Geothermal industry in United States - Current and future outlook

The US geothermal 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.

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 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.”

The US geothermal 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.

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.

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.