Geothermal power, also known as hydrothermal power, is the energy generated from heat stored in the earth's crust. It is considered a renewable and sustainable source of energy as the natural heat from the earth can continuously produce steam to drive electric turbines for power generation. The growing emphasis on low-carbon and environment-friendly energy sources has increased the demand for geothermal power. Projects utilizing geothermal resources are economically viable as they do not depend on fuel prices and can deliver dispatchable power 24x7.
The Global Geothermal Power Market is estimated to be valued at US$ 5.78 Bn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing adoption of renewable energy due to stringent emission reduction policies has accelerated the growth of the Geothermal Power Market. Many nations have set targets to increase the share of green energy in their overall power generation mix. Geothermal power is projected to contribute significantly towards clean energy goals due to its baseload generating capability. Additionally, the constant technological advancements to explore new geothermal resources and improve the recovery rate from existing wells have augmented the market's growth over the past few years.
Segment Analysis
The Global Geothermal Power Market is dominated by dry steam plants sub segment. Dry steam plants accounted for over 50% share of the overall market in 2023 owing to the advantages associated with direct use of geothermal steam for power generation. These plants have high efficiency and lower development costs making them an attractive choice for tapping geothermal resources located in high temperature zones.
Key Takeaways
Global Geothermal Power Market Size is expected to witness high growth over the forecast period2023 to 2030. The Global Geothermal Power Market is estimated to be valued at US$ 5.78 Bn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030.
Regional analysis shows that North America region currently holds the highest share of over 30% of the Global market in 2023 led by strong presence of key players in the United States. However, Asia Pacific region is expected to emerge as the fastest growing regional market during the forecast period attributed to increasing investment in geothermal projects, especially in developing countries like Indonesia and Philippines.
Key players operating in the Geothermal Power Market are Honomobo Corporation, ATCO Ltd., Tempohousing, SG Blocks, Inc., Giant Containers Inc., Skanska AB, Speed House Group of Companies, Supertech Industries, Bechtel Corporation, and Lendlease Corporation. Tempohousing has recently announced plans to set up a large geothermal power project in Philippines to tap the country's significant underground heat resources. The project worth US$ 1 Bn is expected to be commissioned by 2028.
Bechtel Corporation has been involved in development of the largest binary cycle geothermal power plant in the United States. The project located in California currently generates up to 350 MW of renewable power. The company is looking to replicate its success internationally and is bidding for projects in Indonesia and East African countries. Additionally, SG Blocks is focusing on innovative modular construction methods for reduction of project development timelines and costs for geothermal plants.
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