WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 17
Global
Outlook
In the USA, in 2023 geothermal provided 3.7 gigawatts (GWe)
(1%) of electricity in the USA, mostly from hydrothermal
resources in California, Nevada, and Utah. Assessments61
indicate that with present technologies a potential of 18 GWe
could be deployed in 2050.
In the EU, low temperature geothermal energy is currently used
in just 2 million of the 100 million home heating systems, and it
generates only 0.2 % of the total electricity consumed.
According to the Implementation Working Group for
geothermal62 with today’s technology, 25 % of the European
population could cost-effectively deploy geothermal heating.
Geothermal power plants could provide up to 10 % of Europe’s
power demand. Furthermore, the geothermal industry could
become a key player in the production of sustainable lithium
made in Europe.
59 GWe: GW of electricity generation
60 GWth: GW of thermal generation. One needs roughly 3 GWth to generate one GWe
61 https://iopscience.iop.org/article/10.1088/2753-3751/ad3fbb
62 https://setis.ec.europa.eu/implementing-actions/geothermal_en
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As a conclusion, geothermal resource can provide
sustained heat and dispatchable sustained
electricity. This resource needs to be better
exploited. This is why, in January 2023, the European
Parliament adopted a resolution calling for a
European strategy on geothermal energy. It calls for
mapping geothermal assets, launching an industrial
alliance on geothermal energy, and the introducing
a harmonised insurance scheme to mitigate 昀椀nancial
risk.
WEMO 2024
56 https://www.irena.org/Publications/2023/Feb/
Global-geothermal-market-and-technology-assessment
57 In 2023 the capital cost for U.S. nuclear power ranged between
$13952/kW and $8475/kW https://www.statista.com/statistics/654401/
estimated-capital-cost-of-energy-generation-in-the-us-by-technology/
58 Between 2021 and 2022, the global weighted average levelized cost of electricity (LCOE) of ten
newly commissioned geothermal projects fell by 22% to $0.056 kWh.
Electricity generation from geothermal energy has grown at
around 3.5% annually, reaching a total installed capacity of
approximately 16 GWe59 in 2021. On the other hand, geothermal
deployment for heating and cooling grew at an average rate
of around 9% annually between 2015 and 2020 to reach 107
GWth60 in 2020. The relatively low growth could be attributed to
factors such resource’s location, drilling equipment availability,
permitting delays and high upfront capital.
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Geothermal is a sustainable and reliable energy resource56 that
is widespread over the globe.
This underground heat resource has a wide range of temperatures
depending on the reservoir’s depth and the locations.
For low temperature subsurface resources (wells up to 500m
depth), a geothermal heat pump can be used to increase heating
and cooling system’s efficiency.
Medium temperature geothermal resources are used for
industrial processes and in district heating distribution systems.
The deep and high temperature resources (wells up to
5000m depth) can be used for both heat and electricity
dispatchable generation.
Geothermal power plants can provide both energies with a
capacity factor of more than 80%.
Moreover, the hot salty water, or geothermal brine, which is
pumped to the surface, can also yield lithium
Between 2021 and 2022, the global weighted average LCOE of
ten newly commissioned geothermal projects fell by 22% to
$56/MWh which is comparable to wind or solar farms LCOEs.
However, the initial cost capital cost is high with an installed
cost of $3478/kW.57 Also, operation and maintenance are
considerably more complex compared to solar or wind and
require a high level of experience.58
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