The U.S. Energy Information Administration (EIA) recently released a report which was quickly hailed as showing “geothermal energy remains a very attractive source of electricity.”
The report shows its great potential and confirms its current reality could be vastly improved if the governments gave geothermal support comparable to more prominent renewables — whether in terms of tax credits, streamlining the permitting process, or inclusion of geothermal technology in Western states’ clean power plans. Geothermal has vast potential, as the EIA paper reveals, and much more room to grow if critical programs are implemented to support the industry.
In the paper, Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2016, EIA compares the “levelized cost” of geothermal energy and other technologies, which means the costs shown are not based on actual, reported prices for energy based on competitive bidding in state procurements, but are modeled costs based on various analytical assumptions.
Despite a modeling paradigm that favors other renewables, the results are still impressive. Taking a quick look at the results, you can see why it is exciting news for geothermal.
