Geothermal Energy is Becoming One of the Fastest Growing Renewable Energy Sources

As far as renewable energy sources go, geothermal power has been gaining ground within the last couple of years as various countries around the world begin to pay more attention to where their power comes from. According to a study conducted by the Geothermal Energy Association, 24 countries around the world use geothermal power as a source of renewable energy, with an estimated 70 more countries developing geothermal power projects around the globe. In the U.S. alone, the current largest producer of geothermal energy in the world, 77 geothermal plants are operating while 24 states are making plans to develop geothermal plants within the next several years.

Recently, Alaska opened up its borders with more friendly geothermal power tax laws than they had previously levied against the renewable energy source. Before the change in policy, any geothermal plant built on state owned property faced tax royalties in excess of 10-15% of their profits. Under the new legislation, Alaska hopes to bring in more renewable energy business by lowering the royalty to 1.75% of gross revenue for the first ten years of production. After the first 10 years the royalties will be increased to 3.75%, slightly higher, but still significantly more reasonable for the renewable energy business than previous rates.

Alaska's decision to cut back on the royalties also seems to be in line with the U.S. government's own plans to push the development of renewable energy sources and geothermal power in the country. The U.S. Department of Energy is currently one year into its multi-year plan to research and develop geothermal energy in the U.S. by 2015, with further planned development currently going as far as 2025. One of the programs most ambitious goals, aside from making geothermal power a viable form of renewable energy, is to develop technology that would allow us to drill nearly 10,000 feet into the Earth's crust to find larger pockets of geothermal heat. The Department of Energy is also quick to point out that the adoption of geothermal power would significantly lower the amount of carbon emissions given off by the majority of our traditional coal based power systems still in operation.

With backing by Department of Energy many geothermal power research and development companies also believe they can achieve more in making geothermal power a viable renewable energy. Awards and loans in particular are crucial in moving companies from the research stage, where a site is selected and tested, to the construction of a full geothermal power plant. Just yesterday, Secretary Steven Chu of the Department of Energy announced that the U.S. government would be committing to a $98.5 million dollar loan to Nevada Geothermal Power Company to build a geothermal power plant. Once completed the plant will be producing and selling power in the region of Nevada that it is based in.

Although the U.S. is the current leader in the development of geothermal power as a renewable energy source other countries in the world are quickly trying to catch up. Yesterday, it was announced that Kenya had received funding to build two brand new geothermal power plants, while Germany was proclaimed the fastest growing geothermal country in the world in 2009. With geothermal power quickly gaining purchase, its status as a viable renewable energy source in the future is definitely secure.

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