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Drilling a 9,000-foot geothermal test hole in Fallon, Nevada. Photo credit: Andrew Tiedeman Chapter 2 special interests (e.g., homeowners’ associations), or environmental groups, and frequently indicated a lack of knowledge of geothermal development. Project opposition can be minimized where outreach efforts, including education and interaction with interested parties, occur at an early stage (Heitter et al. 2005). Also central to analyzing non-technical barriers is acknowledging the roles that federal and state governments play in the energy sector. These roles include promoting domestic industry; maintaining national security, including energy security; ensuring residential and workplace safety; enforcing legal and transparent business operations; regulating public/ private entities such as utilities or co-ops; protecting the environment; supporting the responsible management and development of national resources; and collecting revenue to maintain and improve infrastructure and to support critical government functions. 2.4.3.1 Non-Technical Barriers: Electric Sector In addition to the lack of social acceptance already noted, the geothermal electric sector is strongly impacted by other non-technical barriers. A 2016 study examining 6.4 GWe of U.S. geothermal electricity projects under development from 2012–2015 concluded that the largest barriers included market conditions (e.g., PPA acquisition), land access and permitting, lack of access to transmission infrastructure, and delays in obtaining project financing (Wall and Young 2016). To evaluate opportunities for increasing geothermal deployment and/or optimizing project development timelines, the GeoVision analysis assessed barriers related to market conditions, land access, lease processing, permitting, and associated regulatory reviews. The analysis integrated feedback from an expert team comprising relevant government agency and industry representatives. The analysis, assumptions, and applications are discussed in Chapter 3 and detailed further in Augustine et al. 2019 and Young et al. 2019. This section provides a summary of non-technical barriers considered for the electric sector in the GeoVision analysis. Power Purchase Agreement Acquisition and Other Market Barriers Utility Procurement Practices: Established utility procurement practices, including those for PPAs, have not historically reflected some benefits of geothermal power. Existing renewable energy procurement processes and related supporting studies and findings often compare generation technologies on a cost-per- kilowatt-hour or capacity basis, for example, using levelized cost of electricity. As generally applied, levelized cost of electricity does not reflect the specific grid attributes of some technologies and is therefore difficult to compare across all technologies (Linvill et al. 2013, EIA 2015). Additional grid integration costs associated with various technologies, such as added transmission capacity or additional power needed to balance the load, are often not taken into account in levelized cost calculations, nor are the costs and impacts from the risks associated with volatile fuel prices. These factors can result in additional, unplanned costs on power suppliers as well as on the supply Chapter 2 | What is Geothermal Energy? 41PDF Image | What is Geothermal Energy
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