Geothermal Power: An Eco-Friendly, Reliant, And Convenient Source To Generate Electricity

Geothermal Power: An Eco-Friendly, Reliant, And Convenient Source To Generate Electricity

Geothermal power is the power that is generated using the heat that comes from the sub-surface of the earth. As the geothermal power plants use geothermal energy to generate electricity, it is a sustainable and renewable source of energy compared to the conventional alternatives. Reduction in pollution by geothermal power, rise in greenhouse gas emission, cost-effectiveness, and the increase in demand for energy has boosted the growth of the global geothermal power market. According to Allied Market Research, the global geothermal power market is expected to reach $6.8 billion by 2026, registering a CAGR of 5.0% from 2019 to 2026.

Increased in funding to encourage geothermal power plants

Keeping in mind the eco-friendly nature of geothermal power plants, several banks have offered loans to encourage the geothermal power plant projects. For instance, the Asian Development Bank (ADB) has provided a $300 million loan to PT Geo Dipa Energy, an Indonesian state-owned company, to expand its generation of geothermal power by 110 megawatts. The ADB’s s geothermal power project is expected to help Indonesia to make more sustainable, reliable, and efficient electricity irrespective of the weather. Moreover, the geothermal power project would help businesses and consumers to have access to affordable and reliable energy.

The ADB aims at long-term economic goals for economic growth by utilizing maximum indigenous energy resources and ensuring environmental sustainability. The geothermal power project is expected to provide friendly base-load electricity and reduce the emissions of CO2 by 700,000 tons per year. Moreover, the project would attract private companies to invest in the geothermal power project to reduce early-stage project development risks. More importantly, the geothermal power project had been approved amid the novel COVID-19 pandemic and will help the government of Indonesia to ensure a green, sustainable, and resilient recovery of the country from the virus.

Iceland and UNEP to support East-Africa with its power generation projects

Iceland and the United Nations Environment Programme (UNEP) have been working together to support East-Africa financially and train the engineers to manage geothermal power generation. A UNEP African Rift program has been specially developed to increase the investments in East-Africa. To overcome the energy shortage in East-Africa, it is estimated that the geothermal power project would generate 20GW of electricity from geothermal energy. Geothermal energy helps in fuel development, reducing dependency on unpredictable fossil fuels.

KenGen to offer better power generation capacity

KenGen, an electricity generating company in Kenya, has set up a geothermal power plant in Olkaria which would provide an additional 83 MW of power generation capacity than the other geothermal power generation companies. Geothermal energy has become the key source for KenGen with its geothermal energy-led strategy to earn its income. Kengen plans most of its geothermal power projects with a target of providing a power generation capacity of 720 MW. The current power generation capacity that KenGen has offered is 707 MW. KenGen is a company that looks upon the business diversification and aims at selling all the services required for a geothermal power project.

There are several advantages of using geothermal energy as a source to generate electricity as it does not depend upon adverse weather conditions and can provide high capacity factors that can help to supply a good amount of baseload electricity. The increase in funding from the government and the advancements in developing technologies have created an opportunity for the global renewable energy market to expand over the next five years.

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