Geothermal energy potential 'underutilized,' report says
Despite low emissions and cost of energy, the potential of geothermal energy remains "underutilized" due to high upfront costs and growing, but still "experimental," exploration.
According to a new report from Pike Research, geothermal energy will "gain ground" on wind and solar energy in terms of overall renewables market share, but will still represent a tiny fraction of the overall energy market.
Specifically, Pike estimates between 3.6 gigawatts and 14.4 gigawatts of new geothermal capacity will come online by 2020, keeping to a steady 3 percent compound annual growth rate. That's a $6.8 billion market value by 2020.
Some fast facts from the report:
- Currently, 26 nations use geothermal power for electricity production. In 2010, total global capacity was 10,715 megawatts.
- The U.S. leads the world in geothermal, with 3,074 megawatts. (Specifically, California, with 2,565 megawatts.) Behind the U.S. is the Phillippines (1,904 MW) and Indonesia (1,179 MW).
- Geothermal exploration is increasing, mostly due to improved technology and techniques and more streamlined land leasing programs.
- At least 350 projects are underway around the world, but face financing, drilling rig and skilled labor shortages. "These factors will impede development over the next decade," the authors write.
Despite this, Pike forecasts "high growth" and a "sharp increase" in geothermal capacity in the next decade, to the tune of 25.1 gigawatts by 2020, a 134 percent increase (and 9 percent CAGR). That prediction falls short of government estimates, but takes into account a decrease in drilling costs and an increase of data and insights from pilot projects along the way.
What could give geothermal energy a shot in the arm? More efficient land leasing programs, drilling assistance, strict renewable portfolio standards and feed-in tariff pricing, according to the report.
But without favorable policy, legislation that reduces risk and a healthy dose of financial support -- the same requirements for solar, wind and other alternative energies -- geothermal energy remains waiting at the gate.
This post was originally published on Smartplanet.com