Geothermal Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The market is segmented by Plant Type (Dry Steam Plants, Flash Steam Plants, and Binary Cycle Power Plants), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa)

Market Snapshot

Study Period:

2018- 2026

Base Year:

2019

Fastest Growing Market:

North America

Largest Market:

North America

CAGR:

3 %

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Market Overview

The global geothermal energy market is expected to grow at a CAGR of more than 3% during the forecast period of 2021-2026. The outbreak of COVID-19 is expected to significantly impact the global geothermal energy market due to disruption in the international supply chain and a reduction in investment for the upcoming projects. Although annual additions correspond to the driven market, some projects are expected to be delayed due to COVID-19 related lockdown measures. Increasing electricity security concern owing to the clean and eco-friendly resources are driving the growth of the geothermal energy market. In addition, increasing demand for heating and cooling systems including ground source heat pump and district heating are estimated to fuel the growth of the geothermal energy market. However, lucrative market for alternative clean energy sources like solar and wind is likely to hinder the market growth during the forecast period.

  • Binary cycle power plant segment is likely to witness significant demand as they can be operated at low-temperature reservoirs (200°F to 330°F).
  • Government-undertaken initiatives such as financial benefits and tax refunds to promote sustainable energy production are estimated to generate numerous growth opportunities for the geothermal energy market over the upcoming years.
  • North America is expected to be the largest market during the forecast period, with majority of the demand coming from countries like United States, Mexico, etc.

Scope of the Report

The geothermal energy market report include:

Plant Type
Dry Steam Plants
Flash Steam Plants
Binary Cycle Power Plants
Geography
North America
Asia-Pacific
Europe
South America
Middle-East and Africa

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Key Market Trends

Binary Cycle Power Plants Segment to Witness Significant Growth

  • In binary cycle power plants, the water or steam below the earth never comes in direct contact with the turbines. Instead, water from geothermal reservoirs is pumped through a heat exchanger where it heats a second liquid like isobutene (which boils at lower temperature than water).
  • This second liquid is heated into steam, which powers the turbines that drives a generator. The hot water from the earth is recycled into the earth through the injection well, and the second liquid is recycled through the turbine and back into the heat exchanger where it can be used again.
  • Moreover, out of 2,558 MW of geothermal power plant capacity operating in the United States,1,826 MW capacity is from steam-powered plants and 731 MW of capacity is from binary cycle powered plants. But, according to the United States Energy Information Administration (EIA), in August 2020, the geothermal power technology is being shifted from steam to binary cycle. The reason for the shift from steam to binary-cycle power may be a matter of flexibility.
  • The United States currently has 93 binary-cycle generators averaging 8 MW of capacity each, and 79 steam generators averaging 23 MW each. Dry-steam and flash plants, which require rarer, high-temperature, shallow reservoirs, produce higher power output and are, therefore, more economically efficient than binary plants. However, because binary plants can operate at reservoirs with lower temperatures, they offer more options for suitable locations.
  • Therefore, based on the above-mentioned factors, binary cycle power plants segment is expected to witness significant growth during the forecast period.

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North America to Dominate the Market

  • North America is one of the leading markets for geothermal energy across the globe, with United States leading the regional as well as global market in terms of installed capacity.
  • Most of the geothermal power plants in the United States are in western states and the island state of Hawaii, where geothermal energy resources are close to the earth's surface. California generates the most electricity from geothermal energy, where the Geysers dry steam reservoir in Northern California is the largest known dry steam field in the world.
  • According to EIA, as of 2019, California (30) has the highest number of geothermal power plants, followed by Nevada (23), Utah (3), Idaho, Hawai, New Mexico, and Oregon has one plant each.
  • Geothermal power is generated primarily in California (2,683 MWe) and Nevada (795 MWe) with the remaining energy coming from power plants in Alaska, Hawaii, Idaho, New Mexico, Oregon, and Utah. Exploration has been conducted in seven other western and southern states, but no new power plants have been built or begun.
  • Further, it is expected that there are 1,748 geothermal wells in the United States, most of which are in California. There are 414 active producing steam wells in California, which holds over 95% of the steam wells in the United States.
  • Therefore, based on the above-mentioned factors, North America is expected to dominate the global geothermal energy market during the forecast period.

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Competitive Landscape

The geothermal energy market is fragmented. Some of the major players includes Mitsubishi Power, Ltd., Ormat Technologies, Inc., Engie SA, Tetra Tech, Inc., and First Gen Corporation.

Recent Developments

  • 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.
  • In April 2020, early civil works for construction of a combined geothermal heat and power plant in Kirchanschöring, Germany have started. The excavators started digging large trenches preparing for water pipes, sewage, electricity and internet.
  • In November 2020, Thermax, the Pune-based capital goods manufacturer, is likely to partner 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.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Geothermal Energy Installed Capacity and Forecast in MW, till 2026

    3. 4.3 Geothermal Energy Investments in USD billion, Global, 2005-2019

    4. 4.4 Recent Trends and Developments

    5. 4.5 Government Policies and Regulations

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 Porter's Five Forces Analysis

      1. 4.8.1 Bargaining Power of Suppliers

      2. 4.8.2 Bargaining Power of Consumers

      3. 4.8.3 Threat of New Entrants

      4. 4.8.4 Threat of Substitutes Products and Services

      5. 4.8.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Plant Type

      1. 5.1.1 Dry Steam Plants

      2. 5.1.2 Flash Steam Plants

      3. 5.1.3 Binary Cycle Power Plants

    2. 5.2 Geography

      1. 5.2.1 North America

      2. 5.2.2 Asia-Pacific

      3. 5.2.3 Europe

      4. 5.2.4 South America

      5. 5.2.5 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Geothermal Power Plant Equipment Manufacturers

        1. 6.3.1.1 Toshiba Corporation

        2. 6.3.1.2 Ansaldo Energia SpA

        3. 6.3.1.3 Fuji Electric Co Ltd

        4. 6.3.1.4 Baker Hughes Company

        5. 6.3.1.5 Doosan Škoda Power

      2. 6.3.2 Geothermal Power Plant EPC Companies and Operators

        1. 6.3.2.1 Mitsubishi Power, Ltd.

        2. 6.3.2.2 Ormat Technologies, Inc.

        3. 6.3.2.3 Kenya Electricity Generating Company (KenGen)

        4. 6.3.2.4 Sosian Energy Limited

        5. 6.3.2.5 Tetra Tech, Inc.

        6. 6.3.2.6 Engie SA

        7. 6.3.2.7 First Gen Corporation

        8. 6.3.2.8 PT Pertamina Geothermal Energy

        9. 6.3.2.9 Enel S.p.A

        10. 6.3.2.10 Aboitiz Power Corporation

  7. *List Not Exhaustive
  8. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

** Subject to Availability

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