Geothermal Power Market is expected to grow at a CAGR of 5.37% during the forecasting period 2021-2028

Global geothermal power market is expected to reach USD 10,220.90 million in 2028, from its recorded value of USD 6,684.20 million in 2020, growing with a CAGR of 5.37% during the forecast period.

Geothermal power is a reliable and self-contained power generation system that uses the warm vitality of the earth's magma to generate electricity. Geothermal power plants use steam generated by hot water located a mile or more beneath the earth's surface to turn turbines, starting a generator to produce electricity

Three types of geothermal power plants are operating presently, which include binary cycle, dry steam, and flash steam. Government organizations are putting in efforts to reduce the dependency on oil for domestic energy use. To do so, several activities are explored and exploited to use renewable energy resources as an alternative energy source

Growing implementation of stringent government regulations related to climate change is the primary factor in boosting the market growth of geothermal power

On, the basis of power plant type, flash steam power stations dominate in comparison with other types of power plants as dry steam plants require resources that generate dry steam and offer the highest efficiency with basic facilities

North America is expected to be the largest market during the forecast period, with the majority of the demand coming from countries like United States and Mexico

The Asia-Pacific region is estimated to show positive market growth due to the rapid urbanization and industrialization that has increased the electricity demand. The region is expected to grow with a highest CAGR of 6.32% during the forecast period

Market Dynamics

Drivers

• Rising demand for renewable energy source offering high capacity and lower life-cycle greenhouse gas emissions 
• Need to reduce dependency on fossil fuels

Restraints

• Huge investment for the geothermal power plants
• Geothermal power plants can only be built at specific sites

Need to reduce dependency on fossil fuels

The increased use of fossil fuels is leading to a rise in GHG emission levels, responsible for global warming. The concept of green energy is regarded as the most significant among various practices used to curb GHG emissions

The US, Germany, France, Sweden, Japan, and China have taken initiatives such as changes in building regulations and legislation that aim to reduce emission of GHGs. These initiatives have shifted the focus to adopting energy-efficient products such as geothermal power, especially in the commercial and residential sectors

Since geothermal energy is a naturally occurring resource there is no fuel required, and thus do not discharge GHGs such as carbon monoxide or carbon dioxide

Geothermal power plants emit 97% less acid rain-causing sulfur compounds and about 99% less carbon dioxide than fossil fuel power plants of similar size

Energy Programme Manager at UNEP stated that it is time to take this technology off the back burner in order to power livelihoods, fuel development and reduce dependence on polluting and unpredictable fossil fuels. Iceland is one such nation that would pull off one of the great energy makeovers in history, casting off fossil fuels and embracing geothermal power

 

Geographical Analysis

Middle East and Africa geothermal power market is likely to reach USD 330.67 million in 2028, from its recorded value of USD 226.58 million in 2020, growing with a CAGR of 5.05% during the forecast period

Kenya is largely dominating the regional market with an installed power production capacity of 820 MW and 5,380 GWh produced in 2019. Kenya Electricity Generating Company (KenGen) is the largest operating player in the country with 533 MW production capacity in its Olkaria pants

 Countries such as Egypt, UAE, Ethiopia, Uganda and Iran are exploring their geothermal potential for power generation and can boost the regional market growth over the forecast period

The promised geothermal resources of Egypt are mainly located along the Gulf of Suez and the Red Sea and in some locations at the Western Desert of Egypt. Egypt's Ministry of Electricity and Renewable Energy is exploring the possibility of adding geothermal power to the country's renewable energy plan. The Ministry of Electricity and Renewable Energy of Egypt is actively seeking out international cooperation and funding to set up a geothermal energy map in Egypt.In August 2017, findings from initial research at two potential geothermal sites in the United Arab Emirates (UAE) are promising and could provide sufficient basis for interest of developers of geothermal power projects

Ethiopia possesses an equivalent of roughly 10,000 MW of geothermal potential resources and the country is planning to develop new geothermal power plants totaling a capacity of roughly 2,500 MW by the year 2030 

In East Africa, the Great Rift Valley has a large potential for geothermal power generation which is yet to be fully explored. If its potential 15 gigawatts of energy production were used, the electricity generated could power around 700,000 homes in the region.

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