| Abstract |
The past three decades have seen a multitude of incentive programs initiated as part of U.S. energy policy to encourage renewable energy development. Many such early geothermal programs were directed at risk reduction and the focus was primarily on the provision of grants, government cost sharing, loan guarantees, and insurance. These programs were all dependent upon large outlays of government monies and provided no guarantee of success. Over time most of these programs were severely scaled back or eliminated due to budget reductions. Recent policy initiatives have focused increasingly on mandates, for example, renewable portfolio standards, tax incentives, or the use of system benefit changes. These programs are designed to create markets for renewable energy, provide rewards for production, or both. These new programs focus upon rewarding renewable energy developers for success, rather than subsidizing companies involved in exploration and/or development - a practice that has increasingly come under attack as 'corporate welfare'. |