Geothermal production will double over next few years with help of US economic stimulus bill

16 February 2009

Geothermal power production in the US will double over the next few years with the help of the economic stimulus bill, according to the Geothermal Energy Association.

Karl Gawell, executive director of GEA said, ‘The provisions of the economic stimulus bill will put steam back into the engine of geothermal industry growth.’

In August 2008, GEA reported that the US had about 3,000MW of geothermal electricity connected to the grid and roughly 4,000MW of new geothermal power plants under construction.

The Obama administration will see this strength continued, with the tax credit provisions considered the most important proposal, according to a statement.

The stimulus bill will extend the production tax credit for new geothermal plants through 2013, allow developers to take a 30 per cent investment credit instead and create a cash grant programme to support projects.

‘We estimate that the geothermal power industry has doubled its workforce in the US in the past two years, and the economic stimulus bill provides a framework of support that will continue if not accelerate growth in this industry adding tens of thousands of new jobs with even greater positive effects across the economy,’ Gawell added.

The legislation also offers support for the Department of Energy’s geothermal research, development, demonstration and deployment efforts. The stimulus bill sets aside $400m for geothermal technology research, development and deployment efforts at DOE.

‘All of this adds up to making significant progress towards expanding our use of this largely untapped energy resource,’ Gawell concluded, ‘which is good news for the environment and the economy.’

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Tags: geothermal

This story was published on Monday, February 16th, 2009 at 11:15 am and is filed under North America, geothermal, policy. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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