| Geothermal power generation capacity worldwide | | | | two decades (1960-1980) was due to a single |
| rose from 7,972.7 MW in 2000 to 8,933 MW in | | | | utility's development of one dry-steam resource. |
| 2005, with 8,035 MW running. This is about 0.2% | | | | After 1983, growth shifted toward independent |
| of the total world installed power generating | | | | power producers and development of |
| capacity. | | | | waterdominated geothermal resources at several |
| The geothermal heat pump (GHP), also known as | | | | locations. |
| the Ground-Source Heat Pump (GSHP) or | | | | The steady growth of geothermal development in |
| generically as geoexchange, is the fastest growing | | | | the United States from 1960 to 1979 was led by |
| geothermal application today. GSHP is a highly | | | | activities at The Geysers, where the field |
| efficient renewable energy technology that is | | | | developments of the partnership of Union Oil |
| gaining wide acceptance for both residential and | | | | Company of California, Magma Energy Company, |
| commercial buildings, with 1.4 million installations | | | | and Thermal Power Company were greatly |
| worldwide by 2005, and growth from 1,854 MWt | | | | expanded toprovide steam to the Pacific Gas and |
| of capacity in 1995 to 15,284 MWt in 2005. | | | | Electric Company (PG&E) electrical-generation |
| Ground-Source Heat Pumps are used for space | | | | system. |
| heating and cooling, as well as water heating. The | | | | This construction made The Geysers field the |
| technology relies on the fact that the Earth | | | | largest geothermal development in the world. |
| (beneath the surface) remains at a relatively | | | | Production from The Geysers peaked in 1988 but |
| constant temperature throughout the year, | | | | pressure declines in the reservoir limited any |
| warmer than the air above it during the winter | | | | further expansion of the field. In December 2006, |
| and cooler in the summer. GSHP systems do | | | | it was announced that the 55 MW Bottle Rock |
| work that ordinarily requires two appliances, a | | | | Geothermal Power Plant at The Geysers will |
| furnace and an air conditioner and use 25%-50% | | | | reopen after being dormant since 1990. It will |
| less electricity than conventional heating or cooling | | | | operate initially at 20 MW with plans to expand. |
| systems. | | | | Geothermal well drilling has tapered off in the US |
| Geothermal technology is suitable for integrated | | | | since the 1980s. In California, four wells were |
| regional energy systems, rural electrification and | | | | drilled in 1996 (one at The Geysers and three at |
| mini-grid applications, especially in distributed | | | | Salton Sea), nine in 1997 (four at Coso, two at |
| generation systems, in addition to national grid | | | | The Geysers and three at Salton Sea) and seven |
| applications. It is being promoted as a regional | | | | in 1998 (three at Coso, one at The Geysers and |
| resource, combining the exploitation of renewable | | | | three in the Salton Sea). In all, between 1996 and |
| energy resources together with environmental | | | | 1998, only 13 production and seven injection wells |
| advantages. | | | | were drilled in California. The most promising new |
| Geothermal energy is contained in the heated | | | | areas for geothermalexploration are in Hawaii and |
| rocks and fluid that fill the fractures and pores | | | | the Cascade Mountains of Washington, Oregon, |
| within the earth's crust. It can be harvested in | | | | and northern California. |
| two ways, direct use of hot water or steam for | | | | Future developments are planned, with projects |
| space heating or industrial use such as aquaculture, | | | | being considered in some 55 stages. Not all of |
| thermal baths and hot springs, and to power | | | | these will happen since some are in the |
| electricity generation plants. Direct use is confined | | | | pre-planning phase and others are awaiting |
| to low temperatures, usually below 150o C | | | | approval. The opinion in the geothermal industry in |
| whereas, power generation employs high | | | | the US is up-beat for future expansion. |
| temperature resources over 150o C. 80 countries | | | | Philippines |
| have developed direct use of geothermal energy | | | | The Philippines is the second largest geothermal |
| and 20 exploit geothermal energy for power | | | | power generating country in the world after the |
| generation. Direct low-temperature use employs | | | | USA, with installed capacity of 1,930 MW at the |
| about twice the energy capacity as is used for | | | | end of 2005, of which 1,838 MW was operational. |
| power generation. | | | | The Philippines now leads the world in terms of |
| Direct use of geothermal heat has been used for | | | | wet steam field capacity and ranks just behind |
| thousands of years. The major direct use | | | | the US in terms of geothermal power generation. |
| applications today are GSHP installations for space | | | | The Philippines is located in the Pacific Rim of Fire, |
| heating, presently estimated to exceed 500,000 | | | | a volcanic region which extends in a crescent |
| and are the first in terms of global capacity but | | | | from Sumatra in Indonesia at the western end, |
| third in terms of output. Direct use of geothermal | | | | across the 3,000 mile archipelago of Indonesia, |
| energy achieves 50-70% efficiency, compared | | | | through the Philippines archipelago to Japan in the |
| with the 5-20% efficiency achieved with the | | | | east. It has a considerable number of high quality |
| indirect use of generating electricity. | | | | geothermal resources. These are all island arc |
| Geothermal power started in 1904 with the | | | | volcanic systems as typically found in the |
| Larderello field in Tuscany, which produced the | | | | Circum-Pacific region, and show close similarities |
| world's first geothermal electricity. Major | | | | with geothermal systems in Indonesia and Japan. |
| production at Larderello began in the 1930s and | | | | The widely distributed nature of the geothermal |
| by 1970; power capacity had reached 350 MW. | | | | resources in the Philippines has long been an |
| The Geysers in California started in the 1960s is | | | | impediment to geothermal power development. |
| the largest geothermal plant in the world. Individual | | | | With over 20 years of experience in geothermal |
| geothermal power plants can be as small as 100 | | | | development and power generation, the |
| kW or as large as 100 MW depending on the | | | | geothermal industry in the Philippines is now in a |
| energy resource and power demand. | | | | mature state and currently the Philippines |
| The three countries with the largest amount of | | | | Department of Energy is supervising the |
| installed direct heat use capacity are USA (5,366 | | | | operations of nine geothermal service contract |
| MW), China (2,814 MW) and Iceland (1,469 MW), | | | | areas. In the early 1990s, there was a rapid |
| accounting for 58% of world capacity, which has | | | | upswing in geothermal power development and |
| reached 16,649 MW. | | | | 1,000 MW of geothermal capacity was added |
| The global installed capacity of geothermal power | | | | between 1993 and 1997. This was largely due to |
| generation at in December 2005 was 8,933 MW, | | | | BOTlegislation in the Philippines, which allowed |
| of which 8,035 MW was operational. Six countries | | | | international power utilities to enter the market |
| accounted for 86% of the geothermal generation | | | | and to fund and construct geothermal power |
| capacity in the world. The USA is first with 2,564 | | | | plants. This enabled an increase in the much |
| MW (1,935 MW operational), followed by Philippines | | | | needed generating capacity without increasing |
| (1,931 MW, 1,838 MW operational); four countries | | | | national debt. |
| (Mexico, Italy, Indonesia, Japan) had capacity at | | | | The Philippine government plans to add 526 MW |
| the end of 2005 in the range of 535-953 MW | | | | of new capacity between 2002 and 2008. |
| each. Mexico and Indonesia have grown 26% and | | | | Indonesia |
| 35% respectively between 2000 and 2005. | | | | Development of geothermal potential has |
| Although on a smaller base, Kenya achieved the | | | | proceeded very slowly in Indonesia and is |
| highest growth, from 45 MW to 129 MW. | | | | currently facing difficult challenges and uncertainty. |
| In the last five years geothermal power | | | | Over a span of 20 years, Indonesia has |
| generation has grown at an annual rate of 2.3% | | | | developed only 797 MW of geothermal power, |
| globally, a slower pace than the 3.25 in the | | | | approximately 4% of 20,000 MW geothermal |
| previous five years, while direct heat use showed | | | | potential. In the early 1990s, eleven contracts for |
| a strong increase. With current technology, the | | | | development of geothermal power plants were |
| global potential capacity for geothermal generation | | | | awarded, with a total committed capacity of |
| is estimated at 72,500 MW and at 138,100 MW | | | | 3,417 MW and original completion dates between |
| with enhanced technology. | | | | 1998 and 2002. As a result of the 1997-1998 |
| A strong decline in the USA in recent years, due | | | | financial crisis, which brought PLN, the state utility |
| to over-exploitation of the Geysers steam field, | | | | to technical bankruptcy, the Government |
| has been partly compensated by important | | | | suspended nine conventionally powered IPPs and |
| additions to capacity in several countries: Mexico, | | | | seven geothermal projects. The government is |
| Indonesia, Philippines, Italy, New Zealand, Iceland, | | | | now attempting to resuscitate the seven |
| Mexico, Costa Rica, El Salvador and Kenya. | | | | contracts butwith little progress. |
| Newcomers in the electric power sector are | | | | The new oil and gas law, passed in October 2001, |
| Ethiopia (1998), Guatemala (1998), Austria (2001) | | | | bars geothermal as an area of regulation, requiring |
| and Nicaragua. | | | | the Indonesian Government to develop a new |
| In 2005 and 2006 the United States showed | | | | legislative basis quickly. PLN understands that the |
| strong signs of renewed growth for geothermal | | | | future of geothermal power will depend on its |
| power generation. Five states now have | | | | competitiveness against other means of electricity |
| geothermal power generating facilities; California, | | | | generation. High capital costs and the associated |
| Nevada, Utah, Alaska and Hawaii. The Richard | | | | electricity tariff required remain core problems. In |
| Burdett Power Plant (formerly Galena I) in Nevada | | | | addition, unresolved decentralization issues, |
| commenced generating power in 2005 and the | | | | uncertainties in security and contracts, and the |
| first geothermal power plant in Alaska being | | | | potential regulatory changes of a planned |
| installed in 2006 at Chena Hot Springs. A fairly | | | | geothermal lawdiscourage investment in |
| extensive list of projects has beenannounced for | | | | geothermal projects. In the long run, Indonesia still |
| the next ten years, with new installations planned | | | | presents one of the world's most attractive |
| in Arizona, Idaho, New Mexico and Oregon, in | | | | geothermal regions, but the Indonesian |
| addition to the existing five 'geothermal' states. | | | | Government must develop new approaches to |
| Japan, Philippines and Nicaragua have all announced | | | | maximize its potential. |
| ambitious plans for further development of | | | | PLN is currently negotiating to bring down tariff |
| geothermal power. | | | | rates on various geothermal ESCs, with the intent |
| There are three basic technologies for generating | | | | of lowering prices from US ¢ 6-8 cents/kWh |
| electricity from geothermal energy. Dry steam | | | | agreed under Power Purchase Agreements |
| power plants using dry steam systems were the | | | | (PPAs) to around US ¢4 cents/kWh. The |
| first type of geothermal power generation plants | | | | original prices negotiated by the geothermal |
| to be built. They use the steam from the | | | | developers ranged between US ¢7.25-9.81 |
| geothermal reservoir as it comes from wells and | | | | kWh, about double the viable rate. |
| route it directly through turbine/generator units to | | | | Italy |
| produce electricity. Flash steam plants are the | | | | Italy is one of the world's leading countries in |
| most common type of geothermal power | | | | terms of geothermal resources. Commercial |
| generation plants in operation today. They use | | | | power generation from geothermal resources |
| water at temperatures greater than 182°C | | | | began in Italy in 1913 with a 250 kW unit at |
| that is pumped under highpressure to the | | | | Larderello. Subsequently, the main emphasis has |
| generation equipment at the surface. Upon | | | | been on the production of power. Geothermal |
| reaching the generation equipment, the pressure is | | | | electric power generating capacity in Italy has |
| suddenly reduced, allowing some of the hot water | | | | reached 791 MW with four geothermal power |
| to convert or "flash" into steam. | | | | plants in 2005. |
| This steam is then used to power the turbine | | | | The geothermal development has been almost |
| generator units to produce electricity. Binary cycle | | | | entirely privately funded. Since 1985, $US 280 |
| geothermal power generation plants differ from | | | | million has been spent on R&D and $US 1254 |
| dry steam and flash steam systems in that the | | | | million on field development. Of these funds, 99% |
| water or steam from the geothermal reservoir | | | | were obtained from private sources and only 1% |
| never comes in contact with the turbine | | | | was derived from public sources. |
| generator units but is used to heat another | | | | Mexico |
| "working fluid" which is vaporised and used to turn | | | | Mexico is one of the fastest growing geothermal |
| the turbine/generator units. | | | | producers in the world. Twenty-seven geothermal |
| Geothermal power projects require high capital | | | | power plants are operating in the three Mexican |
| investment for exploration, drilling wells and | | | | fields, with total geothermal capacity of 953 MW |
| installation of plant, but have low operating costs | | | | in December 2005. There is a project to install 75 |
| because of the low marginal cost of fuel. Return | | | | MW in 2006-2008 in the new area La Primavera |
| on investment is not achieved as quickly as with | | | | pending resolution of some environmental matters. |
| cheaper fossil fuel power plant, but longer term | | | | CFE has programmed to increase capacity in |
| economic benefits accrue from the use of this | | | | Cerro Prieto (100 MW) and Los Humeros (25 MW) |
| indigenous fuel source. | | | | in 2010. |
| Construction costs of geothermal plants can vary | | | | Direct uses of geothermal heat are widespread in |
| widely, depending on local conditions and range | | | | Mexico, including industrial laundries, refrigeration, |
| from a minimum of $1.1 million to $ 3 million per | | | | district and greenhouse heating, and fruit and |
| megawatt. The DOE has calculated an average | | | | wood drying. |
| cost of $1.68 million for geothermal plants built in | | | | Japan |
| the Northwest of America in the last two years, | | | | The first experimental geothermal power |
| where the bulk of US plants are situated or | | | | generation in Japan took place in 1925 in Beppu |
| planned. However, while this is high incomparison | | | | and capacity reached 535 MW in December 2005, |
| with gas power, which can be as low as $460,000 | | | | which ranks Japan sixth in the world. The |
| per megawatt, the operating cost can be lower | | | | government target for the year 2010 is installed |
| because there is no cost of fuel. | | | | geothermal capacity of 2,800MW. The plants |
| The leaders in developing geothermal technology | | | | range in size from the 65 MW Yanaizu-Nishiyama |
| and installing new plants are three American | | | | unit to the 100 kW Kirishima International Hotel |
| companies - Calpine, Unocal and Ormat, and one | | | | back- pressure generator in Beppu, Kyushu. |
| Japanese company- Marubeni. These companies | | | | The Japanese government gives substantial |
| have been active in establishing joint ventures in | | | | support to the development of geothermal |
| the Philippines and Indonesia and more recently in | | | | power. ANRE, the Agency for Natural Resources |
| Central America. | | | | and Energy is playing a core role in development |
| USA | | | | and utilisation of geothermal energy in Japan, such |
| In December 2005 the installed geothermal | | | | as providing subsidy. NEDO plays a central role to |
| capacity in the USA was 2,564 MW, of which | | | | support renewables and after a slow start is now |
| 1,935 MW was usable. The considerable difference | | | | promoting geothermal development as an element |
| between installed capacity and operating capacity | | | | of the concept of regional renewable integrated |
| in the USA was due to lack of steam caused by | | | | self-sufficient systems. The introduction and |
| over-exploitation of the Geysers geothermal field | | | | promotion of geothermal energy as an alternative |
| in California. On this site, available steam can now | | | | for petroleum, has been its major task. |
| only supply 888 MW out of the 1,421 MW installed | | | | The organisation is also encouraging international |
| capacity. | | | | cooperation relating to geothermal engineering. |
| Current geothermal resources using today's | | | | Other countries |
| technology are estimated at 6,520 MW and at | | | | A further 16 countries have geothermal |
| 22,000 MW with enhanced technology. | | | | generating facilities of varying size, ranging from |
| Over the last three decades, the US geothermal | | | | under 500 kW in Argentina to 435 MW in New |
| power-generation industry has grown to be the | | | | Zealand. Many of the smaller countries have higher |
| largest in the world, with over 2,445 MW of | | | | direct use. |
| installed electrical capacity. Growth during the first | | | | |