Forget biofuels, hydropower, solar power and such in the search to come up with alternative sources of energy; geothermal seems to be gaining ground. According to a report from Frost & Sullivan, geothermal energy could be the next hot thing in the energy market.
Frost & Sullivan said that geothermal energy can supply a continuous source of energy since the heat is trapped inside the earth, without depleting. This places geothermal energy above sporadic wind and solar energy and does not come with the food/energy controversy that biofuels incites.
The alternative energy source has not had much exposure with only less than 1% of global energy coming from geothermal production, and only 20 countries host geothermal projects. The limited use of geothermal in the past has been attributed to high start-up costs. The costs are taking a back seat with concerns over the steep price increases of oil; Kenya, for example, hopes to more than double its geothermal production to meet its growing energy demands.
Geothermal energy is produced from using the earth’s center to generate heat and electricity. “Geothermal energy has several advantages when compared to other renewable energy sources as well as carbon-emitting fuels. The sector is something to watch out for in the next few years,” notes Frost & Sullivan analyst Gouri Nambudripad. Another advantage is that geothermal energy does not produce any toxic waste.
On the cost of producing geothermal energy, Frost & Sullivan reported that they are comparable to drilling for oil and gas, although the company said that research shows costs are dropping. The generation costs of geothermal electricity used to be 50-150 euros/MWh in 2005. This is expected to fall to 40-100 euros/MWh in 2010 and 40-80 euros/MWh in 2020. As geothermal energy becomes more affordable, interests continue to rise.