| Abstract |
This paper explores a novel approach to integrating Environmental, Social, and Governance (ESG) considerations into techno-economic analyses (TEA) of geothermal projects by assigning tangible, monetary values to ESG-related impacts. While ESG has become a prominent lens for evaluating project sustainability, its incorporation into TEA models remains largely qualitative, often relegated to risk factors or external narratives rather than being embedded directly in financial projections. This work proposes a conceptual framework for treating ESG elements—such as carbon credit revenues, renewable energy certificate (REC) trading, local economic stimulation, and idle capital opportunity costs—as quantifiable economic inputs. While no single methodology is prescribed, the discussion highlights existing data on REC pricing, water shadow pricing, carbon pricing trajectories under the Output-Based Pricing System (OBPS), and labor market multipliers associated with drilling activity. By framing ESG not as an externality but as a set of internal cash flow modifiers, this study opens a path toward more grounded, economically coherent analyses of energy project viability. The goal is to stimulate discourse and further research into standardized, regionally adapted methodologies that reconcile ESG goals with investor-grade economic modelling. |