Geothermal industry thriving amid support from Federal programmes

The first geothermal generator was tested in 1904, amid a Russo-Japanese war, the US acquisition of the Panama Canal, and the opening of the New York subway system. That first geothermal power field, in Ladarello, Italy, still produces power today. 56 years later in 1960, as the Organization of Petroleum Exporting Countries was formed and President Kennedy created the Peace Corps, the first geothermal power plant opened in the US at The Geysers in California. The Geysers field has since grown to become the largest group of geothermal power plants in the world today.

Geothermal power in the US

The US has grown to be the largest geothermal power producer in the world, with a total installed capacity of 3040.27 MW. New state and federal policies are promoting more geothermal production, resulting in 5500 MW of new projects under development as recently reported by the Geothermal Energy Association. Geothermal power is a growing and important part of the energy supply mix in the Western US and is one of the top renewable energy alternatives creating jobs, reducing greenhouse gases, and aiding energy independence.

New US geothermal development is taking place in 12 states (see Table 1). Overall power production potential of new geothermal projects grew by 35% between August 2008 and March 2009; in coming years this trend is expected to grow as long as federal and state legislation continue to support an industry fueled by the limitless baseload supply of heat from the centre of the Earth.

Growth for the future

There will be significant new growth in geothermal power thanks to the recent stimulus legislation. The American Recovery and Reinvestment Act (ARRA) of 2009 provided a three year extension of the production tax credit (PTC) in place for geothermal projects since 2005 and extended the 30% investment tax credit (ITC) to new geothermal projects. It also provided a new 30% credit for geothermal equipment manufacturers, US$ 1.6 billion in new bonding authority for Clean Renewable Energy Bonds, and up to US$ 6 billion in loan guarantees for new commercial projects. Through the Department of Energy’s (DOE) Geothermal Technologies Program, the stimulus bill will fund US$ 140 million toward geothermal demonstration projects, US$ 80 million to enhanced geothermal systems technology research and development, US$ 100 million to innovative exploration techniques, and US$ 30 million to a national geothermal data system, resource assessment, and classification system.

Improving access

Meanwhile, access to new geothermal resources continues to improve. The Bureau of Land Management (BLM) has held two successful competitive geothermal lease sales over the past year, generating over US$ 15.2 million for 449 764 acres leased. BLM has also published a Programmatic Environmental Impact Statement for geothermal leasing on public lands, designating 111 million acres of BLM lands and 79 million acres of National Forest System lands as available for leasing.

Additionally, federal stimulus legislation and active planning processes reflect recognition of growing needs for US transmission infrastructure in key areas for geothermal such as Nevada and California. On the state level, many states are setting high goals for renewable power production through renewable portfolio standards. Despite its underdog position in the renewable energy world, the sheer potential of geothermal power and its value to the nation aids its growing reputation as one of the very best options in the nation’s growing energy mix.

Author: Leslie Blodgett and Karl Gawell, Geothermal Energy Association. http://www.geo-energy.org/default.asp.

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