Status of Nevada Geothermal Resource Development -- Spring 2011

Abstract

Recent increases in geothermal exploration and power plant construction in Nevada are the first significant activities since the Steamboat II/III and Brady plants came on line in 1992. Exploration activity on existing projects grew between 2005 and 2010, culminating in the construction of several new power plants. The BLM’s 2007 lease auction (first since the 2005 Energy Policy Act revisions) opened the door to exploration on greenfield properties. The number of wells permitted and drilled remained low from 1994 through 2003, but rose sharply to peak in 2009. However, over 760,000 acres were leased between 2007 and 2010, with numbers of acres, price per acre, and number of wells drilled declining in 2010 as the activity appeared to level off as previously leased parcels were evaluated with thermal gradient holes and other assessment methods. This decline in leasing in 2010 could be attributed to the companies focusing on advanced stage projects to take advantage of the production tax credit by 2013. In addition, markets remained reluctant to fund early stage exploration companies and projects.