Resource Development Potential - Revenue Generation Potential Only a Balanced Approach Can Lead to District Energy Development

Abstract

Despite millions of dollars in exploration and drilling, and the identification of literally hundreds of high potential resource areas, few new geothermal district energy systems have been built in the United States over the past 25 years. A recent survey, looking into what was hindering such development, concluded that the development of new geothermal district energy systems was not going forward due to a lack of resource information and, in particular, a lack of exploration dollars to support confirmation drilling. But is this really the only or even the most critical need? It is the authors' contention that a lack of knowledge relating to the potential for revenue generation is as much or possibly even more of a problem than the lack of funds to carry out confirmation drilling. What is really needed is a balanced approach to "exploration," one that puts equal emphasis on determining revenue generation potential and resource development potential. And, in fact, a clear determination that revenue generation potential can support development and operation costs should be made prior to the substantial investment that must be made in most cases to confirm the existence of a viable geothermal reservoir. Such a determination would be a prerequisite for private investment, and should be a prerequisite for government support. How such a program should be structured and implemented is covered in detail.