Geothermal power market set to reach $8.9bn by 2019

Analysis by Transparency Market Research forecasts that the geothermal power generation market will rise to $8.9bn by the end of the decade.

The market reached a high of $2.5bn in 2013 but the study says that geothermal power is now perfectly poised for significant growth.

“The market positioning of geothermal power generation is impeccable as it is the only form of renewable electricity production process which can achieve high capacity utilization and supply base load. Owning to these factors the geothermal power generation market can thus compete with convention and non-conventional sources of energy.”
Geothermal power
Transparency Market Research’s "Geothermal Power Generation Market for Dry Steam, Flash Steam, Binary Cycle Technology - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2013 - 2019" predicts that geothermal generation will grow at a CAGR of 23.58% with the biggest market drivers set to be policy frameworks such as renewable energy certificates, feed in tariffs, soft loans for geothermal resources development, and renewable purchase obligations by utilities.

At the same time, stringent environmental protection laws, regulations regarding groundwater pollution, and land ownership laws are some of the market restraints that are making geothermal power generation walk the tightrope. The strict regulatory framework provided by governments around the world is proving to be both, a driver and a restraint for the global geothermal power generation market.

According to the report, ‘To help accelerate geothermal power generation several nations across the globe are relaxing and changing the environmental laws. This will help the world at large to tap into the unrealized potential of geothermal power generation and resources.

Though geothermal power generation demands a huge capital expenditure, it is luring in investors as it promises zero fuel costs and attractive payback periods.’

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