Economic benefits to both the immediate area around a geothermal development as well as the national economy are significant. Economic benefits to both the immediate area around a geothermal development and to the national economy are significant. As with other renewable energy technology, the operation of a geothermal power plant provides energy security often replacing imported fuels.
Geothermal development results in considerable ancillary economic benefits and has been shown to spur more surrounding economic activity than other forms of energy production. It also calls for a high level of investment in the host country, providing the economy with long-lasting infrastructure, technology and knowledge.
WHAT CAN BE DONE TO PUSH DEVELOPMENT
Governments have plenty of reason to support geothermal development with appropriate legislation and incentive, as they compete with each other to attract foreign direct investment and geothermal know-how. Often water, land and mining laws need to be clarified with geothermal in mind. Drilling and exploration risk can be minimized through insurance and grant programs. Passing legislation that grants preference to geothermal on grid connections makes sense due to its base load nature and high capacity factors. As with other renewables, tax incentives and feed-in tariffs are a sure fire way to attract environmentally and economically desirable energy projects.
