CHAPTER 9 The Federal Role in Geothermal Resource Development
| Jurisdiction | United States |
(Jan 1977)
The Federal Role in Geothermal Resource Development
Energy Research and Development Administration
Washington, D.C.
The geothermal resources of this nation constitute an enormous physical potential, theoretically almost inexhaustible. With foreseeable technical advances within the next few decades, a substantial fraction of our energy needs could be provided from geothermal resources on an economically competitive basis.
High-temperature hydrothermal resources at accessible depths are estimated to have the potential of providing more than 150,000 megawatts of electric generating capacity. Dry steam hydrothermal resources are already a proven energy source in this country. Liquid-dominated resources are being exploited in seven countries and are on the threshold of commercial utilization in the United States. The longer-term prospects, for later in this century or early in the next century, include utilization of moderate-temperature hydrothermal resources (less than 150C), geopressured, and hot dry rock resources. The potential electric generating capacity for energy recoverable from those resources with technology of the next few energy could be as high as 1,000,000 megawatts. Direct application of these resources for space heating, industrial processing, aquaculture, agriculture, and other uses could be even more significant. The extent to which this potential will be tapped depends on a number of economic, institutional, and technological factors.
The private sector will ultimately determine the extent of geothermal energy use, but its decisions will be strongly influenced by the actions, inactions, and policies of the Federal Government in a number of areas. Federal research and development and incentive programs such as loan guaranties play an obvious role, but policies in such areas as taxation, land management and environmental standards may be even more significant.
It was in recognition of this fact that Congress enacted the Geothermal Energy Research, Development, and Demonstration Act of 1974 (PL 93-410). This Act called for a vigorous national program to bring to commercial application the technologies for utilization of geothermal resources. The Act provided for establishment of an interagency Geothermal Coordination and Management Project to develop and carry out a comprehensive Federal program, coordinating research and development, resource assessment, technology demonstration, and establishment of policies conducive to development. When the Energy Research and Development Administration (ERDA) was created in 1975, the research and development functions of the Project were transferred to ERDA.
Because there remained a need to ensure sound policies as well as to coordinate research and development, the Project agencies formed a group now known as the Interagency Geothermal Coordinating Council. ERDA's Assistant Administrator for Solar, Geothermal, and Advanced Energy Systems chairs the group, which is made up of Assistant Secretary level officials from eight Federal agencies. Besides ERDA, the Council includes the Federal Energy Administration, the Interior, Agriculture, and Treasury Departments, the National Science Foundation, the Environmental Protection Agency, and NASA. The Council has underway a continuing review of Federal policies which serve to expedite or impede commercial
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development. This will be a long-term task, because Federal policies impinge in various ways on every step in the commercial development process. The Council is also coordinating the program responsibilities of the various agencies, so that all the programs are working toward common goals on common schedules.
The components of the Federal program mandated by PL 93-410 include specifically: (1) Resource Inventory and Assessment, (2) Research and Development, (3) Demonstration, (4) Scientific and Technical Education, and (5) Loan Guaranties. Included in the goals of the research and development effort were social, legal, and economic studies for the development of policy conducive to commercial geothermal development. This aspect of the program has developed into one of the most critical. ERDA has taken the lead role in policy development, through the Council and with the blessing of the other agencies on the Council. This aspect will be discussed later in some detail, following a brief description of the program areas.
Program Strategy
The strategy of the Federal program is based upon an interesting relationship between the various resource types. Dry steam hydrothermal resources, already commercial, are quite limited in extent. The near-commercial liquid-dominated hydrothermal resources are more extensive, but limited to an estimated potential of about 150,000 megawatts of recoverable electric potential. Geopressured and hot dry rock resources have substantially greater potential, but will require development of new technology that may take anywhere from 10 to 20 years. Near-normal gradient resources are almost limitless, but would require technological breakthroughs to become economically producible.
The strategy, in its simplest formulation, is to nurture a geothermal industry on hydrothermal resources, while simultaneously improving our knowledge of the extent and characteristics of the various resource types, and beginning the development of technology for the utilization of the more extensive resources. The first element might be termed "institutional development," the second, "identifying the resource," and the third, "technology development."
The objectives of the effort have been expressed in quantitative goals for utilization of geothermal energy. The October 1975 Program Definition Report for the Federal program (ERDA-86) sets a goal of 6,000 megawatts of geothermal electric capacity by 1985, and 39,000 megawatts by the year 2000. Similar goals are established for direct thermal utilization. The establishment of the common goals has provided a framework for scheduling the...
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