The Future of U.S. Geothermal Development: Alternative Energy or Green Pipe Dream?

Jeremiah Williamson, Wyoming Office of the Attorney General

Abstract

As a result of increasing evidence of anthropogenic causes of climate change, federal and state governments enacted policies supporting the development of alternative, lower emission energy sources. These policies led to considerable growth in renewable energy development. Wind and solar energy in particular have led the growth, but neither is able to provide reliable baseload electric power due to their intermittent nature. In this regard, geothermal presents an important component in the creation of a renewable U.S. energy portfolio. Geothermal, like solar and wind, has grown rapidly in recent years, but it remains uncertain whether the recent renaissance in geothermal is a short term boon resulting from policy support, or the beginning of a trend that will continue long into the future. Widely variable resource characteristics, overlapping regulatory regimes, limited financing, policy uncertainty, and inadequate infrastructure inhibit the development of U.S. geothermal resources. While increasing renewable energy demand and the sheer potential of geothermal make the long term economic outlook for U.S. geothermal development appear promising, waning policy support due to fiscal shortfalls may significantly limit the role geothermal plays in the United States’ energy future.