Market Trends of United Kingdom Geothermal Energy Industry
This section covers the major market trends shaping the UK Geothermal Energy Market according to our research experts:
Direct Heat Utilization is Likely to Dominate the Market
- Geothermal energy for heating can play a major role, it has the potential to heat millions of homes in the UK, sourced either from deep geothermal resources or from shallow geothermal resources.
- The United Kingdom has a number of low to medium heat resources. Shallow geothermal resources, for example, are becoming more popular lately. With the help of ground source heat pumps, this energy is extracted and used to heat up and cool homes and buildings.
- Some of the geothermal projects in the UK being developed for heat and power generation - The Southampton District Energy Scheme, The Eden Project, Rosemanowas Quarry, Penzance Jubilee Pool, Weardale Renewable Energy Village.
- The city of Southampton is the biggest beneficiary of geothermal power. A geothermal power station is operating since 1986. The power station provides heating for the city hall, superstore, swimming centre, over 300 flats, hotels, plus the port of Southampton.
- The southwest of England is the most favourable region. Cornwall in particular is a prime site which is to have U.K.'s first deep geothermal power plant. The plant is expected to provide enough heat and power to 3000 homes, according to Geothermal Engineering Ltd (GEL).
- The increasing demand for energy, along with the potential of untapped geothermal resources, the demand for geothermal energy is expected to increase in years to come.
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Lucrative Market for Solar and Wind Likely to Hinder the Market Growth
- Among all the renewable power generation technologies available in the country, solar and wind have shown potential development, attracting significant government spending. The policy landscape of governments and associations are focused basically around these renewable power sources.
- Wind, bioenergy, and solar energy sources are dominating the renewable energy market in the UK and are expected to continue dominating in the forecast period. Solar and wind, in particular, have been the success of all the renewable energies. The purpose behind this achievement can be ascribed to the declining cost of the technology which has prompted an exceptionally low LCOE and expanded adoption of solar and wind by various governments.
- In 2019, the installed wind capacity has reached 24128 MW, whereas the installed solar capacity reached 13398 MW with both showing significant growth compared to the previous years.
- Increasing demand for energy, along with policy-level support to geothermal plants, the demand for geothermal energy technologies is expected to increase in years to come.
