Geo, I think this is the million dollar question. All the existing power grid is government expended money till now, with few exceptions. How to compete without assistance when you are unfortunate not to have hot rocks under central Sydney ?
I seem to remember Geodynamics cost per kW/h analysis from some years ago (prior to recent coal/oil price surges), that had the "base hot rock" cost (just holes and turbines) way under coal and others, and only slightly more expensive AFTER costs of trans lines built by GDY were factored in (they were expensive). Key point at THAT time was that with carbon tax or subsidised lines the cost was EQUAL/BELOW coal. When you think about it logically all you have is the post boiler component of a coal fired station to build (albeit with lower pressure/temp steam) and no ongoing fuel cost.
If that is still the case and with carbon tax seeming inevitable, the pure commercial case becomes compelling, even without political support. Govt support for power line cost just ices the cake.
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