The global Geothermal Power Market is estimated to be valued at US$ 5.78 Bn or Mn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Geothermal power is generated by tapping into the earth’s internal heat to produce steam that drives electric power generating turbines. Geothermal power is renewable and reliable baseload energy that generates little to no greenhouse gas emissions. Power plants have very few moving parts, resulting in high availability factors.
Market key trends:
One of the key trends in the market is the shift towards hybrid power plants. Most geothermal fields have declining reservoir pressures and steam production over time. However, the use of geothermal fluids from depleted reservoirs for non-electric applications, such as direct use and geoexchange, can significantly extend the lifetime of geothermal projects and improve project economics. The wastewater from geothermal power plants is being utilized for greenhouse heating, aquaculture, recreational, and other applications to create hybrid geothermal energy complexes. This helps maximize the value extracted from geothermal reservoirs and minimizes surface footprint per installed megawatt of power.
Market key trends:
One of the key trends in the Geothermal Power Market Size is the rising demand for renewable sources of energy across the globe. With growing environmental concerns and push for reducing carbon emissions, many countries are shifting their focus towards cleaner sources of power generation such as solar, wind and geothermal. Geothermal energy has an advantage over solar and wind as it is a base load power source that can generate electricity 24×7. The drilling and exploration technologies required for geothermal projects have also improved, making previously inaccessible geothermal resources now viable.
SWOT Analysis
Strengths: Geothermal energy is a base load renewable source that has near-zero carbon emissions. It can generate power consistently without intermittency issues faced by solar and wind.
Weaknesses: High initial costs involved in exploration, drilling and setting up of geothermal power plants. Location constraints as geothermal resources are dependent on underground heat sources.
Opportunities: Growing global emphasis on increasing the share of renewables in overall energy mix. Countries and regions with undiscovered geothermal potential can boost development.
Threats: Upfront capital required and longgestation periods make geothermal projects risky. Commodity price and drilling risks can impact the economics of geothermal projects.
Key Takeaways
The global geothermal power market is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing global energy demand and push for cleaner sources of energy. The Asia Pacific region is expected to dominate the market over the coming years led by countries like Indonesia, Philippines, Japan and New Zealand. Indonesia has over 27GW of untapped geothermal potential while Philippines is the third largest producer currently.
The geothermal power market size for 2023 is estimated at US$ 5.78 Bn. Key players operating in the geothermal power market are ABB, EDF, Enel SPA (Enel), General Electric (GE), The Tata Power Company Limited, Mitsubishi Hitachi Power Systems Inc., Toshiba Corporation, Korea Electric Power Corporation, Siemens AG, and Yokogawa Electric Corporation. The market is consolidated with top 10 players accounting for over 60% share. Players are focusing on geothermal project development, increased investments in exploration and technology innovations to harness undiscovered resources.
Regional analysis includes countries like Indonesia, Philippines, Turkey, Kenya, Iceland, New Zealand and others which have high geothermal power potential due to favorable geographic conditions. With supportive government policies and incentives, the geothermal power capacity of these countries is expected to witness strong growth over the coming decade.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it