Geothermal Energy: The Next Big Thing?
The geothermal energy sector is heating up, with global investment set to rise by an impressive 20% annually until 2030. This growth is not just limited to established hubs in Southeast Asia and the US; it’s spreading across the globe, with increasing interest in regions like Africa and Europe.
But here’s where it gets controversial… The distribution of spending remains relatively stable, with a consistent cost structure across different development stages. Over half of the investment goes towards surface facilities, while subsurface work accounts for a significant 47%. This balance is crucial, as early exploration can make or break a project’s success.
As more projects reach the final investment decision (FID) stage, the world is witnessing a diverse range of applications for geothermal energy. From providing clean, reliable power in the US to meeting electricity demands in Southeast Asia, and even focusing on decarbonizing heat in Europe, geothermal energy is proving its versatility.
And this is the part most people miss… Geothermal energy’s potential extends beyond power generation. Its role in cooling applications, especially in the data center sector, is gaining traction. Pilot projects in the Middle East, like the UAE’s G2COOL initiative, are exploring geothermal cooling, showcasing its long-term promise.
Rystad Energy’s research takes a detailed approach, analyzing individual cost components of each geothermal asset. By examining drilling operations, equipment, and surface infrastructure, they provide a comprehensive understanding of the costs involved.
When it comes to costs, ‘dollars per watt’ is the key metric. District heating projects typically require half the investment of geothermal power plants, as they don’t need the complex infrastructure and equipment required for electricity generation.
These cost differences are vital for decision-makers. Understanding the relative costs helps prioritize projects and maximize the potential of geothermal resources.
So, is geothermal energy the future of clean, reliable power? The numbers seem to suggest so. With its diverse applications and growing global interest, geothermal energy is a sector worth watching.
For more insights and to explore the potential of geothermal energy further, check out Rystad Energy’s Geothermal Solution.
Contacts:
– Alexandra Gerken, Vice President, New Energies (Geothermal)
– Kartik Selvaraju, Media Relations Manager
About Rystad Energy:
Rystad Energy is a global leader in energy intelligence, providing valuable insights to navigate the evolving energy landscape. With a diverse portfolio covering every aspect of the energy industry, they empower businesses and governments with the knowledge to make informed decisions.
For more information, visit www.rystadenergy.com.