Íslandsbanki Release a New Report on the United States Geothermal Energy Market
Íslandsbanki is proud to release its fifth annual United States Geothermal Energy Market Report.
The last couple of years have proved challenging for the geothermal energy sector in the United States, with a string of negative headlines in 2011 following a year which saw only one new plant coming online. Íslandsbanki, however, perceives this as a temporary setback. The fundamentals of geothermal energy remain strong, and with several projects nearing significant milestones much needed positive news, which should provide momentum, is around the corner.
The key highlight of the report, include:
- The United States is the largest producer of geothermal power in the world with installed capacity of 3,102 MWs or close to one-third of global capacity. Geothermal power represents only 0.4% of electricity generation in the United States.
- There are 170 confirmed projects under development in the United States, with additional 23 projects listed as unconfirmed. The reported maximum development capacity, including unconfirmed projects, is over 5,000 MWs which highlights the vast potential of geothermal energy in the short- to medium term.
- California is the largest state in terms of installed geothermal capacity with 2,566 MWs or 83% of overall capacity in the United States. Nevada and California account for the majority of geothermal development capacity with 2,371 MWs and 1,072 MWs respectively, at various stages of development.
- Calpine is the largest operator of geothermal power in the United States with installed and operating capacity of 1,310 MWs and 725 MWs respectively. The top five companies, in terms of installed capacity, account for 91% of the total geothermal power generating capacity in the United States. Gradient Resources has the largest confirmed geothermal capacity under development, 1,035 MWs. Over 76% of that capacity is at the exploration stage. Terra-Gen is the largest developer of later stage capacity with 200 MWs.
- Íslandsbanki estimates 1,227-1,369 MWs of geothermal capacity additions coming online in the next five years. The capacity additions will require investments of $12 billion, $5 billion of which will be in the form of equity.
- There are currently 8 rigs drilling for geothermal energy in the United States. Íslandsbanki estimates that the geothermal sector will require, on average, 12 drilling rigs in 2012, 16 in 2013, and 20 in 2014 to bring the projected capacity additions online.
The full report is available for download, free of charge, at islandsbanki.is/energy.
Íslandsbanki will present the new report at the Geothermal Energy Expo and GRC Annual Meeting in San Diego, California, October 23-26, 2011. More information on the event is available at:geothermalenergy2011.com and geothermal.org.
Íslandsbanki offers comprehensive financial services to individuals, households, companies, and professional investors. Building on a heritage of servicing the nation´s core industries, Íslandsbanki has developed expertise in two key economic sectors - seafood and geothermal energy.
The nature of geothermal projects demands a thorough understanding of the underlying technical issues and risks. Íslandsbanki employs a group of experts who focus on the geothermal industry. The group is part of the corporate banking unit and handles relations and services for domestic and foreign geothermal energy companies, as well as the publication of research reports.
Over the years, many of the largest and most prominent geothermal companies globally have been valued customers of Íslandsbanki.
For more details, please go to islandsbanki.is/energy.