Global Geothermal Energy Market is expected to expand positively through 2032 owing to the strict government regulations concerning the increasing carbon emissions and its impact on climate change. These restrictions will further drive power stations to move towards greener energy alternatives including geothermal energy.
The implementation of geothermal energy has increased as a result of the adoption of clean energy projects and targets for the incorporation of sustainable sources across all nations. Moreover, increasing investments in exploration and drilling across regions with geothermal energy will impel the market growth globally.
Leading energy companies are looking to expand their power stations in lucrative and emerging nations. For instance, in February 2021, Turboden was commissioned to build a 29 MWe geothermal energy facility for Energy Development Corporation. The plant will be constructed in the Bacon-Manito geothermal site on Luzon Island, Philippines. The latest move enabled the company to improve its standing within the industry and its geothermal power business division.
The geothermal energy market has been divided in terms of technology and country.
Based on technology, the dry segment is slated to grow between 2023 and 2032. The dry steam system was the first form of geothermal plant to be implemented globally. The plant’s associated capital costs are reduced because it directly drives the turbine with high-pressure steam from the source. More so, the dry steam system boasts of high maintenance requirement that raises overall project costs and has an impact on technology implementation. Nonetheless, advantageous policies and incentives to encourage the use of geothermal energy are set to boost the technology’s uptake in nations with substantial geothermal potential.
In terms of country, the Mexico geothermal energy market is speculated to grow at 7% CAGR from 2023 to 2032. The growing drilling and exploration activity around geothermal sources is likely to contribute to a significant increase in the Mexico geothermal energy industry size in the upcoming years. For instance, the Secretary of Energy (Sener) of Mexico stated in February 2023 that 22 exploration permits had been granted nationwide, to boost geothermal electricity output in the ensuing years.
The implementation of renewable energy sources such as wind, geothermal, and others will also be prompted by growing concerns about the high emissions from traditional power plants, which is expected to foster regional growth.