ABSTRACT
Geothermal’s low profile among new energy sources has impeded industry development by placing the industry on a weak footing in competing for government R&D funds and in lobbying for legislation to remove institutional and economic barriers to geothermal commercialization. The geothermal industry is an anomaly among new energy industries, having initially developed without the backing of major institutions such as federal and state governments, public interest groups, universities and large corporations. Geothermal is making a significant contribution to local energy supplies, meeting the needs of over one million California residents. Magma’s initial investment in the Geysers had been a high risk-high return situation and the company continued with its entrepreneural philosophy by exchanging interest in a proven operation for the riskier opportunity to develop new resources and the required technologies. Magma Power was able to establish geothermal’s credibility without awaiting the determination of a federal geothermal leasing policy and the provision of financial support by the federal government.
