothermal power. The benefits depend upon how the electricity is generated by geothermal power.
Factors to be considered for determining the costs and benefits of geothermal power include climate, facility design, cost, efficiency and method.
Geothermal power can be used for both heating and cooling. Places which have hot summer weather with large air conditioning needs find geothermal power more beneficial. Geothermal power systems are more cost effective if they are installed in the initial design of a building or industry. Installing geothermal power systems at a later stage is more expensive. The rising prices of gas, fuel, oil and electric heating systems have resulted in making geothermal power more attractive economically. Geothermal power systems will be more beneficial and less expensive in buildings that are well insulated, compact and closed than in buildings which are not energy efficient where these systems will cost more and offer fewer advantages. If geothermal power is obtained from heated water or steam, it is less expensive. If drilling of land is required for geothermal power, it will cost more.
Geothermal power is basically a cost effective alternative source of energy that is being used all around the world.