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Geothermal Power Market Overview
The global geothermal power market is projected to advance at a CAGR of 11.6% during the forecast period (2016–2022) and reach $6,518.9 million by 2022. Strong government support for geothermal energy projects and increasing focus of countries on energy independence and energy security are the key factors supporting the growth of the market across the world.
Geothermal power is the power generated by geothermal power plants from the heat energy stored under the Earth’s crust. These plants utilize steam produced from hot water reservoirs beneath the Earth’s surface. The steam is primarily required for the rotation of the turbine, which then generates electricity. Geothermal power plants have the capacity factor to generate electricity higher than 90%.
GLOBAL GEOTHERMAL POWER MARKET SIZE BY TECHNOLOGY TYPE $M (2012–2022)
Geothermal energy is more advantageous than other renewable energy sources, such as hydropower, wind, and bioenergy. Some of the advantages associated with this form of energy are low atmospheric pollution, less usage of land, no or zero liquid pollution on the re-injection of effluent fluid, and high availability. Thus, the benefits associated with this form of energy continue to encourage its adoption, further positively impacting the growth of the geothermal power market.
Based on technology, the geothermal power market is categorized into dry steam, flash, binary, and others, of which the flash technology held the largest share in the market in 2015. Geographically, Asia-Pacific led the market in 2015, and the trend is expected to continue in the near future. This can be mainly attributed to the high energy demand and rapid growth of the geothermal power industry in the APAC region.
Geothermal Power Market Dynamics
Increasing requirement for workforce for power generation is one of the key trends witnessed in the geothermal power market. From exploratory phase to power generation and its subsequent distribution, there is a high requirement for geologists, geophysicists, geochemists, and several other domain experts to carry out such functions. Moreover, there is a requirement for manpower for the drilling of wells, operation of geothermal drilling rigs, analyzation of fluid with mud loggers, and placement of cement metal casings in welding wells.
Moreover, employment opportunities have also increased in EPC services due to the requirement for manpower with expertise in civil, mechanical, and electrical engineering. There is also a demand for qualified people for the designing, operation, and maintenance of geothermal power plants.
The growing focus on energy independence and energy security, along with increasing support from governments across the world for geothermal power projects, is the major factor driving the growth of the geothermal power market. The growing focus of the North American, European, and Asian countries to become energy independent has propelled a shift toward the optimization of renewable energy sources, thus driving the market growth across the world. Several economies are taking initiatives to reduce their oil imports and focus on geothermal energy projects. Moreover, targets set toward achieving that, for instance, the European Union’s goals under the Renewable Energy Directive (RED) to fulfil a minimum of 20% of their energy needs with renewable resources by 2020, are encouraging the production of energy from renewable sources, thus supporting the market growth.
Since geothermal energy remains unexplored to a great extent, there is immense potential for the growth of the market. Additionally, the increasing need for reducing greenhouse gas emissions is expected to serve as a major area of opportunity for the growth of the geothermal power market. Many countries have framed regulations to reduce their reliance on petroleum and increase the production of geothermal energy to reduce pollution levels. Countries such as China, France, Ethiopia, Australia, Portugal, and Germany are increasingly investing in geothermal energy, thus offering abundant opportunities for capacity expansion of geothermal power plants.
Geothermal Power Market Competitive Landscape
Some of the major players in the global geothermal power market are Energy Development Corporation, NV Energy, Mitsubishi Heavy Industries Ltd., Calpine Corporation, Contact Energy, Alterra Power Corp., U.S. Geothermal Inc., Mannvit Engineering, Ormat Technologies Inc., Cyrq Energy, and Raya Group.
Key questions answered in the report