A rapid increase in investment in renewable energy projects in Asia has led to the geothermal power market growth in the region.
Countries such as China and India are expected to boost the market growth, primarily due to significant increase in energy demand resulting from rapid industrialisation and rise in population. A noteworthy increase in electric vehicle production, in particular, has not only created opportunities for the geothermal power market in the transportation sector but also reduced the greenhouse gas (GHGs) emissions. Rise in electric vehicles is expected to offer lucrative growth opportunities to the global geothermal power. This is attributed to the fact that electric mobility has considerably increased the consumption of energy in the transportation sector.
According to a new report published by Allied Market Research, the global geothermal power market was valued at US$4.6bn in 2018, and is projected to reach US$6.8bn by 2026, growing at a CAGR of 5.0% from 2019 to 2026.
Geothermal power plants utilise steam to produce energy. In the process of energy generation, the steam that is generated from reservoirs of hot water found below the earth's surface rotates a turbine that activates a generator to produce energy. With growing demand for energy, it is expected that the requirement of geothermal power generation will increase notably. A rise in the use of geothermal power plants in the industrial sector is expected to result in the consumption of more energy during the forecast period.
Increase in investments and developments in renewable energy project is expected to offer remunerative opportunities for the growth of the geothermal power market. So far, within the APAC region, India is one of the major countries experiencing rapid growth in the geothermal power market due to the increase in investments in renewable energy projects in the country. One notable example is the Eversource Capital, a Joint venture between Everstone and Lightsource, that planned to invest US$1bn in renewable energy in India through its Green Growth Equity Fund.