Growth of geothermal energy market lags behind wind and solar
According to a recently released report, the geothermal energy market is expected to grow over the next twenty years, but will still trail far behind wind and solar; currently only twenty-six countries in the world use geothermal energy to generate power, and as of 2010 there was a total global capacity of 10,715 megawatts; in June 2010, total global capacity of wind-powered generators was 175 gigawatts; by 2020 as much as 14.4 gigawatts of new geothermal capacity will be added at a 3 percent annual growth rate; the market value is estimated to be $6.8 billion by 2020; the expansion of geothermal energy still faces several impediments; at least 350 projects currently underway face financing, drilling rig, and skilled labor shortages
According to a recently released report, the geothermal energy market is expected to grow over the next twenty years, but will still trail far behind wind and solar.
The report, released by Pike Research, finds that, “Worldwide potential is immense, but geothermal remains an underutilized resource and represents only a small fraction of the global renewable energy portfolio.”
Currently only twenty-six countries in the world use geothermal energy to generate power, and as of 2010 there was a total global capacity of 10,715 megawatts. In contrast as of June 2010, total global capacity of wind-powered generators was 175 gigawatts.
Geothermal power is produced by tapping into the heat from the earth’s core. This form of energy emits low levels of carbon and is renewable as it only extracts a small amount of heat from the earth.
The United States is the world’s largest producer of geothermal energy with 3,086 megawatts of capacity. The Philippines and Indonesia trail the United States generating 1,904 megawatts and 1,179 megawatts respectively.
Interest in geothermal is increasing and Pike Research estimates that by 2020 as much as 14.4 gigawatts of new geothermal capacity will be added at a 3 percent annual growth rate. The market value is estimated to be $6.8 billion by 2020.
The report cites “improved access to resource data, more efficient drilling processes, increased understanding about the industry’s potential, and improving access to financing” as the primary drivers of demand in geothermal energy.
The expansion of geothermal still faces several impediments, despite increased interest. The report estimates that at least 350 projects currently underway face financing, drilling rig, and skilled labor shortages which “will impede development over the next decade.”
Pike Research recommends more efficient land leasing programs, drilling assistance, legislative incentives, and significant financial support to help bolster geothermal energy’s expansion.
