The Asia-Pacific geothermal power market was valued at US$ 2,986.88 million in 2020 and is expected to record at a CAGR of 6.32% over the forecast period to reach US$ 4,878.05 million by 2029.
The Asia-Pacific region is predicted to hold positive market growth due to the rapid urbanization and industrialization that has increased the electricity demand coupled with the growing electrification of low-income & rural communities in the region
According to data released from the World Energy Council, Asia-Pacific accounts for 33.3% of the world's total geothermal installed capacity, or 27.53 GW, with a good margin for growth and development predicted given the region's untapped potential
Furthermore, there are growing government initiatives for promoting sustainable energy generation, and large-scale geothermal production in the Philippines, Japan, and Indonesia, thus boosting the regional market for the industry
Japan held a market revenue share of 11% in the year 2020. As of 2017, there are 51 geothermal power plants in operation with the capacity of approx. 500MW in Japan. The total installed capacity of geothermal power plants in Japan was approximately 555 MWe at the end of 2019. The administrative reform minister, has announced a goal of doubling Japan's geothermal power facilities by 2030, thus driving the market growth in this country
Moreover, the Japanese government has provided the feed-in-tariffs for geothermal production through the small scale projects. In March 2019,a new geothermal power plant started operations in Japan.
The plant with an installed capacity of 7.4 MW went online in January 2019 in Iwate Prefecture, Japan. The plant sells its electricity to Tohoku-Electric Power Co. Inc at a price of JPY 40/ kWh or around $0.36/ kWh under the current feed-in-tariff scheme.
Indonesia geothermal power market is expected to grow with a CAGR of 7.87% during the forecast period. Indonesia has an installed capacity of 2,130.7 MW in 2020 and is likely to overtake the U.S. in terms of geothermal capacity by 2027. The country is home to four of the world’s top 10 geothermal power projects, including the two biggest plants by active capacity
Indonesia has an estimate of 29,500 MW of geothermal energy resources, which is second most among all countries. As of June 2021, Indonesia's geothermal energy reserves are approximately 400 gigawatts (GW)
According to the “Electricity Supply Business Plan of PT PLN Year 2019 up to 2028”, geothermal power plants are planned to be newly developed to generate about 4,600 MW by year 2028. Moreover, a compact geothermal power generation system is highly anticipated to replace a diesel generator, which is commonly used in many islands in Indonesia
PGE is the fastest growing geothermal company in Indonesia, with 88% of Indonesia's installed geothermal capacity operating in PGE working areas. The government is pursuing a variety of initiatives to support geothermal development, and aims to increase the country's installed geothermal power generation capacity from the current 2100MW to 8000MW by 2030
In January 2021, Yokogawa Electric Corporation announced that its subsidiary, PT Yokogawa Indonesia, has received an order from PT Pertamina Geothermal Energy (PGE), a government-owned utility in Indonesia, to replace the existing control systems for the steamfield above ground system (SAGS) at the Lahendong geothermal power plant in North Sulawesi Province. Powered by six generation units (1-6), the Lahendong power plant is capable of delivering 120MW of electricity, making it one of the largest geothermal power plants in Indonesia
On the other hand, New Zealand held market revenue share of 12% in the year 2020. New Zealand has a long history of geothermal energy generation, and geothermal energy accounts for about 20% of the country's electrical supply. The Taupo Volcanic Zone has most of New Zealand's installed geothermal producing capacity, with around 25 MWe deployed at Ngawha
Major geothermal plants in the country include the Wairakei Power Station (1,310GWh), the Te Mihi Power Station (1,200GWh), Nga Awa Purua Power Station (1,100GWh), Kawerau Power Station (800GWh) and the Mokai Power Station (900GWh)
The Wairakei Power Station, which is based near the Wairakei Geothermal Field in the Taupo Volcanic Zone of New Zealand, is the largest geothermal power station in New Zealand with an annual output of 1,310 gigawatt-hours (GWh)
Moreover, the Philippines is home to major geothermal power plants that include Makban Geothermal Complex and Tiwi Geothermal Complex, which have capacities of 458MW and 289MW respectively. Also known as Makiling-Banahaw Power Plants, the Makban Geothermal Complex is located in the municipalities of Bay and Calauan in the Laguna province and Santo Tomas, in the Batangas province. It is owned by AP Renewables, a wholly-owned subsidiary of Aboitiz Power, and covers an area of 700 hectares
Targeting geothermal, the Philippines Department of Energy has set targets for geothermal power generation capacity additions; short term 183 MW (2016-2020), 900 MW in the medium-term (2021 to 2025), and 288 MW in the long-term (2026 to 2030). The total objective to be reached by 2030 is 1,371 MW in added capacity (correlating with a total installed capacity of around 3,200 MW). With that the Philippines would reach a level that comes somewhat close to the current top 1 country, the United States that has today an installed of around 3,676 MW.
China and Thailand are the other geothermal power producing countries in Asia Pacific region whose market value is likely to reach USD 14.96 million in 2028, from its recorded value of USD 9.01 million in 2020
In 2017, with its ambitious 5-year plan for geothermal, China aimed to add 530 MW in geothermal power generation capacity and expand geothermal heating dramatically to clean up its air. From 2016 to 2020, China will add geothermal power installed capacity by 500 gW, which could drive investment worth 40 billion yuan ($5.8 billion). By 2020, the country aimed for a geothermal power installed capacity of 530MW and a geothermal heating area of 1.6 billion square meters, according to the country’s energy planner
India is one of the key countries in Asia Pacific which is expected to provide lucrative opportunities for major players in the market. In April 2020, Thermax, the Pune-based capital goods manufacturer, is likely to partner with Icelandic firm Reykjavík Geothermal to set up a geothermal power project in India. A 3 MW pilot project is slated to be set up in Puga Valley in Ladakh, which is likely to be the first such project in the country
Oil and Natural Gas Corporation (ONGC) is likely to carry out the first Geothermal Field Development Project in Ladakh, India. A Memorandum of Understanding (MoU) has been signed by the ONGC Energy Centre (OEC) with Ladakh and the Ladakh Autonomous Hill Development Council, Leh, on 6th February 2021
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