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Geothermal Energy Development 1

Geothermal Energy Generation

at the Community Level Briefing Paper Six of

Black, Brown and Green

65 Broadway, Suite 1800, New York NY 10006 | (212) 248-2785

www.centerforsocialinclusion.org

FOR IMMEDIATE RELEASE

For more information, contact:

Mr. Denis Rhoden Jr. M.B.A, AICP The Center for Social Inclusion

New York, NY 10006 [email protected] 646.442.1457

Ms. Jeanne Baron The Center for Social Inclusion

New York, NY 10006 [email protected] 646.442.1454

December 2009


Table of Contents Renewable Energy is Black Brown and Green................................................................3

Environmental Overview ............................................................................................4

Technology Prospects................................................................................................5

Why Distributed Generation Works for Communities.....................................................6

Geothermal as a Distributed Generation Source............................................................9

Community Commercialization................................................................................. 12

Opportunities ......................................................................................................... 12

How Policy Can Help Communities ............................................................................ 13

Suitability............................................................................................................... 15

Entry Risks ............................................................................................................. 15

Build Out Costs ....................................................................................................... 17

Hurdles .................................................................................................................. 19

Looking Ahead........................................................................................................ 21


Renewable Energy is Black Brown and Green Black, Brown and Green, a program of the Center for Social Inclusion, explores the

economic opportunities and hurdles for green business models in communities of

color. Black Brown and Green offers resources to communities and companies to

help them identify their needs and develop a strategy for entering the Green

Energy Sector.

Policy makers, investors and stake holders need a firm grasp of business structures that protect

community control and provide ownership opportunities. They need strategies for raising the

right type and levels of capital, and they need knowledge of accessible technology. Control and

ownership of the green energy supply enables communities of color to share in the

tremendous economic potential of the green energy market and adds depth to the broader

economy.

Businesses and communities must lay a foundation for future success, one that strengthens

individual and community prospects today. The sixth and final paper in our series, Geothermal

Energy Generation at the Community Level, explores factors influencing geothermal energy

production today, from environmental conditions and economic changes to current policy and

available technology.

About CSI The Center for Social Inclusion is a national policy advocacy organization with the goal of

building opportunity for all by dismantling structural racism. We conduct applied research,

support the development of multi-racial alliances, and develop transformative policy models.

Policy makers,

investors and stake

holders need a firm

grasp of business

structures that protect

community control


Environmental Overview Geothermal energy originates from minerals below the surface of the Earth and from solar

energy absorbed at the surface.1 Geothermal resources range from shallow ground, to hot

water and rock several miles below the Earth's surface, and even farther down to the extremely

hot molten rock called magma.2 Geothermal has a long history of providing for our heating

needs and is increasing in popularity as a source for generating electricity. Geothermal energy

is attractive as a renewable source because it emits little or no greenhouse gases and is

essentially on-demand.

The maps of the United States (shown below) represent the availability of geothermal energy

for heating or in electricity generation. Nearly every area is capable of using geothermal

energy for heating and cooling applications. The most active geothermal resources are usually

found along major plate boundaries where earthquakes and volcanoes are concentrated.3

1 Wikipedia

2 Department of Energy, Geothermal Technologies Program

Figure: U.S. Geothermal

Resource Map


Technology Prospects Heat flows constantly from its sources within the

Earth to the surface. Total heat loss from the

Earth is 42 terawatts. One terawatt (TW) = 1

billion kilowatts. The U.S. Geological Survey

estimates the United States possesses 350,800

megawatt-hours (MWh) of geothermal

resources, enough to satisfy 10% of current U.S.

electricity demand using existing technology.

Even though the EPA has called geothermal

energy the most efficient, environmentally clean

and cost-effective approach to energy

generation, it accounts for less than 1% of

power generation in the U.S.

There are three forms of geothermal energy generation currently available in the US.

• Direct-use geothermal systems–This technology is applicable in select parts of the

country, generally the western US (areas rated with at least “medium” potential in the

map above). These systems operate by drilling a well into a geothermal reservoir to get

a steady stream of hot water. The hot water delivers heat directly for its intended use–

heating buildings, raising plants in greenhouses, drying crops, or industrial processes.

• Geothermal power plants–This technology is applicable to an even smaller segment of

the country than direct-use geothermal systems (areas rated with a “high” potential in

the map below above?). Currently California, Hawaii, Nevada, and Utah have

geothermal power plants. Most common is flash steam technology, a deep well is

drilled and the steam accessed directly drives a conventional turbine to produce

3 Energy Information Administration

Figure: Geothermal Heating Pump Diagram


electricity. The capital and expertise required to build a geothermal power plant make it

an unlikely candidate for community development.

• Geothermal heat pumps (GHPs)–This technology can be utilized in almost all areas of

the US, with the exception of where there is tundra ground cover. Geothermal heat

pumps can be used in residential and commercial settings for space heating and cooling

as well as water heating. A geothermal heat pump transfers heat from the ground into

a building during the winter and into the ground from the building during the summer.

The heat pump consists of pipes buried underground near the building. Fluid is

circulated through these pipes to absorb or radiate heat from or to the ground. GHPs

provide more than three times more energy than they consume.4

Why Distributed Generation Works for Communities Today’s energy supply is often generated in large facilities and flows in one direction, from

central power stations to transmission and distribution facilities and then to consumers (see

graphic).

Changes in technology, consumer preferences, and recent regulation are changing this

structure. Distributed Generation is an emerging framework driven by the ability of small

operations, even individual households, to generate, use, and sell energy. This approach to

harnessing and distributing energy from many small energy sources is fueling new market

opportunities and enhanced industrial competitiveness.5

4 Energy and Geosciences Institute at the University of Utah

5 European Union, Energy Research


Distributed Generation is a powerful model that raises

an important question: How can consumers also act as

fuel producers? There is more than one answer to this

question, and each raises the prospect of new social

and economic relationships that have the potential to

bring structural changes, improve infrastructure,

increase wealth and promote greater political

interdependence between communities of color and

the larger regional economy.

The energy independence associated with distributed

generation makes possible a host of potential

benefits. Researchers have calculated an estimated

30% savings on electric bills6 from shorter distribution

routes alone. Fewer large centralized plants reduce the number of expensive high-voltage

lines.7 Fewer and shorter lines will result in less land appropriated to host power lines freeing

land for conservation and other uses. Reduced reliance on existing technology can decrease

congestion on the transmission grid.8

Over time the costs of distributed generation will be much lower, but direct costs include

outlays for equipment, installation, fuel operation and maintenance (O&M) expenses, and

utility fees9 In a recent article published by VentureBeat, the CEO of EcoVolve said “a

distributed energy system has the advantages of being more efficient, low maintenance, less

carbon-intensive and, most importantly, cheaper.”10 Critically important from an ongoing cost

6 Ibid

7 Definition used in this report for the term Distributed Generation can be found on Wikipedia

8 Windustry.org

9 Congressional Budget Office. Prospects for Distributed Electricity Generation. 2003

10 Jacquot, Jeremy “Distributed energy is the future of renewable energy production, says Ecovolve” VentureBeat

October 2, 2009.

Source: European Union, Energy Research


perspective, distributed generation “does not require an army of engineers” to achieve

economic viability for a generator of any scale.

For many communities, particularly communities of color, lack of homeownership and the

upfront costs of distributed generation are often significant barriers to the environmental and

economic benefits of green energy. Federal, state and municipal governments are offering tax

credits, rebates, incentives and grants, but under the most optimal cases these incentives are

simply insufficient to cover the costs of purchasing or installing a wind or solar system for on-

site use.11

Advocacy groups like Windustry and PaceNow (creator of the Property Assessed Clean Energy

Bond) are encouraging property tax financing programs to cover some or all of the costs of

installing or upgrading an energy generation system. This type of financing offers several

major benefits:12

• First, access to credit can help cover much of the upfront costs, and during tough

economic times this program offers an alternative to people who cannot tap into home

equity lines or gain low-interest personal loans.

• Second, the obligation to repay the loan stays with the property. Therefore, payments

become the responsibility of whoever owns that property and is benefiting from the on-

site electricity generation.

These models are an important step to increase access to the renewable energy sector. Yet,

based on historic homeownership trends and current conditions, it is clear more must be done

11

Detailed information found at Windustry.org “Property Tax Financing Authorization”

http://www.windustry.org/property-tax-financing-authorization 12

Ibid

Distributed generation provides new roles for communities

to preserve and increase social equity, environmental

quality, energy independence and wealth.


about the rising number of homes lost to foreclosure in order to prevent homeownership from

becoming a bottle neck to the benefits of distributed generation.

There are a number of arguments for and against renewable generation at community level

and there are arguments for and against centralized large scale generation (see table).

Central versus Distributed Generation approach

Distributed System

Pro Con

� Low transmission or distribution losses

� Can operate with or without connection to the

transmission grid; Supports micro-grid

systems

� Expand business opportunity, technology and

policy innovations into communities at the

local level

� Few accessible tools to promote greater

individual responsibility

� Ownership rights over wind, solar,

waste resources is unclear

� Lack of standards for quality and

cooperation

Central Systems Serving Community

Pro Con

� Facilities and policy infrastructure are well

understood by the industry

� Reliable supply and established monitoring

protocols

� Clearly defined industry participants

� Transmission and distribution losses

� Dependence on imported fuels

� Environmental impact of GHG and other

pollutants

� Ongoing maintenance and upgrade

expense for transmission and

distribution facilities

Geothermal as a Distributed Generation Source While some geothermal technologies such as Enhanced Geothermal Systems (EGS) are just

beginning to be developed, other technologies, such as Geothermal Heat Pumps, are mature

and low risk. While not technically generating power, geothermal heat pumps reduce heating

and cooling electricity demands by 30-70% and 20-50% respectively. Because heating and


cooling account for 56% of energy use in a typical home, the adoption of geothermal heat

pumps represents a significant opportunity for utilizing renewable resources.13

A variety of communities and facilities are increasingly attracted to the economic and

environmental benefits of GHP compared to conventional heating ventilation and air

conditioning (HVAC) systems. The U.S. has the largest concentration of geothermal heating

pumps (over 1 million) than anywhere else in the world.14

Community scale geothermal power generation is expected to see a significant boost over the

next few years, according to the recent market trend report published by the Department of

Energy. Small, low-temperature power generation units began to account for a significant

portion of the overall geothermal market, a trend expected to continue for at least the next

several years. Modular low-temperature electricity generation units gained popularity15

Case Examples

The following three examples showcase different approaches to developing geothermal

energy production at the community level.

Feather River College (Quincy, California)

Feather River College had heating and cooling costs of approximately $190,000 annually. The

college decided to install GHPs in four buildings. The system consists of 24 individual pumps

which allow separate areas to be heated and cooled independently. Princeton Development

Corporation underwrote the project’s costs while funding came from the California Energy

Commission, the California Community Colleges, the National Geothermal Pump Consortium,

long term debt financing, and 3rd party financing. The project cost $512,000, of which roughly

$295,000 was heat pump equipment costs. The system became operational in 1998, and the

13

Department of Energy 14

Department of Energy 2008 Geothermal Technologies Market Report July 2009 15

Ibid


college saves approximately $50,000 per year in energy costs. According to industry source the

useful life of a GHP system is twenty years.

Austin Independent School District (Austin, Texas)

Since 1989, AISD has installed GHPs in 54 of their 100 schools. Energy savings on an annual

basis are estimated to be 25% and ventilation rates per student are more than double the

systems they replaced. The retrofit was done one class at a time while school was in session.

For the retrofit of a 90 ton capacity elementary school the following costs were incurred:

Heat Pump $92,000

Loop Wells $96,000

Other/Installation $86,170

Utility Rebate ($2K per kW) $5,470

Total $268,700

Mixed-use buildings (New York, New York)

In 2003, a developer decided to install GHPs in 5 buildings in Tribeca. The GHP system was

considered an improvement over traditional HVAC because it conserves space (the equipment

can be kept in the basement) and it is less noisy. The builders had to apply for oil and gas well

permits before the eight inch holes for the geothermal pipes could be drilled. This attracted

the attention and support of the EPA, which is credited for pushing through the application to

get the wells approved. The system required drilled holes, approximately 1,200 feet deep,

which pushed through 100 feet of dirt and 1,100 feet of bedrock. The most difficult part of the

installation was complaints from neighbors regarding the noise of the drilling, which took 28

days to complete.

This project is not unique. Over 100 permits for geothermal wells have been filed with New

York City’s Department of Environmental Conservation over the past eight years. Over 35

GHPs are in operation in Manhattan.


Community Commercialization

Our analysis of suitability and entry risk of different renewable energy technologies takes into

account the expertise required, availability of turn-key technology, environmental impact,

financing models and conditions in the energy market. We rank the findings of our analysis on

a scale of “Low”, “Moderate” and “High.” We have determined that geothermal

commercialization at the community scale has a moderate suitability rating for communities of

color and a moderate level of entry risk to businesses interested in entering this segment of the

market.

Opportunities • GHP systems are ready for communities to use. Installation of GHP systems reduces the

exposure of residents, school systems, businesses, and municipalities to the volatility of

fossil fuel prices and thus provides a boost to operational budgets. GHPs can be used in

a wide variety of applications, including residential, commercial, institutional and

multifamily buildings.16 Currently, GHP shipments are fairly evenly divided between

residential and commercial building applications. GHPs were installed in one out of

every 38 new U.S. homes in 2008 and the retrofit market for schools has grown

substantially. There are currently more than 600 schools with GHP systems.17

• Binary cycle technology is enabling smaller-scale geothermal electricity generation in low

temperature areas. In a binary cycle, the heat from geothermal process is transferred to

another fluid that vaporizes at a lower temperature and higher pressure than water.

16

Department of Energy 2008 Geothermal Technologies Market Report July 2009 17

Ibid

MODERATE

Community

Entry Risk:

MODERATE

Community

Suitability:

MODERATE


The vapor from this second fluid drives turbine generation. Commercial binary plants

are capable of producing an estimated 200-280 kW to more than 100 MW.

• Established solar and wind projects provide useful models for structuring equity

partnerships that can be applied to geothermal projects. Partnerships between investors

and community-held assets or individual landowners have been structured so that the

investor owns nearly all of the interest in the project for a specified time. After that

period ownership switches, or “flips,” to the individual or community-owned business.18

Communities can create their own structures, such as co-ops or limited liability

companies and pool resources to acquire the necessary renewable technology assets

and then sell the power generated through a Power Purchase Agreement.

How Policy Can Help Communities Communities need supportive public policy and technological assistance to get a toehold in the

market for geothermal energy generation. Federal and State governments have demonstrated

a willingness to provide grants, tax credits and R&D support for improved geothermal capacity

resulting in comparable pricing with fossil-burning facilities and lower cost technologies for

communities to access. GHP incentives exist at all levels of government but for many

communities, policy incentives are not as accessible as the technology itself. For example, the

state of Maryland’s Energy Administration (MEA) offers residential and non-residential entities

a grant of $3,000 (for residential uses) and up to $10,000 for non-residential uses for the

installation of GHP.19 This effort is a strong start, but covers only a small percentage of the

costs of a community-scale (90-ton) GHP which costs around $92,000. The typical household

GHP is about 3 tons.20 This does not include the costs of the other capital investments required

to make the GHP system operational. The funds MEA distributes through its Strategic Energy

Investment Fund are eligible for any renewable energy program. Promising grant programs

18

U.S. GAO Report # 04-756. Wind Power’s Contribution to Electric Power Generation and Impact on Farms and

Rural Communities (2004) 19

Geothermal and other forms of renewable energy projects are also eligible under existing State guidelines. 20

Department of Energy


like the Strategic Energy Investment Fund are important for geothermal, but suffer from policy

uncertainty and resulting increased investment uncertainty leaving many communities without

proper support for projects.

The funds for the 2010 budget are primarily from the American Recovery and Reinvestment

Act (“Recovery Act”), which expires in less than eighteen months.

Oregon has a long standing community centered capital investment fund (the Oregon Small-

Scale Energy Loan Program), which is managed by the Oregon Department of Energy. It

provides capital to small-scale local energy projects that reduce consumption increase

efficiency or produce energy from renewable or recycled sources.21 The program has no legal

maximum loan but is generally awards between $20,000 and $20 million. The program has

made its funds available to individuals, businesses, schools, cities, counties, special districts,

state and federal agencies, public corporations, cooperatives, tribes and non-profits. Over

eight hundred loan applications have been approved, committing approximately $442 million.

Recognizing that political boundaries do not often match renewable energy opportunities, the

state Senate expanded the program to allow projects proposed by intergovernmental entities

as well as projects located partially outside of Oregon that provide substantial benefits within

Oregon in 2005.

States and municipalities can take the lead and support Federal efforts to leverage their

renewable assets with policies that promote ownership and control at the community level.

Changes in policy have not kept pace with the growing popularity of geothermal technology.

Policy that encourages broad participation in energy generation is critical to establishing

community access to renewable energy. Research by the North American Electricity Reliability

21

Database of State Incentives for Renewable Energy


Council shows that between the late 1990’s and 2007, over 50% of the increase in renewable

energy capacity (non-hydro) occurred in states (and provinces) with mandatory Renewable

Portfolio Standards.22

Suitability The most realistic geothermal technology that communities should consider is GHP. This is

based on its relatively low capital costs, widespread applicability, and the expertise required is

accessible. The pumps can be used in new construction as well as retrofits. Systems can be

installed in buildings as small as single family homes to 500,000 square foot office buildings.

They give the greatest benefit to buildings with similarly sized annual heating and cooling

loads. GHP increases efficiency in buildings with independent climate control of many rooms

as the system can provide efficient heating and cooling of different zones at once. For this

reason, GHPs are particularly well suited for office buildings and schools, which have

fluctuating usage schedules and individual zones.

Currently, the residential GHP installation industry is highly fractionalized. Contractors putting

in these systems also install traditional heating and cooling systems. These contractors are

often misinformed about GHP and do not install the systems in the most efficient manner. This

leads to misinformed customers who often decide against a GHP system based on incorrect

information about the cost and benefits of GHP. There is potential community opportunity for

a specialized GHP installation firm, with the right business model and expertise. There is also

opportunity for consumer education about the technology and subsidies available.

Entry Risks

Community scale geothermal requires expertise (legal, technical and business) that often exists

outside of communities. Harnessing geothermal energy for space heating or electricity requires

ownership or control over land. Although this can take a variety of forms and numerous

partnerships, communities need additional support to protect their land (and geothermal)

22

National Electricity Reliability Council. Accommodating High Levels of Variable Generation. April 2009.


interests. A financial adviser should provide direction about the income and tax implications of

various ownership structures and lease payment options. University of Texas officials indicated

that legal and technical resources were critical for negotiating a favorable lease agreement for

a wind project on university property.23 Similar resource demands and complexities exist for

geothermal projects making it imperative for communities to have access to technical and

business support as well.

Affordable financing could also shut out communities even with strong geothermal potential.

Community access to lending institutions willing to take the risk could come at a steep price

depending on the size of the project and the level of risk. Conventional lending institutions are

generally unwilling to finance geothermal projects because of there are significant

uncertainties involved.24 25 Higher financing costs are significant for renewable energy projects

but less so for GHP technology due to its maturity. The less drilling and permitting required the

more likely the project will receive financing.

Communities may be shut out of the electricity market for geothermal energy generation.

Developing infrastructure to connect power lines to the transmission grid requires significant

investment. According to the Department of Energy (DOE), the average cost of building new

power lines to the transmission grid could be $100,000 or more per mile, depending on such

factors as the size of the project, terrain and the transmission line rating. These costs may

discourage communities, particularly poor communities and communities of color from

entering the market with capacity to provide bulk power.

Federal financing alternatives are not sensitive to the business cycle nor do they easily support

community ownership structures. Federal Production Tax Credit (PTC), suffer from short

23

U.S. GAO Report # 04-756. Wind Power’s Contribution to Electric Power Generation and Impact on Farms and

Rural Communities (2004). 24

Deloitte Development LLC. Geothermal Risk Mitigation Strategies Report September 2008 25

Pew Center for Climate Change


authorization periods and lapses resulting from delays in reauthorization. This has had the

effect of creating boom and bust periods in the industry. Not-for-profit entities are also

ineligible for some of these tax credits. Tax credits, especially non-refundable tax credits, are

especially sensitive to downturns in the general economy and limit the number of investors

willing to undertake community scale projects.

Build Out Costs Installation of a GHP represents the bulk of the cost of this HVAC system while the electricity

to run it makes up the remainder. An installed system costs between $5,000 and $10,000. This

figure increases if drilling is involved in the installation. Consumers are expected to recover the

difference within five years because the operational and maintenance cost of the system are

relatively low.

Operationally, annual estimated cost savings for heating and cooling are 30-70% and 20-50%

respectively.26 Unlike its combustion driven alternatives, GHP operational costs are not nearly

as sensitive to volatility in crude oil prices. This is largely because GHPs do not use much

electricity. The pump simply uses electricity from the grid, so there is no fuel onsite.

Equipment is long-lived with warranties for 20 years indoors and 50 years for closed loop

outdoors. GHPs require very little maintenance. An average service package costs $150-$250

and entails maintenance and tune-ups, parts and labor coverage and emergency service. GHPs

have lower maintenance and repair requirements, on average 20-40% less than traditional

HVAC systems due to their simple design.27 Combustion based systems also call for increased

safety precautions such as smoke and carbon monoxide detectors). In short, maintenance and

servicing of combustion based systems are much more time and capital intensive than GHPs.

For the most part, geothermal facilities cost less than fossil-burning ones to build and operate,

when accounting for total cost of generating electricity. Geothermal energy used for electricity

26

Department of Energy 27

Ibid, 2008


generation does not need additional fuel. According to the Pew Center for Climate Change,

geothermal plants can produce electricity for 5 to 11 cents per kilowatt-hour (kWh) a rate

competitive with traditional fossil fuel generation and it is expected to remain so through

2020.28

Financing Community Geothermal

The upfront costs of GHPs are a major barrier for any consumer. Installation/capital

expenditure for GHPs is, on average, two to three times more expensive than traditional HVAC

systems. Because a GHP is not currently a conventional system, installation processes are not

as streamlined as they are with the traditional systems. Finding and hiring contractors, drillers

and installers that are trained and certified to install GHPs is a process that is both costly and

time consuming.

Currently there is no company that offers a SunEdison-type of business model (see solar

section) where the firm installs and owns the GHP equipment in each customer’s home and the

customers pay the firm monthly utility payments for the use of the equipment. A community

could act in this manner if it has the proper resources. In a SunEdison-type power purchase

agreement (PPA) model, the consumer would, in effect, lease the system from the community

which spreads the capital costs over the term of the contract. It could also aggregate carbon

credits generated by all of the systems and monetize them if carbon legislation is passed in the

U.S.

A community can also encourage GHP adoption by promoting federal and state incentives and

negotiating group discounts for the purchase of equipment and installation. Federal and state

incentives can dramatically reduce the cost of installing GHPs both residentially and

commercially.

28

Pew Center for Climate Change, U.S. Energy Information Administration assumes with tax incentives geothermal

will remain below or competitive with alternatives through 2020


Hurdles

A lack of reliable information hinders small and bulk power electricity producers from exploring

geothermal alternatives. A recent study by Deloitte & Touche Tomahatsu finds “existing data

on geothermal resources in the U.S. and specifically across western states” to be “disjointed,

haphazard or unavailable”29

Step by Step Guide

1) Identify opportunity–Nearly every area of the country is suitable for GHPs because

they do not require extremely high temperatures. A contractor with experience

installing these systems should be consulted regarding the specifications of a system

particular to the building and the land dimensions.

2) Pre-construction planning primarily size and configuration of the system – determines

its long-term performance. System design should ensure the systems of pipes (“loops”)

are at a sufficient distance and size. Too small or the boreholes too close together, will

result in exchange heat from the house to be poorly dispersed causing the ground

temperature to rise. Residential system installers, generally smaller firms, provide

design services for individual systems, including the loop design which is generally a

closed loop. Firms such as LoopMaster or Trison, two leading national geothermal

firms, work as the general contractor on larger GHP projects such as schools.

Geothermal systems known as ‘Open Loop’ and ‘Standing ‘Column’, both used for

higher capacity systems, can have environmental impacts such as groundwater

contamination and are thus likely to be more heavily regulated. Many small installers

have not had the volume to develop in-depth expertise or consistent quality, so finding

an installer with adequate experience is important. Applications for applicable permits

will also need to be filed.

29

Deloitte Development LLC. Geothermal Risk Mitigation Strategies Report September 2008


3) Drilling–While horizontal loop systems and underwater systems do not require drilling,

the more versatile vertical loops do. Successful drilling depends heavily on knowledge

of local geological conditions. The localized nature of the drilling business reflects this,

with local water well drillers being the primary source for GHP drilling, followed by local

construction and environmental drillers. Each locality typically has one major company

providing these services. Few regions provide enough customer density for specialized

GHP drilling firms to arise. Licensing requirements also vary by state.

Both large and small installers might consider the potential for volume deals with

drillers in various regions. While addressing price and local knowledge, this approach

also provides a long-term relationship for developing quality control.

4) Installation–A GHP installation needs a good seal and thermal conductivity as well as

enough depth to prevent freezing. Installers place a series of pipes in the ground, grout

it, trench and bury the line to the house, penetrate the foundation or construct

sealed/heated casement above ground, and lastly join loops from the various boreholes

to create one input and one output. As noted above, HVAC companies typically

perform the loop installation for residential projects since the volume is too small for a

specialized firm to emerge. The work falls too far outside the scope of plumbers’ work

for them to provide installation service. However, no regulations require a licensed

plumber.

5) Pump installation performed by the HVAC company involves putting in the pump,

wiring, duct work, and potentially removing the previous system. Electrical work is

usually minimal unless the consumption is large enough to change the service to the

building. If this is the case, the utility company must be involved. Licensing

requirements for electrical work vary by state, influencing whether the HVAC company

will turn over the job to subcontractors.


Looking Ahead Geothermal is here to stay and communities must be open to this alternative energy source

because of its long-term economic advantages, near-term applications, tremendous bulk

power potential and positive environmental impact. This potential is being recognized at every

level of government and large scale commercial operations alike. For the first time in over

thirty years the Federal government the U.S. Geological Survey (“USGS”) released a report in

2008 assessing domestic geothermal electricity production potential in 13 Western states.

USGS research suggests that only 23% of sources capable of producing geothermal electricity

with today’s technology have been discovered in the United States.30

It will be critically important to expand on available information for the development of

geothermal resources, as the map and figure demonstrate below.

30

Department of Energy 2008 Geothermal Technologies Market Report July 2009

Source: Department of Energy

Geothermal Power Development (2008)

Source: Department of Energy

Geothermal Electricity Capacity by State


Communities across the country should be encouraged to audit their potential resources and

develop a portfolio of renewable energy alternatives to fossil fuel consumption. As this series

shows every community has renewable resource potential. Advocacy is necessary for

communities to create and expand institutional policies and gain access to technology. With

supportive policies and community-scale innovation we can spur new models for household,

businesses and communities to build wealth that is integrated, renewable and enduring.

Resources http://www.toolbase.org/Technology-Inventory/HVAC/geothermal-heat-pumps

http://www.nyserda.org/programs/geothermal/default.asp

http://www.energysavers.gov/your_home/space_heating_cooling/index.cfm/mytopic=12640


The Center for Social Inclusion (CSI) is a national policy advocacy organization. CSI’s mission is

to build a fair and just society by dismantling structural racism, which undermines

opportunities for all of us.

CSI partners with communities of color and other allies to build a strong multi-racial

movement for new policy directions that create equity and opportunity.

Copyright © December 2009 by

The Center for Social Inclusion

All rights reserved. No part of this report may be reproduced or transmitted in any form or by

any means, electronic or mechanical, including photocopying, recording or by any information

storage and retrieval system, without the permission of the Center for Social Inclusion

The Center for Social Inclusion

65 Broadway, Suite 1800 New York, NY 10006

(212) 248-2785

www.centerforsocialinclusion.org

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