Geothermal LCOH Assessment Tool

The Geothermal Online Tool calculates the Levelized Cost of Heat (LCOH) and the economic LCOH of a geothermal project, allowing comparison with cost of alternative heat sources (natural gas, coal, electricity). Geothermal LCOH is the average lifetime cost to produce one unit (MWh) of heat from a geothermal system, factoring in all initial drilling costs/capital costs (CAPEX), ongoing operational and maintenance costs (OPEX), and financing costs over the project's lifetime. In addition, the economic LCOH is calculated to compare economic costs of geothermal with that of alternative technologies, considering CO2 emissions (no CO2 costs are assumed for geothermal energy) and excluding financing costs. The tool also performs sensitivity analysis with the aim for the user to better understand the impact of main geothermal variables in the LCOH (CAPEX (capital expenditure), thermal output, drilling depth and operating hours) and assess the risk associated with their potential variability.

The predefined parameters and assumptions in the Geothermal Online Tool are based on detailed studies carried out under the project Geothermal Energy for Energy Security in Bulgaria, completed in 2025. For each specific project, the underlying assumptions in the tool should be further validated and a more detailed feasibility analysis should be undertaken.

The Geothermal Online Tool has been designed for the assessment of deep geothermal projects (beyond 200 meters depth) for direct uses of heat in selected areas with geothermal potential in Bulgaria (Pleven, Varna, Vratsa, Sofia Basin, Velingrad, Struma Valley and Erma Reka).

The Geothermal Online Tool is not designed for shallow geothermal projects (below 200 meters depth), including geothermal heat pump projects. User can assess the costs of a heat pump project and compare it with the costs of alternative heating solutions using dedicated tools available online, such as the European Heat Pump Association Calculator: https://myheatpump.ehpa.org/en/heat-pump-cal.

Disclaimer: The results generated by this tool are intended for informational purposes only and should not be solely relied upon for investment decisions due to inherent limitations linked to underlying parameters, data reliance, market dynamics and geothermal project characteristics.