NREL releases U.S. policy impacts update, suggesting need for additional support
Snapshot of time overview on U.S. geothermal incentives (source: NREL)
Alexander Richter
4 Dec 2012
NREL has released a Geothermal Brief, with an update on Market and Policy for geothermal development in the United States. While positive in general, the report suggests a need for additional governmental support for geothermal development in the country.
The U.S. National Renewable Energy Laboratory (NREL) has released a new report (pdf) that looks at how tax incentives, cash grants, tax credit and other schemes have provided value to geothermal projects, focusing on the reduction of the levelized cost of energy.
The report, is published on the NREL website, and uses the Cost of Renewable Energy Spreadsheet Tool (CREST) that was published by NREL earlier this year.
The authors describe the current federal geothermal financial incentives, Federal tax credits and grants and some historic background on governmental support for geothermal energy development in the U.S.
“As shown in the CREST analysis, federal tax incentives provide significant value to geothermal projects in terms of reducing the LCOE. The exact value depends on the specific choice of incentives.
Even with the tax incentives and DOE loan guarantees, geothermal market growth is near stagnant. And with the larger tax incentives (100% Bonus, the PTC and the 30% ITC) having expired or nearing expiration and the sunset of the 1705 DOE loan program, geothermal market growth may be further stymied.”
They close in saying that policy makers will have to consider additional policies to support the industry.
Report: Speer, Bethany, NREL “Geothermal Brief: Market and Policy Impacts Update”
