California State Profile
Background
California is the national leader in the use of geothermal energy for electricity generation, with geothermal power making up nearly seven percent of the state's total power production output in 2003. California also leads the nation in the overall use of renewable energy sources, of which geothermal energy represents 22 percent of the state's total renewable market, second only to conventional hydropower. On a global scale, about 40 percent of the total worldwide geothermal power production takes place in California. The state's 41 geothermal power plants have a combined production capacity of approximately 1,900 MWe (megawatts of electrical power) — enough to supply nearly two million typical households! In addition, California's thermal waters are used directly for various heating and recreational applications.
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Current Development
Geothermal resources in California range from low-temperature (below 100°C) liquid-dominated systems to high-temperature (above 150°C) systems and "dry steam" reservoirs. Low-temperature hydrothermal resources are useful for applications in which energy is transferred directly from thermal waters via piping or heat exchangers for purposes such as space heating or agricultural processing. Moderate- to high-temperature hydrothermal resources are used for electrical power production, while "dry steam" refers to a high-temperature reservoir in which water exists predominantly in the vapor state. The Geysers, a geothermal resource area located in northern California, is the location of one of the world's rare occurrences of a dry steam hydrothermal reservoir. As the largest known occurrence of dry steam, the Geysers is the site of the world's largest geothermal power complex with 21 plants producing about 750 MWe of electrical power. California's other geothermal power plants are located in the Imperial Valley east of San Diego, near Bakersfield at Coso Hot Springs, near Susanville at Amedee/Wineagle, and at the Mammoth Lakes area in Long Valley.
California's power production capacity is increasing with multiple projects at various stages of development, from resource investigation to plant construction. The Northwest Military Pass Project near Hotlum in northern California will result in the construction of an initial 30 MWe unit and future expansion possibly reaching the site's estimated development potential of 120 MWe; a power purchase agreement has been established between the project developer (Vulcan Power) and the Pacific Gas and Electric Company for purchase of the initial 30 MWe output, up to 120MWe. Construction is taking place at the Salton Sea geothermal resource area to add a 25 MWe unit, anticipated to begin production by 2008. Additional production capacity of approximately 450 MWe is projected for near-term development at other locations, including Surprise Valley in the north and East Mesa in the south.
California's power production capacity is increasing with multiple projects at various stages of development, from resource investigation to plant construction. The Northwest Military Pass Project near Hotlum in northern California will result in the construction of an initial 30 MWe unit and future expansion possibly reaching the site's estimated development potential of 120 MWe; a power purchase agreement has been established between the project developer (Vulcan Power) and the Pacific Gas and Electric Company for purchase of the initial 30 MWe output, up to 120MWe. Construction is taking place at the Salton Sea geothermal resource area to add a 25 MWe unit, anticipated to begin production by 2008. Additional production capacity of approximately 450 MWe is projected for near-term development at other locations, including Surprise Valley in the north and East Mesa in the south.
Proposed Development
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It has been estimated that the majority of California's geothermal potential has yet to be developed for beneficial purposes. The Western Governors' Association Geothermal Task Force has projected up to 2,400 MWe of additional power production capacity for potential near-term development. The direct use of geothermal resources is also expanding in California, as proposed projects include a district heating system in Mammoth Lakes, and greenhouse and aquaculture facilities throughout the state.
Economic Benefits
Businesses and municipalities in California take advantage of the energy cost savings possible through the use of geothermal energy, while greenhouses, fish farms, resorts, and power plants provide hundreds of jobs and boost local economies. Additionally, state and county governments receive several million dollars in revenue from the return of royalty payments made by geothermal facility operators to the federal government for the use of geothermal resources on federal lands. A portion of this funding is used to support the California Energy Commission's Geothermal Resources Development Account, which provides financial assistance for geothermal research and project implementation.
Technical Capabilities
California universities, state agencies, and private firms contribute technical capabilities to the local and national geothermal communities. The California Energy Commission maintains databases of geothermal resource information, and produces numerous reports on state resources and development opportunities.
Incentives
With the passage into law of the Energy Policy Act of 2005, the national Production Tax Credit (PTC) was extended to include geothermal facilities in operation by January 1, 2008. The PTC is an incentive of 1.5¢ per kWh for electricity produced from renewable sources during the first ten years of a new facility's operation.
California has also established a Renewable Portfolio Standard (RPS) that requires utilities to increase their purchase of electricity generated with renewable energy sources by 2 percent annually (beginning in 2003), so that power production from renewable resources represents 20 percent of retail sales by the end of 2010. Geothermal energy is an eligible renewable resource under California's RPS.
State Working Groups
Geothermal State Working Groups are networks of individuals typically including geothermal developers, utility representatives, local officials and policymakers, and other energy stakeholders within a given state or region. Geothermal State Working Groups are sponsored by the U.S. Department of Energy's GeoPowering the West Initiative and often work in conjunction with the State Energy Office of the group's respective state to accomplish networking conferences, analyze regulatory issues, and assess the progress of local geothermal projects.
California has established a Geothermal State Working Group with leadership from the California Energy Commission. The California group brings together state and regional energy professionals for workshops and other outreach activities. A geothermal industry summit was held in Sacramento in 2004, during which geothermal stakeholders examined opportunities for further development in relation to California's RPS legislation, as well as grid interconnection and industry partnership topics.
List of Projects
Detailed descriptions of California's geothermal power plants, direct-use applications, and pools/spas can be found at the Oregon Institute of Technology's Geo-Heat Center website: http://geoheat.oit.edu/state/ca/ca.htm.
State Contacts
California Energy Commission
Geothermal Program
Elaine Sison-Lebrilla
Tel: (916) 653-0363
California Geothermal Energy Collaborative
California Geological Survey
California Department of Conservation
Calpine Corporation
The Geysers Geothermal Complex
Lawrence Berkeley National Laboratory
Earth Sciences Division Geothermal Program
California Public Utilities Commission
The Governor's Clean Energy Green Team
Bureau of Land Management
California Office
National DOE Contacts
U.S. Department of Energy
Curtis Framel
Senior Energy Project Officer
Golden Field Office
Golden, Colorado
(303) 275-4872
U.S. Department of Energy
Sandy Glatt
Senior Energy Project Officer
Central Regional Office
Golden, Colorado
(303) 275-4857