A  panel at the WIREC conference entitled “Building Effective Government-Industry Collaboration” discussed the economic viability of geothermal power and how best to implement this source of renewable energy.  Business executives from Calpine and Iceland America Energy as well as the CEO of Enex represented the private sector.  High-level DOE and BLM officials represented US government policy. Energy ministers from both New Zealand and Iceland also presented.

Representatives of the U.S.  private sector mostly addressed the cost of exploration and the start-up capital investment required. After hearing these concerns, the ministerial staff of Iceland and New Zealand both took turns explaining how their respective nations tackled these challenges.

Iceland by far is the world leader in geothermal energy, having developed this resource heavily for almost 50 years.  In addition to supplying 26% of their electricity needs, Iceland diverts the steam and hot water by-products to provide 87% of residential heat and hot water. 

Gunde Johanson of the Iceland Department of Energy accounted for this success by stating that his government took a "proactive role in supporting exploration and research.  The Icelandic government assumed the risk of surveying with special loans provided to energy companies.  The Icelandic government is proud of its role in raising the standard of living with its strong stance supporting geothermal and other renewable energy sources."

New Zealand entered the field at a later stage than Iceland, but the government has an equal level of commitment.  With current geothermal capacity providing 8% of New Zealand’s electricity, they expect substantial growth in coming years.  New Zealand has a firm energy policy that mandates levels of renewable energy production to rise from 65% at current levels to 90% by 2025.  This increase will come from geothermal and wind, as well as existing hydroelectric.  The government is proposing a moratorium on fossil fuel power plants as well.

What was immediately clear from both of these representatives is the dedicated policy initiative and commitment of their respective governments.  Policy makers made decisions to move in the direction of geothermal power and followed through with the financing and private sector support needed.  Their advice for the United States or other nations similarly interested in geothermal power is to put the full weight of policy makers behind the projects.