A new report from Visiongain has calculated that the global Geothermal Power Market will see a capital expenditure (CAPEX) of $2,368 mn in 2018 and that Japan, Indonesia, Philippines and Turkey are among the world leaders in tapping the potential business opportunities available.
Geothermal energy is a clean and renewable energy derived from the heat produced by the slow decay of radioactive particles in the core of the earth. Geothermal reservoirs are located deep underground and can be detected through volcanoes and fumaroles, hot springs and geysers.
The most active geothermal resources exist along major tectonic plate boundaries that incorporate maximum volcanic areas. The geothermal energy is mainly used in three main applications including direct use and district heating systems, electricity generation power plants and geothermal heat pumps.
Geothermal energy is considered to be a most sustainable energy source owing to its limited burning of fuels and minimal emission of carbon dioxide and other greenhouse gases. The geothermal power market is mainly driven by the factors including an efficient and sustainable energy source and growing adoption of renewable energy. The limited burning of fuels and minimal emission of carbon dioxide and other greenhouse gases favour the adoption of geothermal energy.
The introduction of favourable government regulations and policies are expected to recover the otherwise untapped huge geothermal potential for low-carbon electricity generation and direct use in cooling and heating. Despite these advantages, the geothermal energy has experienced a low adoption owing to the high initial cost associated with the technology. The increasing demand for reliable and sustainable electricity supply is further expected to boost the demand for geothermal power.
The pressing concerns over global warming and energy security are likely to favour the geothermal power market. As there are significant risks involved with initial exploration and drilling, favourable regulatory environments – including tax incentives and land permits – can do much to facilitate further developments in the sector.
Besides from being a clean and renewable energy source, geothermal energy is also suitable for base load electricity generation and thus has the potential to become the backbone of local grid systems.