1、GLOBAL GEOTHERMALMARKET AND TECHNOLOGY ASSESSMENT2 IRENA 2023 Unless otherwise stated,material in this publication may be freely used,shared,copied,reproduced,printed and/or stored,provided that appropriate acknowledgement is given of IRENA as the source and copyright holder.Material in this publica

2、tion that is attributed to third parties may be subject to separate terms of use and restrictions,and appropriate permissions from these third parties may need to be secured before any use of such material.ISBN:978-92-9260-495-0Citation:IRENA and IGA(2023),Global geothermal market and technology ass

3、essment,International Renewable Energy Agency,Abu Dhabi;International Geothermal Association,The Hague.About IRENA The International Renewable Energy Agency(IRENA)is an intergovernmental organisation that supports countries in their transition to a sustainable energy future,and serves as the princip

4、al platform for international co-operation,a centre of excellence,and a repository of policy,technology,resource and financial knowledge on renewable energy.IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy,including bioenergy,geothermal,hydropower,ocean,sol

5、ar and wind energy,in the pursuit of sustainable development,energy access,energy security and low-carbon economic growth and prosperity.www.irena.org About IGAThe International Geothermal Association(IGA),is the leading global platform on geothermal energy,serving as a hub for networking opportunit

6、ies aimed at promoting and supporting global geothermal development.With industry partners,the IGA sets standards,matures the technology agenda and nurtures entrepreneurs engaged in clean technology.With its four pillars;Visibility,Sustainability,Partnerships and Authority,the IGA is committed to pu

7、sh geothermal as a gamechanger for achieving Sustainable Development Goal#7:providing affordable,clean,baseload energy for all.Acknowledgements This report was developed by IRENA in close collaboration with the International Geothermal Association(IGA),and with the support of a practitioners group o

8、f geothermal experts representing the constituency of the Global Geothermal Alliance(GGA)and other relevant organisations.Inputs and feedback were received from the following experts:Antony Karembu(African Development Bank);Wei Huang(Asian Infrastructure Investment Bank);Mark Ballesteros(Australian

9、Geothermal Association);Ken Wisian(Bureau of Economic Geology in Texas);Carlos Jorquera(Chilean Geothermal Council);Qiao Yong(CREEI-China);Weiquan Wang(CREIA-China);Pablo Aguilera(Colombian Geothermal Association);Jose Salvador Handal(CNE-El Salvador);Thomas Garabetian(European Geothermal Energy Cou

10、ncil);Ann Robertson-Tait(GeothermEx);Christiaan Gischler(Inter-American Development Bank);Rebecca Schulz(International Energy Agency);Andrea Blair(International Geothermal Association);Hctor Avia(Instituto de Ingeniera UNAM);Alexander Richter(Innargi);Yoshikazu Hasunuma(Japan Ministry of Economy Tra

11、de and Industry);Kasumi Yasukawa(Japan Oil,Gas and Metals National Corporation);Heber Didier Diez Leon(Mexican Geothermal Association);Kenrick Burke(Montserrat);Mike Allen(New Zealand Ministry of Foreign Affairs and Trade);Carolina Guerra,Jose Luis Huedo Cuesta and Lorenzo Lachn Altuna(Repsol);Marti

12、n Pujol(Rockwater Pty Ltd);Peter Omenda(SEPCO);Hendra Soetjipto Tan(Star Energy Geothermal);Hani Taiba(Steps Energy);Robert Emrich(TORC Power Solutions Company LLC)and Eln Hallgrmsdttir(World Bank).Contributors:The report was prepared under the overall guidance of Gurbuz Gonul(Director,Country Engag

13、ement and Partnerships,IRENA),Amjad Abdulla(IRENA),and the sectoral guidance of Marit Brommer(IGA).It was authored by Jack Kiruja and Hannah Guinto(IRENA),Michelle Ramirez(ex-IRENA),Paolo Bona,Rob van den Boomen,Anna Colvin,Arjen van Nieuwenhuijzen and Eva van der Voet(Witteveen+Bos).Valuable input

14、was also provided by Paul Komor(IRENA).The report was edited by Steven Kennedy;layout and design were provided by Glendon Bunn.For further information or to provide feedback:publicationsirena.org This report is available for download at:www.irena.org/report and www.lovegeothermal.orgDisclaimer This

15、publication and the material herein are provided“as is”.All reasonable precautions have been taken by IRENA to verify the reliability of the material in this publication.However,neither IRENA nor any of its officials,agents,data or other third-party content providers provides a warranty of any kind,

16、either expressed or implied,and they accept no responsibility or liability for any consequence of use of the publication or material herein.The information contained herein does not necessarily represent the views of all Members of IRENA.The mention of specific companies or certain projects or produ

17、cts does not imply that they are endorsed or recommended by IRENA in preference to others of a similar nature that are not mentioned.The designations employed and the presentation of material herein do not imply the expression of any opinion on the part of IRENA concerning the legal status of any re

18、gion,country,territory,city or area or of its authorities,or concerning the delimitation of frontiers or boundaries.Geothermal market and technology assessment3ContentsABBREVIATIONS6EXECUTIVE SUMMARY81INTRODUCTION121.1Aims of the assessment131.2Introduction to geothermal energy142OVERVIEW OF THE GLO

19、BAL GEOTHERMAL INDUSTRY252.1Context and market drivers252.2Generation of geothermal electricity302.3Geothermal heating and cooling473REGIONAL HIGHLIGHTS AND OPPORTUNITIES673.1Asia and Oceania673.2Africa and the Middle East743.3Latin America and the Caribbean813.4North America893.5Eurasia1024RECOMMEN

20、DATIONS1135REFERENCES1174FiguresFigure 1Recommendations for accelerating the development and use of geothermal energy11Figure 2Geothermal power plant technologies16Figure 3Share of energy sources in final energy consumption for heating and cooling,201926Figure 4Installed geothermal electricity capac

21、ity,by region,202130Figure 5Growth of installed geothermal electricity capacity by region31Figure 6Geothermal heating and cooling installed capacity,by region,202048Figure 7Utilisation and installed capacity for geothermal heating and colling,Figure 8Top ten geothermal countries for heati

22、ng and cooling,by installed thermal capacity in 202049Figure 9Geothermal heat produced and number of geothermal installations in the Netherlands,Figure 10Number of production and exploration licences for geothermalgreenhouse wells issued in the Netherlands,Figure 11Installed ge

23、othermal capacity by country in Asia and Oceania region-202168Figure 12Growth of installed geothermal electricity capacity in the Asia and Oceania regions69Figure 13Growth of installed geothermal electricity capacity in Asia and Oceania;national level69Figure 14Geothermal heating and cooling applica

24、tions in Asia and Oceania70Figure 15Installed geothermal capacity by country in the Africa and Middle East region-202175Figure 16Growth of Installed geothermal electricity capacity global vs Africa and Middle East76Figure 17Geothermal heating and cooling applications in Africa and Middle East region

25、77Figure 18Installed geothermal capacity by country in the Latin America and the Caribbean region 202182Figure 19Growth of installed geothermal electricity capacity global vs Latin America and the Caribbean83Figure 20 Geothermal heating and cooling,beyond bathing,in Latin America and the Caribbean84

26、Figure 21Growth of installed geothermal electricity capacity global vs North America(United States)90Figure 22 Geothermal heating and cooling applications,beyond GHP and bathing,in North America(United States)92Figure 23 Installed geothermal electricity capacity by country in the Eurasia region-2021

27、103Figure 24 Growth of installed geothermal electricity capacity global vs Eurasia 104Figure 25 Installed geothermal capacity for heating and cooling(including heat pumps)by country in the Eurasia region-2021105Figure 26 Geothermal heating and cooling applications in Eurasia region107Geothermal mark

28、et and technology assessment5TablesPhotographsBoxesBox 1Competitive advantages of geothermal energy22Box 2Stimulating small-scale binary electricity generation projects through government incentives in Japan33Box 3Using existing oil and gas wells to recover geothermal energy in Canada,Colombia and H

29、ungary40Box 4Recovering silica and lithium from the Ohaaki geothermal field in New Zealand43Box 5Producing green hydrogen with geothermal energy in Japan and New Zealand45Box 6Developing an enabling environment and incentives for geothermal heating and cooling in the Netherlands52Box 7IRENA guideboo

30、ks on geothermal heating and cooling55Box 8Using residual heat in geothermal fields to benefit local communities in El Salvador59Box 9Geothermal heat pumps in the United States62Box 10Opportunities for geothermal industrial eco-parks65Photograph 1Small-scale geothermal electric plant in Japan made f

31、easible through FiT33Photograph 2Geothermal site of the Tu Deh-Kah project,in Canada40Photograph 3Geothermal site of the Las Maracas project in Colombia40Photograph 4The Ohaaki silica and lithium extraction plant,in New Zealand43Photograph 5Demonstration plant for green hydrogen production powered b

32、y geothermal energy at the Mokai geothermal field,Taupo,New Zealand45Photograph 6Demonstration plant for green hydrogen production powered by geothermal energy in Kyushu,Japan45Photograph 7LaGeo-FundaGeos geothermal heat use prototypes for melting wax for candle making and honey processing in El Sal

33、vador59Photograph 8Geothermal-powered coffee dryer in El Salvador59Photograph 9Ball State Universitys geothermal heat pump system,the largest in the United States62Photograph 10Commercial greenhouses in an industrial zone in Trkiye66Photograph 11Planned He Ahi Clean Energy Park in New Zealand66Table

34、 1Total installed renewable electricity capacity,2021266AbbreviationsAGSadvanced geothermal systemDDUdeep direct useEGECEuropean Geothermal Energy CouncilEGSenhanced geothermal systemEJexajouleESMAPEnergy Sector Management Assistance ProgrammeEUEuropean UnionFiTfeed-in tariffGDHgeothermal district h

35、eatingGEORISKGeothermal Risk projectGHPgeothermal heat pumpGIZGerman Agency for International CooperationGRMFGeothermal Risk Mitigation FacilityGWgigawattGWegigawatt electricGWthgigawatt thermalIDBInter-American Development BankIEAInternational Energy AgencyIGAInternational Geothermal AssociationIRE

36、NAInternational Renewable Energy AgencyJPYJapanese yenkmkilometreKWekilowatt electrickWhkilowatt hourLCOElevelised cost of electricitymg/Lmilligrammes per litreMiRiGGeothermal Risk Management Programme(Chile)MWemegawatt electricGeothermal market and technology assessment7MWthmegawatt thermalNRELNati

37、onal Renewable Energy LaboratoryORCorganic Rankine cyclePPApower purchase agreementPVphotovoltaicREN21Renewable Energy Policy Network for the 21st CenturyRHCRenewable Heating and CoolingRSMrisk sharing mechanismSDEStimulering Duurzame Energieproductie(Dutch subsidy for renewable energy)SICACentral A

38、merican Integration SystemTJterajouleUSDUnited States dollarUS DoEUnited States Department of EnergyUTESUnderground Thermal Energy StorageYEKDEMYenilenebilir Enerji Kaynaklar Destekleme Mekanizmas(Turkish Renewable Energy Sources Support Mechanism)8Executive summaryThe global use of renewable energy

39、 has grown substantially over the past decade,driven by increasing awareness of the effects of climate change and the urgency of cutting emissions of greenhouse gas by minimising the use of fossil fuels.Geothermal energy a clean and reliable source of heat and electricity will play a critical role i

40、n the sustainable and clean energy transition alongside other renewable energy sources.This global assessment provides an overview of developments in the geothermal sector and the factors that are likely to shape the market in the near future.It provides recommendations to guide policy makers,govern

41、ments,potential investors,development partners and other stakeholders on how to promote growth of the geothermal market,exploit the potential of geothermal energy and further expand geothermals integration within global energy systems.The report also reviews the status of geothermal technologies,wit

42、h reference to new technological approaches and developments that have the potential to scale up the use of geothermal energy.Various markets were analysed to establish the place of geothermal in the global energy mix.The assessment revolves around the following questions:What major changes have occ

43、urred in the geothermal industry in recent years?What are the key trends in the geothermal sector?Which areas of geothermal development are expected to drive growth in the coming years?How is the global energy sector affecting the geothermal industry?How have global and regional events and changes a

44、ffected the geothermal industry?How can geothermal stakeholders stimulate and support further development of geothermal energy,building on existing and emerging market and technology trends?Growth in the use of geothermal energy worldwide is driven by multiple factors.Energy demand is increasing as

45、a result of economic growth.At the same time,to counteract climate change and to move towards a green economy,there is a global effort to transition to renewable energy sources.The demand for sustainable heat is also increasing,leading to a growing trend towards the use of geothermal resources for h

46、eating and cooling applications where technically and economically feasible.Geothermal energy can and should play a greater role in meeting global energy needs for both electricity and heating and cooling.Geothermal resources are widely available in areas with volcanic activity and in sedimentary ba

47、sins.These attributes make geothermal a cost-effective and weather-independent source of renewable energy.With the recent accelerated deployment of variable power from wind and solar photovoltaic(solar PV),geothermal can contribute to the stabilisation of electricity grids.Geothermal market and tech

48、nology assessment9In addition,geothermal energy technology has evolved beyond its focus on the electricity market to encompass a broader range of applications within the energy sector,including for sustainable heating and cooling.So far,geothermal energy in electricity generation has grown at a mode

49、st rate of around 3.5%annually,reaching a total installed capacity of approximately 15.96 gigawatts electric(GWe)in 2021.As a result,geothermal still accounts for a mere 0.5%of renewables-based installed capacity for electricity generation,and heating and cooling,globally.But geothermal energy holds

50、 a unique place in the renewable energy ecosystem.In contrast to other renewable energy sources,it can provide both electricity and heat,as well as value-added mineral extraction.As an electricity source,it provides reliable generation with high plant efficiency,low greenhouse gas emissions and a sm

51、all ecological footprint;it is a long-lasting sustainable source when properly managed.As a heat source,geothermal is scalable,has low operating costs,offers increased efficiency(by supplying heat directly)and reduces electricity consumption for heating and cooling.Here,too,it can provide a long-las

52、ting source of sustainable heat.Despite all these advantages,geothermal energy development faces challenges that have limited its development,even in regions endowed with easily accessible resources.Compared with other energy technologies,geothermal projects have longer project-development timelines

53、,require higher upfront capital expenditures and face high risk during the early phases of exploration.Other challenges are related to financing,policy and regulatory frameworks,institutional and technical expertise,and technological advancement;these affect both electricity generation and heating.H

54、owever,there are many opportunities to overcome these challenges to market growth.Examples include expanding and interconnecting regional electricity grids to export geothermal electricity from countries with high potential;leveraging oil and gas expertise and technology to scale up geothermal devel

55、opment;recovering minerals from geothermal brines;increasing synergies with green hydrogen production;improving the efficiency of electricity production from medium-temperature geothermal resources;advancing research and development in enhanced geothermal systems,advanced geothermal systems,and supe

56、rcritical resources;and promoting the use of geothermal resources for heating and cooling through accelerating the use of geothermal heat pumps,applying advanced district heating technology and expanding the use of geothermal heat in agriculture,food processing and industry.The current situation cha

57、racterised by highly volatile oil and gas prices provides renewed opportunities for geothermal energy to further develop as a strategic alternative in electricity generation,heating and cooling worldwide.However,national policies and regulations are key to the successful development of geothermal pr

58、ojects,and these strongly vary around the world.10Over the last several decades,the geothermal industry has developed in different ways around the world.Each region has distinct geography,geologic conditions,electricity and heat market conditions,policies and regulatory frameworks,development ambiti

59、ons and implementation capacity.These factors have combined to produce different patterns in the development and use of geothermal resources.Keeping these different patterns in mind,this report provides recommendations for addressing barriers to the development and utilisation of geothermal resource

60、s.These recommendations are summarised below and illustrated in Figure 1.Promote widespread development and use of all available sources of geothermal energy.The significant potential of low-and medium-temperature resources,which are more widely available than high-temperature resources,remains larg

61、ely untapped.These resources can be unlocked through exploration and development in volcanic zones and sedimentary basins,and through expanded utilisation of abandoned mines,oil and gas wells,shallow geothermal energy,energy storage(using underground thermal energy storage)and geothermal heat pumps.

62、Position geothermal energy as a key contributor to the achievement of sustainable development goals and climate action.Geothermal resources have many competitive advantages that are often overlooked.Industry players can devise appropriate messaging to highlight the multiple opportunities to use geot

63、hermal resources in sustainable,climate-friendly ways,including clean electricity generation,clean heating and cooling in the end-use sectors and extraction of minerals such as lithium for battery manufacture,as well as the other benefits of geothermal energy development,such as low greenhouse gas e

64、missions over the project life cycle and low resource-utilisation footprints(e.g.low land and water requirements per unit of energy produced).At the same time,efforts to promote awareness could focus on increasing acceptance of geothermal energy among the general public and policy makers.Improve ena

65、bling frameworks to foster investments in geothermal energy.Geothermal projects have high upfront costs and high resource risks,particularly in the early stages of development.These attributes constitute a major barrier to investment.Establishing new tailor-made risk mitigation schemes and enhancing

66、 existing ones will help developers mitigate the sub-surface geological risks of geothermal exploration.Furthermore,harmonising and simplifying licensing and permitting procedures for geothermal energy projects will facilitate project development in jurisdictions where they are presently viewed as t

67、oo lengthy and complex.In addition,policy instruments and energy procurement procedures which take into consideration the intrinsic characteristics of geothermal resources will promote the integration of geothermal in energy systems.Foster cross-industry synergies and harmonisation between geotherma

68、l and other sectors.The development and use of geothermal energy are entwined with a variety of other sectors notably other renewable energies,carbon capture and storage,green hydrogen production,the extractives sector and end-use sectors including housing,industry and agri-food.Promoting synergy be

69、tween geothermal and other sectors requires cross-sectoral collaboration in the form of sharing data,repurposing mining or oil and gas Geothermal market and technology assessment11assets for geothermal energy production,building hybrid power plants and harmonising policies and regulations across tho

70、se sectors,e.g.rights to access and extract co-located geothermal energy and minerals(such as lithium)recoverable from brines.Promote technological innovation,research and development to scale up geothermal development.Various innovations and research and development initiatives are ongoing in diffe

71、rent countries,with a focus on extraction of geothermal energy from hot dry rock(through an enhanced or engineered geothermal system),large-scale closed-loop systems(which are a type of advanced geothermal system),green hydrogen production,development of supercritical resources and mineral extractio

72、n from geothermal brines.Funding these initiatives through grants or equity is expected to enable the development of geothermal globally;improve the efficiency of geothermal electricity generation from low-and medium-temperature resources;reduce resource risks;improve the financial viability of new

73、technologies;and enable the economical extraction of minerals from geothermal brines.Implementing pilot projects will demonstrate technical project viability,as well as boost the confidence of communities,policy makers and other stakeholders.Strengthen international,regional and national co-operatio

74、n among partners.Adopting a regional or national approach to address common issues that hinder geothermal development will promote the integration of geothermal in energy systems.This will require building in-house technical and institutional capacity by leveraging the resources and expertise of bil

75、ateral,international and multilateral partners willing to provide technical assistance and share their experience and best practices.Figure 1 Recommendations for accelerating the development and use of geothermal energy Recommendationsfor the way forwardPromote development and use of all types of ge

76、othermal resourcesStrengthen international,regional and national co-operationPosition geothermal as a key solution to drive the energy transitionPromote technological innovation,research and developmentImprove enabling frameworks to foster investmentFostercross-industry synergies and harmonisation12

77、1.INTRODUCTION The transition to clean energy is critical for achieving the Paris Agreement,which aims to limit the increase in global average temperatures to less than 1.5C above pre-industrial levels.One of the pillars of the sustainable energy transition is the widespread adoption of renewable en

78、ergy solutions to lower and eventually eliminate the emission of greenhouse gases from global energy systems.Accelerated deployment of renewable energy solutions such as solar,wind,hydropower,geothermal,bioenergy and ocean energy can put the Paris climate goals within reach.To this end,all renewable

79、 energy sources will be needed to create an optimal mix matched to local resource availability and energy market conditions.Renewable energy sources,especially solar and wind technologies,are gradually becoming more competitive,even without subsidies.They have started to benefit from coupling with e

80、nergy storage solutions that help modulate their variable output.New applications for renewable energy,such as green hydrogen production,have also emerged in recent years.The focus of geothermal energy has broadened beyond baseload electricity generation to flexible operation in support of electrici

81、ty grid stability and sustainable heating and cooling.As technology,policies and regulatory frameworks,and financing evolve,it is increasingly important to make sure that the added value of geothermal energy to sustainably meet global energy needs is fully exploited and that this source of energy be

82、comes competitive in more markets.This report is based on published reports on geothermal energy and the wider renewable energy markets as well as interviews with geothermal stakeholders in various regions of the world.A practitioners group of geothermal experts established by the International Rene

83、wable Energy Agency(IRENA)supported the development of the report through a consultative process of review and feedback.The report is structured as follows:Chapter 1 discusses the aims of the assessment and introduces the key elements of geothermal energy,such as resource types and their use for ele

84、ctricity production as well as heating and cooling.It also describes the competitiveness of geothermal energy solutions compared with other renewable energy sources and discusses cross-industry synergies(with other renewables,and with the oil and gas industry).Chapter 2 provides a global overview of

85、 the geothermal industry.It describes the global context and market drivers of geothermal in the energy transition,emphasising the decarbonisation and diversification of the energy mix,changing energy demand and different climate change policies.This chapter also examines the effects of global event

86、s on energy markets and on financial and economic incentives for geothermal development.It describes the current status of and key trends in worldwide geothermal electricity generation and heating and cooling,as well as challenges and opportunities for market growth.It also describes financing mecha

87、nisms and risk mitigation schemes to incentivise Geothermal market and technology assessment13investment and reduce risks.It examines financing instruments and risk mitigation schemes and compares their application and outcomes.The chapter also describes international and multilateral collaborations

88、,that affect the growth of the geothermal sector.Chapter 3 looks at regional highlights,challenges and opportunities in five geothermal regions:Asia and Oceania,Africa and the Middle East,Latin America and the Caribbean,North America and Eurasia.Chapter 4 provides recommendations for accelerating th

89、e development and utilisation of geothermal resources.The recommendations focus on proposed solutions to address existing barriers to geothermal electricity and heat generation in the global market context.1.1 AIMS OF THE ASSESSMENTGlobal geothermal market and technology assessment takes stock of th

90、e geothermal sector and provides insights into the elements that are likely to drive geothermal development in the coming years.It analyses the current status of geothermal deployment and the trajectory of its development in recent years;reviews the status of geothermal technologies,particularly tec

91、hnologies with the potential to scale up geothermal development and utilisation;and assesses various geothermal markets in order to establish the current and expected future place of geothermal in the global energy mix.The analysis examines trends in different markets;technological developments for

92、geothermal electricity;the heating and cooling applications and added value of mineral recovery from geothermal brines;and the implications of public policies,regulatory regimes,environmental and social constraints,financing,capacity building,cross-industry collaborations,geopolitical changes,global

93、 events,and changes affecting the energy market,climate change policies and politics.The assessment seeks to answer the following questions:What significant changes have occurred in the geothermal industry in recent years?What trends have affected the geothermal sector?Which geothermal development a

94、reas are expected to drive growth?What is the impact of the global energy sector on the geothermal industry?How have global and regional events and changes affected the geothermal industry?How can geothermal stakeholders,from both the public and private sectors,stimulate and support the further deve

95、lopment of geothermal energy solutions,building on existing and emerging markets and technology dynamics?It provides insights and actionable recommendations to guide policy makers,potential investors and development partners on how to support geothermal development,demonstrate the potential of geoth

96、ermal energy and further expand its integration within global energy systems.141.2 INTRODUCTION TO GEOTHERMAL ENERGY 1.2.1 Geothermal resourcesGeothermal energy is heat stored in the Earths crust.This energy is extracted mainly by drilling into the ground and then transported to the surface using fl

97、uids.At the surface,the energy is extracted and converted to electricity or used directly as heat.Geothermal energy can be found at various depths and temperatures.The most widely developed resources are those found in hydrothermal systems,which consist of hot water circulating in deep-seated permea

98、ble rocks.The mode of utilisation of geothermal energy depends largely on the resource temperature.Temperatures are usually divided into three groups:high(greater than 150C),medium (90-150C)and low(less than 90C).Electricity production is more favourable from geothermal resources of medium to high t

99、emperatures.For commercial-scale electricity generation,a minimum resource temperature of about 150-180C is necessary(depending on the technology used),although existing technologies can produce electricity from temperatures as low as 70C in small-scale applications(ThinkGeoEnergy,2021a).Medium-temp

100、erature geothermal resources are used for various applications,such as space heating and cooling,industrial processes and agri-food applications.The use of combined heat and power,for heating and cooling applications as well as electricity generation,is also possible.A geothermal heat pump(GHP)can b

101、e used to increase the heat content of low-temperature resources to meet the energy requirements for various applications.In order to maximise the use of geothermal resources,cascaded utilisation(i.e.sequential applications powered from the same stream of energy source,where the outlet stream from t

102、he first application,for instance the hot water collected after electricity generation),is used for a second lower-temperature applications,such as district heating,followed by other successively lower-temperature uses.Most high-temperature geothermal resources are found around volcanoes in areas th

103、at are tectonically and volcanically active,such as the Pacific Ring of Fire,the mid-Atlantic ridge,parts of Europe and the East African Rift.Depending on the local sub-surface temperature gradient,these resources can be found at depths of a few hundred metres(m)and several kilometres(km).Low-and me

104、dium-temperature resources are more widely distributed geographically,with significant resources along faults and fractures in tectonically active areas as well as deep in sedimentary basins.As sedimentary basins usually have lower temperature gradients than volcanic areas,deeper drilling(to several

105、 kilometres)is usually necessary to reach sufficient reservoir temperatures.The stable,low-temperature(near-ambient temperature)conditions in the shallow sub-surface are also widely used through GHPs to provide efficient space heating and cooling.Geothermal market and technology assessment15Novel te

106、chnologies that allow for the production of geothermal energy from deep-seated resources beyond those mentioned above are being developed through research and demonstration projects and tests of commercial feasibility.Although not yet commercially available,these technologies are at varying levels o

107、f maturity and readiness.They include the following:Enhanced or engineered geothermal systems(EGSs)improve the permeability of geothermal systems through hydraulic,chemical and thermal stimulation.This stimulation can be done in some geological settings that have high sub-surface temperatures but wh

108、ere fluid volumes and/or rock permeability are not sufficient to permit economic extraction using current techniques.In such cases,permeability can be enhanced by stimulating the reservoir through pumping of water(or other fluids,such as carbon dioxide CO2)to fracture the rock,thereby creating an ar

109、tificial reservoir.Advanced geothermal systems(AGSs)are deep,large,artificial closed-loop circuits in which a working fluid is circulated and heated by sub-surface rocks through conductive heat transfer.As AGSs do not require a water-bearing reservoir with good permeability,they have the potential t

110、o be applicable in almost any location worldwide.However,substantially longer well bores are required to increase the surface area for heat transfer,which may result in higher drilling costs.Supercritical geothermal systems are characterised by very high temperatures and a natural reservoir containi

111、ng fluid in the supercritical state.For pure water,this means a temperature of at least 374C and a pressure of at least 221 bar(Reinsch et al.,2017).Such supercritical fluids can be found deep in volcanic hydrothermal systems in Iceland,Japan,Kenya,Mexico and New Zealand,among other locations.The pr

112、oductivity of such supercritical systems could be much greater than conventional high-temperature geothermal systems,because of the higher energy content of the fluid(Frileifsson,Elders and Albertsson,2014).Their utilisation implies several technological challenges,such as corrosive fluids,that have

113、 been investigated in recent years.“Advancements in emerging sub-surface technologies have the potential to scale-up geothermal development worldwide.”161.2.2 Geothermal electricity generation Dry steam,back pressure and flash plantsThree primary power plant technologies are used to convert the ener

114、gy in geothermal resources to electricity:dry steam,flash steam and the binary cycle(Figure 2).Most geothermal plants in operation for electricity generation are dry steam or flash plants that harness geothermal resources at temperatures of more than 150C.However,lower-temperature resources are incr

115、easingly being developed for electricity generation or combined heat and electricity using binary cycle technology.Dry steam technology is applicable when dry steam is produced directly from the geothermal reservoir.With this technology,saturated or superheated geothermal steam at high pressure is o

116、btained directly from the geothermal well and directed to a steam turbine coupled with a generator to produce electricity(DiPippo,2012;Anderson and Rezaie,2019).The steam exhaust from the turbine is discharged into a condenser at low pressure or partial vacuum to optimise the efficiency of electrici

117、ty generation.In small modular units,backpressure plants that discharge the exhaust steam directly into the atmosphere provide a technologically simpler and cheaper solution for early electricity generation in developing fields.Figure 2 Geothermal power plant technologiesSub-surface injectionWellhea

118、dSub-surface injectionWellheadCondenserGeneratorTurbineGeneratorTurbineGeneratorTurbineSub-surface injectionCondenserWellheadWellheadWellheadWellheadGround surfaceGround surfaceGround surfaceSeparatorPumpHeatexchangerCondenserGeothermal waterGeothermal steamGeothermal waterGeothermal steamGeothermal

119、 waterWorking fluid(vapour)Working fluid(liquid)Dry steam plantFlash steam plantBinary cycle plantBased on:USGS(2003).Geothermal market and technology assessment17Globally,flash steam is the most common technology used in existing geothermal plants(Anderson and Rezaie,2019).This technology utilises

120、two-phase geothermal fluids under high pressure and high temperature to generate electricity by first vaporising the two-phase geothermal fluid at a lower pressure through a process known as“flashing”.The steam component of the geothermal fluid generated during this process is separated from the liq

121、uid component.The steam is then expanded through a turbine that is coupled to a generator to produce electricity(single flash).Similar to the dry steam process,the steam exhaust from the turbine is discharged into a condenser at low pressure or released directly into the atmosphere in backpressure p

122、lant solutions.The separated liquid component of the geothermal fluid may be flashed further to generate more steam for additional electricity generation(double/triple flash)and eventually returned to the reservoir source through reinjection wells.Binary cycle plants Binary plants work by transferri

123、ng heat from the geothermal fluid to a secondary working fluid with a lower boiling point than water,contained in a closed loop.The secondary working fluid vaporises and generates enough pressure to drive a turbine.Binary power plants usually use geothermal fluids with lower temperatures than requir

124、ed for flash and dry steam.Advances in binary cycle technology have allowed electricity to be generated from geothermal resources with temperatures as low as 70-80C,albeit at a small scale.Binary plants can operate on an organic Rankine cycle(ORC)or a Kalina cycle,depending on the type of secondary

125、fluid used(butane or pentane in an ORC and a mixture of ammonia and water in a Kalina cycle)(DiPippo,2012;RHC,2014;Anderson and Rezaie,2019).Binary plants can work in a completely closed cycle,in which 100%of the geothermal fluid extracted is returned to the reservoir source by reinjection,allowing

126、for an emission-free operation and maximising the sustainability of resource utilisation.Wellhead generatorsWellhead generators are modular units of less than 10 megawatts electric(MWe),usually with a standard design that produces electricity from a single well.Wellhead generators have become an att

127、ractive solution because they can enable early generation of revenue during the development phase of a geothermal field,reducing the time before return on investment.Wellhead generators have several advantages:they make use of wells waiting to be connected to larger-scale electric power plants,requi

128、re shorter pipelines,have shorter installation periods,facilitate early acquisition of data on the reservoir behaviour before start-up of larger electric power plants and serve as a training opportunity for field operations personnel(IRENA,2020).181.2.3 Geothermal heating and coolingDirect utilisati

129、on of geothermal heat covers a wide range of resource types and sub-surface characteristics geological setting,depth and temperature as well as end-user heating and cooling applications.Geothermal resources,which are suitable for heating and cooling,are widespread globally,in the form of shallow geo

130、thermal resources,or deep-seated aquifers hosted in permeable formations in sedimentary basins,and volcanically and tectonically active zones.Geothermal energy for heating and cooling can be obtained at varying depths.Geothermal fluids can be extracted from shallow wells that are a few hundred metre

131、s deep using GHPs or from deep wells of several kilometres in depth.With heat exchange,heat(or cold)can also be artificially stored in the shallow sub-surface using heat pumps to create underground thermal energy storage(UTES)systems and then used later for heating or cooling applications.The major

132、categories of geothermal heating and cooling applications are space heating and cooling;agriculture and food processing;industrial process heat;and health,recreation and tourism.Space heating and cooling applicationsGeothermal heat can be used to heat or cool buildings at a variety of scales.At the

133、individual building level,GHPs are commonly used,though direct heating using geothermal fluids is also practiced.District heating networks supply hot water to residential and commercial buildings for space heating and domestic hot water on a larger scale to multiple buildings.District energy network

134、s enable the utilisation of a combination of renewable energy sources located in different parts of a city for the provision of domestic hot water and space heating and cooling needs of buildings and industries.District heating systems have traditionally supplied energy at 80C or more,but technologi

135、cal advances in district energy networks have enabled the utilisation of low-temperature energy sources(less than 50C)from low-temperature geothermal resources or UTESs to supply heat to buildings,including with the support of large heat pumps.Doing so requires the development of 4th generation dist

136、rict energy systems(i.e.systems that provide heat supply to low-energy buildings with low grid losses by using low-temperature heat sources)and buildings that are well insulated,to increase energy performance.Agriculture and food-processing applicationsGeothermal energy is used across a range of tem

137、peratures in various agri-food applications,including food production,through greenhouse heating for horticulture,aquaculture for fish farming and algae production,and soil warming(Van Nguyen et al.,2015).Greenhouse geothermal heating requires temperatures of 40-100C.In aquaculture,geothermal heat i

138、s used to heat water,generally to 20-30C,to ensure optimal growth conditions for fish and algae.Geothermal soil heating is done through a network of buried hot water pipelines in open-field agriculture to extend the growing season and increase Geothermal market and technology assessment19crop yields

139、.In food processing and storage,processes such as crop drying,pasteurisation,peeling,blanching,cold storage,refrigeration and sterilisation require temperatures of 60-140C.Industrial process heat applicationsIndustrial processes that can benefit from geothermal energy include thermal processes such

140、as evaporation,distillation,extraction,washing and dying.The food-processing industry represents the most common industrial application of geothermal heat,because of its low and moderate energy requirements.Other industrial processes include laundry operations,pulp and paper processing,textile washi

141、ng and dying,leather and fur treatment,salt processing,concrete curing and desalination(Jhannesson and Chatenay,2014).Health,recreation and tourismNaturally occurring geothermal hot springs have historically been used for bathing,swimming and medicinal purposes.Japans onsens(hot spring resorts)are a

142、 world-class example of the use of geothermal resources for recreation purposes.Swimming pools,steam baths,saunas and baths supplied by artesian or pumped geothermal wells are also used for recreation and therapeutic purposes in many countries.1.2.4 Geothermal energy in the renewable energy ecosyste

143、m The recent development of the geothermal industry reflects local geology and market conditions,technologies,policy and regulatory frameworks,and development ambitions and implementation speed.Chapter 2 describes the status and outlook for the industry on a global level;Chapter 3 examines regional

144、opportunities.Although it has been in commercial use for more than a century,geothermal energy has long been a niche market.With the exception of shallow GHP systems,its use has been limited to deployment of hydrothermal resources found in particular locales.Because only a tiny fraction of hydrother

145、mal resources has been tapped,there is ample room for market growth,even using existing technologies.In many countries,however,the more accessible high-temperature hydrothermal resources have already been developed.Expansion may face technical,logistic,environmental and social barriers,such as the n

146、eed for more complex and higher-risk exploration of deeper or concealed geothermal reservoirs;the need to explore locations in remote mountainous areas or environmentally protected zones;and social opposition,particularly in urban areas and on indigenous lands.Growing concern over climate change has

147、 intensified public and private efforts to develop EGSs,AGSs and GHP technologies,which permit geothermal energy to be tapped practically anywhere.EGSs and AGSs have greatly expanded the potential for scaling up geothermal solutions for generating electricity and for heating and cooling.These develo

148、pments have altered the perspective of the entire geothermal market.As a result,geothermal is gradually gaining recognition as a valuable contributor to energy diversity and a major player in addressing the climate crisis.As the geothermal industry demonstrates scalability,it is drawing attention fr

149、om stronger energy sector players,particularly in the oil and gas industry,which is looking to diversify its investments into clean energy while adapting its huge and highly specialised infrastructure to the energy transition.20Because of the strong technological similarities between the geothermal

150、and oil and gas industries,many new developments in EGS and AGS investigation and testing have emerged from the application of advanced technologies originally developed in oil and gas.Many countries have set targets for geothermal energy development.In the United States,for instance,the GeoVision a

151、nalysis conducted by the United States Department of Energys Geothermal Technologies Office(US DoE 2019)evaluated future geothermal deployment opportunities.It concluded that the use of geothermal energy could be significantly increased through wider access to geothermal resources,improvements in pr

152、oject economics,and enhanced education and outreach.With technological improvements,geothermal electricity generation in the United States could rise to 60 gigawatts electric(GWe)of installed capacity by 2050,and the potential for geothermal heating and cooling is significant.The GeoVision report co

153、nsiders deep EGSs to have the greatest potential to drive growth.In 2017,China adopted its“13th Five-Year Plan for Geothermal Energy Development and Utilisation”,which promoted the development of geothermal to reduce air pollution and supply continuous base-load electricity and heat(Jianchao,Mengcha

154、o and Liu,2018).The 14th five-year plan for renewable energy calls for the development and use of geothermal energy(Nextrends Asia,2021),focusing on optimising geothermal heating and cooling deployment.In Europe,the International Energy Agency(IEA)and the French Environment and Energy Management Age

155、ncy(ADEME)have identified geothermal as the most cost-effective solution for heating(EU Reporter,2022).The European Geothermal Energy Council(EGEC)is pushing to unlock Europes geothermal energy resources as a permanent source of renewable heating,cooling and electricity,as well as for the extraction

156、 of lithium and other critical minerals.It has called on the European Commission to devise a strategy for developing geothermal energy and extracting sustainable raw materials from geothermal fluids by 2023(Renewables Now,2022).In Africa,Kenya plans to almost double its geothermal electricity capaci

157、ty,to 1.6 GWe,by 2030(Burkardt and Herbling,2021).Many countries(including Indonesia,Kenya,New Zealand and Trkiye)have seen significant increases in geothermal installed electricity capacity over the last ten years.Some countries(including China and Trkiye)have significantly developed geothermal hea

158、ting and cooling.Geothermal development is currently uneven,taking place only in some countries and regions,but prospects for significant expansion are promising,as climate change goals,volatile oil prices and ongoing technological developments increase the scalability and competitiveness of the geo

159、thermal solutions.In countries with deregulated electricity markets,different electricity sources compete for access to the grid.In the last decade,renewable electricity sources have become very competitive,as declining technology costs have lowered the levelised cost of electricity(LCOE).With an av

160、erage LCOE of USD 0.068 per kilowatt hour(kWh)in 2021,the cost of generating electricity from geothermal energy is within the lower band of the cost of Geothermal market and technology assessment21electricity generated from fossil fuels.However,geothermals actual LCOE depends on site-specific condit

161、ions for the power plant,such as the depth and number of wells drilled and their average electricity output,the technology deployed for electricity generation,and whether the field is green or brown,among others.The LCOE for geothermal remained largely within the range of USD 0.05-0.07/kWh over the

162、last decade.In contrast,the LCOEs for utility-scale solar photovoltaic(PV),onshore wind,concentrated solar power and offshore wind declined by 88%,68%,67%and 60%,respectively.As a result,around 225 GWe of wind and solar was deployed in 2021,representing around 88%of the total new capacity of renewab

163、le electricity projects.In contrast,only around 370 MWe of geothermal was deployed(IRENA,2022c).The relatively low level of deployment could be attributed to factors such as higher upfront capital costs and longer project development timelines to locate and develop geothermal resources.The potential

164、 exists to lower the LCOE of geothermal projects,and maintain the competitiveness of energy prices from geothermal projects,particularly on drilling costs,which accounts for a significant share of geothermal project costs.Project developers in Indonesia and elsewhere are implementing measures to red

165、uce the costs associated with developing new and makeup geothermal wells through the application of best practices,including(1)foreseeing and circumventing potential drilling problems to reduce the duration of drilling;(2)using advanced sub-surface modelling techniques to target permeable structures

166、,in order to drill highly productive wells;and(3)managing the geothermal reservoir properly to slow the decline in well production and thus reduce the need for makeup wells(Star Energy Geothermal,2022).Geothermal energy offers several advantages beyond its LCOE that contribute to its competitiveness

167、(Box 1).It can provide both electricity and heat,as well as value-added mineral extraction.As an electricity source,it offers continuous,reliable generation,with high plant efficiency,low greenhouse gas emissions and a small ecological footprint.Its continuous supply distinguishes it from variable s

168、ources,which require sophisticated processes and equipment to ensure efficient,economical and reliable integration with the grid.Geothermal is also a long-lasting source when properly managed.As a heat source,it is scalable,has low operating costs,increases efficiency by using heat directly,reduces

169、electricity consumption and can provide a long-lasting source of sustainable heat.Geothermal can contribute to improved energy access and security,improved air quality,sustainable food systems and the decarbonisation of the worlds cities(Vargas,Caracciolo and Ball,2022).The investment profile of geo

170、thermal projects which includes high upfront capital requirements and risks commonly necessitates a long-term power purchase agreement(PPA),typically in the 15-25-year range,with an electric utility or other off-taker to secure financing for the development stage.Though this condition may not be cha

171、llenging in countries where geothermal development is framed within strong supportive policies,the PPA process itself still may delay the commencement of projects.The situation becomes more complex in countries with less developed policies,where signing long-term PPAs may be limited by electricity m

172、arket conditions,such as deregulated electricity markets.When PPAs are assigned through technology-neutral auctions essentially structured on a price basis,geothermal cannot compete against lower-cost alternatives provided by solar PV 22and wind projects.Under such circumstances,geothermal projects

173、face increased financial risks associated with clauses and deadlines for project completion,commissioning and delivery of power to the grid.Failure to meet these requirements may subject the developer to strict non-compliance fines.Some countries(such as Chile)have partly addressed this issue by int

174、roducing special conditions that take into account the characteristics and risks of the geothermal resource projects that persist through their development stages(uncertainties about resource capacity and the exact development timeframe,depending on drilling results).Source:IRENA(2021,2022c).Box 1 C

175、ompetitive advantages of geothermal energyThe technical potential of hydrothermal geothermal resources is estimated at around 200 GWe and over 5 000 gigawatts thermal(GWth).The Intergovernmental Panel on Climate Change projects that geothermal energy can supply about 18%of the worlds electricity dem

176、and and meet the electricity needs of 17%of the worlds population.Geothermal is a sustainable energy resource that is widespread in different geological and geographical settings.It occurs over a wide range of temperatures that enables it to be utilised as a renewable and clean energy for electricit

177、y generation and heat and cooling applications.In addition,critical minerals such as lithium can be extracted from geothermal brines.Geothermal energy is considered environmentally benign.The life-cycle emissions of geothermal binary electricity plants with 100%reinjection are estimated to be as low

178、 as 11.3 grammes of CO2 per kWh,and the water consumption of a similar plant is estimated to be 0.66 litres/kWh.The land requirement of a geothermal power plant is around 7.5 square kilometres/terawatt hour.With proper reservoir management,geothermal power plants can provide stable and reliable elec

179、tricity and heat with a capacity factor of more than 80%.At the same time,binary technology can allow geothermal power plants to be operated in flexible mode,which is ideal for grids with a diverse energy mix that includes variable renewable sources.Geothermal energy competitively generated electric

180、ity at a LCOE of USD 0.068/kWh for new plants commissioned in 2021.Given its high availability,it is estimated that integrating geothermal electricity into grids in the United States will save the system around USD 41/kWh,mainly through avoidance of installing ancillary services to stabilise the gri

181、d.Geothermal market and technology assessment231.2.5 Cross-industry synergies Cross-industry projects allow the geothermal industry to exploit synergies with other industries,including other renewables,oil and gas,green hydrogen,mineral recovery,energy storage in mines,and carbon capture and storage

182、(CCS).Hybrid generation with other renewablesCross-industry synergies have given rise to hybrid power plants that combine geothermal electricity with other renewable sources,such as concentrated solar power,solar PV and biomass(Wendt et al.,2018).In geothermal-solar hybrids,the two types of energy c

183、omplement each other.Geothermal typically provides a constant electricity output,but technological advancements in modern power plants support flexibility in operation,allowing generation to be ramped up or down in response to variable generation from solar PV.In addition,concentrated solar power pl

184、ants can be used to increase the temperature of geothermal fluids before they are used in electricity generation,thereby increasing the electric output from geothermal plants.Biomass is also being used to increase working fluid temperatures in geothermal plants.Alternatively,geothermal heat can be u

185、sed to pre-heat the working fluid in biomass plants,thereby increasing the efficiency of the power cycles.Synergies with the oil and gas industry Since the 1970s,oil and gas companies have contributed to the advancement of geothermal energy as project operators and sponsors of innovative research.Su

186、ccessive oil crises(in the 1970s,1980s and 2010s)have encouraged data sharing,human capital development,technology development and investment in alternative energy sources,including geothermal.The oil and gas industry has extensive datasets and knowledge of sub-surface hydrocarbon reserves,especiall

187、y in sedimentary basins that also host low-to medium-temperature geothermal resources suitable for heating and cooling applications and electricity generation.In these areas,the use of geologic data collected during oil and gas drilling can reduce exploration costs and mitigate sub-surface risk.Oil

188、and gas industry professionals have skills that can be applied to geothermal exploration,development and operation.Technologies developed for deep hydrocarbon drilling can be adapted to geothermal reservoir conditions and may accelerate technological developments in the geothermal industry.Oil and g

189、as wells also present an opportunity to produce geothermal energy.Geothermal energy can be co-produced from active oil and gas wells that contain sufficient volumes of higher-temperature water.Abandoned and non-producing wells can be repurposed to produce geothermal energy for electricity and heatin

190、g applications(Caulk and Tomac,2017).However,oil and gas wells often have casings of smaller diameter and relatively low temperature gradients and are generally not designed to produce the high fluid volumes needed in a geothermal project,posing a challenge to repurposing oil and gas wells for geoth

191、ermal energy production.Even with these constraints,however,there is potential for low-temperature binary electricity generation,heat generation from closed-loop borehole heat exchangers and open-loop systems,the last of which can be combined with EGSs(Santos et al.2022).24Green hydrogen production

192、using geothermal electricity Generation of hydrogen is an energy-intensive process.Renewable sources,including geothermal,are increasingly being promoted as a way to reduce the carbon footprint of hydrogen generation.For example,geothermal electricity can be used to power the electrolyser in the hyd

193、rogen generation process.This option is especially attractive for geothermal sites that have a resource potential that far exceeds domestic market demand,such as sites on small islands.Using geothermal to power hydrogen production would present an opportunity to export geothermal energy.Production o

194、f green hydrogen from geothermal energy is beginning to be commercialised worldwide,with a commercial project in Iceland and a pilot project in operation in New Zealand since 2021(see Box 5 in section 2.2.2).Mineral recovery from geothermal brines and other synergies with the mining industry Mineral

195、s such as lithium,silica,zinc,manganese,several rare earth elements and potentially many other elements can be recovered from geothermal brines and sold commercially.Extraction of lithium from geothermal brine,for example,could be of value for the production of batteries in a more environmentally su

196、stainable manner compared to traditional lithium production from dry salt lakes or hard-rock mining.Removing some minerals from geothermal brine also holds potential advantages for geothermal resource management(Bloomquist,2006).Silica removal,as practiced at Ohaaki in New Zealand and Hellisheii in

197、Iceland,can reduce scaling issues in geothermal injection wells,pipelines and surface facilities(see Box 4 in section 2.2.2).Several projects in Canada and Europe use abandoned and flooded coal mine shafts to extract geothermal energy and store thermal energy.In Europe,examples of such systems are f

198、ound in the Netherlands(Mijnwater,2022);Spain(Lara et al.,2017);and the United Kingdom(Coal Authority,2021),In Papua New Guinea,the extraction of geothermal fluids contemporaneously with mining operations provides electricity for operations at the Lihir gold mine while also providing electricity for

199、 nearby communities.Carbon capture and storageCarbon capture and storage technologies exploit the geological conditions of areas that harbour geothermal resources,using them to store CO2 that otherwise would be released into the atmosphere.CO2 emitted from geothermal electric plants can be injected

200、back into the geothermal reservoir for permanent storage through natural mineralisation,as it is in the Carbfix initiative in Iceland.CO2 emissions from other sources,including direct extraction from the atmosphere,can also be injected into geothermal reservoirs in this manner.Bioenergy emissions in

201、 New Zealand and direct CO2 removal from the air in Iceland are examples.Hot sedimentary geothermal reservoirs have large volumetric storage capacity for carbon storage in gaseous form;but volcanically hosted reservoirs are preferred for permanent storage through natural mineralisation in volcanic r

202、ocks.Geothermal market and technology assessment252.OVERVIEW OF THE GLOBAL GEOTHERMAL INDUSTRY2.1 CONTEXT AND MARKET DRIVERSPopulation growth and economic development are increasing global energy demand,intensifying the problem of climate change.To mitigate climate change and move towards a“green”ec

203、onomy,global efforts are seeking to transition towards renewable energy sources.Geothermal contributes to stabilising the electricity grids in systems with large shares of renewables.Climate change politics and policies,such as the development and implementation of nationally determined contribution

204、s,are needed to facilitate the energy transition and the development of renewable energy projects.Sustainable heating and cooling solutions are increasingly being sought,especially in Europe,increasing demand for geothermal resources in tectonically active areas and deep sedimentary basins where dev

205、elopment and utilisation is technically and economically feasible.Global events,such as the COVID-19 pandemic and the uncertainty of energy supply in 2022,have greatly affected global energy markets.The quest for energy security and independence has resulted in increased interest in accelerating dev

206、elopment of geothermal resources as a strategic energy source(EGEC,2022a).An array of fiscal and economic incentives facilitates project financing and reduces project risk.2.1.1 Decarbonisation and the global energy transitionThe transition to net-zero carbon emissions is a complex process in which

207、fossil fuels are phased out over time and replaced with renewable and sustainable energy sources in combination with other measures,such as energy efficiency.Fossil fuel power plants,which are large emitters of greenhouse gases,are being decommissioned for environmental reasons.In 2020 and 2021,an a

208、verage of 62 GWe of fossil fuels were decommissioned annually(Energy Matters,2021).Significant renewable capacity will be required to replace these plants.Variable hydropower,solar and wind solutions cannot(yet)fully replace these plants.Geothermal energy,with its constant and high plant capacity fa

209、ctor,is therefore a valuable element in the global energy transition.Since 2015,renewable sources have led global growth in new electricity capacity.Renewable capacity grew by 257 GWe in 2021 to reach a total of 3 064 GWe of installed capacity,an increase of 9%over the previous year(IRENA,2022b).Ren

210、ewables represented about 80%of the new installed capacity in 2021,with almost 90%coming from solar and wind.Geothermal electricity grew at just around 3%between 2000 and 2020,but that pace is set to accelerate,as the new technologies profiled in section 1.2.1 mature and gain broader use.Hydropower

211、remains the largest renewable source of electricity,representing 40.1%of the installed renewable electricity capacity.Solar energy comes next(27.7%),closely followed by wind(26.9%).Bioenergy(4.7%),geothermal(0.5%)and marine(0.02%)command smaller shares(Table 1).26Table 1 Total installed renewable el

212、ectricity capacity,2021 Source:IRENA(2022b).Type of powerInstalled capacity(GWe)Share of total installed renewable electricity capacity(%)Hydropower1 230.040.1Solar energy849.527.7Wind energy824.926.9Bioenergy143.44.7Geothermal energy16.00.5Marine energy0.50.02Heating and cooling represent almost ha

213、lf of total energy use globally,most of it derived from burning fossil fuels.Heating and cooling produce around 40%of greenhouse gas emissions in the energy sector(IRENA,IEA and REN21,2020).As of 2019,renewable energy provided only 10.4%of total global energy consumption for heating and cooling,incl

214、uding 0.3%from geothermal heat(Figure 3).Given the adverse climate effects of using fossil fuels for heating and cooling,it is expected that bioenergy,solar thermal and geothermal will gradually expand their roles in providing heat for industrial processes,cooking,space heating and cooling,and domes

215、tic hot water supply(IRENA,IEA and REN21,2020).Because transporting heat over long distances while preserving the minimum required temperatures and avoiding loss of energy is economically challenging(Kavvadias and Quoilin,2018),the transition of the heating sector from fossil fuels to renewable sour

216、ces depends strongly on local characteristics affecting heat production,distribution,utilisation and storage.In the building sector,using geothermal heat in local district heating systems is becoming increasingly common,especially across Europe and parts of China.Figure 3 Shares of energy sources in

217、 final energy consumption for heating and cooling,2019 Fossil fuelsand others72.5%Traditional useof biomass11.9%Non-renewable electricity5.2%Geothermal 0.3%Renewable district heat 0.5%Solar thermal 0.7%Renewable electricity 2.0%Sustainable bioenergy 6.9%Based on:IRENA,IEA and REN21(2020).Geothermal

218、market and technology assessment272.1.2 Diversification of the electricity mixTo achieve the energy transition,every country needs an optimal combination of renewable sources.As countries increasingly deploy wind and solar energy,geothermal can play an important role by compensating for their variab

219、le operation.Over-reliance on a single source of energy can result in insecurity and unreliable supply.Along the East African Rift,for example,hydroelectric power is the main source of electricity.Changing precipitation patterns as a result of climate change,land use and the effects of geopolitics o

220、n cross-border water resources,including the Nile River have created uncertainty over the supply of electricity from hydropower plants(Sridharan et al.,2019).Utilisation of the geothermal resources in the region would diversify the electricity supply.In Kenya,the share of electricity generated from

221、geothermal increased from 15%in 2010 to more than 40%in 2021.As a result,hydropowers share of electricity generation fell from 46%to around 30%.The increased generation of electricity from geothermal resources allowed Kenya to reduce the frequency of electricity outages.2.1.3 Climate change politics

222、 and policies Sustainable Development Goal(SDG)7 of the United Nations 2030 Agenda aims to ensure access to affordable,reliable and modern energy for all,and energy has been identified as a key enabler of the other SDGs.Renewable energy technologies,including geothermal,and energy efficiency will be

223、 central to achieving sustainability in the production and utilisation of energy.They will contribute to the reduction in energy-related greenhouse gas emissions and achievement of the goals of climate action.Growing awareness about climate change has contributed to a change in global politics and p

224、olicies concerning climate action in recent years.The Paris Agreement resulted in countries making a political commitment to scale down their emissions,and setting targets for emission reduction through Nationally Determined Contributions(NDCs).Guided by the Inter-Governmental Panel on Climate Chang

225、e,climate models indicate the need to cut emissions to net zero by 2050 to maintain the average temperature within 1.5C above the pre-industrial level.The urgent need to mitigate climate change provides an opportunity to position geothermal energy as a suitable option for reducing and eventually rep

226、lacing fossil fuels as energy sources.The benefits of geothermal energy must be disseminated to educate policy makers,stakeholders and the public,so that they can leverage geothermal energy to meet their climate objectives under the Paris Agreement.Dominica,for instance,has identified the harnessing

227、 of geothermal energy as a major driver for reducing emissions in the energy sector.It targets transitioning to 100%renewable by 2030 using geothermal energy,envisaging a reduction of emissions by over 98%compared with 2014.Beyond education and focused energy policies,investment in research and deve

228、lopment(R&D)is key to integrating geothermal into the energy systems of the future.282.1.4 Sustainable energy for heating and cooling The application of geothermal heating and cooling solutions has grown substantially in recent years,to reach close to 110 GWth in 2022,an increase of over 50%since 20

229、15.Europe in particular has seen a progressive shift in the political framework for heating and cooling,associated with higher requirements for sustainable building practices,greater demand for housing(because of the increase in the urban population)and other factors that have made geothermal energy

230、 a part of many strategies for implementing decarbonisation while pushing fossil energy technologies out of the market(EGEC,2021).The major heating and cooling applications of geothermal energy bathing,heating and cooling of buildings,and supply of process heat for industrial and agri-food sectors h

231、ave focused attention on the use of low-and medium-temperature sources,which are widely available in most countries.2.1.5 Global events affecting energy markets Recent global shocks since 2020 disrupted many sectors of the economy,including the energy sector.The COVID-19 pandemic led to lockdowns,wh

232、ich disrupted the movement of people and transport of commodities and supressed demand for energy.Energy markets experienced disruptions as global energy supply chains were put under pressure following the conflict in Ukraine.The resulting price volatility of traded energy commodities put additional

233、 pressure on economies(Benton et al.,2022).In response to disruptions in global energy markets,many countries are exploring ways to develop local and strategic alternative energy sources,in order to reduce their dependence on international energy markets and achieve energy security.The disrupting im

234、pact of these global events has boosted opportunities for locally available alternative energy sources,including geothermal energy,an autochthonous energy resource that can provide energy security.2.1.6 Financial and economic incentivesIf the cost of geothermal energy exceeds alternatives or high up

235、front development costs and risks create barriers to development of geothermal projects,the market will be limited.Several policy tools and instruments can incentivise the development of geothermal projects(see sections 2.2.1 and 2.3.1).Tax incentivesTax incentives can help make geothermal energy co

236、mpetitive with alternative sources of energy.They can be applied to capital expenditure for equipment and costs such as duties and value added tax to lower the cost of renewable energy technologies.Tax incentives can also be applied to the operating expenditure of energy projects,through measures su

237、ch as income tax holidays and the waiving of royalty fees.Feed-in tariffs Feed-in tariffs(FiTs)have been used in Japan,Kenya,Trkiye and other countries to promote the accelerated deployment of geothermal energy by offering preferential prices and long-term contracts to project developers for the sup

238、ply of electricity to the national grid from Geothermal market and technology assessment29geothermal sources.The preferential price enables the developer to bridge the gap between the costs of geothermal electricity and the cost of alternatives sources.FiTs allow geothermal to compete with fossil so

239、urces and other renewable energy sources(see Box 2).Direct subsidiesDirect subsidies to market-ready technology or individual projects can help develop geothermal projects when they are not yet competitive with other energy sources,especially when scale advantage has not been reached.The US Departme

240、nt of Energy funds various grant programmes to support investigation and feasibility studies for enhanced or engineered geothermal system(EGS)projects,geothermal deep direct use and geothermal co-production in oilfields(See section 3.4).Subsidies for R&D and innovationResearch programmes develop inn

241、ovative technologies relevant to geothermal energy and adapt them to the local context.A research and innovation ecosystem that increasingly focusses on scalability,maturity and cost-effectiveness at higher technology readiness level allows for market adoption of innovative technologies.Grants,conve

242、rtible loans-to-grants and loansGovernments and multilateral banks can support geothermal projects with grants and loans for exploration and drilling campaigns to incentivise geothermal energy development by sharing this part of the upfront costs and risks.Loans may be convertible to grants upon rec

243、eiving unsuccessful drilling results.Risk mitigation,guarantee and insurance schemesRisk mitigation schemes can be used to cover sub-surface risks,especially during exploration drilling,when the resource risks are typically highest.Other risk mitigation schemes may address declining well productivit

244、y during operation of a power plant as well as energy off-take risks.Construction of infrastructure and to match demand Incentives for the modernisation and extension of the local and national energy infrastructure(including electricity and heating grids)can support the development of geothermal pro

245、jects.Extending electricity grids to remote areas with geothermal potential could facilitate the development of those resources.In the heating and cooling sector,construction of new district heating networks,extension or modernisation of existing networks and energy-efficiency improvements in buildi

246、ngs could support the integration of more geothermal energy.Carbon revenueGeothermal projects can obtain additional benefits through the carbon market and carbon trading.Selling carbon credits can increase revenues and improve the economic feasibility of geothermal electricity as well as heating and

247、 cooling projects.302.2 GENERATION OF GEOTHERMAL ELECTRICITY 2.2.1 Current status and key trends Installed capacity and energy use Geothermal energy provides electricity generation in more than 30 countries.Installed capacity per country ranges from less than 1 MWe to 3.7 GWe.The main technologies e

248、mployed in electricity generation include dry steam,flash steam and binary power plants.(see section 1.2.2).In some countries notably countries belonging to the geothermal“1 GWe club”(Indonesia,New Zealand,Philippines,Trkiye and the United States)geothermal plants have been operating for decades.Oth

249、ers(including Belgium,Chile,Colombia,Croatia,Honduras and Hungary)only recently began generating geothermal electricity and are at earlier stages of development.The global installed capacity for geothermal generation of electricity was 15.96 GWe at the end of 2021,distributed across five main region

250、s(Figure 4).The regions with the largest installed capacity are Asia and Oceania(5.9 GWe),North America(3.7 GWe)and Eurasia(3.5 GWe).(Chapter 3 examines capacity in more detail.)The use of geothermal energy for electricity generation is more advanced in some regions and countries than in others,in a

251、 manner that is not directly correlated with the presence of suitable geothermal resources.Even in very favourable volcanic settings(such as the Pacific Ring of Fire),geothermal development shows significant differences across regions and countries.For example,North America and Central America have

252、more mature geothermal industries than South America and the Caribbean Islands.Recent successful developments of geothermal electricity have resulted from the use of lower-temperatures resources not associated with volcanically active sites,such as in Trkiye and certain European countries.Figure 4 I

253、nstalled geothermal electricity capacity,by region,2021Asia andOceania5.9 GWe;37%NorthAmerica3.7 GWe;24%Eurasia3.5 GWe;22%Africa andMiddle East0.9 GWe;6%LatinAmerica1.8 GWe;11%0.9 GWe1.8 GWe3.7 GWe3.5 GWe5.9 GWeSource:IRENA,2022a;ThinkGeoEnergy,2022(b);Huttrer,2021.Note:The red zones on the map indi

254、cate high-temperature geothermal zones.The black symbols indicate geothermal electric plants,many of which are located in high-temperature zones.The geothermal regions used in this report were selected based only on the occurrence and development of geothermal resources,not on political or socio-eco

255、nomic considerations.Disclaimer:This map is provided for illustration purposes only.Boundaries and names shown on this map do not imply any endorsement or acceptance by IRENA.Geothermal market and technology assessment31The success of geothermal development cannot be defined only in terms of install

256、ed capacity;other aspects,such as how geothermal contributes to national electricity output,also need to be taken into account.In some small countries with limited electricity markets,such as Iceland and countries in Central America,and islands such as the Azores archipelago(Portugal),installed geot

257、hermal capacities in the range of a few hundred MWe contribute to satisfying national electricity demand.In El Salvador,for example,204 MWe of installed geothermal electricity capacity provided 24.9%of the annual demand of electricity in 2020.The global electricity generation capacity of geothermal

258、plants grew from 200 MWe in the early 1950s to approximately 16 GWe in 2020(Figure 5).Geothermal capacity increased significantly in the 1970s and 1980s,thanks in part to the oil crises of 1973 and 1980/81.Sharp increases in oil prices led to R&D of many alternative electricity sources,including geo

259、thermal(Sanner,2016).One of the driving forces for these developments was that geothermal energy,which is available locally,allowed countries to reduce their dependence on imported fossil fuels to generate electricity(Dickson and Fanelli,2013).Steady growth continued after the 1980s.Since 2000,insta

260、lled geothermal electricity capacity increased at an average annual rate of about 3%,with significant contributions from Indonesia,Kenya,Trkiye and the United States.Despite this growth,geothermal represented only 0.5%of the global renewable electricity market in 2022(see table 1)(IRENA,2022b).The g

261、lobal energy market context is similar to what it was during earlier energy crises.It provides new opportunities for geothermal electricity to further develop as a strategic alternative that can strengthen electricity generation systems in many countries.Figure 5 Growth of installed geothermal elect

262、ricity capacity by region02 0004 0006 0008 00010 00012 00014 00016 00018 0000520002005201020152020Installed capacity(MWe)Asia and OceaniaNorth AmericaEurasiaLatin AmericaAfrica and Middle EastSource:ThinkGeoEnergy statistics,ThinkGeoEnergy(2022b),Huttrer(2021),Uihlein(2018),and

263、 Bertani(2015).32Enabling policies and regulations National policies and regulations are key to developing the geothermal industry.Weak or complex policies and legal frameworks for geothermal development create market barriers,hindering the potential development of the sector,particularly through th

264、e participation of private developers.Many countries have enacted specific geothermal laws and regulations;they include Chile,Colombia,Dominica,Indonesia,Kenya,Mexico,Nicaragua,Peru,Saint Kitts and Nevis,Saint Vincent and the Grenadines,Trkiye and the United States.In others including Argentina,El S

265、alvador,Grenada,Guatemala,Honduras,Iceland,New Zealand,Panama and Saint Lucia the geothermal sector is regulated through diverse legislation,such as mining,environmental,water resources,electricity and renewable energy laws.In a few countries including the Plurinational State of Bolivia,Costa Rica,D

266、jibouti,Ecuador and the United Republic of Tanzania geothermal resource exploitation is reserved for government institutions;regulation is therefore limited.Policies range from strong promotional measures to a lack of specific support.In some countries,such as Germany,Japan and Trkiye,the geothermal

267、 industry has flourished when supported by favourable FiTs(Box 2).In most countries,geothermal projects must compete with other energy sources in deregulated electricity markets.In South American countries,including Chile,Colombia and Peru,the existence of very competitive and deregulated electricit

268、y markets has hindered the deployment of significant geothermal resource potentials,despite the availability of several geothermal electricity projects identified at the prefeasibility to feasibility stage.Access to the electricity market in these countries is controlled largely by technology-neutra

269、l auctions that either do not include geothermal energy or force it to compete under conditions that can be difficult to meet.Many countries have implemented policy measures that foster the deployment of geothermal energy,with diverse results.In the United States,for example,a geothermal boom in whi

270、ch more than 2 000 MWe were installed in a decade occurred throughout the 1980s and early 1990s,thanks to a combination of state policy decisions,a favourable tax climate,and direct government support through cost-shared drilling programmes and government loan guarantees(ESMAP,2016).The reduction of

271、 government support,particularly the end of federal programmes and of the Public Utility Regulatory Policies Act(PURPA),resulted in slower and more irregular development.Conducive policies and regulatory reforms have allowed Trkiye to scale up geothermal development,increasing its geothermal electri

272、city capacity from 15 MWe in 2008 to over 1.7 GWe in 2022.It has also scaled up geothermal heating and cooling,positioning it among the worlds geothermal leaders.These results are attributable largely to implementation of a strong national policy based mainly on tax regimes,market incentives and nat

273、ional content standards.Geothermal market and technology assessment33Box 2 Stimulating small-scale binary electricity generation projects through government incentives in JapanDevelopment of small-scale binary electricity plants has increased in Indonesia,Japan and the Philippines.The trend is espec

274、ially notable in Japan,where developers have favoured small binary plants over larger conventional electricity plants,especially since 2010.Government-supported incentives have been crucial to enabling the development of geothermal projects in Japan,where such projects are rarely developed without g

275、overnment support.During the 1980s and 1990s,government agencies support for geothermal resulted in a large increase in electricity capacity.This support ended in the 2000s,and limited development took place over the next 20 years.With the exception of Matsuo-Hachimantai(7.5 MWe),and Wasabizawa(46 M

276、We),which were commissioned in 2019,no large-scale geothermal plants have been developed in Japan since the 1990s,because such projects take longer to enter into operations than smaller-scale projects(Yasukawa et al.,2021).The effects of the nuclear incident at Fukushima in 2011 induced the governme

277、nt to restart support for renewable energy through subsidies and FiTs.Japan introduced the FiT mechanism in July 2012.Under it,energy companies are required to procure certified renewable electricity(including from geothermal plants)at fixed prices over a 15-year period,as established by the Ministr

278、y of Economy,Trade and Industry.For geothermal plants,the current FiT is JPY 26/kWh(USD 0.23)for plants larger than 15 MWe and JPY 40/kWh(USD 0.35)for plants smaller than 15 MWe.Development of small-scale geothermal electricity generation installations has increased since the government introduced t

279、he FiT.More than 60 geothermal plants of less than 2 MWe each have been built across 45 geothermal fields(Imamura,Shiozaki,and Okumura,2020).Beyond the FiT incentive,many small geothermal electric plants have been developed.They carry less risk than larger plants,require lower levels of investment a

280、nd do not require extensive exploration to go into operation.Source:Nikkei Asia(2017).Photograph 1 Small-scale geothermal electric plant in Japan made feasible through FiT 34Financing and risk mitigation The development of geothermal resources carries various risks.Unlike other renewable energy sour

281、ces,the geothermal industry has significant sub-surface resource risks,particularly in the early stages,when the uncertainty of the resource capacity and the upfront investment required for drilling to confirm the resource are high,as described in section 2.2.2.These risks make it challenging to obt

282、ain project financing.Country-specific factors can also undermine geothermal investments.They include(1)inadequate policies and weak regulatory frameworks,(2)investors perceptions of country risk,(3)local market conditions,(4)unfavourable logistical conditions or specific social aspects of geotherma

283、l areas and(5)the limited availability of technical expertise.Financing challenges and the accompanying approaches to risk mitigation have been the subject of careful analysis(ESMAP,2012,2016;Boissavy,2020;GEORISK,2021).Several risk mitigation facilities have started to operate.At the regional level

284、,they include the Geothermal Development Facility in Latin America and the Geothermal Risk Mitigation Facility in the East African Rift.Similar facilities at the country level are found in Chile,several European countries,Indonesia,Mexico and Trkiye.Risk mitigation schemes are now drawing on several

285、 years of experience to increase the effectiveness of existing schemes and introduce new ones.Regulatory frameworks for geothermal projects are being reviewed and updated in many countries where the lack of clear policies and regulations as well as limited technical and institutional capacity exacer

286、bate other risks and barriers.Several multilateral organisations(including the World Bank,the Inter-American Development Bank,the Asian Development Bank and the Caribbean Development Bank)and international co-operation agencies(such as the Japan International Cooperation Agency)provide country-based

287、 risk mitigation solutions through technical assistance and financial support for geothermal project assessment and development,particularly in developing countries.The risk mitigation instruments and technical assistance that are commonly used to tackle barriers in the exploration stage of geotherm

288、al projects may not be sufficient to spur geothermal development.Other actions need to be taken to enhance the overall investment climate and create attractive conditions for geothermal energy in national electricity markets.A report by the Energy Sector Management Assistance Programme(ESMAP,2016)re

289、views global experience managing risks associated with the geothermal resource.It classifies efforts into four groups:The government takes on all resource and other project risks by acting as the sole project developer,undertaking surface studies,conducting exploration drilling,and building and oper

290、ating the project through state-owned enterprises or other government-backed entities.The government shares the cost of drilling with private developers,shifting some or all of the risk of drilling to develop the steam field to the public sector.Geothermal resource risk insurance pools exploration r

291、isks across a portfolio of development.Geothermal market and technology assessment35 Early-stage fiscal incentives(exemption from duties,tax credits,etc.)lower the financial exposure developers would face during exploration drilling.These approaches have resulted in different outcomes,depending on e

292、ach countrys conditions and development goals.Certain risk mitigation schemes have been more effective than others in fostering geothermal development(ESMAP,2016;Boissavy,2020).All countries need to strike an appropriate balance between public and private efforts.State companies or government instit

293、utions have successfully led geothermal projects in Costa Rica,Djibouti,El Salvador,Kenya,Mexico and the Philippines.But building technical and operational capacity to undertake geothermal electricity projects is a long,complex process that requires political planning and determination.Lacking finan

294、cial capacity and/or technical expertise,many governments engage with private companies to develop their geothermal resources,through various combinations of public-private participation and division of responsibilities.Such collaboration takes advantage of the stronger government capacity for mobil

295、ising risk capital needed to de-risk the early stages of project development(exploratory drilling particularly)and the usually stronger technical capacity and international experience of private companies to develop and operate geothermal fields.International collaborationInternational collaboration

296、 has advanced the dissemination of information on geothermal technologies and market development.Many international organisations are working collaboratively on geothermal energy development with a global,regional or national reach.Synergies among government institutions,private developers and inves

297、tors,multilateral organisations,international aid agencies and academic institutions,among other stakeholders,can facilitate solutions that address industry challenges and accelerate the global development of geothermal energy.Collaboration yields benefits in a variety of areas.Chief among them are(

298、1)the sharing of international best practices and experiences in creating enabling frameworks for geothermal development;(2)the building of local capacity to plan and manage geothermal development;(3)environmental management and social outreach of geothermal projects;and(4)technological innovation.G

299、lobal organisations and regional and bilateral collaborations that are actively promoting geothermal energy include the following:The International Geothermal Association,the leading global organisation representing and supporting the geothermal sector in delivering the future of clean energy.The Gl

300、obal Geothermal Alliance(GGA),established by IRENA as a platform for enhancing dialogue,co-operation and co-ordinated action among the geothermal industry,policy makers and other relevant stakeholders worldwide.The IEA Geothermal Technical Cooperation Programme,established to promote international c

301、o-operation,through activities ranging from the sharing of information on technologies and methodologies for geothermal development to the development of knowledge.36Selected regional collaborations featuring advocacy,policy support,training and research initiatives include the following:Geothermica

302、(Europe and the United States)promotes research and innovation to make geothermal energy reliable,safe and cost competitive.The Africa Rift Geothermal Project(ARGeo),managed by the United Nations Environment Programme(UNEP),supports the development of the vast geothermal resources of Eastern Africa,

303、with a focus on de-risking the resources and building technical expertise.The European Geothermal Energy Council(EGEC)promotes the European geothermal industry and enables its development in Europe and worldwide by shaping policy,improving business conditions and promoting R&D.The Geothermal Researc

304、h Cluster(GEORG)is a non-profit organisation that promotes R&D on geothermal resources in a sustainable way,in order to reduce the worlds dependence on carbon-based energy sources.Geo-energy Europe,funded by the European Union,provides opportunities for networking and sharing opportunities in geothe

305、rmal markets.Selected bilateral collaborations include the following:The German Agency for International Cooperation(GIZ)and the Central American Integration System(SICA)are co-operating intensively on geothermal technology development and initiatives,particularly for heating and cooling uses.The Ne

306、w ZealandAfrica Geothermal Facility is providing responsive,flexible and timely geothermal technical assistance and capacity building to Eastern African countries and,as appropriate,assisting with funding applications to the existing Geothermal Risk Mitigation Facility(GRMF),to help develop regional

307、 geothermal energy resources.New Zealands Ministry of Foreign Affairs and Trade(MFAT)and Indonesia Aid are partnering under the Joint Commitment for Development to increase access to affordable,reliable,clean energy by increasing workforce skills and capability in geothermal energy.The Japan Interna

308、tional Cooperation Agency(JICA)is providing technical capacity building for geothermal steam supply and management,particularly in Africa and Latin America.Geothermal market and technology assessment372.2.2 Challenges and opportunities for market growth of geothermal electricity Challenges Geotherma

309、l electricity development faces diverse challenges that hinder market growth and project deployment.Many of those challenges are encountered during the higher-risk early exploration phases,but also occur during more advanced stages of project development.A significant challenge faced by many geother

310、mal projects(which are common in other natural resources sectors)is public resistance.Several projects have met with opposition from local people and indigenous communities,as well as from other social levels and organisations.Reasons for opposition include differing perspectives and conflicting int

311、erests on land use,limited information on geothermal technology,concerns about the environmental and social impacts potentially generated by a geothermal development(including the use and contamination of shallow groundwaters and public health problems associated with gas emissions).Inappropriate in

312、itial approaches by some geothermal developers to community engagement created distrust and resistance that is difficult reverse.In some cases,working with communities allowed projects to move forward;in others,challenges remain.Overall,sensitivity to social issues has significantly increased in the

313、 geothermal industry in recent years.Other global challenges include the following:Financing:Geothermal projects face difficulty mobilising or accessing capital for early exploration and project financing,because of project complexity,investment risk and other factors.Policy:Many projects are not pr

314、ofitable under prevailing market conditions and require public support through enabling policies and incentivising frameworks.The formulation of these frameworks needs to take into consideration the unique characteristics of geothermal energy development.Regulatory:Improvements to the geothermal reg

315、ulatory framework are needed in several countries to attract investors.Complex permitting procedures may hinder the acquisition of development rights and permits needed to execute geothermal projects.Market:Energy-market-related issues such as uncompetitive electricity tariffs in deregulated electri

316、city markets(e.g.in Chile)and/or delays in obtaining PPAs(e.g.in Ethiopia)have slowed the pace of geothermal industry growth.In countries with a less mature geothermal industry,policy making and technical and administrative capacity are still under development.As a result,technological innovation an

317、d market development are limited.Institutional:Many countries have limited institutional technical capacity to administer and manage geothermal development.Technological:Technological development and innovation are still needed to make geothermal a globally scalable energy solution.Research and demo

318、nstration projects are crucial to reduce resource risks,improve project economics and allow the more efficient and widespread use of geothermal resources.38Other challenges may be region or country specific.Countries in the Andes face difficult logistical conditions in remote mountainous areas.Remot

319、e island countries have small electricity markets.Many countries(including Costa Rica,Indonesia,Italy,Japan,New Zealand and the Philippines)face social opposition and environmental restrictions because geothermal resource areas overlap national parks,indigenous lands,tourist sites or areas of landsc

320、ape value.Other countries face political instability and/or unstable electricity markets.In some countries in Latin America and Europe,the pandemic created logistical and global transport challenges during 2020 and 2021 that significantly slowed or stalled project advancement,especially for new proj

321、ects.OpportunitiesThere are many opportunities to overcome these challenges to achieve geothermal market growth,including expanding and interconnecting regional electricity grids,leveraging oil and gas expertise and technology in geothermal,recovering minerals from geothermal brines and increasing s

322、ynergy with green hydrogen.As many of the worlds easily accessible geothermal resources have already been developed for electricity generation and thermal utilisation,the geothermal industry is focusing on accessing previously uncommercial resources through technological optimisation and innovation.

323、Opportunities can be exploited by improving the efficiency of above-ground heat exchange and energy conversion technology and below-ground technology to enable binary electricity production from lower-temperature geothermal reservoirs as well as oil and gas wells,EGSs,AGSs and supercritical resource

324、s.(Chapter 4 summaries these opportunities.)Increasing electricity grid interconnectivityExpansion and interconnection of regional electricity grids,could present opportunities for the development of renewable electricity,including geothermal,sources.In the Eastern African Power Pool,which includes

325、most of the countries with significant geothermal resources in the region,bilateral exchange of electricity,generated mainly from hydropower,takes place.A similar situation occurs in Central America,where the interconnected grid Central American Electrical Interconnection System facilitates the exch

326、ange of electricity in the regional market.Connecting the eastern Caribbean Island countries with undersea cables could allow countries with geothermal resources to export geothermal electricity to neighbouring islands without adequate resources.The integrated planning of geothermal electricity gene

327、ration with connectivity to regional electricity grids could foster the development of geothermal projects in countries with significant potential by allowing exports of electricity to countries with low potential.However,several political and market issues constrain the integrated approach to plann

328、ing electricity production at a regional level.In addition,in many cases,geothermal development is still limited by other challenges,such as inadequate financing and competitiveness of geothermal power.Geothermal market and technology assessment39Leveraging oil and gas expertise and technologyThe hy

329、drocarbon industry has started to recognise the opportunities inherent in the geothermal market to leverage oil and gas technologies,datasets,skills and financial resources in support of the clean energy transition.The oil and gas industries are increasingly looking for opportunities to develop geot

330、hermal projects,as demand for replacing fossil fuels by renewable clean energy sources grows.Their experience and technologies could significantly contribute to the development of geothermal resources in deep sedimentary basins.Research on how to use geothermal fluids in sedimentary basins and geo-p

331、ressurised resources dates back to the 1980s in the United States.Several demonstration projects are currently underway globally,using a range of technologies to repurpose oil and gas wells or co-produce geothermal fluids.Recent studies conducted in oilfields in the United States concluded that co-p

332、roduction may be less viable than converting existing oil and gas wells into wells suited for sole geothermal production(Gosnold et al.,2020)(see section 3.4).Box 3 highlights examples of these efforts in Canada,Colombia and Hungary.The International Geothermal Association is conducting surveys and

333、interviews to research transitioning oil and gas companies;it has hosted forums,panels and webinars to raise awareness of this opportunity,including through online learning and industry-focused training(IGA,2021).Developing geothermal energy involves sub-surface geoscience exploration and deep drilling,which share some characteristics with sub-surface exploration for hydrocarbon resources.Oil and