Monday , 20 April 2015
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Global geothermal power market value to increase to US$8.9 bln in 2019: Transparency Market Research

JAKARTA (Rambu Energy) – Transparency Market Research said in its latest report that the the global geothermal power generation market will grow significantly to US$8.9 billion in 2019 from US$2.5 billion in 2013.

The report entitled, “Geothermal Power Generation Market for Dry Steam, Flash Steam, Binary Cycle Technology – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2013 – 2019″ states, that market for geothermal power generation will grow at a compound annual growth rate (CAGR) of 23.58 percent.

Geothermal power generation market is leading the energy sector in the present economy. 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,” Transparency Market Research said in a media statement.

It said the biggest market drivers for the global geothermal power generation market are policy frameworks such as renewable energy certificates, feed in tariffs, soft loans for geothermal resources development, and renewable purchase obligations by utilities.

On the other hand, 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.

“Additionally, 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,” it said.

Several nations across the globe are relaxing and changing the environmental laws to help accelerate the geothermal power generation. “This will help the world at large to tap into the unrealized potential of geothermal power generation and resources,” it said.

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

Under the capital expenditure of geothermal power generation, construction expenses is an umbrella expense, which is inclusive of exploration costs, drilling costs, surface facility construction costs and actual power plant construction costs, it said.

“All of these expenses are imperative for geothermal power generation,” it said. (*)

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