Geothermal Power Market Is Estimated To Witness High Growth Owing To Rising Concerns For Sustainable Energy Alternatives
Geothermal power generation uses steam or hot water extracted from geothermal reservoirs in the earth's crust to power steam turbines and generate electricity. It provides a clean and sustainable energy source with minimal environmental impact. The technology uses hot water or steam trapped in porous rocks or in reservoirs of hot water or steam just below the earth's surface to run turbines and generate electricity in power plants. Geothermal power projects can range from hundreds of megawatts to small modular systems that provide heat and power to a single building or process.
The global geothermal power market is expected to be valued at US$ 5.78 Bn in 2023 and is estimated 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 Dynamics:
Rising concerns for sustainable energy alternatives is a major driver fueling the growth of the geothermal power market over the forecast period. Geothermal energy is an important source of renewable baseload power that can help integrate variable renewable resources like solar and wind by providing power 24/7 with minimal emissions. It thus helps decrease reliance on fossil fuels. Additionally, growing demand for clean energy from industries and rapid industrialization are also contributing to increased investments in geothermal projects across several regions. However, high initial capital costs for exploration and drilling of geothermal reservoirs pose a challenge to greater adoption of this technology currently.
SWOT Analysis
Strength: Geothermal energy is a renewable and sustainable source of energy. It has a smaller land footprint compared to other renewable sources as it does not require vast amount of land like solar and wind. Geothermal power plants can operate 24/7 and are not dependent on external factors like sunlight and wind.
Weakness: High initial costs involved in drilling wells and setting up specialized power plants. Geothermal resources are location specific and are not available across all regions. Exploration and utilization of geothermal sources requires specialized expertise and advanced technology.
Opportunity: Increasing focus on developing renewable and clean sources of energy provides growth opportunities for geothermal power sector. Favorable government policies and incentives promoting usage of renewables can boost geothermal power capacity additions. Growing global energy demand combined with climate change concerns enhance scope for geothermal energy development.
Threats: Upfront capital intensive nature poses funding challenges. Drilling uncertainties and resource depletion over long term are key technical threats. Competition from other renewable sources like solar and wind power with declining costs. Delays and budget overruns in geothermal projects.
Key Takeaways
The Global Geothermal Power Market is expected to witness high growth over the forecast period supported by the renewable energy drive worldwide. The global geothermal power market is expected to be valued at US$ 5.78 Bn in 2023 and is estimated to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030.
Regional analysis: The Asia Pacific region is expected to dominates the global market and register fastest growth supported by renewable energy goals of major economies like China and India. Countries like Indonesia, Philippines and Japan are also expanding geothermal energy capacity. The US currently leads in terms of installed geothermal power capacity followed by Indonesia and Philippines.
Key players analysis: Key players operating in the geothermal power market are Honomobo Corporation, ATCO Ltd., Ormat Technologies, Chevron Corporation, Calpine Corporation. Leading players are engaged in capacity addition projects as well as technological innovations to harness geothermal resources more efficiently and cost effectively. Partnerships with governments are also key strategies adopted by major companies in the market.
Get more insights on this topic: https://www.newswirestats.com/geothermal-power-market-size-and-share-analysis-growth-trends-and-forecasts-2023-2030/
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