April 22, 2014 | By Barbara Vergetis Lundin

The international geothermal power market is booming at a sustained growth rate of 4 to 5 percent, according to a new report from the Geothermal Energy Association (GEA), driven by climate change threats and grid needs. Currently, there are nearly 700 projects under development in 76 countries, according to GEA.

Credit: Geothermal Energy Association

Although growth of the international geothermal market growth was up in 2013, U.S. growth was flat because of policy barriers, gridlock at the federal level, low natural gas prices and inadequate transmission infrastructure, according to GEA. In 2013, however, 25 pieces of legislation in 13 U.S. states were enacted specifically to address geothermal power and heating systems, creating a foundation for the environment needed to foster geothermal growth in these states. Past evidence shows successful policy initiatives have translated into growth -- in Nevada, for example, the number of developing projects (45) more than doubles that of California (25), GEA notes.

Additions in Utah, Nevada, California, and New Mexico kept the U.S. geothermal industry on the map in 2013, and the future looks promising.

"The geothermal resource base is still largely untapped," noted Ben Matek, GEA's industry analyst. "With new initiatives in Nevada, California and Oregon moving to recognize the values of geothermal power, we are optimistic that state policies could spark another period of growth in geothermal power over the next decade."

The Public Utility Commissions in Nevada and Oregon recently created potentially beneficial opportunities for geothermal power, while the Washington State Assembly clarified confusing legislation. New Mexico launched its first geothermal power plant in 2013, and the state showed legislative support for future projects with the passing of HB 85, which matches federal royalty rates and requires that geothermal resources be managed as renewable resources. Alaska could soon see its first utility-scale geothermal power plant.

Globally, GEA expects significant geothermal development growth over the next few years. In East Africa, Kenya and Ethiopia are building power plants greater than 100 MW (the average size of a geothermal power plant in the U.S. is about 25 MW). South American nations are in the early stages of identifying their resources, but have great potential, as Chile is actively developing 50 projects and prospects, according to GEA.

For more:
- see the 2013 report

 

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