In geothermal power generation, different types of power plants, including direct dry steam, flash steam, and binary cycle, are involved. The geothermal power generation market growth is majorly driven by growing concerns about greenhouse gas emissions that are prompting governments to shift their focus toward clean energy development. The increasing demand for clean energy combined with the limited use of conventional fuels to achieve climate protection goals propels the demand for renewable power generation across the world. These factors together contribute to augmenting the global geothermal power generation market growth.
Role of Geothermal in Energy Transition Goals
As countries commit to international agreements like the Paris Agreement, the role of geothermal power becomes more prominent in achieving carbon neutrality. The reliable and low-carbon nature of geothermal energy makes it an integral part of the clean energy transition. Governments worldwide are incorporating geothermal power into their energy transition strategies, setting targets for increased renewable energy capacity and reduced reliance on fossil fuels. The global shift toward sustainable energy practices emphasizes the importance of geothermal power in achieving broader environmental and climate goals.
Industry players are developing relevant messages to highlight the diverse opportunities to use geothermal resources in a sustainable and climate-friendly way, including clean power generation, clean heating, and cooling in the end-use sectors, and also the extraction of minerals such as lithium for battery manufacturing as well as the other benefits of geothermal energy development such as low greenhouse gas emissions over the project life cycle and low resource use footprints.
Geothermal Power Generation Market Analysis: Plant Type Overview
Three primary power plant technologies used to convert energy into geothermal energy electricity are dry steam, flash steam, and the binary cycle. Of these, flash steam plants are the most used geothermal plants to generate electricity by using geothermal resources at temperatures of more than 150°C. Lower temperature resources are also being increasingly developed for power generation or combined heat and power using binary cycle technology. The flash steam power plant segment accounted for 64.6% of the total geothermal power generation market share in 2023 and is expected to maintain its dominance during the forecast period.
Flash steam technology uses two-phase geothermal fluids under high pressure and high temperature to generate power by first vaporizing the two-phase geothermal fluid at a lower pressure through a process called “flashing.” The resulting vapor portion of the geothermal fluid is separated from the liquid component. The steam is then expanded through a turbine coupled to a generator to generate electricity. The increase in demand for clean power generation to promote the investment and installation of renewable energy resources such as geothermal, wave energy, solar, and wind are projected to bring the new geothermal power generation market trends during the forecast period.
Geothermal Power Generation Market Report: End User Overview
Electricity is an essential part of modern life, as it powers most of the appliances used in day-to-day life across commercial, residential, and industrial setups. In 2023, the industrial sector accounted for the largest market share and is expected to maintain its dominance during the geothermal power generation market forecast period. As the industrial sector grows, companies and consumers strive to reduce the adverse impact of industries on the environment by transitioning toward more energy-efficient alternatives. This outlook anticipates technological advances and an increasing shift toward cleaner forms of energy, owing to which geothermal power generation methods are gaining prominence.
Geothermal Power Generation Market: Competitive Landscape and Key Developments
Northern California Power Agency, Turboden SpA, Toshiba Energy Systems & Solutions Corp, Berkshire Hathaway Inc, NIBE Industrier AB, General Electric Co., Fuji Electric Co Ltd, Kenya Electricity Generating Co Ltd, Carrier Global Corp., and Danfoss AS are among the key players profiled in the geothermal power generation market report. In addition, several other important geothermal power generation market players have been studied and analyzed during the study to get a holistic view of the geothermal power generation market and its ecosystem. As per company press releases, below are a few key developments:
| Year | News | Region |
| 2023 | Green Fire Energy collaborated with Yoiba Energy. This collaboration aimed to work together on the development of geothermal energy projects in Spain. Geothermal projects include geothermal well retrofits, purpose-drill wells, and geothermal resource expansion opportunities. | Europe |
| 2020 | Ormat Technologies agreed to acquire a geothermal power plant portfolio in the US along with the small solar plants for US$ 271 million. Through this acquisition, Ormat Technologies also acquired the rights to explore and potentially develop two greenfield projects in the US. | Europe |