Geothermal Energy

Growth in the use of geothermal energy to generate electricity will be modest because most of the known economically viable hydrothermal fields are slowly being depleted from use. Furthermore, the price of electricity being generated from these fields is only marginally competitive with that of electricity derived from other sources. To improve the competitiveness of geothermal power, the Energy Department (DOE) is supporting industry efforts to extend the life of the hydrothermal fields, explore for new resources, and cut drilling costs. Geothermal power production causes fewer, less serious environmental problems than does conventional power production. Geothermal resources suitable for direct-use heating applications offer an environmentally benign resource alternative; however, their growth potential is poor because of the high risk of drilling and the high cost of installation, low price of fossil fuels, and lack of information on geothermal resources located near large cities. Geothermal heat pumps are the most energy-efficient way to heat and cool buildings in most parts of the country. Their wider use could cut energy costs, conserve fossil fuels, and reduce emission. Their use to date, however, has been limited because consumers, contractors, installers, and utilities are unfamiliar with the technology; installation costs are high; and neither DOE nor industry has actively promoted them.

GAO found that: (1) increases in the use of geothermal electricity are limited, since most of the known economically viable hydrothermal fields are in use and production is declining; (2) there is little demand for geothermal electricity and the prices for such electricity are not competitive; (3) the Department of Energy (DOE) is supporting industry efforts to extend the life of hydrothermal fields, reduce drilling and extraction costs, improve efficiency, and explore new resources; (4) geothermal power production causes fewer, less serious environmental problems than conventional methods and its by-products are easier to dispose of; (5) the government has provided technical and engineering assistance, demonstration projects, and loan guarantees for geothermal energy development; (6) direct-use geothermal applications are limited by the high risk of drilling and cost of development, low fossil fuel prices, and the lack of information on geothermal sites near large population centers; (7) geothermal heat pumps are the most energy-efficient, cost-effective, and environmentally clean systems for heating and cooling buildings in most areas, but their use has been limited due to consumers' unfamiliarity with the technology, high installation costs, and the lack of promotion by DOE and the industry; and (8) geothermal heat pumps could save billions of dollars annually in energy costs and substantially reduce pollution if they are installed nationwide.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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