Geothermal Power Generation Market

Geothermal Power Generation Market Size (2023-2028):

The Global Geothermal Power Generation Market was valued at US$ 13.76 billion in 2022 and is anticipated to reach US$ 28.87 billion by 2028 and grow with a CAGR of 13.39% during the forecast period 2023-2028.

Market Overview:

Because the heat extracted is minimal compared to the Earth's heat content, geothermal power is considered a sustainable, renewable energy source. Geothermal power facilities emit 45 grams of carbon dioxide per kilowatt-hour of electricity or about 5% less than conventional coal-fired plants. Similar to other steam turbine thermal power plants, geothermal power plants use heat from a fuel source (in a geothermal instance, the Earth's core) to heat water or another working fluid. Then the working fluid is utilized to turn a generator's turbine, generating energy. Afterward, the fluid is made cooled and returned to its original state.

Market Drivers and Restraints:

The implementation of severe government rules related to climate change in developing and developed economies is driving the worldwide geothermal power generation market expansion. Furthermore, factors such as volatile fossil fuel prices, limited fossil fuel availability, increased greenhouse gas emissions, high geothermal power capacity, the cost-effectiveness of geothermal energy, reduced pollution from geothermal power plants, and increased demand for energy are propelling the global geothermal power generation market forward. Increased government funding and evolving technology in the renewable energy industry, on the other hand, are likely to provide a lucrative potential for market expansion over the next six years. Geothermal power is generally considered a reliable and self-contained power generation system that harnesses the warm vitality of the Earth's magma to produce power or electricity. Geothermal power plants mainly utilize steam generated or produced by hot water located a mile or more beneath the Earth's surface to turn turbines, which then start a generator and generate electricity.

There are now three types of geothermal power plants in operation: binary cycle, dry steam, and flash steam. Government agencies are working to lessen the country's reliance on oil for domestic energy. To accomplish so, various initiatives involving the use of renewable energy resources as an alternative energy source are being investigated and exploited. The Indonesian government devised a National Energy Policy to achieve this goal, including energy intensification, conservation, and diversification rules. Therefore, these factors further increase the global geothermal power generation market growth in the upcoming years.

However, the high initial investment necessary for geothermal power plants and the negative environmental impact of geothermal energy is essential growth barriers for this industry. Furthermore, the expanding wind and solar energy market restrain this global geothermal power generation market's growth.

Market Recent Developments:

• In early July, Mitsubishi Hitachi Power Systems announced that it had secured a 7-year parts management and service contract for the geothermal power plant of Germenick located in Turkey. 
• Siemens AG has decided to connect New York's first offshore wind farm to the grid with the help of a high-voltage transmission system.
• Toshiba Corporation, along with Cenergy, declared that they are going to construct a geothermal power plant in Japan. It further added that it was its first construction work in the geothermal power generation business.

GEOTHERMAL POWER GENERATION MARKET REPORT COVERAGE:

Market Segmentation: 

Geothermal Power Generation Market - By Power Station Type:

• Flash Steam Power Stations
• Dry Steam Power Stations
• Binary Cycle Power Stations

Based on power station type, dry steam power stations are anticipated to hold the highest global geothermal power generation market during the forecast period. The simplest and oldest concept is dry steam stations. This form of a power station is uncommon since it requires a dry steam resource, yet it is the most efficient and has the simplest infrastructure. Although there may be liquid water in the reservoir at specific locations, no water is produced to the surface, only steam. The steam that is not geothermal wet steam with a temperature of 150°C or above is used to turn turbines directly. The turning or rotation of the turbine drives a generator, which generates electricity and adds to the power grid. The steam is then released into a condenser. Here, the steam condenses back into a liquid, cooling the water. After cooling, the water runs down a pipe that transports the condensate back to deep wells, where it can be reheated and generated once more. 

On the other hand, flash steam power stations tend to have a significant CAGR during 2022 - 2027. Flash steam plants draw deep, high-pressure hot water into lower-pressure tanks and use the flashed steam to power turbines. Fluid temperatures of at least 180 °C, and frequently higher are required. The most frequent sort of station in use today is this one. Geothermal water reservoirs with temperatures of more than 360 °F (182 °C) are used in flash steam plants. Under its pressure, the heated water rises through wells in the Earth. The pressure falls as it grows, and some of the hot water is converted to steam. After that, the steam is extracted from the water and used to drive a turbine or generator.

Moreover, binary cycle power stations will also have steady growth in the global geothermal power generation market in the next six years. Water-based binary cycle power plants operate at temperatures between 225 and 360 degrees Fahrenheit (107 and 182 degrees Celsius). The heat from the hot water is used to boil a working fluid, which is commonly an organic substance with a low boiling point. In a heat exchanger, the working fluid is vaporized and used to turn a turbine. The water is then reheated by being injected back into the Earth. Moreover, the water and the working fluid are kept separate during the entire operation, resulting in minimal or no air emissions.

Geothermal Power Generation Market - By End User:

• Commercial
• Residential
• Industrial
• Others

Based on the End User, the Industrial segment is expected to have significant global geothermal power generation market growth during the foreseen period. Geothermal power is considered a sustainable, renewable energy source. Geothermal power facilities emit 45 grams of carbon dioxide per kilowatt-hour of electricity or about 5% less than conventional coal-fired plants. Similar to other steam turbine thermal power plants, geothermal power plants use heat from a fuel source to heat water or another working fluid. Therefore, these characteristics of geothermal power plants increase the growth of the industrial segment.

Market Regional Analysis: 

The Global Geothermal Power Generation Market Report includes the segmentation of Regions

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Due to reasons such as the electrification of low-income and rural people, the Asia-Pacific region is predicted to expand during the projection period. India is a significant player in the renewable energy sector. India reaffirmed its commitment to renewable energy and lower carbon emissions. In addition, India's increased emphasis on renewable energy is reflected in the national budget, which aims to raise the share of renewable energy in total energy output.

The United States of America continues to create the world's most geothermal electricity, with over 3.5 gigawatts generated primarily in the western United States, further increasing the global geothermal power generation market growth in North America.

The Middle East and Africa are anticipated to hold a significant market share owing to the installed power production capacity of 820 MW and 5,380 GWh produced in 2019 by Kenya and generally dominating the regional market. With 533 MW of production capacity in its Olkaria pants, Kenya Electricity Generating Company (KenGen) is the country's largest operating player.

Impact of COVID-19 on the Geothermal Power Generation Market:

The corona crisis had a vast impact on the global geothermal power plant generation market. The market experienced a negative impact due to the imposition of the lockdown, in which there is a delay in the supply chain and construction of the plants. However, the market is further going to expand amid the pandemic since the lockdown has been lifted.

Market Key Players:

The companies covered in the report include:

1. ABB
2. Edf
3. Enel spa
4. General electric
5. The tata power company limited (tata power)
6. Mitsubishi Hitachi Power systems inc.
7. Toshiba corporation
8. Korea electric power corporation
9. Siemens ag
10. Yokogawa electric corporation