GEOTHERMAL ENERGY MARKET REPORT

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GEOTHERMAL ENERGY MARKET REPORT ( geothermal-energy-market-report )

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• GEAassumptionsfordevelopingprojects1: - 74 projects with a total of confirmed and unconfirmed power capacity of 2,537.9-2,915.9 MW - Overall investment needs of USD 8.8-10.2 billion - With current availability of rigs, this can only be accomplished within or by 15 years from now. - Doubling the rigs available to projects can be done in 7-8 years Source: (1) GEA, “May 2007 GEA Update on U.S. Geothermal Power Production & Development”, at: http://www.geo- energy.org/publications/reports/May2007GEAUpdateonUSGeothermalPowerProductionandDevelopment.pdf ; (2) Based on Sanyal, S.K., Morrow, J.M., Butler, S.T. (2007), Proceedings, Thirty-Second Workshop on Geothermal Reservoir Engineering; (2) Glitnir Research based on EIA Electricity Sales figures. U.S. INVESTMENT NEEDS FOR THE NEXT 10-20 YEARS USD 16.9 billion for short term and USD 39.4 billion for long term Glitnir’s view on investment needs for potential in the Western United States. • Short and long term potential, as defined by the WGA report, includes current projected installations of geothermal power plant (GEA, see above). • The investment need for developing the estimated resource (until 2015) is USD 16.9 billion. • For the longer term development of the available resources (until 2025) is USD 39.4 billion. Assumptions based on findings of the WGA Geothermal Task Force1: • Western Governor’s Association, Clean and Diversified Energy Initiative, Geothermal Task Force Report 2005 • Detailed Geothermal Resource Capacity Estimates and individual site cost allocations • Short Term 2015; defined as “near-market cost up to 8 cents/ kWh online within 10 years” • Long Term 2025; defined as “longer term cost up to 20 cents/ kWh online within 20 years” • CostallocationrangefromUSD3,000to4,000/kW • Operation&Maintenanceestimatesof1.8-2.6cents/kWh - • Individual Site estimates by state (short term/ long term): - California: 25 areas, 2,375/ 4,703 MW - Nevada 43+ areas, 1,488/ 2,895 MW - Oregon 11 areas, 380/ 1,250 MW - Washington 5 areas, 50/ 600 MW - Alaska 4 areas, 20/ 150 MW - Arizona: 2 areas, 20/ 50 MW - Colorado: 9 areas, 20/ 50 MW - Hawaii: 3/ 4 areas, 70/ 400 MW - Idaho: 6+ areas, 855/ 1,670 MW - New Mexico: 6 areas, 80/ 170 MW - Utah: 5 areas, 230/ 620 MW Source: (1) WGA, Geothermal Task Force Report January 2006, at: http://www.westgov.org/wga/initiatives/cdeac/Geothermal-full.pdf (2) Glitnir Research based on EIA Electricity Sales figures. September 2007 – Glitnir Geothermal Research 30

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