North America Holds Potential in Geothermal Energy

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Researched by Industrial Info Resources (Sugar Land, Texas)--Global Geothermal energy is expected to grow from 12.6 gigawatts (GW) to 21.5 GW by 2020 and to 40 GW by 2030, according to the 2015 World Geothermal Congress in Melbourne, Australia.

The U.S. currently has 3.45 GW of installed geothermal energy capacity, but the recent extension of renewable and investment tax credits could entice developers to move forward with projects that had stalled due to the inability to obtain financing.

Industrial Info has seen continued growth in geothermal power projects in the U.S. and Mexico with 49 projects valued at $6.78 billion. The U.S. has 16 projects valued at $3.54 billion, and Mexico has 33 projects valued at $3.24 billion.

Growth in geothermal exploration and development in the U.S. depends on an increase in public and private investment partnerships in order to reach the U.S. Geological Survey's goal of 5.6 GW of installed capacity by 2020. The Geological Survey estimated that there are 30,000 megawatts (MW) of undiscovered hydrothermal resources in the western U.S. alone. Hydrothermal resources are defined by the presence of three elements associated with geologically active areas: heat, fluid and permeability.

Changes in Mexico's regulatory structure and ongoing reforms introduced by President Enrique Pena Nieto last year have opened up development opportunities for private developers to enter into the previously closed generation market. Installed geothermal energy capacity in the country could reach 1.4 GW by 2020 and a target goal of 4.5 GW by 2030.

Currently, Mexico has over 1 GW of installed capacity with the potential of producing much more from the Las Tres Virgenes, Los Azufres, Los Humeros and La Primavera geothermal fields, which are located in the central, western and Baja peninsula areas. Exploration studies have identified about 500 MW of potential geothermal energy that could be developed in those fields.

Canada has about 5 GW of geothermal potential in traditional shallow resources and another 10 GW in deep resources that could be developed. Significantly, Canada currently has no operations in geothermal power plants despite having abundant geothermal potential, even though Canadian energy companies operate geothermal power plants in other parts of the world. The best areas of the country for development are in British Columbia and the Yukon, but so far no developers have advanced any projects due to the provincial utility, B.C. Hydro, having had for 30 years power priced at 3-5 cents per kilowatt hour from hydroelectric sources, which would not be profitable for geothermal developers.

Lack of demand seems to be the prevailing trend with renewable geothermal power, along with the the prevalence of natural gas-fired generation, wind and solar energy projects, which have stalled the industry. Additional regulatory changes at the state and federal level could help this energy resource.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.