Geothermal Power Market Research Report - Global Forecast till 2030

Geothermal Power Market Research Report: Global Information by Power Plant Type (Flash Steam Plants, Dry Steam Plants, and Binary Cycle Power Plants), Power Output (Up to 5 MW and Above 5 MW), End-Use (Residential, Commercial and Industrial) and Region (North America, Europe, Asia-Pacific, Middle East, Africa and South America) - Forecast till 2030

ID: MRFR/E&P/7259-HCR | December 2022 | Region: Global | 111 Pages         

Geothermal Power Market

Geothermal Power Market share is projected to reach USD 5.89 Billion by 2027 and grow with a 5.26% CAGR between 2019 and 2027.

Segmentation

By Power Plant Type Flash Steam Plants Dry Steam Plants Binary Cycle Power Plants
By Power Output Up to 5 MW Above 5 MW
By End-Use Residential Commercial Industrial

Key Players

  • Enel Spa (Roma)
  • General Electric (US)
  • Supreme Energy (Indonesia)
  • Ansaldo Energia (Italy)
  • Macquarie Group Limited (Australia)
  • Sumitomo Corporation (Japan)
  • Green Mountain Energy Company (US)
  • Turboden S.p.A. (Italy)
  • Reykjavik Geothermal (Iceland)
  • Atlas Copco AB (Sweden)
  • KenGen (Kenya)
  • Halliburton (US)
  • Calpine (US)
  • Fuji Electric Co Ltd (Japan)

Drivers

  • New product launches and R&D Amongst major key Players
  • Growing demand for electricity generation from renewable energy sources
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Geothermal Power Market Scenario


Geothermal power market size is projected to grow at a 5.26% CAGR between 2022 and 2030 and to reach USD 5.89 Billion valuation. Growing demand for electricity generation from renewable energy sources is expected to drive global market demand.


The water or steam below the earth never directly contacts the turbines while functioning in binary cycle power plants. Instead, water from geothermal reservoirs is pumped with the help of a heat exchanger. It heats the second liquid-like isobutene which boils at a lower temperature compared to water. The second liquid is heated into steam, which powers the turbines for driving a generator.


Geothermal power is generated primarily in regions like California and Nevada. For example, in 2020, 11,345 gigawatt-hours (GWh) of electricity was generated from a geothermal power functioning in California. On the other hand, Nevada had registered 235 MWe gross (196 MWe net) installed capacity in 2020. The remaining geothermal energy comes from power plants located in regions like Alaska, Hawaii, Idaho, New Mexico, Oregon, and Utah.


Moreover, new projects are also planned in the region, which is expected to cater to the rising need of the market functions. For example, Canada's Minister of Natural Resources announced USD 40.5 million investment for the Clarke Lake Geothermal Development Project. The project will likely develop one of Canada's first commercially viable geothermal electricity production facilities.


The major factors driving the growth of the geothermal power global market is the growing demand for electricity generation from renewable energy sources. Geothermal energy companies are focusing on reducing carbon emissions, which is expected to drive the need for geothermal power during the forecast period. Furthermore, government bodies across the globe have introduced various initiatives to increase the adoption of geothermal power. This is expected to drive market growth during the forecast period significantly. However, the high initial investments required in geothermal projects is a restraining factor for the growth of the geothermal power global market.


Geothermal Power Market Key Players


The key players operating in the global geothermal power market are Enel Spa (Roma), General Electric (US), Supreme Energy (Indonesia), Ansaldo Energia (Italy), Macquarie Group Limited (Australia), Sumitomo Corporation (Japan), Green Mountain Energy Company (US), Turboden S.p.A. (Italy), Reykjavik Geothermal (Iceland),  Atlas Copco AB (Sweden), KenGen (Kenya), Halliburton (US), Calpine (US), and Fuji Electric Co Ltd (Japan).


Recent Developments in Geothermal Power Market


The US has 93 binary-cycle generators averaging 8 MW of capacity and 79 steam generators averaging 23 MW each. Dry-steam and flash plants require rare and high-temperature requirements, followed by shallow reservoirs, higher power output, and more economically efficient than binary plants. Announcements for many new installations have been announced in recent years, which may support the market's growth during the forecast period. Turboden SpA, a group company of Mitsubishi Heavy Industries Ltd (MHI) and Mitsubishi Power Ltd, jointly announced and confirmed an order receivable for 29-megawatt (MW) binary cycle power generation equipment to be installed at the geothermal power plant operated in Palayan, in the Philippines, by Energy Development Corporation (EDC).


Many major players such as Enel Spa, Ansaldo Energia, and Reykjavik Geothermal are actively focusing on signing contracts and agreements with utilities and industries to provide geothermal power. For instance, in December 2019, Sumitomo Corporation signed a contract with the Indonesian government to develop geothermal projects, which will generate approximately 400 MW of electricity. Such developments in the market are expected to drive the growth of the global geothermal power industry during the forecast period.    


Global Geothermal Power Market Segmentation and Geographic Overview


Global geothermal power market has been segmented based on power plant Type, Power Output, and End-Use. Based on power plant type, the global Geothermal Power Market is divided into flash steam plants, dry steam plants, and binary cycle power plants. The binary cycle power plants segment is expected to hold the largest share of the market and grow at the fastest rate during the forecast period. However, flash steam plants also hold a substantial share of the market. Based on power output, the global market is bifurcated into up to 5 MW and above 5 MW. The above 5 MW segment held the larger market share in 2018 and is expected to grow with the highest CAGR during the forecast period as the power plants in this segment are mostly used to support grids. Based on end use, the global market of geothermal power has been segmented into residential, industrial, and commercial. The industrial segment is expected to hold the largest share within the global market due to the increasing industrialization, globally.



Geothermal Power Market
Geothermal power is electricity generated from geothermal energy where steam from hot water located under the ground is used to rotate the turbine, which is connected to a generator for electricity production. Geothermal energy is obtained from fluids contained in the Earth’s sub-surface and is available abundantly around volcanic regions. The energy market trends will also witness a growing trend for geothermal power in the coming years.


The geothermal industry is expected to witness high growth during the forecast period, owing to the increasing demand for electricity generation from renewable energy sources.  This is expected to drive the demand for geothermal power in the global market during the forecast period.


Based on the region, the global geothermal power market is segmented into asia-pacific, north america, europe, the middle east & africa and south america. North America holds the largest share of the Geothermal Power Market due to the high availability of geothermal resources in the region. However, the geothermal power industry in asia-pacific is expected to grow at the fastest rate during the forecast period, primarily to the numerous government initiatives introduced in the region to increase the adoption of renewable energy sources.


Geothermal Power Market Intended Audience



  • Government and research organization

  • Consulting companies in the geothermal power market

  • Raw material suppliers

  • Research consultants

  • Investors and shareholders



Report Scope:

Report Attribute/Metric Details
  Market Size

  • USD 5.89 Billion
  • 2030 : Significant value
  •   CAGR   5.26% CAGR (2022-2030)
      Base Year   2021
      Forecast Period   2022 to 2030
      Historical Data   2019 & 2020
      Forecast Units   Value (USD Billion)
      Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
      Segments Covered   Power Plant Type, Power Output, End-Use
      Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
      Key Vendors   Enel Spa (Roma), General Electric (US), Supreme Energy (Indonesia), Ansaldo Energia (Italy), Macquarie Group Limited (Australia), Sumitomo Corporation (Japan), Green Mountain Energy Company (US), Turboden S.p.A. (Italy), Reykjavik Geothermal (Iceland), Atlas Copco AB (Sweden), KenGen (Kenya), Halliburton (US), Calpine (US), and Fuji Electric Co Ltd (Japan)
      Key Market Opportunities   New product launches and R&D Amongst major key Players
      Key Market Drivers   • Growing demand for electricity generation from renewable energy sources


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    Frequently Asked Questions (FAQ) :

    The expected growth rate of the market can be 5.26%.

    Enel Spa (Roma), General Electric (US), Supreme Energy (Indonesia), Ansaldo Energia (Italy), Macquarie Group Limited (Australia), Sumitomo Corporation (Japan), Green Mountain Energy Company (US), Turboden S.p.A. (Italy), Reykjavik Geothermal (Iceland), Atlas Copco AB (Sweden), KenGen (Kenya), Halliburton (US), Calpine (US), and Fuji Electric Co Ltd (Japan), and others are top key players in the industry.

    The high investments needed in geothermal projects can be a restraining factor in the market for geothermal power.

    The power plant types considered in the report include flash steam plants, dry steam plants, and binary cycle power plants.

    North America is currently the market leader.

    At a geothermal power plant, wells are drilled 1 or 2 miles deep into the Earth to pump steam or hot water to the surface. ... When the water reaches the surface, the pressure is dropped, which causes the water to turn into steam. The steam spins a turbine, which is connected to a generator that produces electricity.

    Geothermal energy can heat, cool, and generate electricity: Geothermal energy can be used in different ways depending on the resource and technology chosen—heating and cooling buildings through geothermal heat pumps, generating electricity through geothermal power plants, and heating structures through direct-use applications.