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Barriers and enablers to geothermal district heating system development in the United States

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  • Thorsteinsson, Hildigunnur H.
  • Tester, Jefferson W.

Abstract

According to the US Energy Information Administration, space and hot water heating represented about 20% of total US energy demand in 2006. Given that most of this demand is met by burning natural gas, propane, and fuel oil, an enormous opportunity exists for directly utilizing indigenous geothermal energy as a cleaner, nearly emissions-free renewable alternative. Although the US is rich in geothermal energy resources, they have been frequently undervalued in America's portfolio of options as a means of offsetting fossil fuel emissions while providing a local, reliable energy source for communities. Currently, there are only 21 operating GDHS in the US with a capacity of about 100Â MW thermal. Interviews with current US district heating operators were used to collect data on and analyze the development of these systems. This article presents the current structure of the US regulatory and market environment for GDHS along with a comparative study of district heating in Iceland where geothermal energy is extensively utilized. It goes on to review the barriers and enablers to utilizing geothermal district heating systems (GDHS) in the US for space and hot water heating and provides policy recommendations on how to advance this energy sector in the US.

Suggested Citation

  • Thorsteinsson, Hildigunnur H. & Tester, Jefferson W., 2010. "Barriers and enablers to geothermal district heating system development in the United States," Energy Policy, Elsevier, vol. 38(2), pages 803-813, February.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:2:p:803-813
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    Cited by:

    1. Zheng, Guozhong & Li, Feng & Tian, Zhe & Zhu, Neng & Li, Qianru & Zhu, Han, 2012. "Operation strategy analysis of a geothermal step utilization heating system," Energy, Elsevier, vol. 44(1), pages 458-468.
    2. Jodeiri, A.M. & Goldsworthy, M.J. & Buffa, S. & Cozzini, M., 2022. "Role of sustainable heat sources in transition towards fourth generation district heating – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    3. Knaut, Andreas & Madlener, Reinhard & Rosen, Christiane & Vogt, Christian, 2012. "Effects of Temperature Uncertainty on the Valuation of Geothermal Projects: A Real Options Approach," FCN Working Papers 11/2012, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    4. Wang, Yuqing & Liu, Yingxin & Dou, Jinyue & Li, Mingzhu & Zeng, Ming, 2020. "Geothermal energy in China: Status, challenges, and policy recommendations," Utilities Policy, Elsevier, vol. 64(C).
    5. McComas, Katherine A. & Lu, Hang & Keranen, Katie M. & Furtney, Maria A. & Song, Hwansuck, 2016. "Public perceptions and acceptance of induced earthquakes related to energy development," Energy Policy, Elsevier, vol. 99(C), pages 27-32.
    6. Daniilidis, Alexandros & Alpsoy, Betül & Herber, Rien, 2017. "Impact of technical and economic uncertainties on the economic performance of a deep geothermal heat system," Renewable Energy, Elsevier, vol. 114(PB), pages 805-816.
    7. Beatriz María Paredes-Sánchez & José Pablo Paredes & Natalia Caparrini & Elena Rivo-López, 2021. "Analysis of District Heating and Cooling Energy Systems in Spain: Resources, Technology and Management," Sustainability, MDPI, vol. 13(10), pages 1-22, May.
    8. Chen, Siyuan & Zhang, Qi & Li, Hailong & Mclellan, Benjamin & Zhang, Tiantian & Tan, Zhizhou, 2019. "Investment decision on shallow geothermal heating & cooling based on compound options model: A case study of China," Applied Energy, Elsevier, vol. 254(C).
    9. Cansino, José M. & Pablo-Romero, María del P. & Román, Rocío & Yñiguez, Rocío, 2011. "Promoting renewable energy sources for heating and cooling in EU-27 countries," Energy Policy, Elsevier, vol. 39(6), pages 3803-3812, June.
    10. Neves, Rebecca & Cho, Heejin & Zhang, Jian, 2021. "State of the nation: Customizing energy and finances for geothermal technology in the United States residential sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    11. Golmohamadi, Hessam & Larsen, Kim Guldstrand & Jensen, Peter Gjøl & Hasrat, Imran Riaz, 2022. "Integration of flexibility potentials of district heating systems into electricity markets: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    12. Taghizadeh-Hesary, Farhad & Mortha, Aline & Farabi-Asl, Hadi & Sarker, Tapan & Chapman, Andrew & Shigetomi, Yosuke & Fraser, Timothy, 2020. "Role of energy finance in geothermal power development in Japan," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 398-412.
    13. Sanaei, Sayyed Mohammad & Nakata, Toshihiko, 2012. "Optimum design of district heating: Application of a novel methodology for improved design of community scale integrated energy systems," Energy, Elsevier, vol. 38(1), pages 190-204.
    14. Pratiwi, Astu Sam & Trutnevyte, Evelina, 2022. "Decision paths to reduce costs and increase economic impact of geothermal district heating in Geneva, Switzerland," Applied Energy, Elsevier, vol. 322(C).
    15. Lake, Andrew & Rezaie, Behanz & Beyerlein, Steven, 2017. "Review of district heating and cooling systems for a sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 417-425.
    16. Aghahosseini, Arman & Breyer, Christian, 2020. "From hot rock to useful energy: A global estimate of enhanced geothermal systems potential," Applied Energy, Elsevier, vol. 279(C).
    17. Hall, Andrew & Scott, John Ashley & Shang, Helen, 2011. "Geothermal energy recovery from underground mines," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 916-924, February.
    18. Bayer, Peter & Saner, Dominik & Bolay, Stephan & Rybach, Ladislaus & Blum, Philipp, 2012. "Greenhouse gas emission savings of ground source heat pump systems in Europe: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(2), pages 1256-1267.

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