GEA identifies key trends or the geothermal industry in 2011
Drilling rig at Newberry project site, Oregon (source: KOHD)
Alexander Richter
20 Dec 2010
The U.S. Geothermal Energy Association identifies key trends for further growth of the geothermal energy industry in the U.S. for 2011, among them positive signs in government funding, the extension of the 1603 tax credit program and other positive signs for the industry.
In a release, the U.S. Geothermal Energy Association sees geothermal energy to play a role for a cleaner and more renewable year of 2011. “In 2010, the geothermal industry celebrated the 50th anniversary of the first power generating project that went on line at The Geysers, California. As the industry looks toward its 51st year of providing clean, renewable power for America, the Geothermal Energy Association has identified the top trends that will push geothermal development forward.
“There is the potential to power millions of homes, businesses and schools from the heat of the earth. The success of geothermal power over the past 50 years gives us an incredible foundation to build a green future over the next 50,” said Geothermal Energy Association Executive Director Karl Gawell
Not Just a Western States Industry: The industry is expanding into new regions with the support of increased funding and technological advancements. Up to 18,900 MW of potentially exploitable geothermal resources were discovered in West Virginia in 2010. The development of coproduced geothermally heated water from hydrocarbon production has led to a number of oil and gas geothermal coproduction projects in Texas, Louisiana, Mississippi and North Dakota.
Geothermal Development Earns Unprecedented Funding: In the past year the Department of Energy (DOE) funded geothermal research, development, and demonstration projects in 50 states, including DOE’s Geothermal Technologies Program which received over $50 million in support and completed action on its nearly $400 million in Recovery Act grants.
Congress Pushes Geothermal Measures: Congress extended the Section 1603 Tax Credit program created by the stimulus bill for another year; bipartisan legislation extending the 30% Investment Tax Credit for new geothermal projects through 2016 was introduced in both the House and Senate, and legislation restoring payments to counties from geothermal bids and royalties was approved by the House and will hopefully pass the Senate.
“In both the House and Senate, key geothermal supporters won re-election, several by significant margins,” said Gawell. “We believe this shows that their efforts to support more clean, domestic geothermal power production were recognized by their constituents.”
Industry Strengthens Regional Initiatives: The industry is working with collaborative state and regional efforts, as well as other renewable groups, to ensure transmission networks and policies support new geothermal development. The Western Electricity Coordinating Council and the Western Governors’ Association have over $25 million in DOE funding to develop 10 and 20-year transmission plans for the Western Interconnection. GEA also publicly opposed California Proposition 23, which was defeated by California voters in November.
Geothermal Industry Grows Abroad: New projects or extensions were brought on line over the past year in Turkey, Italy, and Kenya. Chile, Central America, the Philippines, Australia, Indonesia, and parts of Africa and Europe saw much geothermal development activity, especially in early stages, such as the purchase of geothermal concessions, explorations, policy development, and drilling operations.
New Scene, New Congress, New Jobs – Outlook for 2011: As 2011 unfolds there will be a new surge in geothermal power projects. Around 500 to 700 MW of power projects should enter their final construction phase, adding approximately 3,000 construction jobs. The geothermal sector is also growing in diversity, with almost half of federal stimulus awards going to non-industry entities such as colleges and universities; cities, counties, and other state and local institutions; tribal entities; and The Department of Energy’s National Labs.
Finance Forum Brings Investment Capital: New geothermal projects in 2011 will mean over $2 billion in new capital investment. The finance community will gather with top experts and major players in geothermal development and finance for the 2011 Geothermal Energy Finance Forum on Wednesday, February 9, 2011 at the Ritz-Carlton, Battery Park in New York City. The program will report on global growth in geothermal production and use.”
Source: GEA release via e-mail
