Alexander Richter, Think Geoenergy
In its Market Report “Renewables 2018”, the International Energy Agency (IEA) provides its analysis and forecasts to 2023.
According to IEA, the geothermal power generation capacity is to expand by 28% or around 4GW. While IEA says it would reach just over 17,000 MW, the actual figure might be more closer to 18,000 MW, according to the research done by ThinkGeoEnergy.
IEA describes the Asia-Pacific region (excluding China) as the largest area of growth with around 2,000 MW in additions over the period from 2018 to 2023. Indonesia will likely see the strongest growth due to its available geothermal resources and strong project pipeline in the construction face. Kenya, the Philippines, and Turkey follow, responsible for 30% of additions.
Despite geothermal energy pre-development risks still being an important barrier to securing financing for geothermal projects, exploration and construction of facilities in Latin American and Caribbean countries is expected to take off because geothermal technology generates stable, CO2 emissions free baseload power, as described by IEA.