Why is Demand for Geothermal Power Shooting Up Globally?

With the growing demand for renewable energy and clean energy, on account of the escalating pollution levels and depletion of fossil fuels, the demand for geothermal energy is rising rapidly across the world. Moreover, due to the increasing focus on energy security and energy independence, many governments are enacting policies for encouraging the adoption of geothermal energy. For instance, the European Union (EU) aims to achieve at least 20% of their power needs with renewable energy sources by 2020, under the Renewable Energy Directive (RED). 

Additionally, many countries are taking initiatives such as focusing on launching geothermal energy projects, for reducing their oil imports, which is also fueling the expansion of the geothermal power market. Besides, the burgeoning requirement for reducing the emission of greenhouse gases is also creating lucrative growth opportunities for geothermal power producers across the world. Economies such as Germany, China, Australia, France, Portugal, and Ethiopia are making huge investments in geothermal energy, thereby offering immense opportunities for capacity expansion of geothermal energy plants.

Furthermore, geothermal power has various advantages over other renewable energy sources such as wind, bioenergy, and hydropower such as less requirement for large land areas, high availability, and the ability to cause zero or no liquid pollution because of the re-injection of effluent fluid and low atmospheric pollution. Due to the aforementioned factors, the revenue of the geothermal power market is expected to rise from $3,233.5 million in 2015 to $6,518.9 million by 2022. Furthermore, the market will progress at a CAGR of 11.6% from 2016 to 2022 (forecast period).

Thus, it can be said with surety that the demand for geothermal power will surge sharply in the coming years, primarily because of the growing requirement for renewable and clean energy, on account of the soaring pollution levels and implementation of stringent environmental protection laws as well as the enactment of supportive policies by the governments of several countries, and the rapid depletion of fossil fuel reserves all over the world.