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Researched by Industrial Info Resources (Sugar Land, Texas)--Geothermal power in the U.S. will not see a significant increase in capital projects without more favorable government policies and the renewal of a 30% tax credit, which is set for expiration in 2016, according to the Geothermal Energy Association (GEA) (Washington, D.C.). Growth in U.S. geothermal power has stalled due to a lack of power demand and power purchase agreements, as well as a dearth of investment incentives.
There still are some glimmers of hope for the geothermal industry. The California State Legislature has passed assembly bill AB-2363, which is expected to increase future geothermal development in California by directing the Public Utilities Commission (PUC) to improve its renewable energy valuation process.
The U.S. Department of Energy (DOE) (Washington D.C.) continues to support ongoing research by introducing the Frontier Observatory for Research in Geothermal Energy (FORGE) program, which establishes a subsurface laboratory to study cutting-edge technologies, and allows scientists to identify a commercial pathway to enhanced geothermal systems (EGS).
The GEA expects significant growth in other regions where there are excellent geothermal resources, more favorable policy, energy demand growth and more financial resources. The regions that are most expected to increase geothermal resources, according to the GEA, are East Africa, Turkey, Central America and Asia-Pacific. The global geothermal market grew at about 4% to 5% for the third year in a row in 2014, and added 21 new utility-scale power plants, with a total of about 620 megawatts (MW) of capacity.
Mexico recently passed laws that favor geothermal development and opened the market to foreign and private participation. Mexico has specific guidelines addressing geothermal exploration and development, and has attracted companies such as Mitsubishi Hitachi Power Systems Limited (Lake Mary, Florida), which was jointly established by Mitsubishi Heavy Industries Limited (Tokyo, Japan) and Hitachi Limited (Tokyo), and Alstom S.A. (Levallois-Perret, France).
For related information, see April 25, 2014, article - California's Salton Sea Initiative to Leverage Geothermal Energy, Improve Air Quality.
Industrial Info is tracking 41 geothermal capital projects in North America valued at $5.29 billion, with the top market regions being Mexico, with 25 projects valued at $2.77 billion; the Rocky Mountains region, with six projects valued at $1.54 billion; and the West Coast region, with 10 projects valued at $973 million.
Top market regions for geothermal power projects that are scheduled to begin construction between March 2015 and December 2017 include Mexico, with 11 projects valued at $1.29 billion; the Rocky Mountains region, with three projects valued at $1.10 billion; and the West Coast region, with four projects valued at $383 million.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
There still are some glimmers of hope for the geothermal industry. The California State Legislature has passed assembly bill AB-2363, which is expected to increase future geothermal development in California by directing the Public Utilities Commission (PUC) to improve its renewable energy valuation process.
The U.S. Department of Energy (DOE) (Washington D.C.) continues to support ongoing research by introducing the Frontier Observatory for Research in Geothermal Energy (FORGE) program, which establishes a subsurface laboratory to study cutting-edge technologies, and allows scientists to identify a commercial pathway to enhanced geothermal systems (EGS).
The GEA expects significant growth in other regions where there are excellent geothermal resources, more favorable policy, energy demand growth and more financial resources. The regions that are most expected to increase geothermal resources, according to the GEA, are East Africa, Turkey, Central America and Asia-Pacific. The global geothermal market grew at about 4% to 5% for the third year in a row in 2014, and added 21 new utility-scale power plants, with a total of about 620 megawatts (MW) of capacity.
Mexico recently passed laws that favor geothermal development and opened the market to foreign and private participation. Mexico has specific guidelines addressing geothermal exploration and development, and has attracted companies such as Mitsubishi Hitachi Power Systems Limited (Lake Mary, Florida), which was jointly established by Mitsubishi Heavy Industries Limited (Tokyo, Japan) and Hitachi Limited (Tokyo), and Alstom S.A. (Levallois-Perret, France).
For related information, see April 25, 2014, article - California's Salton Sea Initiative to Leverage Geothermal Energy, Improve Air Quality.
Industrial Info is tracking 41 geothermal capital projects in North America valued at $5.29 billion, with the top market regions being Mexico, with 25 projects valued at $2.77 billion; the Rocky Mountains region, with six projects valued at $1.54 billion; and the West Coast region, with 10 projects valued at $973 million.
Top market regions for geothermal power projects that are scheduled to begin construction between March 2015 and December 2017 include Mexico, with 11 projects valued at $1.29 billion; the Rocky Mountains region, with three projects valued at $1.10 billion; and the West Coast region, with four projects valued at $383 million.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
