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TABLE 5.11 Services related to development of geothermal energy CPC code 8675 861, 862, 863, 8672, 8673, 9312, 93191, 932 633, 8861–8868 865 Description Certain related scientific and technical consulting services Certain professional services, including engineering and integrated engineering services Maintenance and repair of equipment, except transport- related equipment Management consulting and related services Construction and related engineering services U.S. Market for Geothermal Energy Services Market Size U.S. geothermal energy production and installed capacity grew moderately between 2007 and 2011, yet the geothermal sector continues to represent a very small share of U.S. renewable energy generation. Between 2007 and 2011, U.S. geothermal electricity production grew from about 15 billion kWh to 17 billion kWh, while total installed geothermal capacity increased from 2.2 GW to 2.4 GW.96 Further, between 2007 and 2012, U.S. geothermal revenues are estimated to have grown by 17 percent annually reaching $2.4 billion in 2012.97 Despite this growth, geothermal electricity production still accounted for only about 3 percent of total U.S. renewable energy generation and an even smaller share (0.4percent) of total U.S. electricity generation in 2011.98 In comparison, during the same period, production of wind energy increased by almost 250percent to 119.7 billion kWh,99 while solar power generation grew by over 200 percent, although from a low base.100 The cost of constructing geothermal power plants varies significantly depending on a number of factors, including resource temperature and pressure, location, drilling market, and the number and types of plants.101 While the development and construction of geothermal power plants require large investments in capital, services also represent an important cost when it comes to establishing new plants and then operating and 96 EIA, Annual Energy Review 2011, 2012, 224 and 258. 97 IBISWorld, “Geothermal Electricity Plant Operation in the U.S.,” 2012. 98 EIA, Annual Energy Review 2011, 2012. 99 EIA, Annual Energy Review 2011, 2012, 224. Note that the 2005 USITC Renewable Energy Services study reported that geothermal energy generated 40 percent more electricity than wind technology, suggesting that the wind power sector has grown significantly since then. 100 EIA, Annual Energy Review 2011, 2012, 224. For more information on the solar and wind energy services sectors, see chapters 3 and 4 of this report. 101 IEA, Renewable Energy Essentials, 2010. 5-26 511–518 Source: Compiled by USITC. Geothermal services Project development related services (e.g., geological surveying, site assessment, environmental impact assessment) System design (well design, drilling program design) Operations and maintenance (monitoring, corrective maintenance; possibly preventative or condition-based maintenance) Project development related services (e.g., project management, PPA negotiations, interconnection agreements, permitting) Engineering and construction (e.g., drilling, onsite supervision, electrical connections, substation construction)PDF Image | Renewable Energy and Related Services: Recent Developments
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