Tuesday, June 26, 2007

Geothermal energy part of new state mandate

Arizona has a new Renewable Portfolio Standard (RPS) of 15% which means the state's regulated utilities have to get 15% of their electric generation from renewable energy resources. This is up from the old requirement of 1.1%. Another change is that geothermal energy is included now in the mix.

We should expect Arizona utilities to explore for high temperature geothermal resources that might support electric generation.

We might also expect them to promote use of moderate and low temperature resources for space heating, green houses, etc. This use of distributed energy production, by consumers, can count towards the utilities 15% obligation.

The Arizona Corporation Commission approved the larger RPS earlier this year, but implementation was waiting for an opinion by Arizona Attorney General Terry Goddard. That approval came last week.

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