Geothermal energy continues to be a prominent growth industry in Nevada due to the state’s abundant high-temperature geothermal resources.
Today, the Clean Energy Project (CEP) was joined by Senator Reid, Governor Sandoval and renewable industry leaders in releasing a new report on Nevada as a clean energy economic hub.
With 32 operating geothermal power plants producing 566 MW of clean, renewable power, Nevada currently produces more geothermal energy than any other state in the U.S. except California. If Nevada were a country, it would be the eighth largest producer of geothermal power of the 25 countries generating this form of renewable electricity today.
Nevada could become one of the world’s leading generators of geothermal energy if the state continues to invest in its geothermal resources. USGS estimated that there is on average 1,300 MW of identified and 4,300 MW of unidentified geothermal resources in Nevada. Many of the largest geothermal fields in the state such as Dixie Valley, Rye Patch, Steamboat Hills, Fish Lake Valley, Beowawe and others still have significant untapped and under developed resources. According to EIA data, the existing projects and those under development would be equivalent to about 15 percent of all electric generating capacity in Nevada in 2010. Geothermal power already generated nearly three quarters of the state’s renewable energy in 2012.
Economic Benefit of New Development
An average 50 MW geothermal power plant creates 697-892 jobs from concept to operation. When factoring “indirect” and “induced” employment the jobs created by a geothermal power plant are even greater.
The last geothermal industry wide assessment of employment estimated that in 2009 the US geothermal industry employed about 18,000 people directly, indirectly and induced. At that time, GEA projected that if Nevada developed 1,500 MW new geothermal power capacity, roughly 6,375 full time and 24,000 full-time temporary jobs (construction and manufacturing) would be created directly and indirectly, including a modest economic multiplier effect.
Since passage of the 2005 Energy Policy Act, which reformed geothermal leasing and royalty procedures, Nevada has generated at least $44 million from BLM geothermal leasing activities between 2005 and 2008.
This includes $4.6 million in royalties and over $39 million in bonus bids. $33 million of these funds were to be distributed to the State of Nevada and the specific counties involved.
The Bureau of Land Management leased additional geothermal acreage in 2009 and 2010. Bonus bids in 2009 were $8.4 million and in May 2010 totaled $8.9 million. The state of Nevada and the affected counties received an additional $12.9 million from these sales under the 2005 EPAct revenue sharing formula.
Investment in geothermal energy in Nevada sets records. A competitive auction of public lands for geothermal leasing in Nevada held in August 2008 was the largest geothermal sale ever in terms of dollars bid, bringing in a record $28.2 million for a total of 105,211 acres.
Ongoing research and investment into the development of additional geothermal resources doesn’t always culminate in completed power plants but that investigation of geothermal resources does yield jobs and other economic benefits.
