1. U.S. Geothermal Power Production and Development Report Dan Jennejohn Research Associate, GEA May, 2011

2. 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?

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. UT NV CA HI States w/Capacity, 2005

10. States w/Capacity vs Development, 2011

11. States w/Geothermal Vendors

12. 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

13. 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

14. 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)

15. 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

16. 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

17. 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 Share

18. Thank You! www.geo-energy.org Dan Jennejohn Research Association danj@geo-energy.org 202.454.5261