Governmental Impact in the USA on Geothermal Market Development

Abstract

Geothermal resourcesinitially were developed in the United States in the conventionalway with an entrepreneurindependently exploring for and doing the preliminary development work necessary to demonstrate reserves. Having independently established a reserve contract was entered into with a utility to build a generating plant and purchase the geothermal "fuel" fromthe steam developer. With the oil crisis in the early 70s came the desire for rapid developmentof renewable resources and government became involved to facilitate the expansion of the use of renewable resources such as geothermal. As the oil crisis has become more of a crisis for the suppliers rather than the users, government activity in renewable has waned and "lowest price" options are being promoted in the electric utility industry. The paper will cover the history of government activity and emphasize the benefit of a healthy long term governmental involvement in the development of the market forthegeothermal industry.