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Presented at Workshop for Decision Makers on Geothermal Projects in Central America, organized by UNU-GTP and LaGeo in San Salvador, El Salvador, 26 November to 2 December 2006. CASE HISTORIES OF GEOTHERMAL FIELD MANAGEMENT IN THE USA 1. INTRODUCTION Marcelo J. Lippmann Staff scientist (retired) Lawrence Berkeley National Laboratory, Berkeley, CA 94720 USA The US is the world leader in installed geothermal power generating capacity (2828 MWe in 2005; about 460 MWe on standby; GEA, 2006). The bulk of this capacity is in California (2492.1 MWe; Fig. 1) and in Nevada (274.4 MWe; Fig. 2). Until a few months ago, geothermal electrical production was restricted to the states of California, Nevada, Utah and Hawaii. Recently (i.e. in July 2006) a 400 kWe power plant began producing electricity in Alaska (Chena Hot Springs, 2006). According to a March 2006 survey, new geothermal power projects were under development in Alaska, Arizona, California, Hawaii, Idaho, New Mexico, Nevada, Oregon and Utah (GEA, 2006). Most of the installed capacity in the US came on line in the 1970s and 1980s. Since 1989 only 110 MWe have been added (Bertani, 2005). This slow growth was mainly due to the low fossil fuel prices, a lack of interest by most of the electrical power industry in investing in renewable energy projects because of the prevailing low fuel prices and the large upfront costs of geothermal projects compared to those of oil or natural gas burning power plants, complex and time-consuming leasing, siting and permitting requirements, and, in some cases, public opposition. The situation, however, has changed recently because of four main reasons, (1) oil prices have jumped to unprecedented levels reaching above 70 dollars per barrel a few months ago. Since then the prices have fallen, but the oil market continues to be unstable because of geopolitical reasons and a growing demand worldwide; (2) improved geothermal technology in the areas of exploration, drilling, reservoir engineering, materials, fluid handling, and energy conversion. Now it is possible to produce electricity using geothermal fluids of lower temperature (about 74oC at Chena Hot Springs, Alaska), and high salinity (above 20 wt% total dissolved solids at the Salton Sea field, California; Fig. 1); (3) several states have enacted Renewables Portfolio Standards. This market-driven policy ensures that a minimum amount of renewable energy (including geothermal) is included in the portfolio of electricity resources serving a state; and (4) Tax incentives at the federal, state and/or local levelPDF Image | CASE HISTORIES OF GEOTHERMAL FIELD MANAGEMENT IN THE USA
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