Both the number of countries producing geothermal power and the total worldwide geothermal power capacity under development appear to be increasing significantly.
In 2005, there were 8,933 MW of installed power capacity in 24 countries, generating 55,709 GWh per year of green power, according to the International Geothermal Association. IGA reports in 2010 that 10,715 MW is on line generating 67,246 GWh. This represents a 20% increase in geothermal power on line between 2005 and 2010. IGA projects this will grow to 18,500 MW by 2015, which based upon the large number of projects under consideration appears reasonable if not conservative.
According to Bertani/IGA, the countries with the greatest increase in installed capacity (MW) between 2005 and 2010 were: 1) US – 530 MW, 2) Indonesia – 400 MW, 3) Iceland – 373 MW, 4) New Zealand – 193 MW, and 5) Turkey 0 62 MW. In terms of the percentage increase the top five countries were 1) German – 2,774%, 2) Papua-New Guinea – 833%, 3) Australia – 633%, 4 Turkey – 308%, and 5) Iceland – 184%
While power on-line grew 20% between 2005 and 2010, countries with projects under development grew at a much faster pace. GEA reported in 2007 there were 46 countries considering geothermal power development. In 2010, this report identified 70 countries with projects under development or active consideration, a 52% increase since 2007.
Projects under development grew the most dramatically in two regions of the world, Europe and Africa. Ten countries in Europe were listed as having geothermal projects under development in 2007, and in 2010 this has more than doubled to 24. Six countries in Africa were identified in 2007, and in 2010 eleven are found to be actively considering geothermal power. It would appear that efforts such as ARGeo and the European Bank for Reconstruction and Development’s geothermal initiatives are having considerable beneficial effect.
Despite these growth trends, however, the potential of geothermal resources to provide clean energy appears to be under-realized. In 1999, GEA prepared a report that examined geothermal power potential internationally. The results of this report show that in the vast majority of countries the estimated potential remains undeveloped and largely untapped, even assuming the lowest projections for geothermal resource potential. Moreover, the number of countries with geothermal power potential that are not developing their resources is still high. In fact, of the 39 countries identified in 1999 as having the potential to meet 100% of their electricity needs through domestic geothermal resources, significant power production had been developed in only nine — Costa Rica, El Salvador, Guatemala, Iceland, Indonesia, Kenya, Nicaragua, Papua New Guinea, and the Philippines. However, this report identified projects under consideration in another 14 of these countries.
In 2010, global geothermal development is being driven in part by a number of regional institutions which, in addition to financing geothermal projects, are enhancing regional cooperation within an emerging renewable energy sector. Examples include the African Rift Geothermal Energy Development Facility (ARGeo), which underwrites drilling risks in six African nations and is backed by UNEP, and the World Bank and the geothermal initiatives of the European Bank for Reconstruction and Development supported by European Union climate policies.
Geothermal development appears to be increasingly supported by a global financial market. A growing number of countries, including Australia, China, Germany, Iceland, Italy, Japan, and the US, are facilitating geothermal development projects around the world. Forms of support other than financing, including technology sharing, training, and geological surveys are also being endorsed by outside governments.
The growth in geothermal projects under consideration or in development is in part attributable to international and multi-lateral support for development in new areas. The question going forward is whether that support will be sustained over time and adequate to address risks involved in geothermal project development. Geothermal resources are abundant in East Africa, for example, and support for resource assessment has helped spur interest in project development in several countries. But, new projects will have high associated costs and risk factors. Sustained support for development at this crucial stage will be essential to achieving expanded use of geothermal energy in this and other developing areas.
Geothermal development appears to be trending beyond traditional hydrothermal reserves prevalent along the Ring of Fire. Lower temperature power systems and EGS technology are allowing a growing and diversified collection of countries to actively pursue geothermal development in areas previously assumed to have little exploitable resource. This is especially true among European countries, notably France, Germany, Latvia, and the United Kingdom, all of which are currently exploring and developing local resources by employing EGS. These developments are supported by government policies (such as feed-in tariffs), which make higher-risk and higher-cost projects more feasible. These policies are typically components of broader climate initiatives.
District heating and direct use geothermal application appear to be progressively more commonplace in many countries and are being emphasized in a number of national renewable energy policies as effective measures for curbing greenhouse gas emissions.
Around the world, villages and tribes are looking to geothermal as a way to utilize land and become energy independent. Warm Springs Indian Reservation in Oregon, the Northwestern Band of Shoshone Nation in Idaho, and the Jemez Pueblo in New Mexico have shown interest in developing geothermal energy. Additionally, the Pyramid Lake Paiute Tribe is actively developing its geothermal resources and was recently awarded funding from the US Department of Energy. In New Zealand the Te Arawa iwi is examining the possibility on Maori land in Rotorua. In the Philippines, nine of 11 ancestral domain areas consented to the Kalinga geothermal exploration project. And a geothermal plant is expected to open in the small settlement of Innamincka, Australia, in early 2012.
Some Country Highlights
Kenya hopes to be producing 490 MW of geothermal power by 2012 and as much as 4,000 MW within 20 years.
Germany has over 150 geothermal power plant projects at some stage of development, and expects to have over 280 MW on line by 2020 according to the European Commission.
Turkey has a goal to reach 550 MW of geothermal power on line by 2013.
The Philippines now follows the US as the second highest producer of geothermal power in the world, with 1,904 MW. Energy from geothermal power makes up approximately 18% of the country’s electricity generation.
Geothermal power plants provide 26% of the electricity in El Salvador.
Indonesia’s National Energy Blueprint sets a goal of 9,500 MW of geothermal power production, an 800% increase.
Iceland derives 25% of its electricity and 90% of its heating from geothermal resources.
The US continues to lead the world in geothermal electricity production with approximately 3,086 MW of installed capacity from 77 power plants.
Countries Projected to Install Initial Geothermal Capacity by 2015 (IGA)
Argentina, Canada, Chile, Greece, Honduras, Hungary, Nevis, Romania, Spain, Slovakia, The Netherlands
Additional Countries with Identified Projects Under Consideration (GEA)
Algeria, Armenia, Belarus, Bolivia, Comoros Islands, Croatia, Czech Republic, Dominica, Denmark, Djibouti, Fiji, Georgia, Guadeloupe, India, Iran, Ireland, Latvia, Madagascar, Montserrat, Nepal, Norway, Peru, Poland, Rwanda, Saba, Samoa, Serbia, South Africa, Switzerland, Tunisia, United Kingdom, Vanuatu, Yemen, Zambia.
AFRICA
With massive geothermal potential, Africa could see unprecedented growth in geothermal development in the coming decade due to regional support for geothermal power, international financial and development aid, and government commitment to securing reliable energy for growing populations. Geothermal energy is a key resource for African countries along the East African Rift Valley System, a volcanic region with an estimated 7,000 MW of electricity- generating potential.
The African Rift Valley Geothermal Development Facility (ARGeo) is working to assist six member countries, Djibouti, Eritrea, Ethiopia, Kenya, Tanzania, and Uganda, “in accelerating the pace of geothermal resource development in the region.” It is doing so primarily via a Risk Mitigation Facility (RMF) which would serve to mitigate risk associated with geothermal exploration and drilling. High upfront costs and associated risks involved in geothermal development have been daunting barriers to geothermal development worldwide. A regional mitigation strategy is expected open the door to private and public sector funding for power plant development. Geothermal energy is a prominent component of individual energy policies and poverty reduction strategies among countries in the African Rift region, but there has also been a push for “increased regional cooperation, knowledge sharing and mobilization of investment resources” through ARGeo. ARGeo is supposed to work closely with the various government agencies in the member countries, in addition to other national government agencies, institutions, universities, the private sector and power utilities. It currently has not enlisted the participation of the private sector. ARGeo is designed to be implemented by UNEP and the World Bank with financing coming from the Global Environment Facility (GEF) as well as participating countries. Despite the U.S. government’s early involvement in establishing the initiative, the US’ lack of sustained support for and participation in ARGeo has been disappointing to some US companies.
Germany is also heavily involved with geothermal development on the African continent, working with partner countries Eritrea, Ethiopia, Kenya, Rwanda, Tanzania, and Yemen through its GEOTHERM program. The program is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and carried out by the Federal Institute for Geosciences and Natural Resources (BGR) in cooperation with a number of national agencies. The second phase of the GEOTHERM program is in place from 2009-2013.
Another regional development that will influence the geothermal realm is the Eastern African Power Pool (EAPP). Formed in 2005, it is comprised of utility firms from Burundi, Democratic Republic of the Congo, Egypt, Kenya, Ethiopia, Rwanda, and Sudan. EAPP was devised to secure reliable power supply for member countries and to optimize regional energy resources. Within four years, seven Eastern African countries are expected to jointly produce power and connect their supplies. In order to accomplish this, high voltage transmission lines are being constructed between countries; Ethiopia-Djibouti lines are expected to be finished by June of this year.6 Uganda-Kenya lines should be completed by 2012, and Ethiopia-Kenya and Kenya-Tanzania lines are expected to be operational by 2015.
Algeria
Geothermal resources in Algeria are primarily utilized for balneotherapy and thermal resorts, although there has been a recent spike in interest of geothermal aquaculture projects, three sites having already been selected for this purpose. Some direct use application also exists in the country, with at least one school deriving its heating and cooling via a geothermal heat pump.
Geothermal Development Highlights
▪Algeria’s first binary cycle power plant is planned near Guelma.
Comoros Islands
One of the world’s largest active volcanoes, Mount Karthala, is located on Grand Comoro Island, endowing the island nation with ample geothermal resources.
Geothermal Development Highlights
▪In April 2008, the Kenya Electricity Generating Company (KenGen) carried out a nine day reconnaissance survey on Grand Comoro Island, yielding promising results. Comoros recently signed a tripartite agreement with KenGen and Geothermal Development Associates to carry out further studies, develop, and implement a geothermal program.
While the Comoros Islands do not have a formal climate change policy, the nation has undertaken several mitigation and adaptation strategies, focusing especially on reducing dependence on foreign oil imports in favor of cultivating the abundant renewable energy resources on the islands.
Djibouti
The Scientific Research Center of Djibouti (CERD) and Djibouti Electrical Power Company (EDD) have conducted internal studies of the energy and electricity sectors, including geothermal.11 Geothermal power potential is currently estimated to be at least 352 MW in the African country.
Geothermal Development Highlights
▪Djibouti is reportedly working with Reykjavik Energy to plan for a 50 MW geothermal power plant in the Asal area to be completed by 2012. According to additional studies conducted in the Asal region, three independent subfields exist in the area.13 If the plant is later expanded as anticipated, it could generate 100-150 MW electricity from geothermal resources.
Ethiopia
Ethiopia has an estimated geothermal potential as high as 5,000 MW. The regional Geologic Survey has identified sixteen potential geothermal sites that could yield a combined 1,000 MW of electric power to the East African nation. Ethiopia currently generates about 6 MW, or less than one percent of the country’s 730 MW total electricity production, at the Aluto-Langano Geothermal Power Pilot Plant. The Government of Ethiopia and the Ethiopian Electric Power Corporation (EEPCo) are actively encouraging participation from the private sector and international entities to expand the national grid as part of a fifteen-year geothermal resource exploration and development strategy. To this effect, the Ethiopian Ministry of Mines and Energy signed a Memorandum of Understanding with the Japanese Marubeni Corporation to survey the Aluto-Langano Geothermal Area project in Southern Ethiopia. Significant exploration has also taken place at the Tendaho field and in northeastern Ethiopia and, as part of Ethiopia’s long-term electricity development strategy, surface exploration will be conducted at various sites along the Ethiopian and Afar Rifts. Feasibility studies at the Tendaho field project a 20-MW potential. Six additional geothermal projects have been launched, but financing remains a barrier to geothermal development in the country.
Geothermal Development Highlights
▪Expansion work is being considered at the Aluto-Langano Geothermal Power Plant.
▪Geothermal Development Associates (GDA), based in Reno, Nevada worked with the Ethiopian Electric Power Corporation to complete repairs and re-commission the Ormat Energy Converter (OEC) at Aluto-Langano from early 2006 to July 2009.
▪GDA also worked with EEPCO to repair and restart the Geothermal Combined Cycle Unit (GCCU) at the Aluto-Langano in 2007.
▪Plans for future development include the expansion of the Aluto-Langano geothermal power plant to a full 30 MW capacity as soon as possible, followed by the development of the Tendaho geothermal field in 2013. Geochemical monitoring and production testing is in progress at the Tendaho geothermal field; early studies suggest that a pilot power plant could generate about 5 MW with a deep reservoir potential estimated at 20 MW.16
▪The "Geo-scientific Exploration for Development of the Tendaho Geothermal System" project was completed in 2009 by the Geological Survey of Ethiopia and the German Federal Institute for Geo-sciences and Natural Resources (BGR).17
▪Other developments include geoscientific studies and the drilling of temperature gradient wells at Corbetti and Tulu-Moye, detailed scientific studies by the Geological Survey of Ethiopia (GSE) at the Abaya, Fantale, and Dofan areas located on the Main Ethiopian Rift (MER), and reconnaissance investigation at, among others, Teo, Danab, Meteka, and Kone.
National Policies
Ethiopia has devised a fifteen-year government-led geothermal resource exploration and development strategy.
Kenya
Located on the East African Rift, Kenya boasts massive geothermal potential, as high as 7,000 MW by some estimates.19 While financial obstacles have hindered development, geothermal is a primary focal point of the country’s strategy for energy stability. Kenya currently exploits 167 MW of geothermal power at the Olkaria Geothermal Field and is fast-tracking programs to increase the country’s renewable energy capacity, of which geothermal energy resources could contribute 490 MW by 2012.20 According to the state-run Geothermal Development Company (GDC), Kenya is moving to expand geothermal generating capacity by 4,000 MW over the next twenty years. GDC currently reports a total in-development geothermal capacity of 490 MW coming from six geothermal projects in Olkaria and Menengai (where drilling will begin in October 2010).21Construction of four 70 MW geothermal plants in Olkaria and Naivasha commenced in early 2010. The project is the result of a contract between Kenya Electricity Generating Company (KenGen) and Sinclair Knight Merz, a New Zealand Company and, at a cost of US$1.4 billion, it will be financed by a host of development partners including the Kenyan government, the Japan International Corporation Agency, AFT, and the World Bank. Kenya’s largest geothermal power generating project to date, the 280 MW installation project also provides for the construction of substations and the laying of transmission lines and other infrastructure.
Geothermal Development Highlights
▪Ormat Technologies, Inc. completed a 35-MW expansion to its Olkaria III Plant in early 2009, now at 48 MW. In February 2010 Ormat announced plans to expand the plant by up to another 52 MW, which would bring the plant’s total installed capacity to 100 MW. The first expansion is expected to be completed by 2015.
▪Kenya anticipates requiring US$ 992 million to add 600 MW of geothermal power to the national electricity grid over the next three years.
▪German Development Bank KfW is currently building co-financing for development of the Olkaria IV geothermal field.
▪Iceland, KenGen, and United Nations University (UNU) are coordinating to build a regional geothermal training center, an ARGeo project, in Kenya.
▪A small binary pilot plant is planned in the Eburru region.
Madagascar
Eight geothermal sites have been identified in Madagascar and France reportedly intends to finance “a prototype (micro-geothermal) pre-feasibility study for a 50-100 kw facility using a low temperature geothermal resource to supply electrical energy to isolated villages.”
Rwanda
Rwanda has an estimated geothermal potential of more than 300 MW and possesses a high number of geothermal zones. Geothermal resources are seen by the government as an important development solution, serving “to minimize the dependency on energy imports, save foreign currency and create conditions for the provision of safe, reliable, efficient, cost-effective and environmentally appropriate source of energy.”26 Initial exploration is under-way; analyses suggest that geothermal systems exist in Northern and Western Rwanda. Support for geothermal development in Rwanda has come from Germany (BGR) and Chevron in conjunction with the Ministry of Environment and Natural Resources (MININFRA).
Geothermal Development Highlights
▪Further surface studies are planned that will include geological, geochemical and geophysical surveys at two prospects with a view of refining the conceptual model to locate the best targets for drilling exploration wells. The geophysical work will involve electrical resistivity measurements, heat flow studies and microearthquake studies to determine fluid-filled fractures and will take place from July to September 2010. The geological work will involve structural and geological mapping, dating of the rocks, and alteration studies. The geochemistry will involve use of geothermometers to evaluate reservoir temperatures taking into account the unique geology of the western branch of the East Africa Rift Valley.
South Africa
Of the 87 thermal springs that have been identified in South Africa, 29 have currently been developed for direct use, despite abundant and cheap coal supplies hindering interest in researching and developing renewable energy resources.
Geothermal Development Highlights
▪A feasibility study was recently launched to look into power generation from thermal spring binary systems and from hot granite.
Tunisia
Tunisia’s geothermal resources are largely employed for irrigation and direct-use heating of the country’s greenhouses. Pursuant to a 2009-2014 Presidential program, Tunisia plans to double the 194,000 hectares currently used for geothermal farming to 310,000 hectares in 2010.30 Tunisia is ranked third in the world for agricultural application of geothermal resources (the first two positions being occupied by the US and Hungary, respectively). Tunisia’s geothermal development has benefited from foreign investments, which are facilitating the country’s regional development strategy goal of reaching 150 hectares of greenhouses by 2016. Foreign capital is also contributing to executing Tunisia’s 2005 framework policy on energy conservation and renewable energy which, among other objectives, aims to enhance energy capitalization of geothermal waters.
Yemen
Up to 47% of the Yemen Geothermal Development Project is being financed by the Global Environment Facility (GEF) Trust Fund, which aims to “accelerate the exploration and the development of geothermal power use in Yemen.”32 As part of the GEF project, BGR is conducting feasibility studies at Al Lisi.
Zambia
Although Zambia apparently has a number of sites planned for geothermal development, lack of funding is currently prohibiting construction.
ASIA
The great geothermal reserves found in Asia’s eastern countries are part of the Pacific Ring of Fire, where 90% of all earthquakes occur and geothermal power is historically most developed. Geothermal potential also extends west to Central Asia, where many new interests are being explored. Despite the potential, Asian countries have relatively ignored geothermal resources in the shadow of oil development and there is largely a lack of adequate policy framework to promote renewable energy. At the same time, it is due to a history of oil explorations that geothermal resources have been identified. Although geothermal electrical output is not extensive in the region, direct uses are widespread.
Countries covered in this section that currently have producing geothermal power plants are, Tibet, Thailand, and Turkey. Iran appears to have its first geothermal power plant in construction and expected to come on line in 2011. Many others have seen proposals, are in discussions, or are in preliminary stages on geothermal projects.
The Europe and Central Asia (ECA) Geothermal Energy Development Program aims to promote the use of geothermal energy in the region. The program includes technical assistance to remove barriers to geothermal energy growth, direct investment funding to support project developers, and geological risk insurance to mitigate geological risks.
Asia and the Pacific are often grouped together in reference to geothermal energy, but in this document are considered separately. See also the Pacific Islands section of this report for more information on geothermal development on Pacific Islands.
Armenia
Field investigations in 2003-2004 under the Ministry of Energy discovered hot water reservoirs at the Jermaghbyur site in Syunik Marz. Estimates were around US$ 39.1 million for a 25 MW installation at the site; sources now put the output capacity at 150 MW. There is no geothermal electricity currently on line in Armenia.
Geothermal Development Highlights
▪The Jermaghbyur Geothermal Power Plant when completed will be the first geothermal electricity generating plant in Armenia and is expected to have an output capacity of 150 MW.36 ▪In February 2009, the World Bank announced a US$1.5 million grant for comprehensive geothermal field investigation works for the Gridzor, Gegharkunik region and Karkar, Sjunik region sites.37 This is the second grant Armenia has received under the World Bank/GEF (Global Environment Facility) GeoFund program. 38 The field investigation at Karkar and Gridzor geothermal sites will be carried out in two phases: scouting and magneto-telluric (MT) sounding followed by three dimensional (3D) seismic survey. Project cost is expected to be about US$ 60,000.
China
Geothermal energy exploitation in China began around 1970. National investment in geothermal exploration was reduced as the economy was privatized in the 1980s, and the only productive geothermal fields are located in Tibet. In Yangbajain, eight double flash units have a total capacity of 24 MW but are still unexploited. Shaanxi Green Energy’s first district heating project was built in Xianyang in Shaanxi Province and has an installed peak-load capacity of 100 MW, and Time magazine referred to it as the “Rejkyavik of the east.”42 Direct uses in the country have a total thermal installed capacity of 3,687 MW. Geothermal heat pumps were used to heat and cool some of the venues at the 2008 Olympic Games in Beijing.
Geothermal Development Highlights ▪In November 2009 Shaanxi Green Energy signed an agreement with Xiong County, Hebei Province for a new geothermal district heating development project.
Georgia
Most of Georgia’s identified geothermal fields are located in the western part of the country. Direct use purposes use 350 MW capacity with 465 MW of proven reserves.44 These are utilized extensively for purposes such as district heating, greenhouses, fish ponds, agricultural drying, industrial applications, and bathing and swimming. No geothermal power production has been reported.45 In October 2009 USAID announced funding for rehabilitation and expansion of a 9.3 MW geothermal heating and hot water facility.Georgia’s renewable energy efforts are focused on hydropower development.
India
is yet to be any geothermal electricity generated. Over 300 hot spring locations have been identified by the Geological Survey of India, and estimates put India at about 10,600 MW ogeothermal power potential.47 Potential sites have been identified in Puga Valley (J&K), Tatapani (Chhattisgarh), Godavari Basin Manikaran (Himachal Pradesh), Bakreshwar (WBengal), Tuwa (Gujarat), Unai (Maharashtra), and Jalgaon (Maharashtra).
▪Glitnir Bank of Iceland announced exploration in India in February 2008.▪In January 2010, India and Iceland announced a cooperation on geothermal including technologies used in deep drilling, reservoir assessment, and geothermal demonstration power plants.
CENTRAL AMERICA AND THE CARIBBEAN
As is the case in South America, energy demand and consumption is expected to increase throughout Central America and the Caribbean. However, while hydropower provides much of South America’s energy, carbon intensive fossil fuels provide the bulk of electricity in Central America and especially the Caribbean. Indeed, between 1990 and 1999 emissions from energy production in the Central American and Caribbean regions increased 50%.
While many Central American countries produce a significant portion of their electricity from fossil fuels, geothermal energy has played an important role in the energy mix of some of the regions countries. Costa Rica, El Salvador, Guatemala, and Nicaragua all harbor operational geothermal power plants. In Costa Rica and El Salvador geothermal energy comprises, respectively, 13% and 26% of national electricity generation.67 An abundant resource base combined with the desire to increase energy security and address climate change throughout the region have led to the continued development of Central America’s geothermal resources. Costa Rica, El Salvador, Guatemala, and Nicaragua all have geothermal projects in development.
The island nations of the Caribbean Sea are almost entirely net energy importers. As these nations are dependent upon oil imports to generate electricity they are sensitive to fluctuations in the prices of fossil fuels.68 In an attempt to move away from dependence upon fossil fuels, a small number of Caribbean island nations are exploring and developing their geothermal resources with a project currently under development on the island of Nevis.
Costa Rica
Costa Rica has been producing geothermal electricity from units located in the foothills of the Miravalles volcano since 1994. Currently, there are five geothermal units producing 165.5 MW of electricity at the Miravalles geothermal resource, which comprises approximately 13% of Costa Rica’s total installed electricity capacity.70 Geothermal resources in Costa Rica are continuing to be developed in order to bring more clean, baseload electricity to the country’s electricity grid.
Geothermal Development Highlights
▪The 35-MW Las Pailas geothermal project, located at the Rincón De La Vieja Volcano, is in its latter stages of development.71 Recently, Ormat Technologies, Inc. signed a US$ 65 million contract with the Banco CentoAmericano de Integración Económica (BCIE) for the construction of the planned 35 MW Las Pailas geothermal power plant.72
▪In addition to developments at Las Pailas, geothermal exploration and a plant feasibility study have been initiated at the Borinquen geothermal resource in the north of the country.
National Policies
The Costa Rican government has made efforts to expedite the development of geothermal resources there. Recently the Costa Rican Congress introduced a bill that would allow for the development of some geothermal resources located within the country’s national parks.
El Salvador
The Ahuachapán (95 MW) and Berlin (109.4 MW) geothermal power plants supply approximately 26% of El Salvador’s electricity.75 The majority state-owned company, LaGeo, operates the two plants which have a cumulative installed capacity of ~204 MW, making El Salvador the largest producer of geothermal energy in Central America.76 El Salvador has encouraged the development of its geothermal resources as a response to the reliance upon oil imports and the corresponding sensitivity to high oil prices.
Geothermal Development Highlights
▪The Central American geothermal developer LaGeo has engaged in early exploration activities at the Chinameca geothermal resource located in San Miguel. Initial exploration results have been positive and could pave the way for the country’s third geothermal power plant.
Guatemala
Studies of Guatemala’s geothermal resource indicate that the country has up to 4000 MW of geothermal potential, of which a small portion has already been developed for electricity production. 80 Two geothermal power plants currently operate in Guatemala. The Zunil I (28 MW) and the Amatitlan (24 MW) binary geothermal power plants provide a combined 52 MW of geothermal energy to Guatemala’s electricity grid. 81 Interest in developing Guatemala’s geothermal resources continues to grow and the government of Guatemala is eager to encourage the development of geothermal and other forms of renewable energy within its borders.
Geothermal Development Highlights
▪A recent announcement by US-based geothermal developer US Geothermal, Inc. indicates that the company intends to develop known geothermal steam fields southwest of Guatemala City. US Geothermal will build upon previous resource development conducted at the El Ceibillo steam field in order to quantify a MW value for the geothermal resource and complete the eventual construction of a geothermal power plant there.
Honduras
Honduras is a net importer of energy with the majority of its energy consumption needs being met by heavy fuel oil and hydropower.85 While the country currently produces no electricity from geothermal energy, it does harbor lower temperature geothermal resources which provide some opportunity for exploration and possibly development.
Geothermal Development Highlights
▪Geothermal exploration company EGS, Inc. is currently devising a development strategy and performing data analysis in preparation for the possible further development of the Platanares and Azacualpa geothermal fields.
Nicaragua
The electricity production potential of Nicaragua’s geothermal resources has been estimated at approximately 1,500 MW.89 Geothermal development in Nicaragua began as early as 1974 when initial drilling took place at the Momotombo steam field; a geothermal plant was brought on line in 1983.90 In the late 1990’s Ormat Technologies took over operations, repaired equipment, and improved plant capacity, which had suffered.91 The resource has a current installed capacity of 77 MW. Polaris Geothermal developed an additional 10 MW plant, which went on line in 2007 at the San Jacinto-Tizate area.92 A number of companies are in the development of Nicaragua’s geothermal resources.
Geothermal Development Highlights
▪Ram Power, Corp. is in the process of engineering the San Jacinto-Tizate resource in order to increase production from 10 MW to 82 MW. The San Jacinto-Tizate expansion will occur in three phases. The first phase, to be completed in Q1 2011, will expand capacity to 46 MW. The second phase, to be completed in Q4 2011, will expand capacity to 72 MW. The third and final phase will expand capacity to 82 MW.
▪Ram Power and Magma Energy, Corp. won a bid to jointly explore and develop the Volcán Mombacho and Caldera de Apoyo geothermal resources. Under the agreement Ram Power’s subsidiary, Polaris Geothermal Inc. will act as project operator and both companies will share development costs equally.
▪GeoNica (a joint venture between Enel Latin America and LaGeo) has been engaged in a geothermal resource exploration program at the Managua-Chiltepe and the El Hoyo Montegalán geothermal resources.
National Policies
The Nicaraguan government has set the ambitious goal of increasing the country’s renewable energy generation capacity to meet 80% of the country’s electricity needs by 2014. In order to spur the development of geothermal resources the Nicaraguan government has granted geothermal concessions to a number of national and international companies. In 2002 The Geothermal Law to regulate the exploration and exploitation of Nicaragua’s geothermal resources. Requests for bids on any particular geothermal resource area are issued by the Nicaragua Energy Institute.
The Caribbean: Dominica, Guadeloupe, Montserrat, Netherland Antilles (Saba), St. Kitts and Nevis
While the Caribbean islands harbor potentially significant geothermal resources, efforts to develop them to produce geothermal electricity have been minimal. On the French island of Guadeloupe a 15-MW geothermal flash plant meets approximately 8% of the islands electricity demand.97 Challenges to the development of geothermal energy in Caribbean exist. Most of the island countries have not enacted policies promoting the development of their geothermal resources and have limited laws regulating their electricity sectors. Additionally, small island populations result in smaller electricity markets. Little in the way of incentives is offered by the island nations of the Caribbean.
Geothermal Development Highlights
▪Once completed, the power plant (10 MW), located on Nevis, will meet nearly all of the island’s power needs. A planned second geothermal power plant (30 MW) will deliver electricity to St. Kitts via submarine cable.
▪Additional projects are planned for the islands of Dominica, Guadeloupe, Montserrat, Saba, and St. Vincent.
▪West Indies Power is developing the Caribbean Interconnect which will provide power from its geothermal power plants to islands throughout the Caribbean.
EUROPE
Many areas in Europe lack traditional hydrothermal resources currently utilized in geothermal power production, but there is significant interest among European nations to develop EGS technology to tap into the vast hot rock potential available. The European Union (EU) plays a centralizing role in promoting energy development from renewable sources, which has contributed to sustained growth in the geothermal sector, both for direct and district heating, and for electricity production. The European Investment Bank (EIB) has been and will likely continue to be instrumental in pursuing EU geothermal objectives, especially in funding EGS research and development. The EU-funded GEOFAR (Geothermal Finance and Awareness in European Regions) project also serves to develop and promote financing for geothermal projects as part of the Intelligent Energy Europe (IEE) program. The European Geothermal Energy Council (EGEC) has set targets for installed electric power from geothermal capacity at 5,000 MW total for all of Europe by 2020, increasing to 15,000 MW by 2030. The goal for the geothermal sector is to contribute 5% of the total energy production in Europe by 2030.
Iceland
Often considered the model of geothermal development, Iceland continues to grow its geothermal portfolio. With a small population, the country is currently generating 100% of its power from renewable sources, deriving 25% of its electricity and 90% of its heating from geothermal resources.142 Seven geothermal power plants have been constructed in Iceland (six are currently operational) representing 575 MW of an estimated 4,255 MW of installable capacity.143 According to a recently released Iceland Geothermal Energy Market Report, “geothermal power projects represent the majority of planned capacity, or 1,068 MW of a total of 1,658 MW” planned energy capacity installations.
Geothermal Development Highlights
▪Icelandic geothermal producers Hitaveita Sudurnesja and Orkuveita Reykjavikur signed an agreement with Century Aluminum Co. to supply 250 MW geothermal electricity for aluminum production. The project, which will be commissioned in 2010, can be expanded to up to 435 MW. The IGA notes in its 2005-2010 Update Report that “this will be a very efficient way of exporting the surplus of cheap and abundant geothermal electricity production from Iceland.”
▪230 MW geothermal capacity is currently under construction.
Italy
Italy’s major geothermal areas of Larderello-Travale/Radicondoli and Mount Amiata have seen sustained development over the past century. Enel Green Power, wholly owned by Enel Group, operates all geothermal fields in the country. Two additional geothermal power units were commissioned in Tuscany in 2009, bringing the total installed geothermal power capacity in Italy to 843 MW.
In 2010 the country has seen the inception of the Campi Flegrei Deep Drilling Project. In addition to evaluating regional potential for geothermal energy exploitation, the Campi Flegrei project is a broad research program being conducted by the Naples Department of the Italian Institute of Geophysics and Volcanology and various international institutions, including the US Geological Survey. According to some estimates, “given the political will, the fraction of the country’s electricity generated by geothermal could rise five-fold to as much as 10% within the next 10 years.”
Geothermal Development Highlights
▪Projects yielding an expected 112 MW of geothermal power have been approved: four plants in Larderello-Travale and one Bagnore in addition to field development in Piancastagnaio.153
▪Drilling of a 4-km deep well at Campi Flegrei is expected to start later this year. The project will utilize supercritical fluid (water and steam existing simultaneously at high temperature and pressure) and, if successful, each supercritical well drilled could translate into 50 MW geothermal power.
Latvia
Latvia’s capital city, Riga, is looking into developing an EGS pilot project for a petrothermal power plant which would generate between 3 and 4 MW electricity and between 30 and 40 MW for heating.156 While the country currently has no on-line geothermal capacity, Latvia’s total estimated geothermal potential is around 175 MW.157 According to a presentation delivered by Riga’s Energy Agency, EGS technology could be employed to exploit Latvia’s hot dry rock potential where hot water resources are unavailable. Existing feed-in tariffs in Latvia exclude geothermal.
Norway
Geothermal use in Norway has skyrocketed with the installation of 26,000 ground source heat pumps. The country is also exploring the potential EGS within its borders and is planning a demonstration project in Oslo in 2010.158
Poland
Geothermal energy in Poland is currently characterized primarily by heat pumps and balneotherapy, but future prospects include “adaptation of abandoned wells; multipurpose, integrated systems; heat pumps; heat extractions from the underground mines.”159
Geothermal Development Highlights
▪The Lodz City Council and Lodz Technical University signed a deal to develop dual heating and electricity generating project at the University. The Lodz region of Poland has significant geothermal potential and the project currently in-development, which is anticipated to cost around US$ 15.2 million, will provide heat and electricity to a new sports and educational complex, in addition to some existing University buildings. Work on the project was expected to start in late 2009 and to take two years to complete.
Russia
Geothermal resources in Russia are located primarily in the Kamchatka Peninsula and the Kuril Island with a combined potential of up to 2000 MW geothermal power available for electric production.172 Geothermal development for heat supply is planned in the Krasnodar and Kaliningrad Regions.
Geothermal Development Highlights
▪A 6.5-MW binary plant is under construction at Verkhne-Mutnovsky, with a second 100 MW plant under initial development. The projects are located in the Kamchatka peninsula, operated by SC Geoterm. Additional exploration of the high-potential region is expected in the coming years.
▪A 2.5-MW Pauzhetsky binary power plant is being planned in Kamchatka, as is a 12 MW extension to the existing Mutnovsky GeoPP (currently 50 MW).
NORTH AMERICA
A large portion of the world’s installed geothermal generation capacity remains in North America. With approximately 3086 MW of installed geothermal capacity the US is the world’s leading producer of geothermal energy for electricity generation.197 Mexico, with 958 MW of geothermal energy on line, ranks fourth in global installed geothermal capacity.
An abundance of geothermal resources as well as concerns over domestic energy security and climate change have fueled the expansion of the geothermal industry in North America and government has played an important role in facilitating industry growth. In the US the Renewable Energy Production Tax Credit (PTC), provided by the federal government to developers who bring renewable energy projects on line, has acted as a significant driver to geothermal development. Additionally, ambitious state renewable portfolio standards in the Western US have also served as an incentive to geothermal developments in that region.
The geothermal industry continues to develop geothermal resources throughout North America. Not only is there significant development taking place in the US, but Mexico and Canada each have three and six projects under development, respectively. Additionally, the Canadian Geothermal Energy Association recently released its Canadian Geothermal Code for Public Reporting, which will serve to provide transparency, consistency, and confidence in the public reporting of geothermal exploration results.
PACIFIC ISLANDS
Located along the legendary Ring of Fire, the Pacific Islands are host to some of the largest resources of geothermal energy in the world. As much as 40% of the world’s geothermal potential is found in Indonesia alone. The Philippines is one of the highest producers of the energy source, and both Indonesia and the Philippines have each announced separate intentions to become the world leader in geothermal production. New Zealand has several developments and policies to support the development of its geothermal resources. While parts of the Pacific are well-established geothermal development hubs, others are just getting started. Australia has been making political strides and is working on getting its first geothermal power plant on line. Geothermal resources are seen as an answer in combating the high prices of diesel generation, currently the main source of electricity for many Pacific islands. There are many nations in the Pacific with high levels of untapped geothermal potential. KUTh Energy and a few other companies have recently begun explorations on several islands with no prior development – such as Fiji and Vanuatu. The Energy Development in Island Nations (EDIN) is an international partnership between Iceland, New Zealand and the US to further the use of energy efficient and renewable energy technologies in island nations and territories. This effort is based on a study of 20 island nations conducted by GNS Science, New Zealand’s leading earth systems research institute, released in June 2009 and covering 20 Pacific island nations.
SOUTH AMERICA
As a region, South American energy consumption and demand is projected to grow by 60% through 2030.248 In order to address growing energy demand, as well as issues related to energy security and climate change, South American countries are seeking to develop their renewable resources. For countries along the Andean Mountain Range, and especially in the Southern Cone, geothermal resources represent an opportunity to meet energy needs with a clean, baseload, sustainable form of energy.
While no geothermal power plants are currently producing geothermal energy on the continent, certain South American countries, namely Chile and Argentina, are working to encourage geothermal development within their own borders through the implementation of policy measures incentivizing the development of renewable energy resources, geothermal included.
Both local and foreign companies have taken an interest in the development of South America’s geothermal resources. This is especially true in Chile, where local and international mining companies are looking to develop geothermal resources to help meet the electricity needs of their operations. Additionally, shortages of natural gas imports currently undermine Chile’s energy security. The Chilean government has sold a number of geothermal exploration and development concessions to local and foreign geothermal developers in order to address issues stemming from increased energy consumption and demand.249 While Chile stands out as the foremost among South American countries which are actively harboring the development of geothermal energy within its borders, the mining industry and local developers in Argentina are also working to develop geothermal resources there.
www.geo-energy.org/pdf/reports/GEA_International_Market_Report_Final_May_2010.pdf
