Tuesday, March 10, 2009

Forecasts in Geothermal

After scrolling past a boring introduction, you should find some good forecasts for geothermal, truly a good industry with a promising future.

Geothermal Energy Forecast

Global geothermal energy capacity will grow 89% between now and 2015, according to the most recent information available from GlobalData. Capacity will surge from 11,0007 MW at the end of 2008 to over 20,800 MW in the next six years.
Here's the chart:

And in case you're interested, here's how the market share shakes out by

Asia-Pacific, 47.6%

North America, 42.3%

Europe, 10.0%

South America, <0.10%>

Geothermal Energy Investment Forecast

Like most other market sectors, geothermal stocks have lost significant value over the past year. Here's the visual:

Losing 50% of your value in two years is no joke. But indicators are pointing to a rebound in the geothermal sector that will coincide with growth in geothermal capacity. It only makes sense, right?

The recently-passed stimulus did its part to ensure investing in geothermal energy remains attractive. The bill extends the production tax credit (PTC) until 2013, allowing project developers to recoup 30% of a new plant's cost. The stimulus creates a cash grant program to support the industry as well.

It's a win-win according to Geothermal Energy Association executive director Karl Gawell:

"We estimate that the geothermal power industry has doubled its workforce in the US in the past two years, and the economic stimulus bill provides a framework of support that will continue if not accelerate growth in this industry adding tens of thousands of new jobs with even greater positive effects across the economy."

Federal incentives will lure private capital to the sector, allowing financing to go through for new projects. Banks will be more likely to lend given a 30% credit that gives stability to and reduces payback times.

For some info. on current and upcoming geothermal projects, check out this post at Peak Oil Debunked, an always excellent blog.

- Brewskie

No comments:

Post a Comment