The Global "Geothermal Power Market" is expected to grow at a high CAGR of 22.6% during the forecasting period (2021-2028).
CLEVELAND, OHIO, UNITED STATE AMERICA, October 26, 2021 /EINPresswire.com/ —
Geothermal strength is a stable and independent strength technology gadget, which makes use of the warm power of the earth's magma to produce electricity. Geothermal electricity flora makes use of the steam that is created from warm water observed around a mile or more below the earth's surface to rotate mills that begin a generator, which similarly produces power.
Three sorts of geothermal electricity vegetation are operating currently, which consist of the binary cycle, dry steam, and flash steam. Government agencies are installing efforts to lessen the dependency on oil for home strength use. To accomplish that, numerous activities are explored and exploited to use renewable electricity sources as an opportunity power source. For reaching this goal, the Government of Indonesia formulated a National Energy Policy, which entails recommendations for intensification, conservation, and diversification of electricity.
The market is driven by the rising demand for geothermal power due to the high capacity of geothermal power, the cost-effectiveness of geothermal energy, reduction in pollution by geothermal power plants, and increasing energy demand
Geothermal power generation is more beneficial in comparison to other renewable energy sources, such as hydropower, wind, and bioenergy. Geothermal power generation possesses advantages such as low atmospheric pollution, less usage of the land, no or zero liquid pollution on the re-injection of effluent fluid, and high availability. Geothermal power generation has lower life-cycle greenhouse gas emissions than fossil fuel-based generation. Several factors such as the limited presence of fossil fuels, rise in greenhouse gas emission, and increasing energy demand are hindering the market growth.
There is an increase in the launch of the geothermal power plant. For instance, in September 2019, Sumitomo Corp. had launched a geothermal power plant on Sumatra Island in Indonesia amid the country’s push for natural energy. In February 2021, a Memorandum of Understanding (MoU) was signed by the administration of the Union Territory of Ladakh to establish the first-ever geothermal field development project in India at Puga in Ladakh.
Several organizations, associations, and institutes are raising the investment and funding for geothermal power. For instance, in April 2020, Ethiopia had signed a power purchase agreement worth USD 800 million with the developers of a 150 MW geothermal plant.
However, the huge investment for geothermal power plants is hindering the market growth. According to the International Renewable Energy Agency (IRENA), the global total installed costs for the geothermal power plants range from USD 1,870 per KW and USD 5,050 per KW. Another major concern is that geothermal power plants could harm the environment.
By Power Plant Type
• Dry Steam Power Stations
• Flash Steam Power Stations
• Binary Cycle Power Stations
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By region, the global geothermal power market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa
Among all of the regions, North America dominated the global geothermal power market and is expected to grow at the highest CAGR during the forecasted period due to the presence of a large number of geothermal reserves. There is growing technological advancement for the generation of geothermal power. Several companies are focusing on the planned capacity expansions in existing power plants along with the upcoming geothermal projects. The Geysers in California, USA is the largest geothermal power station in the world.
The Asia Pacific region is expected to have positive market growth due to the rapid urbanization and industrialization that has increased the electricity demand. There is growing electrification of low-income & rural communities. There is a growing generation of electricity from renewable sources. There is growing government initiatives for promoting sustainable energy generation. There is large-scale geothermal production in the Philippines, Japan, and Indonesia. The Japanese government has provided the feed-in-tariffs for geothermal production through the mall scale projects. As of June 2021, Indonesia’s geothermal energy reserves are approximately 400 gigawatts (GW).
The global geothermal power market is highly competitive with the presence of several international and local markets. Revenue generation and opportunities intensify the market competition. Calpine, Gradient Resources, Enel Spa, General Electric, The Tata Power Company Limited, Mitsubishi Hitachi Power Systems Inc., Toshiba Corporation, Korea Electric Power Corporation, and Siemens AG are the leading market players with significant market share.
The major players are using geothermal power plant launch, collaborations, acquisitions, mergers, licensing, market expansion, and capacity utilization strategies for holding their position in the market. For instance, In December 2019, Climeon had collaborated with the New Zealand-based geothermal minerals firm Geo40 to capture valuable minerals and increase the geothermal electricity production in a heat power bottoming cycle plant at an existing geothermal plant in New Zealand.
In August 2019, Geotermica del Norte, a joint venture between Enel Chile’s renewable subsidiary Enel Green Power Chile (EGPC) and ENAP had built a third-generation unit of 33 MW at the geothermal power plant Cerro Pabellón. The construction of the new unit would involve an investment of around USD 100 million and is expected to start operations in the second half of 2020.
Source: EIN Presswire