2. Solar Thermal and Photovoltaic Collector Manufacturing Activities

3. Survey of Geothermal Heat Pump Shipments

Appendices

Glossary

Tables

H1. U.S. Renewable Energy Consumption by Energy Source, 1993-1997
1. U.S. Energy Consumption by Energy Source, 1993-1997
2. Renewable Energy Consumption by Sector and Energy Source, 1993-1997
3. Renewable Energy Consumption for Electricity Generation by Energy Source, 1993-1997
4. Electricity Generation From Renewable Energy by Energy Source, 1993-1997
5. Renewable Electric Utility Net Generation, 1997
6. Nonutility Gross Generation From Renewables, 1997
7. U.S. Electric Generating Capacity, 1993-1997
8. Biomass Energy Consumption by Sector and Census Region, 1993-1997
9. Residential Wood Energy Consumption, 1997
10. U.S. Utility Net Electric Generation from Solar Energy, 1997
11. Annual Photovoltaic and Solar Thermal Shipments, 1978-1997
12. Annual Shipments of Solar Thermal Collectors, 1987-1997
13. Annual Shipments of Solar Thermal Collectors by Type, 1987-1997
14. Shipments of Solar Collectors Ranked by Top Five Origins and Destinations, 1996 and 1997
15. Shipments of Solar Thermal Collectors by Destination, 1997
16. Distribution of U.S. Solar Thermal Collector Exports by Country, 1997
17. Distribution of Solar Thermal Collector Shipments, 1996 and 1997
18. Solar Thermal Collector Shipments by Type, Quantity, Value, and Average Price, 1996 and 1997
19. Shipments of Solar Collectors by Market Sector, End Use, and Type, 1996 and 1997
20. Shipments of Complete Solar Thermal Collector Systems, 1996 and 1997
21. Number of Companies Expecting To Introduce New Solar Thermal Collector Products in 1998
22. Percent of Solar Collector Shipments by the 10 Largest Companies, 1987-1997
23. Companies Involved in Solar Thermal Activities by Type, 1996 and 1997
24. Solar-Related Sales as a Percentage of Total Sales, 1996 and 1997
25. Annual Shipments of Photovoltaic Cells and Modules, 1995-1997
26. Annual Shipments of Photovoltaic Cells and Modules, 1986-1997
27. Distribution of Photovoltaic Cells and Modules, 1995-1997
28. Photovoltaic Cell and Module Shipments by Type, 1995-1997
29. Photovoltaic Cell and Module Shipment Values by Type, 1996 and 1997
30. Shipments of Photovoltaic Cells and Modules by Market Sector, End Use, and Type, 1996 and 1997
31. Export Shipments of Photovoltaic Cells and Modules by Type, 1996 and 1997
32. Destination of U.S. Photovoltaic Cell and Module Export Shipments by Country, 1997
33. Shipments of Complete Photovoltaic Module Systems, 1995-1997
34. Employment in the Photovoltaic Manufacturing Industry, 1991-1997
35. Companies Expecting to Introduce New Photovoltaic Products in 1998
36. Number of Companies Involved in Photovoltaic-Related Activities, 1996 and 1997
37. Geothermal Heat Pump Shipments by Model Type, 1994-1997
38. Capacity of Geothermal Heat Pump Shipments by Model Type, 1994-1997
39. Geothermal Heat Pump Shipments by Exports, Census Region, and Model Type, 1996 and 1997
40. Geothermal Heat Pump Shipments by Customer Type and Model Type, 1996 and 1997
B1. Evaluation of EIA's Undercoverage of Nonutility Electricity Data
B2. Preliminary and Final Nonutility Renewable Generation Data Comparison
B3. Geothermal Direct Use of Energy and Heat Pumps

Figures

H1. U.S. Energy Consumption by Source, 1997
1. Renewable Energy Consumption by Source, 1993-1997
2. U.S. Biomass Energy Consumption by Major Sectors, 1993-1997
3. Pellet Fuel Sales by Region, 1993-1998
4. Pellet Fuel Appliance Sales, 1993-1998
5. Change in Winter Temperature Normals
6. Wind Energy Consumption, 1993-1997
7. Import and Export Shipments of Solar Thermal Collectors, 1987-1997
8. Solar Thermal Collector Shipments by Collector Type, 1986-1997
9. Average Price of Solar Thermal Collector Shipments by Collector Type, 1995, 1996, and 1997
10. Import and Export Shipments of Photovoltaic Cells and Modules, 1988-1997
11. Photovoltaic Cell and Module Shipments by Type, 1994-1997
12. Ground Coupled Heat Pumps-Loop Configurations

Renewable energy consumption declined 3 percent between 1996 and 1997 to 7.1 quadrillion Btu, accounting for 8 percent of total U.S. energy consumption (Figure H1 and Table H1). Hydropower and biomass continued to dominate the renewable energy market, with 55 percent and 38 percent shares, respectively. With hydropower consumption flat between 1996 and 1997, most of the year-to-year drop was due to a decrease in biomass energy consumption due to a warmer than expected heating season. In addition, geothermal energy consumption declined 9 percent. Wind and solar energy together contributed a small but steady 0.1 quadrillion Btu.

Figure H1. U.S. Energy Consumption by Source, 1997

Sources: Energy Information Administration (EIA), Annual Energy Review 1997, DOE/EIA-0384(97) (Washington, DC, July 1998), Table 1.3. 1997 Renewable Energy: Consumption values based on the sum of electricity consumption from EIA, Electric Power Annual 1997, Volume II, DOE/EIA-0348(97)/2 (Washington, DC, October 1998), and non-electricity consumption based on analysis by the Office of Coal, Nuclear, Electric and Alternate Fuels.

Renewable energy consumption in the transportation sector (ethanol in motor gasoline) experienced an increase of 23 trillion Btu, or 31 percent. Renewable energy consumption decreased in all other sectors, particularly residential and industrial. Total renewable energy consumption (including net imports) for electricity generation declined 1 percent overall, despite a 4-percent rise to 95 gigawatts in renewable electric generating capacity. Most of the capacity gain was accounted for by a 3,358-megawatt increase in conventional hydroelectric generating capacity. Biomass generating capacity rose 171 megawatts, while wind capacity declined 57 megawatts, as retirements exceeded additions.

Shipments

Shipments of photovoltaic (PV) cells and modules continued their record growth in 1997, increasing 31 percent. Correspondingly, the value of these shipments increased 34 percent. The growth in shipments is due largely to a strong export market, which represented 73 percent of shipments in 1997, compared with 63 percent in 1996.

Photovoltaic cells and modules shipments totaled 46 peak megawatts in 1997, compared with 35 peak megawatts in 1996. This marks the twelfth consecutive annual increase in shipments. The value of shipments grew to $175 million in 1997 from $131 million in 1996. The average annual rate of increase in shipments over the past 12 years has been 21 percent. Overall unit peak watt price showed a 2-percent increase from 1996 to 1997.

Shipments of solar thermal collectors increased 7 percent in 1997 to 8.1 million square feet from 7.6 million square feet in 1996. The average price of solar thermal collectors decr eased by 9 percent, resulting in a decrease in the value of shipments to $29 million in 1997 from $29.8 million in 1996.

Other major findings about the photovoltaic and solar thermal collector manufacturing activities include:

• Single crystal silicon PVs led the way in growth from 22 peak megawatts in 1996 to 30 peak megawatts in 1997, while cast and ribbon crystalline silicon PVs increased from 12 peak megawatts in 1996 to 14 peak megawatts in 1997. Overall, crystalline silicon PVs accounted for 96 percent of shipments in 1997.
• PV shipments to the commercial sector experienced the greatest rate of growth from 1996 to 1997, rising 57 percent. The industrial and residential sectors showed growth rates of 42 percent and 30 percent respectively. Utility sector shipments grew 19 percent.
• The use of PVs in grid-interactive electricity generation increased over 70 percent, while sales for remote electricity applications decreased 21 percent. Shipments to Original Equipment Manufacturers (OEMs) increased 118 percent. OEMs integrate PVs into devices that are used in the areas of telemetry, instrument controls and monitoring, remote quality testing, and measurement of flows and pressures. PVs represent a value added electricity source for remote usage of diverse manufactured goods.
• Ninety-three percent of shipments of solar thermal collectors were low temperature types in 1997 as compared to 90 percent in 1996. Ninety-one percent were used in the residential sector in 1997, and 93 percent were installed as pool heaters.

Industry Developments

The Department of Energy launched the Million Solar Roofs Program in mid-1997. The initiative contains four core components that use existing funding and legislative authorities. These components include: "aggressive" federal procurement in cost-effective applications; enhancement of access to and blending of several existing federal loan programs with long-term amortization; use of five existing technology grant programs for "buy down"; and the establishment of an interagency team to ensure results and coordinate maximum efficiency. By 2010, these systems are expected to be self- sustaining.

Siemens Solar Industries announced delivery of a record-efficient, 1-kilowatt (peak) thin-film photovoltaic array to the National Renewable Energy Laboratory (NREL). The 28-module array has an average module power of 39 watts peak (Wp) and an efficiency of 9 percent. The modules incorporate Siemens' newest improvement in copper-indium-diselenide-based thin-film technology, which was developed with support from NREL's Thin-Film PV Partnership Program. The best module of the array produced 40.6 Wp for a record efficiency of 11.1 percent.

The Sacramento Municipal Utility District's (SMUD) board of directors approved a 10-megawatt (peak) photovoltaic program for 1998-2002. The $22 million in contracts approved were expected to create major PV module and inverter factories in 1998. Projects included building-integrated PVs in Grass Valley, a $19.3-million supply contract with Energy Photovoltaics, and the purchase of 8 MWe of power inverters from Trace Engineering.

AstroPower Inc. announced it bested its previous sunlight-to-electricity conversion efficiency record and fabricated a 16.6 percent efficient thin-film silicon solar cell under a collaboration with the NREL. The record was set on a laboratory-scale device measuring 1 square centimeter as part of the Department of Energy's Photovoltaic Manufacturing Technology Initiative. The prior record, set a few years ago, was 14.6 percent.

The Department of Defense stated that it offers the potential of nearly 20,000 photovoltaic applications in 33 categories, according to an analysis prepared by the Photovoltaic Review Committee. Applications include a building guard station, remote building operations, cathodic protection, communications equipment, lights, meteorological stations, navigational assistance, housing, instrumentation, observation tower, radar equipment, security, transportable power and water pumping.

For the first time in this report the Energy Information Administration (EIA) is presenting the results of its "Annual Geothermal Heat Pump Manufacturers Survey." This survey was completed by approximately 18 known manufacturers of geothermal heat pumps. Results indicated that for 1994 through 1997, a cumulative total of 209,000 units were shipped.

Total Consumption

Renewable energy consumption declined 3 percent to 7.086 quadrillion British Thermal Units (Btu) between 1996 and 1997, as hydropower imports decreased and exports increased from 1996 (Table 1). Excluding net imports, renewable energy consumption declined about 1.5 percent. Hydropower contributed 55 percent of renewable energy consumption in 1997 (Figure 1).⁽²⁾ Since 1993, renewable energy consumption has grown at a 2.5-percent annualized rate, compared with 1.9 percent for total U.S. energy consumption.

Figure 1. Renewable Energy Consumption by Source, 1993-1997

Sources: 1993-1995: Energy Information Administration (EIA), Annual Energy Review 1997, DOE/EIA-0384(97) (Washington, DC, July 1998), Table 1.3. 1996 and 1997: Consumption values based on the sum of electricity consumption from EIA, Electric Power Annual 1997, Volume II, DOE/EIA-00348(97)/2 (Washington, DC, October 1998), and non-electricity consumption based on analysis by the Office of Coal, Nuclear, Electric and Alternate Fuels.

Biomass energy consumption, which accounted for 38 percent of total renewable energy consumption, declined 7 percent from 1996. Geothermal, solar, and wind energy, which combined provided 6 percent of total renewable energy in 1997, declined 7 percent.

The renewable share of total energy consumption declined slightly from 7.8 percent in 1996 to 7.5 percent in 1997. Regarding total energy consumption, about one-half of the increase in fossil fuel energy consumption was offset by a decline in nuclear electricity generation.

Sectoral Consumption

Renewable energy consumption increased only in the transportation sector between 1996 and 1997, rising from 0.074 quadrillion Btu to 0.097 quadrillion Btu (Table 2). The energy represented here is ethanol blended into gasoline as an oxygenate in low percentage blends (under 10 percent).

Residential sector consumption declined nearly 25 percent. This was largely due to a drop in biomass energy consumption, attributed to higher-than-expected winter temperatures lowering heating demand. Residential energy consumption now includes energy consumption from geothermal (ground water) heat pumps, which amounted to 0.0075 quadrillion Btu in 1997.

Industrial sector renewable energy consumption declined 3 percent in 1997 to 2.555 quadrillion Btu. Most of the decrease was in industrial biomass consumption, which decreased nearly .070 quadrillion Btu. Also, an 11-percent decline in industrial geothermal consumption more than offset an increase in consumption for conventional hydropower.

Electric utility sector renewable energy consumption remained virtually unchanged in 1997 at 3.881 quadrillion Btu. This sector consumed 55 percent of renewable energy consumption in 1997 and includes net renewable imports.

Of the 2.207 quadrillion Btu of renewable energy not used to generate electricity, 70 percent was in the industrial sector, where considerable biomass-based process heat is used in areas such as the forest products industry (especially for paper and pulp operations). Industrial biomass process heat applications alone consumed 1.554 quadrillion Btu, 70 percent of total nonelectric renewable energy consumption. Another 25 percent is consumed in the residential sector for heating and cooling.

Electricity Generation

Energy used to generate 457 billion kilowatthours (kWh) of renewable-based, domestically-consumed electricity amounted to 4.879 quadrillion Btu (Tables 3 and 4). Domestically consumed and produced renewable generation⁽³⁾ in 1997 was nearly 2 percent above 1996 levels.

Total hydropower generation rose 11.6 billion kWh in 1997, due principally to a 10.3-billion kWh increase in utility generation. On a percentage basis, nonutility (industrial⁽⁴⁾) hydropower rose a substantial 8 percent. These gains were due principally to greater water availability in the Northwest.

Electricity generation from all other renewable sources fell; after rising in 1996, total geothermal generation dropped to 14.6 billion in 1997, a decline of 6 percent. Nonutility geothermal generation decreased 10 percent, while utility generation⁽⁵⁾ managed a small gain. Generation from biomass declined to 58 billion kWh, largely due to a 4-percent drop in nonutility generation. Solar generation declined about 1 percent in 1997, despite the fact that utility solar generation increased 9.8 percent.

Wind-based electricity showed virtually no change. Nonutilities produce virtually all of the solar and wind electricity. (See Appendix B, "Data Description and Limitations," for an explanation of potential estimation errors in nonutility data.) Because information which EIA collects from non-utilities on the Form EIA-867, "Annual Nonutility Power Producer Report," is confidential, it is not possible to make any statements about individual plant operations.

Electricity imports decreased 16 percent to 28 billion kWh in 1997. With U.S. electricity exports nearly tripling to 6.8 billion kWh, net electricity imports dropped by one-third to 21 billion kWh in 1997. This was the principal reason that total renewable electricity generation dropped 0.4 percent, compared with the 2-percent gain in electricity generated and consumed domestically. Total renewable energy consumption in 1997 for electricity generation (including net imports) was 4.879 quadrillion Btu. The 436 billion kWh of renewable electricity generation domestically produced and consumed was about 12 percent of the U.S. total.⁽⁶⁾

In the utility sector, there are 6 or fewer plants in each of the categories. In the case of wind, the Solano plant operated by Sacramento Municipal Utility District (SMUD) generates about 99 percent of total utility wind generation. For solar, there were 4 plants that generated electricity in 1997. One plant, Solar 2, operated by Sacramento Municipal Utility District (SMUD), increased output by two-thirds in 1997, providing about 56 percent of utility solar generation. As a result, utility sector solar generation rose, despite the fact that output from two of the three other solar/PV generating plants decreased.

Resource accessibility largely determines where renewable electricity is generated. Access to water power makes Washington the leading producer of renewable energy, accounting for 24 percent of total renewable electricity produced in 1997 (Tables 5 and 6).

A second major factor influencing the use of renewables is State policies promoting renewable energy. The combined effect of resource availability and energy policy makes California the second-largest producer of renewable electricity generation. In 1997, 13 percent of utility renewable generation nationwide occurred in California.

California's share of nonutility renewable electricity was even larger at 22 percent (Table 6). California promoted renewable energy strongly in the 1980's with renewable tax credits and other measures. In addition, California has the vast majority of the Nation's developed geothermal energy resources, as well as significant wind, solar, biomass (wood and waste), and hydroelectric resources.

Utilities in Oregon, which has sizable water power resources, produced the third-largest amount of electricity from renewables. New York contributed 8 percent, virtually all from water power. No other State contributed more than about 4 percent of total U.S. utility renewable generation.

Nonutility renewable generation outside California is more evenly spread. One reason is that nonutility plants are usually smaller than utility plants, having been built in many instances to service a single facility (e.g., pulp and paper manufacturing plant). Thus, many more resource locations are available, particularly for biomass and hydropower. After California, the States with the most nonutility electricity generation in 1997 were Florida, Maine, Louisiana, New York, Alabama, and North Carolina. The nonutility sector produces virtually all of the biomass-, wind-, and solar-powered electricity generation. Florida leads the Nation in nonutility biomass-generated power.

Renewable Generating Capacity

By the end of 1997, renewable generating capacity increased 3.7 percent to 95.3 gigawatts (Table 7). Hydroelectric capacity had the largest increase (3.4 gigawatts) between 1996 and 1997. Renewable capacity at the end of 1997 was nearly 3 percent greater than it was at the end of 1993, when it stood at 92.6 gigawatts.

U.S. biomass energy consumption declined sharply between 1996 and 1997, reflecting generally lower energy demand due to milder temperatures during the heating season. The industrial and residential sectors continued to represent the primary sectors of consumption (Table 8). However, a significant decline occurred in residential sector activity, based on new EIA survey information.⁽⁷⁾ A more moderate decrease in energy usage was observed in the industrial sector (Figure 2), where energy intensity is relatively fixed for given industries according to their manufacturing profiles.

Figure 2. U.S. Biomass Energy Consumption by Major Sectors, 1993-1997

Source: Energy Information Administration, Annual Energy Review 1997, DOE/EIA-0384(97) (Washington, DC, July 1998), Table 10.3.

Wood, Wood Waste, and Energy Crops

Table 9 lists residential woodburning activity by region in cord⁽⁸⁾ and Btu terms. Pellet fuel⁽⁹⁾ is consumed mainly in the residential and commercial sectors. The energy represented by pellet fuel consumption is embedded in the residential sector statistics presented here. The comparison of pellet fuel statistics with overall residential sector wood consumption indicates:

• Pellet fuel consumption has grown to the extent that it now comprises about one-fourth of total residential woodburning.
• The regional pattern of pellet fuel sales and residential wood consumption are different (Figure 3 and Table 9).
• Pellet stove sales remained steady during the 1996/1997 and 1997/1998 heating seasons in spite of the overall decline in residential consumption (Figure 4).

Strong pellet sales in the Mountain and Pacific regions reflect the influence of strict environmental regulation. Industry literature indicates that growing sales in the Northeast are to a large extent due to more intensive recent marketing efforts. While the pellet industry is currently established on residential sales, it has stated expansion of sales to industrial customers to be an important industry goal.

Biomass cultivation for all purposes--food, energy, and feedstocks--is closely affected by weather. The 1990's, to date, have seen a number of significant weather events including droughts, floods, damaging winds, and weather-connected phenomena such as forest fires resulting from extended drought. Planting and harvesting have been affected in some regions by drought or flood. Winter storms in the Northeast during the past year resulted in large-scale damage to trees, creating greater than expected supply of wood for energy.

Longer term phenomena come under the heading of climate events. Scientists are intensively studying cyclical climate events such as El Nino and La Nina. The effect of climate events on biomass and the resulting availability of biomass for energy in the United States is mixed. Scientific observation and modeling has only recently begun to estimate the U.S. regional effects of the El Nino/La Nina cycles.

While individual climate events have varying impacts on biomass availability, of greater interest is their collective influence over time. Information from the National Climate Data Center is instructive in this regard. Figure 5 illustrates the change in U.S. winter temperature normals observed during two 30-year periods of time. While this is not the only climate factor modeled, it is one that is significant to an analysis of biomass consumption for energy. The changes in winter temperature also help to explain the greater overall consumption of residential biomass energy in the Northeast and South regions (Table 9).

In the industrial sector, the largest biomass energy producer--the Pulp & Paper Industry--marked the 200^th anniversary of the paper machine, but amid a trend of lower rates of return on investment than other major industries. A pattern of consolidation and divestiture, according to individual corporate strengths and weaknesses, has developed in response, either along the primary resource or end-product specialization lines. Wholesale power marketing and management has also emerged as a very important factor of influence. Major changes in output and product mix have begun to take place in response to strongly increased activity in foreign primary fiber commodity exports to the United States. All these factors in combination are reshaping paper and forest products industries and promise to alter significantly the profile of national industrial biomass energy production.

Figure 3. Pellet Fuel Sales by Region, 1993-1998

Source: Pellet Fuels Institute, PFI Newsletter, "June 1998 Market Update" (May/June 1998).

Figure 4. Pellet Fuel Appliance Sales, 1993-1998

Source: Pellet Fuels Institute, PFI Newsletter, "June 1998 Market Update" (May/June 1998).

Municipal Solid Waste

Energy consumption from municipal solid waste (MSW) grew from 390 trillion Btu in 1993 to 449 trillion Btu in 1997 (Table 8). Energy from MSW is obtained by both direct combustion (i.e., waste-to-energy) and from the recovery of landfill gas. Of the 449 trillion Btu of energy consumed from MSW in 1997, 359 trillion Btu were consumed by direct combustion and 90 trillion Btu were provided by landfill gas. Approximately 16 percent of all MSW tonnage generated in the United States is disposed of through direct combustion.⁽¹⁰⁾

Figure 5. Change in Winter Temperature Normals, 1961-1990 minus 1931-1960

Source: Personal communication with Richard Heim, National Climate Data Center, National Oceanic and Atmospheric Administration, September 1998.

During 1997, approximately 107 waste-to-energy (WTE) facilities with a capacity to process over 100,000 tons per day were operating in the United States. About 80 percent of the projects generate electricity as the sole energy product or in conjunction with steam. The other 20 percent produce steam as the sole energy product (EIA does not collect information on steam-only facilities). The projects that generate electricity as the sole energy product or in conjunction with steam through direct combustion of MSW, have a generating capacity of approximately 2,600 megawatts, produced 16 million megawatthours of electricity in 1997, and consumed 280 trillion Btu.

Of the 133 landfill sites that recovered landfill gas in 1997, about 120 produce energy for generating facilities. These facilities have a combined generating capacity of around 832 megawatts. They produced 5 million megawatthours of electricity and consumed 42 trillion Btu of landfill gas. Facilities that burn MSW and landfill gas may also burn fossil fuels for start-up, fuel stabilization, or as a primary fuel.

The production of energy from municipal waste supplies grew very rapidly during the 1980s, largely as a result of public policy at the Federal, State, and local level that promoted the construction of WTE facilities. Virtually all electricity generated by facilities that burn MSW or landfill gas are designated as "qualifying facilities" (QF) by the Public Utility Regulatory Policies Act of 1978 (PURPA). Under PURPA, electric utilities are required to purchase power generated by QFs at the "avoided cost" of the purchasing utility. The average price per kilowatthour received by MSW and landfill gas projects is dropping as contracts are renegotiated, because the avoided cost received for electricity from new facilities is now based on competitive fuel prices. As power sales contracts negotiated in the 1980s between QFs and utilities expire, downward pressure on energy revenues will continue. A number of electric deregulation proposals include the elimination of PURPA.

The growth in MSW projects has been dramatically curtailed during the 1990s, with a number of smaller, inefficient projects being retired. Today, environmental policies are encouraging recycling to reduce the quality and quantity of waste streams to WTE facilities, as well as requiring costly pollution control at these facilities. Federal tax policy no longer favors investments in capital intensive products and limits the amount of municipal bonds States can issue for the construction of facilities that are privately owned. As is the case with many industries in the United States, the waste-to-energy industry is also feeling the competitive pressures of deregulation. Electricity prices are dropping, resulting in waste streams going to the cheapest disposal option, often out-of-State landfills.

Total geothermal energy consumption dropped 9 percent in 1997 to 0.322 quads. Virtually all (97 percent) of geothermal energy was used to generate electricity. Of the remaining 0.016 quads, nearly two-thirds (0.010 quads) drove geothermal or "ground water" heat pumps, with the balance used in low-temperature industrial and agricultural applications such as crop drying.

Over 60 percent of domestic geothermal energy consumption for electricity generation (0.306 quads) is consumed in the industrial sector, principally by "nonutilities." This percentage may rise in the future, as at least one California utility is planning to divest itself of its geothermal electricity plants. Except for a single plant in Nevada and a small amount of production in Hawaii, all domestic geothermal energy is produced in California.

Industrial consumption declined 11 percent in 1997, in contrast to a 5-percent increase in utility geothermal consumption. Industrial geothermal consumption has remained stagnant since 1993, compared with a decline of 27 percent in utility geothermal consumption. Several older geothermal fields in California have been depleted beyond their economically useful life and will likely not resume operation. Imported geothermal electricity from Mexico was virtually zero in 1997, compared with 0.014 quads in 1996. Geothermal electricity generation followed the patterns of energy consumption during 1996 and 1997.

Direct use of geothermal energy is either process heat for industrial applications or energy used to heat and cool water for air temperature moderation applications, using heat pumps. EIA does not collect information on direct geothermal energy but rather uses information provided under contract to the Department of Energy's Office of Energy Efficiency and Renewable Energy by the Oregon Institute of Technology's Geo-Heat Center.⁽¹¹⁾

Between 1993 and 1997, wind electric generating capacity decreased about 193 megawatts to 1,620 megawatts, as retirements exceeded additions. Some additions for 1997 included a few small projects that partially offset the decline:

• Kotzebue, Alaska (0.15 megawatts)
• Pacheco Pass, California (16 megawatts)
• Sibley, Iowa (1.2 megawatts)
• Searsburg, Vermont (6 megawatts).

Although capacity has declined over the past 5 years, improved efficiency has resulted in increased generation from wind--up some 12 percent over the period. Total wind energy consumption was 35 trillion Btu in 1997--an increase of 4 trillion Btu since 1993 (Figure 6).

Figure 6. Wind Energy Consumption, 1993-1997

Sources: Energy Information Administration, Form EIA-759, "Monthly Power Plant Report"; Form EIA-867, "Annual Nonutility Power Producer Report."

Indications are that 1998 will be a very active year for construction. In July 1998, capacity expanded considerably, as the Phase II 107-megawatt Lake Benton, Minnesota project came on line. Other future developments include the following within the next 1 to 2 years:⁽¹²⁾

• California (approximately 281 megawatts to be repowered statewide)
• Buena Vista County, Iowa (112.5 megawatts )
• Clear Lake, Iowa (42 megawatts)
• Storm Lake, Iowa (75 megawatts)
• Pipestone County, Minnesota (Phase III, 103.5 megawatts)
• Vansycle, Oregon (24.9 megawatts)
• Big Spring, Texas (34.8 megawatts)
• McCamey, Texas (75 megawatts)
• Foot Creek Rim, Wyoming (41.4 megawatts).

Two key factors are driving this flurry of construction activity: (1) State mandates, as in the case of Minnesota and Iowa; and (2) the nationwide rush to beat the expiration of the 1.5 cent-per-kilowatthour production tax credit offered until June 1999, pending passage of legislation for an extension. Among the companies involved in this construction, Zond Systems, Inc. is the most active with commitments of nearly 300 megawatts, using the new Z-750 series of turbines. It is followed by Seawest with about 80 megawatts committed, the FPL Group, and York Corporation.

Although higher in 1997 than in 1993, solar energy consumption declined 1 percent to 74 trillion Btu between 1996 and 1997. Most of this was in the residential and commercial sector, where some older equipment reached the end of its useful life of 20 years. Most grid-connected solar electricity generation occurs at nonutility facilities, where generation decreased slightly in 1997 to 893 million kilowatthours. Utility solar generation increased over the same period, but at 3.5 million kilowatthours it remains a negligible share of total renewable generation. Ninety-four percent was generated in California (Table 10).

2. All renewable consumption and production information shown in this chapter was derived from the Integrated Renewable Energy Database System (IREDS). The data values in IREDS are more precise than those shown in the tables of this report.

3. "Domestic generation" equals total renewable electricity generation less net electricity imports.

4. Although the category "industrial " is used, there are actually two subcategories, not easily distinguishable. A pure industrial facility may loosely be described as one designed principally to provide energy for a manufacturing or other product-making use, while a nonutility is a special category of facility which is usually designed to generate electric power and connect to the grid. Nonutilities are often those designated by the Federal Energy Regulatory Commission as "qualifying facilities," so-called because they meet certain criteria set forth by PURPA. However, a "pure industrial" facility may sell power to the grid, and a nonutility can generate energy for the entity's own use.

5. Utility geothermal generation is principally from a single geothermal field in California known as "The Geysers."

6. EIA estimates total electricity generation in 1997 to be 3,494 billion kilowatthours. See Energy Information Administration, Electric Power Annual 1997, Volume II, DOE/EIA-0348(97)/2 (Washington, DC, October 1998).

7. Energy Information Administration, Residential Energy Consumption Survey 1994. Data for non-survey years is estimated by taking into consideration factors such as annual Heating Degree Days and other residential energy consumption characteristics.

8. By U.S. Forest Service convention, 1 cord = 128 cubic feet in volume (4 ft. x 4 ft. x 8ft.). By EIA convention, 1 cord contains the approximate equivalent of 20 million Btu.

9. Wood pellets are manufactured from finely ground wood fiber. They are typically 1/4 inch to 5/16 inch in diameter by about 3/4 inch in length and weigh more than 40 pounds per cubic foot.

10. Governmental Advisory Associates, Inc., The Municipal Waste Combustion Industry In The United States--1997-98 Resource Recovery Yearbook and Directory (Westport, CT, 1997).

11. See the website at http://www.oit.edu/admin/geoheat/.

12. Windpower Monthly (June 1998), pp. 31-33.

Contact:

Louise Guey-Lee

louise.guey-lee@eia.doe.gov

Phone: (202) 426-1143