U.S. Geothermal Power Production and Development Report

Dan Jennejohn

Research Associate, GEA

May, 2011

Report Overview

Yearly assessment of geothermal industry activity

Progress of projects being developed by industry throughout the US ~40 Companies involved (mostly developers)

Status of Federal support to the Industry ARRA and Annual Appropriations

Status of ARRA Funding Funding to which geothermal technologies?

Gathering Project Information

New Geothermal Reporting Terms and Definitions Four Phase System

Phase I: Resource Procurement and Identification Phase II: Resource Exploration and Confirmation Phase III: Permitting and Initial Development Phase IV: Resource Production and Power Plant Construction

Two Capacity Values Resource Estimate – MW value of recoverable energy from the reservoir Planned Capacity Addition (PCA) Estimate – Portion of the resource estimate

being developed for electricity production Advantages

More Robust Reporting System Transparent

http://geo-energy.org/reports.aspx

Overview: US Installed Capacity

Total Capacity: 3102 MW

2010 Capacity Addition: 15 MW, Nevada, Ormat

States with Capacity (MW): • California, 2566 • Nevada, 442• Utah, 42• Hawaii, 35 • Idaho, 16 • Alaska, 0.73 • Oregon, 0.28 • Wyoming, 0.25 • New Mexico, 0.24

US Installed Capacity

Geothermal Capacity Additions in 2010: 15 MW, Nevada Annual 2010 addition (15 MW) down from 2009 (176 MW)

Economic Downturn made project financing more difficult Permitting process delaying some projects

Development Moving Forward

Projects in Development in 15 States 146 Identified Developing

Projects 123 “Confirmed” Projects

Development Concentrated in Western US Nevada, 65 projects California, 30 projects Utah, 12 projects Idaho, 11 projects Oregon, 9 projects

Capacity in Development

Confirmed Geothermal Resources in Development: 3633 – 4050 MW Confirmed + Unconfirmed Resources in Development: 4448 – 5040 MW Planned Capacity Additions (PCA) in Development: 1377 – 1393 MW

Advanced Phase PCA (Phase 3 and 4): 756 – 722 MW

0.4

Project Field Type

Industry increasingly Developing “Greenfield” Projects

Of the 146 identified projects: 111 in “Unproduced” areas, 15 in “Produced” areas 10 are expansions to existing power

plants 5 are oil and gas coproduction demos 4 are EGS demos 1 Geopressure demo

UTNV

CA

HI

States w/Capacity, 2005

States w/Capacity vs Development, 2011

States w/Geothermal Vendors

Overview: Federal Incentives/Funding

Renewable Energy Cash Grant: Used in place of PTC/ITC = 30% tax credit for eligible

portions of capital investment Must begin construction by the

end of 2011 Must be placed in service by the

end of 2013 ~$263M allocated to utility-scale

geothermal since 2009 ~$5M allocated to GHP since

2009

Federal Incentives

DOE Loan Guarantee Energy Policy Act of 2005

Amended by ARRA in 2009 to include Section 1705 Provides Loan Guarantees for renewable energy projects

Reduce GHG emissions Employ new renewable energy technology Commence construction by September 30, 2011

Provided Loan Guarantees to two geothermal projects $78.8M, Nevada Geothermal Power, Blue Mountain

(Faulkner 1) plant, 49.5 MW $98.8M, U.S. Geothermal, Neal Hot Springs development

project, 23 MW

Incentives Continued

Production Tax Credit (PTC) – no coupling with ITC 2.2¢/kWh 12/31/2013 in service deadline for geothermal

Investment Tax Credit (ITC) – no coupling with PTC Permanent 10% credit 30% credit for facilities placed in service by 12/31/2013

State Renewable Portfolio Standards (RPS) CA: 33% by 2020 CO: 30% by 2020 (investor owned utilities) HI: 40% by 2030 NM: 20% by 2020 (investor owned utilities) NV: 25% by 2025 OR: 25% by 2025 (large utilities), 10% by 2025 (small utilities) UT: 20% by 2025 (% of adjusted retail sales)

Federal Funding

American Recovery and Reinvestment Act (ARRA) Innovative Exploration and

Drilling (IET), $97.2M, 24 projects EGS Components R&D, $80.8M,

30 projects Geothermal Heat Pumps,

$65.5M, 37 projects EGS Demos, $44.2M, 3 projects National Geothermal Data

System, $33.7M Coproduced, Geopressured, and

Low Temp. Demos, $18.7M, 10 Projects

National Lab Geothermal R&D, $23.7M

122 Projects Receiving ARRA Funding: Completed: 1 project >50% Complete: 18 projects <50% Complete: 98 projects Not Started: 1 project Unaccounted for: 4 projects

Progress of Funded Projects

Federal Funding Continued

FY 2010 Annual Funding $17.2M to seven projects

Low Temp, 4 projects, $7.2M Oil and Gas Coproduction, 1

project, ~$1M Geopressured, 2 projects,

$9M $63.8M Industry Cost

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Thank You!

www.geo-energy.orgDan Jennejohn Research Association danj@geo-energy.org202.454.5261