Geothermal Electricity Plant Operation in the US - Industry Market Research Report

Full steam ahead: Environmental concerns and favorable legislation will boost industry demand

Even though it is a renewable energy source, geothermal investment has lagged behind wind, solar and hydroelectric power. The viability of geothermal energy production is limited because of its geography. Production requires deposits of high-temperature subsurface water found only in certain regions. Even so, energy production has increased because the production process is sustainable. Federal funding, primarily production tax credits, has aided the growth of plants, incentivizing additional electricity generation. Geothermal electricity plant operation revenue is expected to rise at a CAGR of 1.7% over the past five years, reaching $2.2 billion, including an expected 0.4% decrease in 2023 alone as gas prices fall back from post-pandemic highs. Profit is set to remain elevated as government funding helps cut out-of-pocket costs. Establishments in this industry primarily operate geothermal electricity (geoelectric) plants. These facilities use heat from the earth to produce electric energy. The electric energy produced in these plants is provided to electric power transmission or distribution systems. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.