Clean Energy in 2012: Geothermal progression

In this series, the RGJ examines key economic indicators for the region in 2012. Find previous stories in the series at rgj.com/business.

BY JASON HIDALGO
jhidalgo@rgj.com
It was good to be green for Northern Nevada in 2011.
Despite high unemployment and challenges in the real estate market, the renewables sector posted several positive milestones in the last year.
Geothermal had an especially good showing. The University of Nevada, Reno snagged the first-ever National Geothermal Academy program in the country, bringing people from around the world to UNR this summer. In August, Reno became the site of the Geothermal Energy Association's first National Geothermal Summit, further increasing the area's profile.
As of early 2011, Nevada's 21 operating geothermal power plants comprised a total operating capacity of 441.8 megawatts. However, more than 80 potential projects in the exploratory, planned or construction phases could boost capacity as high as 3,686 megawatts in the state. This would eclipse California's more than 2,500 megawatts of installed capacity. Total U.S. geothermal capacity currently is a little over 3,000 megawatts.
Add plans by Truckee Meadows Community College to add curriculum for geothermal, solar and wind, along with the ongoing research being done in the state, and renewables are expected to continue their strong showing in 2012.
"Ten of the innovative and cutting-edge geothermal research and demonstration projects are located in Nevada," said Paul Thomsen, public policy manager for geothermal company Ormat Technologies. "These projects will create 350 high-quality drilling and research jobs once the research and demonstration projects are fully executed."
Key challenges include a more difficult funding environment due to federal budget cuts and the global financial crisis. This is especially impacting geothermal projects, which are considered more high risk than solar or wind projects. Nevertheless, the area is on the right track for renewables, said Jason Geddes, City of Reno environmental services administrator.
"The economy continues to be a challenge overall," Geddes said. "But I think we have an opportunity to attract more (renewable) companies here."

EXPERT OUTLOOK
Our area has seen significant improvement in renewables in the last few years. Reno, for example, was named one of the greenest communities along with San Francisco and Portland, largely due to our energy efficiency and use of geothermal. ? The economy continues to be a challenge overall, but I think we have an opportunity to attract more companies here, especially with geothermal, and expand that cluster. We already have 12 different geothermal companies here so that has certainly raised awareness about our area. Northern Nevada alone will have five more geothermal plants opening up in 2012 for another 200 megawatts of energy. The school district is also moving forward with an additional 1 megawatt worth of solar, and you've got wind turbine projects within the city as well. I expect more renewable development to go on in 2012.
?"? Jason Geddes, Environmental services administrator for city of Reno

2011 was a banner year for the geothermal industry in Nevada. Ormat continued to develop projects that will generate approximately 120 megawatts of clean, renewable electricity that will assist NV Energy in meeting its renewable energy portfolio requirements. I believe new geothermal power projects will continue to be placed in service, and we expect a significant number of new projects will be completed before the December 31, 2013 production tax credit deadline. ... Key challenges for the sector include long lead times for geothermal projects, which increase developer risk, increase project and consumer costs, and delay geothermal power project timelines. Streamlining the geothermal permitting process without compromising environmental integrity will enable the industry to expedite the construction of many geothermal plants, while affording an opportunity to create jobs, build partnerships and foster innovation across a number of sectors.
"? Paul Thomsen, Ormat Technologies public policy manager

This past year we saw a lot of forward movement for renewable energy companies in Nevada, from the production of energy, manufacturing and education. ? The Legislature didn't make any changes to programs and incentives that help lure developers to the state, sending a positive message that when it comes to renewable energy in Nevada, we're open for business. I think we will continue to see a lot of homes and businesses look to renewable sources for their energy needs. If we can prove to manufacturers that there is a viable market in Nevada, they will look to locate here and bring good paying jobs and research and development dollars that are key to a successful green economy. The biggest barrier to further proliferation of development is transmission. We must find ways to deliver the energy to our biggest and best customer, California.
"? Tom Clark, Holland & Hart renewable energy lobbyist

Source: http://www.rgj.com/article/20111230/BIZ/112300326/1071

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