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credits for sale of electricity, accelerated geothermal lease sales by Federal and State agencies via public auctions, research grants, and a Loan Guaranty program by the Government. As a result, over 45 new geothermal exploration, drilling and development projects were announced between 2006 and 2010. 92. Finally, the US also experienced the negative effects of allowing too many developers onto a common field. The Geysers field in California was drilled by six uncoordinated wellfield operators and the field was overdeveloped, too many wells were drilled, wellfield pressure dropped precipitously, and still more wells were needed to supply enough steam at the required pressure. Together with the decline in incentives of the 1990s, power capacity at the Geysers was reduced from 2,000 MW to just over 1,000 MW. 93. In summary, it’s important to highlight that with the exception of Iceland, all countries have experienced increased participation of private investors in reducing resource risks. The case of Iceland had more to do with the power sector structure (until very recently, the power sector was 100 percent public owned) than the government’s decision in bearing all related risks. Table 28 below provides a glimpse into the number of countries that had or are still having an active resource exploration program involving private sector. 90PDF Image | Drilling Down on Geothermal Potential Central America
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