Geothermal power and heat can play an “important role” in the US’s future energy mix, despite marginal gains in installed capacity over the last five years, says the US Department of Energy’s National Renewable Energy Laboratory (NREL).

A photo of Yellowstone National Park taken in May 2016. The park, which extends across three US states, is a hotbed of geothermal activity. (Mladen Antonov/AFP via Getty Images).

A report published in July 2021 by the NREL shows geothermal power capacity only increased from 3.627GW to 3.673GW between 2015 and 2019.

Seven power plants were brought online during the period, adding 186MW of capacity. However, this was offset by 11 plants (103MW) that were retired or classed as non-operational.

The report attributes geothermal energy’s slow growth to high costs. The levelised cost of geothermal energy is around $59–101 a megawatt-hour (MWh), compared with under $54/MWh for utility-scale solar PV and onshore wind, and $44–73/MWh for combined-cycle gas plants.

Policies to reduce the capital risk of projects, as seen in Europe and Asia, are effective in encouraging investment in geothermal energy, but such schemes are not available in the US, notes the report.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.