We develop a multiscale simulation strategy, namely, algebraic dynamic multilevel (ADM) method, for simulation of fluid flow and heat transfer in fractured geothermal reservoirs under varying thermodynamic conditions. Fractures with varying conductivities are modeled using the projection-based embedded discrete fracture model (pEDFM) in an explicit manner. The developed ADM method allows the fine-scale system to be mapped to a discrete domain with an adaptive grid resolution via the use of the restriction and prolongation operators. The developed framework is used a) to investigate the impacts of formulations with different primary variables on the simulation results, and b) to assess the performance of ADM in a high-enthalpy reservoir by comparing the simulation results against those obtained from fine-scale grids. Results show that the two formulations produce similar results in the case of single-phase flow, which indicates that the molar formulation is a favorable option that can be applied to varying thermodynamic conditions. Moreover, the ADM can provide accurate solutions with only a fraction of fine-scale grids, e.g., for the studied case, the maximum error is by average 1.3 with only 42% of active cells, thereby improving the computational efficiency. This is promising for applying the developed method to field-scale geothermal systems.