Geothermal Energy ECON 343 A NDREA V ESTMANN, T IMON R UTH, A ND E DDIE A DAMS

What is Geothermal Energy?

Current Use The United States is a global leader in installed geothermal capacity 80% of this capacity is located in California, where more than 40 geothermal plants provide nearly 7% of the state’s electricity Geothermal heat pumps heat and cool thousands of buildings Worldwide: Close to 30% of worldwide geothermal consumption comes from the U.S. Geothermal production has increased nearly 14.3% since 2011 Only 6.5% global potential currently being used

Geothermal power plants are also a good electricity generator: Flashed Steam Plants Dry Steam Plants Binary Power Plants Hybrid Power Plants

Geothermal Power Plant Efficiency

Advantages & Disadvantages Lack of pollutants Impact of startup and maintenance on surroundings Impact vs. oil consumption Positive externalities Costs incurred mainly in startup and grid connection

3 Major Types of Geothermal Heat Systems: Types of Geothermal Power Systems The use of each depends on the needs of your home and available environmental resources 1.Open Loop Heat Pump System 2.Horizontal Closed Loop Heat Pump System 3.Lake Loop Heat Pump System

Comparing Energy Costs Fuel Oil – $30.21 per 1,000,000 BTU Propane – $29.73 per 1,000,000 BTU Natural Gas – $15.48 per 1,000,000 BTU Geothermal Heating Pump – $6.70 per 1,000,000 BTU

U.S. Policies Over 12 states have policies and incentives for individuals and companies to install geothermal heat pumps California: a grant fund “to promote the development of new or existing geothermal resources and technologies” known as the Geothermal Resources Development Account South Carolina does not have any policies on geothermal energy Federal Incentives: - Investment Tax Credit covers equipment and property only - Production Tax Credit was an inflation-adjustable credit upon sales

Geothermal Policies in the U.S.

Growth and Potential Renewable portfolio standards and production tax credit contributing to growth in the U.S. International geothermal growth observed at 4%-5%

Future Use and Ideology Speculation usage for geothermal generators and solar panels to be used in combination to reduce cost of use and inputs to bare minimum. Will be used to produce clean hot water. Remain competitive in pricing versus fossil fuels. Installed geothermal bases will increase 13.3 million to 36.2 million in Less than 5% sales growth in 2013 to 2015, followed by rapid growth (20-30%) in the 2016 to 2018 time frame

Geothermal Energy in Iceland Iceland is a pioneer in the use of geothermal energy for space heating Geothermal power generates 25% of the country's total electricity production In 2014, roughly 85% of primary energy use in Iceland came from renewable resources Thereof 66% was from geothermal About 9/10 households are heated with geothermal energy

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