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III. NATIONAL ACTIVITIES UNITED STATES 17.2.1 Strategy The U.S. Department of Energy’s Geothermal Technologies Program seeks to make geothermal energy the Nation’s environmentally preferred base load energy alternative. The Program’s mission is to work in partnership with U.S. industry to establish geothermal energy as an economically competitive contributor to the Nation’s energy supply. The Program has recently established three aggressive strategic goals that will drive its activities: • Decrease the levelized cost of electricity from hydrothermal systems to less than 5 cents per kWh by 2010 • Increase the economically viable geothermal resource to 40,000 MWe (hydrothermal and EGS) by 2040 • Decrease the levelized cost of electricity from Enhanced Geothermal Systems to less than 5 cents per kWh by 2040 The strategies that the Program will use to achieve its goals include five categories of work: Enhanced Geothermal Systems, Exploration and Characterization, Drilling and Reservoir Management, Power Systems and Energy Conversion, and Institutional Barriers. The Geothermal Technologies Program has placed top priority on technology development for Enhanced Geothermal Systems (EGS). EGS are geothermal reservoirs that have been engineered or enhanced to improve their productivity. EGS include the full spectrum of geothermal systems, from commercial hydrothermal reservoirs to non-hydrothermal hot rock systems. Fundamentally, an EGS is the circulation loop created by an injection-production well pair and the fractured rock connecting them. Over the next five years the program will demonstrate the viability of the technological tools needed to create an EGS. If successful, this work will create the potential for the entire nation to use geothermal power. 17.2.2 Progress Towards National Targets The United States Department of Energy (DOE) has established strategic Program goals to guide its activities. Achieving these goals would provide the opportunity for geothermal electricity to be a contributor in the United States energy market. In order to achieve this, the cost of geothermal electricity has to decrease to competitive levels and the economic geothermal resource, both hydrothermal and EGS, has to increase significantly over current levels. Success will ultimately be measured by the amount of geothermal power on line. The cost of geothermal power facilities has varied dramatically over time, but the trend has been toward reduced costs. Given available information, the estimated current cost of most commercial projects falls in the range of 4-6 cents per kWh, a substantial reduction from 10- 12 cents per kWh in the 1980s. Pending a new national assessment, the total resource base in the identified hydrothermal systems in the United States is estimated to be on the order of 10,000 MWe. In its Annual Energy Outlook (AEO2004) reference case, the United States Energy Information Administration (EIA) projected that grid-connected generators that use renewable fuels would increase from 343 billion kilowatt-hours of generation in 2002 (9.0 percent of total generation) to 525 billion kilowatt-hours in 2025 (9.1 percent of generation). Non-hydroelectric renewables account for 6.6 percent of projected additions to U.S. generating capacity from 2002 to 2025 and 6.8 percent of the projected increase in IEA Geothermal R&T Annual Report 2004.doc 110PDF Image | Geothermal Energy Annual Report 2004
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