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Geothermal energy provides both base-load and flexible power. Since geothermal plants generate power at high capacity factors they require much less transmission capacity to deliver the same amount of energy as other types of renewable resources. While using geothermal as a base-load operation is typical, geothermal plants can also operate in a flexible mode. Once the plant is operational it can be expected to provide electricity for many decades if maintained properly. Geothermal energy’s ability to provide both base-load and flexible power means it can support unpredictable changes in electricity. On the other hand, natural gas is not configured to support unpredictable changes because of its expensive transmission and distribution infrastructure unlike geothermal.18 Moreover, if natural gas exports increase, US prices will increased toward world market levels which are significantly higher. Geothermal projects involve considerable on-site capital investment, typically pay substantial property taxes, and involve significant long-term local employment. Additionally, geothermal project developers sign long-term fixed price or price formula contracts, so they don't present the risk of price shocks and help counter-balance the volatility of some other resources. In geothermal financing, the project developer pays the “fuel costs” upfront when developing a power plant. Therefore, geothermal power plants operate at a low levelized cost if the plant is operated at a high capacity factor. When operating at nearly full capacity, the costs can go as low as 4-5 cents/kWh (USD) on average.19 Unfortunately, government subsidies provided to fossil fuels move the cost of emissions onto the consumer instead of the emissions producers themselves, a trend that distorts the market. Environmental costs brought on by emissions from fossil fuel sources can be difficult to quantify, but are rarely borne by the fossil fuel companies themselves. These costs include land degradation as a result of mining or the natural gas well fields, emissions of toxic chemicals, the unfortunate extinction of wildlife due to climate change, and negative health consequences including rising healthcare costs. While recent regulatory changes and a renewed interest in a national climate policy rehabilitated investment in geothermal power, production continues at only a fraction of its potential. If public policy begins to account for geothermal energy’s positive externalities, the resulting expansion of geothermal energy could bring about fewer environmental impacts, better air quality, greater fuel diversity, and improved national security through the use of a domestic energy source. Methodology There are only two significant differences between the calculation made in the 2005 analysis and the calculations made in this analysis. First, this analysis uses more recent emissions data than the 2005 analysis. Second, this analysis goes into more depth by factoring in several more atmospheric pollutants and two fossil fuels: natural gas, and coal. The specific steps involved in the calculation are described below. More information on the calculations can be found in the Appendix I. Variables Defined Avg. Geo Energy 18 Linvill et al. 2013 19 Gehringer et al. 2012 The average total yearly amount of electricity generated from geothermal from 2002 to 2012 10PDF Image | Promoting Geothermal Energy
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