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other energy sources, reduces the impacts on transportation infrastructure due to the absence of a fuel cycle, and geothermal power plants can utilize recycled waste water to reduce environmental impacts on water resources and treatment costs. Historical Context and Recent Developments Geothermal development in the U.S. boomed in the early 1980s due to a number of factors, including the 1973-74 Organization of the Petroleum Exporting Countries (OPEC) oil embargo, the enactment of energy tax incentives for renewables, the implementation of the Public Utility Regulatory Policies Act of 1978, and substantial research funding from the Department of Energy (DOE). Geothermal resources were developed in California, Nevada, and Utah during this period. Between 1980 and 1985, 17 geothermal plants went online in the U.S., totaling 1.15 gigawatts (GW) of installed capacity.2 But declines in fossil fuel prices, waning public interest in energy policy, expiration of tax credits and other incentives, and substantially decreased government funding precipitated a dramatic decline in new geothermal development during the late 1980s and into the 1990s. Very little geothermal development took place between 1990 and 2005; only 148 MW came online during this span of fifteen years. For comparison, that is roughly equivalent to the generating capacity that came online from new geothermal plants in 2012.3 Despite the setbacks of the 1990s, new developments in geothermal power resumed in 2005 as shown in Figure 1. This surge in growth is attributed to the extension of the federal production tax credit in 2005 to geothermal facilities, the ITC cash grant program, and the American Recovery and Reinvestment Act, coupled with growing state-level recognition of the value of renewable portfolio standards. Twenty-seven plants came online between 2006 and 2012 in seven Western states, bringing the total installed capacity in the U.S. to 3.38 GW. Today, geothermal power plants are currently online in eight states: Alaska, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Wyoming. Additionally, a staggering 175 geothermal projects are currently in development, which could add ≈2,500 MW to U.S. installed capacity in the next decade or so.4 2 GEA 3 Ibid. 4 Ibid. 4PDF Image | Promoting Geothermal Energy
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