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The Values of Geothermal Energy October 2013 Introduction Geothermal power offers both firm and flexible solutions to the changing U.S. power system by providing a range of services including but not limited to baseload, regulation, load following or energy imbalance, spinning reserve, non-spinning reserve, and replacement or supplemental reserve. It is well known that geothermal plants can operate 24 hours a day with a steady output, regardless of environmental conditions, and are not subject to the unpredictability and voltage swings that variable energy resources (VER) face and, hence, can fulfill the necessary role as a renewable baseload power source. As aging baseload fossil fuel plants retire, geothermal plants can provide the generation these plants have historically provided to the power system. Geothermal plants can also ramp up or down quickly, allowing them to adjust to the changing needs of the power system and act as a flexible power source in addition to baseload. The increasing percentage of electricity produced from VER, such as solar and wind, is placing an escalating level of stress on an aging power system designed for fossil fuels. The varying output can cause voltage swings in transmission lines, potentially creating power surges and blackouts. This combination of firm and flexible power positions geothermal energy as an ideal candidate to fill several roles historically performed by emission-heavy fossil fuels, such as baseload, regulation, load- following, and reserve functions typically reserved for coal and/or natural gas plants. In addition to considerable environmental advantages over fossil fuels, geothermal plants generally lack the fuel costs of other baseload sources, or the ancillary and transmission costs associated with variable energy resources that often equate to the long-term stability in energy costs. Looking beyond these specific benefits, geothermal has a number of other attractive features, including: Geothermal power production has a positive impact on local economies, and creates significantly more jobs per megawatt than natural gas. Geothermal power has a smaller land footprint than most other energy sources, particularly when compared with other renewables. Geothermal power has very low emission levels. Binary plants produce near-zero GHG emissions while flash and dry steam plants represent a significant reduction compared to fossil fuel based generation. Geothermal power’s established history of consistent output demonstrates a level of reliability unmatched by other renewables and fossil fuel based generation. Relevant Terms and Definitions Ancillary services are defined by FERC as the services necessary to support the transmission of electricity from a supplier to a purchaser, given the obligations of a control area and that area’s transmitting utilities to maintain reliable operations of the interconnected transmission system. There are six different kinds of ancillary services: scheduling and dispatch, reactive power and voltage control, loss compensation, load following, system protection, and energy imbalance. Balancing Authority Area is a metered segment of the electric power system in which electrical balance is maintained. In a balancing authority area, the total of all generation must equal the total of all loads (as supplemented by electrical imports into and exports out of the area). 4PDF Image | Values of Geothermal Energy October 2013
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