Energy Policy, Vol.70, 30-44, 2014
The transformative potential of geothermal heating in the US energy market: A regional study of New York and Pennsylvania
Enhanced Geothermal Systems (EGS) could supply a significant fraction of the low-temperature ( < 125 degrees C) thermal energy used in the United States through Geothermal District Heating (GDH). In this study we develop a regional model to evaluate the potential for EGS district heating in the states of New York and Pennsylvania by simulating an EGS district heating network at each population center within the study region and estimating the levelized cost of heat (LCOH) from GDH for each community. LCOHs were then compiled into a supply curve from which several conclusions could be drawn. Our evaluation revealed that EGS district heating has the potential to supply cost-effective energy for space and water heating in several New York and Pennsylvania communities in the near future. To realize wider deployment, modest improvements in EGS technology, escalation of natural gas prices, and/or government incentives will likely be required to enable GDH to compete with other heating alternatives today. EGS reservoir flow rates, drilling costs, system lifetimes, and fluid return temperatures have significant effects on the LCOH of GDH and thus will provide the highest return on R&D investment, while creative implementation strategies can help EGS district heating overcome initial cost barriers that exist today. (C) 2014 Elsevier Ltd. All rights reserved.