Step two is seeing if the effect allows you to produce water hot enough to generate steam, and thus run a turbine for an electric generator. This involves more engineering and expense. It might be that the effect stops working above a certain temperature.
Even if they don't get past Step One, the effect would still be useful for heating buildings and making hot water, which consumes a large percentage of our annual energy budget.
Rossi was asked about that in a recent Q&A session:
http://www.nyteknik.se/nyheter/energi_miljo/energi/article3126617.ece
Dr Fast: When considering your device as a part of a rankine cycle, what temperatures are achievable?
Rossi: up to 500-550 °C
Bad assumption based on Rossi's past.