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Geothermal International Market Report

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Geothermal International Market Report ( geothermal-international-market-report )

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North America The principal countries of North America – Canada, Mexico and the US – have some of the highest standards of living in the world, as well as high electricity demand and degrees of electrification. However, the continent is also relatively well supplied with fossil and other conventional energy resources. Moreover, neither Canada nor the United States has adopted national climate policies and neither is currently a signatory to the Kyoto protocol. While North American countries may not be as exposed to the same factors incentivizing emerging economies to develop their renewable resources, there is still a strong case for the increased implementation of geothermal energy into their economies as well. In the US, coal and natural gas respectively generated approximately 42 and 25 percent of total electricity generated in 2011, indicating that North American economies are also vulnerable to the adverse impacts of the price volatility of fossil fuels.75 Additionally, electricity demand is projected to grow by 0.8 percent per year in the US through 2035, indicating that additional generating capacity will be needed, although not at the scale of most emerging markets.76 In order to increase their energy security by meeting rising demand and mitigating the use of fossil fuels, North American countries are taking steps to increase their production of renewable energy resources, including geothermal. In the US, federal and state policies have been the drivers for renewable generation. At the federal level, since 2005 geothermal and all other renewable technologies have been afforded important tax incentives to attract investors. At the state level, most have adopted renewable production requirements for their electric utilities. Recently, uncertainty has grown about whether Congress will continue to extend federal renewable power incentives and the economic recession has dampened state renewable effort. Yet, growth continued in 2011 and additional growth in geothermal power capacity is projected for the next two years.77 United States The development of geothermal energy resources for utility-scale electricity production in the United States began in the 1960’s. Since that time, the continual development of geothermal resources and technology has positioned the US as a leader in the global geothermal industry. The US currently has approximately 3,187 MW of installed geothermal capacity, more than any other country in the world. 15

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