Geothermal energy is a form of renewable energy that uses the Earth’s heat to produce electricity. The heat is generated by the natural decay of radioactive materials in the Earth’s core and mantle. Geothermal energy production has many benefits, including reliability, renewable nature, and low emissions. In recent years, policymakers have recognized the need for increased geothermal energy production and have implemented policies to drive growth in this sector.
The Climate Crisis
The primary driver for geothermal energy production is the climate crisis. As the Earth’s temperature continues to rise due to greenhouse gas emissions, policymakers are seeking solutions to reduce carbon emissions. Geothermal energy is a clean energy source that produces fewer emissions than traditional fossil fuels. By increasing the production of geothermal energy, policymakers hope to mitigate the effects of climate change.
Energy Security
Another driver for geothermal energy production is energy security. Traditional energy sources such as coal, oil, and natural gas are finite resources, and their production is subject to market fluctuations and geopolitical instability. Geothermal energy, on the other hand, is a domestic, renewable energy source that can provide stable and reliable energy for the long term. Increasing geothermal energy production can increase energy security by reducing the country’s dependence on foreign oil and gas.
Economic Benefits
Geothermal energy production can also provide economic benefits to both the government and the private sector. The government can create jobs in the geothermal energy sector by providing incentives for geothermal exploration and development. The private sector can benefit from increased access to a domestic, renewable energy source. Additionally, geothermal energy production can reduce the country’s trade deficit by reducing the need to import energy from foreign sources.
Technology Advances
Advances in geothermal technology are also driving increased production. As technology has improved, geothermal energy production has become more efficient and cost-effective. The development of enhanced geothermal systems (EGS) has also expanded the potential for geothermal energy production. EGS involves drilling deep underground and injecting water to create steam to turn turbines. The technology is still in the early stages, but it has the potential to greatly increase geothermal energy production.
Policy Solutions
To drive geothermal energy production, policymakers have implemented several policy solutions. One of the most significant is the Investment Tax Credit (ITC) for geothermal energy. The ITC provides a tax credit of 30% for renewable energy projects, including geothermal energy, that begin construction before the end of 2023. The ITC has been instrumental in the growth of the geothermal energy sector, providing incentives for investors and developers to pursue geothermal projects.
Another policy solution is the Department of Energy’s Geothermal Technologies Office (GTO), which oversees research and development in the geothermal energy sector. The GTO provides funding, technical support, and coordination of research and development activities to promote the growth of geothermal energy production.
In addition to these policies, states have implemented their own policies to promote geothermal energy production. For example, California has implemented the Renewable Portfolio Standard (RPS), which requires that a certain percentage of the state’s energy come from renewable sources, including geothermal energy. Other states have implemented feed-in tariffs, net metering, and other policies to incentivize geothermal energy production.
Conclusion
Geothermal energy production has many benefits, including reducing carbon emissions, increasing energy security, providing economic benefits, and promoting technological advancements. Policymakers have recognized these benefits and have implemented policies to promote the growth of the geothermal energy sector. The Investment Tax Credit, the Geothermal Technologies Office, and state-level policies are all contributing to increased geothermal energy production. As technology continues to improve and policies continue to drive growth, geothermal energy production will become an increasingly important part of the country’s energy mix.