New Report from ABS Energy Research reveals that 2009 was a poor year for Geothermal globally with only 405 MW of new installed electric capacity, however, the sector is expected to grow rapidly in several countries between 2010 to 2015 due to current and proposed incentives.
London, UK - The newly released 6th Edition of the Geothermal Report from ABS Energy Research expects that the world Geothermal market will grow by 78% from 10,711 MW at the end of 2009 to 19,016 MW in 2015.
"2009 was not a good year for Geothermal" says Max Krangle, Managing Director of ABS Energy Research, "Only ten projects were commissioned in the USA (181 MW), Indonesia (137 MW), Turkey (47 MW) and Italy (40 MW). Investment was down due to the high capital costs for and high financial risks in the development stages. Growth in the USA was boosted by the American Reinvestment and Recovery Act of 2009 which extended producer and investor tax credits to 2016 and funded several development stage projects. However, in terms of new capacity, growth markets will be the three biggest geothermal countries: the USA, the Philippines and Indonesia. Countries generating electricity from geothermal is expected to rise from 24 at the end of 2009 to 36 in 2015."
ABS expects the Kenyan market to experience strong growth. The recent formation of the Geothermal Development Company (GDC) by the Kenyan government should fast track several geothermal projects. In addition most countries in the Rift Valley region are expected to shift from hydro to geothermal energy due to prolonged droughts reducing the installed capacity of hydro projects. Like other developing countries, projects in this region could be recipients of clean development mechanism funds for carbon abatement. With the planned commissioning of four electricity links in East Africa in the next five years, the export of excess electricity generated from geothermal could be another significant source of revenue.
Countries in South America, especially Chile, may be hot spots for growth, with several companies showing interest in the region. For example, Enel Green Power in collaboration with the Chilean national oil company, ENAP, is developing five projects in the country. Last year, in Peru, the government issued a draft Regulation for Peru's geothermal sector'. Two companies, Hot Rock Peru and Magma Energy, have acquired exploration licenses to investigate potential geothermal hot spots.
ABS Energy Research is a London & Toronto based market research company providing up to date information and analysis of worldwide energy markets, including electricity, natural gas, coal, nuclear, renewable energy and water and waste. To purchase the 328-page ABS Geothermal Report, visit www.ABSEnergyResearch.com
#### ENDS ###