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III. NATIONAL ACTIVITIES UNITED STATES 17.3.3.5 Alaska Chena Hot Springs Resort The Chena Hot Springs Resort plans to tap its geothermal resource for electric generation by the end of 2005, and will then evaluate whether the natural energy source can provide as much as 20 megawatts of electricity. Chena Hot Springs Resort is located about 97 kilometers northeast of Fairbanks and about 48 kilometers off of the local electric grid. The resort received approval for grant funding, announced in late August and early September, from both the Alaska Industrial Development and Export Authority and the DOE. The state grant will go toward the purchase and installation of a binary electric generation system that uses hot water at the resort to produce electricity. Estimated cost of that system, which will produce up to 400 kilowatts of electric power for the resort, is about $1.7 million. Currently the resort relies on diesel generators to produce 200 kilowatts . The second grant from the U.S. Department of Energy will allow further research of the area's geothermal potential and evaluate whether it can produce enough electricity to feed into the Fairbanks-area electric grid 17.3.4 Rates and Trends in Development Growth in geothermal energy in the United States continues to be challenged by high capital costs, permitting delays, local opposition at some sites, and the limited number of undeveloped high quality sites. There has been consolidation in the industry with Calpine and CalEnergy emerging as the two largest producers. Recently, Ormat has been consolidating its position by purchasing a number of operating plants, including PGV-1 on Hawaii. Except for the Salton Sea area, development in California seems stalled out with local opposition at Medicine Lake threatening to halt planned development. No expansion is anticipated at The Geysers as the operators attempt to stave off further decline by injecting wastewater while trying to deal with increased seismicity in the area. (See section 1.6.3 for a discussion of seismic activity at The Geysers). In Nevada, geothermal power producers enter into contracts with utility companies to sell electricity at a specific amount per kilowatt-hour. As in California, many of Nevada’s 14 operating geothermal power plants entered into multiple-year contracts that provided compensation on a per kilowatt-hour basis higher than avoided cost contracts. These contracts are expiring and plants are entering into avoided cost contracts at considerably lower rates. This market condition has held the expansion of Nevada’s geothermal industry flat. However, Nevada seems poised for major expansion with strong political support, an RPS driving procurement of renewable energy, a number of developable sites, and activities in the state by the Great Basin Center for Geothermal Research at the University of Nevada Reno. 17.3.5 Number of Wells Drilled Determining accurately the number of geothermal wells drilled each year is difficult, because each state handles the issue differently and some not at all. Nevada provides information through its ‘Nevada Geothermal Update’ which can be accessed through the Internet. 17.3.5.1 Nevada According to the ‘Nevada Geothermal Update’ of September 2004, there were two geothermal wells completed at existing geothermal power plants; a 1478 meters deep well at the Brady’s Power Plant and a 1675 meter well completed at the Desert Peak Power Plant. In addition, a set of eight geothermal gradient holes (each 150 meters deep) and a well (Deep Blue #2) at 1128 meters were completed in the Blue Mountain Geothermal Prospect Area. IEA Geothermal R&T Annual Report 2004.doc 117PDF Image | Geothermal Energy Annual Report 2004
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