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III. NATIONAL ACTIVITIES UNITED STATES current installed U.S. geothermal generation capacity. Several factors triggered the rapid development of the 1980s: • The existence of known high and moderate temperature geothermal reservoirs, including The Geysers, the Salton Sea Geothermal Field, the Coso Geothermal Field, Steamboat Springs, Dixie Valley, Roosevelt Hot Springs and numerous small projects located primarily in Nevada. • Passage of the Public Utility Regulatory Policy Act (PURPA) legislation in 1978, which required utilities to purchase power from independent power producers and certain renewable/cogeneration facilities at the utility's "avoided cost." Further, in 1977, Congress enacted the National Energy Act, which included tax credits for solar and wind development, and California enacted additional tax credits. • In 1982, California regulators adopted key PURPA implementation policies and approved three standard contracts that Independent Power Producers could use to sell power at fixed and known prices for 20 to 30 year terms. Much of the new geothermal development came as the result of standard offer contracts developed in 1983, providing fixed payments for both energy and capacity over a period of time sufficient to allow the projects to obtain financing. Since this decade of rapid growth, a number of States have enacted Renewable Portfolio Standards (RPS). Typically, RPS legislation requires local utilities to obtain a defined percentage of their electric supply portfolio from renewable sources. Some utilities in the western United States have issued Requests for Proposal from renewable generators for long- term power supply contracts from new projects. Often these stipulate that renewable energy cannot cost the utilities more than non-renewable energy. Additionally, utilities have been reluctant to finalize renewable energy contracts due to the higher cost of power contained in these bids when compared to more conventional power generation technology. Passage of the Federal Production Tax Credit (PTC) in October 2004 should help relieve some of this uncertainty for geothermal facilities already in the pipeline. Although geothermal exploration activities have been almost nonexistent for the last decade, approximately 2,500 MWe of additional capacity could be developed from known resources in the vicinity of producing fields at The Geysers, Imperial Valley, Coso, Steamboat Springs, Dixie Valley and numerous other locations. Identified new projects also exist at Glass Mountain and the Imperial Valley in California and in Idaho, Utah, New Mexico and Oregon. Development of this capacity would essentially double the amount of geothermal capacity currently on-line in the US (adapted from W.T. Box, Jr. and Charlene Wardlow; Power Engineering, June, 2004) The Department of Energy’s geothermal program traces its roots to 1971 with activities at the Atomic Energy Commission and the National Science Foundation. Geothermal research at the United States Geological Survey (USGS) goes back to 1945, but formal inception of the USGS Geothermal Research Program began in 1971. The 1978 USGS assessment of geothermal resources of the United States (USGS Circular 790) remains the definitive work in this area. The Geothermal Energy Research, Development and Demonstration Act was passed in 1974 and federal geothermal research activities have been the responsibility of the U.S. Department of Energy since its formation in 1976, and the Federal geothermal research and development program has worked closely with industry to make geothermal electricity a commercial success. Although the Federal program emphasizes electricity production, direct use geothermal systems have been installed throughout the United States. This report describes the status of geothermal energy development in 2004 in the United States. IEA Geothermal R&T Annual Report 2004.doc 108PDF Image | Geothermal Energy Annual Report 2004
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