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THE early development of powerlines linking South Australian geothermal projects to the electricity grid would deliver more than $1 billion in economic benefits, a report released today says.

The Australian Geothermal Energy Association's report says bringing forward the development of transmission lines by four years - at a cost of $171 million - would lead to lower electricity prices
for SA.

This would result in net economic benefits of $1.06 billion for SA customers and the geothermal industry from 2011 to 2030.

The cost of the transmission lines would be $900 million, with $720 million from the geothermal energy companies and the remainder to be regulated assets owned by the transmission network owner.

The report, by energy economics firm McLennan Magasanik Associates, envisages a 275 kilovolt double circuit line from Innamincka, near Moomba, via Olympic Dam, to Davenport, near Port Augusta.

This would link Australia's two most advanced geothermal energy projects - Geodynamics' Habanero project in the Cooper Basin and Petratherm's Paralana project in the northern Flinders Ranges.

AGEA chief executive Susan Jeanes said the benefits would be achieved by bringing cheaper geothermal energy into the market earlier.

"Importantly, the report looked at a comparison between the business-as-usual case and that of the bringing forward of transmission expenditure for low-cost, base-load geothermal energy, and it concluded that early transmission investment would produce the lowest-cost solution for renewable energy,'' she said.

"This would place substantial downward pressure on electricity and renewable energy certificate prices in SA and across the National Electricity Market.''

The report did not consider the spin-off benefits, Ms Jeanes said.SA is the epicentre of geothermal investment in Australia, with 28 companies committed to spending $873 million from 2002-2013.