Clean Energy Research Project: Final Report

A cost-benefit analysis of geothermal vs solar energy for the Lake Tahoe/Reno area

Project Goal

This project aims to identify clean energy sources which could be used to support the growing demand of our population, and to perform a cost-benefit analysis of these energy sources for a hypothetical future scenario involving supplying clean energy to a location of interest. As climate change becomes an increasingly real threat while Earth’s population continues to grow, there is more of a need than ever for alternative sources of energy to fossil fuels, yet much disagreement on whether or not installing this clean energy technology is worth the cost & time.

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Methodology

Steps in the Project:

1. Data Collection:
   I gathered data from several reliable sources, including the National Renewable Energy Laboratory (NREL) and the U.S. Energy Information Administration (EIA), to understand the distribution of energy resources across the US and the feasibility of each technology in various geographic locations of the US.
2. Analysis of GIS data:
   Using ArcGIS, I analyzed the data, considering factors such as solar energy radiance, geothermal potential, land use restrictions. I realized Nevada was a geothermal hotspot, and decided to investigate further.
3. Cost-benefit analysis:
   I used generative AI to perform a cost-benefit analysis of geothermal energy versus solar energy for a hypothetical future power plant being built to power new homes under construction in Reno, Nevada and/or Lake Tahoe. I then compiled my findings into a report, which I will go into further detail about below.

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Technology Comparisons

To ensure a comprehensive analysis, the following table outlines the key economic and environmental metrics for each type of clean energy technology:

Criteria	Geothermal Energy	Solar Energy
Initial Costs	$2,500 – $5,000 per kW	$1,000 – $3,000 per kW
Operational Costs	$0.05 – $0.10 per kWh	$0.02 – $0.05 per kWh
Capacity Factor	70-90%	15-25%
Land Use	Minimal	Large (unless rooftop installed)
Environmental Impact	Low emissions, low land use	No emissions, high land use
Suitability for Reno	High (geothermal resource zone)	High (300+ sunny days/year)
Scalability	Medium	High
Energy Reliability	Very high (constant base-load)	Moderate (intermittent)
Total Time to Operation	6-10 years	2-4 years

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Conclusions

• Geothermal Energy:
  • Lower initial capital costs compared to solar for meeting the energy demand.
  • Lower operational costs on a per kWh basis.
  • Provides a cheaper cost per kWh at $0.10 compared to solar’s $0.12 over a 25-year period.
  • Typically takes longer to bring online, with an estimated timeline of 6-10 years, primarily due to the time required for resource exploration, permitting, drilling, and power plant construction.
• Solar Energy:
  • Higher capital costs due to needing more installed capacity.
  • Lower operational costs but higher financing costs.
  • Cost per kWh is slightly higher than geothermal energy, but still competitive.
  • Faster to deploy, with a typical timeline of 2-4 years, as it requires less permitting, simpler construction, and can often use existing transmission infrastructure.

Geothermal Energy is more geographically limited, but Northern Nevada is rich in geothermal resources. Environmental and seismic risks would need to be carefully managed, especially near Lake Tahoe. However, the high capacity factor and base-load capability make it an attractive option for the area’s long-term energy needs.

Solar Energy benefits from the region’s abundant sunshine and flexibility in scale and location but requires large land areas and could face aesthetic opposition near Lake Tahoe. Battery storage would be crucial to address intermittency, and transmission infrastructure would need to be enhanced for large-scale projects.

Overall, my personal view is that, in the long term, geothermal energy is probably the more economically sound choice for Reno & Lake Tahoe due to its local availability, lower cost per kWh, lower land use needs, and ability to generate power around the clock.

That being said, solar could still play a vital role in complementing the energy mix, especially when you consider that it takes less time to set up as well as the possibility of further advances in solar storage technologies.

In a future scenario where both technologies are considered and/or necessary to meet demand, a hybrid energy system could be the most ideal, utilizing geothermal for constant power along with solar to supplement it during the day, especially for the city of Reno which has a higher population and more hypothetical future homes that will need power.

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References

1. National Renewable Energy Laboratory (NREL) – Annual Technology Baseline 2023
2. U.S. Energy Information Administration (EIA) – Energy Infrastructure Data
3. Generative AI Insights on Energy Technologies and Infrastructure
4. NREL Wind and Solar Resource Maps
5. NREL Geothermal Resource Data

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