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EMD-80-26 1 (1980-01-24)

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BY THE COMPTROLLER GENERAL

Chairman, Subcommittee On Energy And

Power, Committee On Interstate And Foreign

Commerce, House Of Representatives

OF THE UNITED STATES




The Geothermal Loan Guarantee Program:

Need For Improvements


The geothermal loan guarantee program has
been only partly successful in accelerating the
development of geothermal energy. Loan guar-
antees have been made for only four projects
since the program's enactment in 1974 and
the goal to establish normal borrower-lender
relationships probably will not be met when
authorizing legislation is scheduled to expire
in 1984. Technical and economic uncertainties,
as well as management problems, have limited
progress.
However, the Department of Energy can im-
prove the program by

     --developing and implementing a well-
     defined comprehensive strategy and
     ..streamlining its project review and
     selection procedures.








                                                       111403




             J                                             EMDANAY 26
                ,<I(   JANUARY 24,1980O

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