The United Kingdom geothermal energy market is expected to grow at a CAGR of more than 1% during the forecast period. The geothermal power market is mainly driven by factors including an efficient and sustainable energy source and growing adoption of renewable energy. The limited burning of fuels and minimal emission of carbon dioxide and other greenhouse gases favor the adoption of geothermal energy. On the other hand, the lucrative market for solar and wind is likely to hinder the market growth.
- Direct heat utilization is expected to dominate the market during the forecast period.
- The introduction of favorable government regulations and policies are expected to recover the otherwise untapped huge geothermal potential for low-carbon electricity generation and direct use in cooling and heating. Geothermal energy can generate electricity with less environmental impact and at a lower cost than fossil fuels such as oil and coal.
- The largely untapped geothermal resources in the United Kingdom have the potential to deliver up to 20% of the country’s energy needs in a reliable and sustainable way. By 2050, the country is expected to reach its zero emission target by additional exploitation of geothermal energy and also the UK Government have set aside over EUR 300 million to invest in district heat networks over the next few years. Which are a really important way of bringing it forward providing opportunities in the market. Deep geothermal power is another opportunity to create heat and generate power in the coming future.
Key Market Trends
Direct Heat Utilization is Likely to Dominate the Market
- Geothermal energy for heating can play a major role, it has the potential to heat millions of homes in the UK, sourced either from deep geothermal resources or from shallow geothermal resources.
- The United Kingdom has a number of low to medium heat resources. Shallow geothermal resources, for example, are becoming more popular lately. With the help of ground source heat pumps, this energy is extracted and used to heat up and cool homes and buildings.
- Some of the geothermal projects in the UK being developed for heat and power generation - The Southampton District Energy Scheme, The Eden Project, Rosemanowas Quarry, Penzance Jubilee Pool, Weardale Renewable Energy Village.
- The city of Southampton is the biggest beneficiary of geothermal power. A geothermal power station is operating since 1986. The power station provides heating for the city hall, superstore, swimming centre, over 300 flats, hotels, plus the port of Southampton.
- The southwest of England is the most favourable region. Cornwall in particular is a prime site which is to have U.K.’s first deep geothermal power plant. The plant is expected to provide enough heat and power to 3000 homes, according to Geothermal Engineering Ltd (GEL).
- The increasing demand for energy, along with the potential of untapped geothermal resources, the demand for geothermal energy is expected to increase in years to come.
Lucrative Market for Solar and Wind Likely to Hinder the Market Growth
- Among all the renewable power generation technologies available in the country, solar and wind have shown potential development, attracting significant government spending. The policy landscape of governments and associations are focused basically around these renewable power sources.
- Wind, bioenergy, and solar energy sources are dominating the renewable energy market in the UK and are expected to continue dominating in the forecast period. Solar and wind, in particular, have been the success of all the renewable energies. The purpose behind this achievement can be ascribed to the declining cost of the technology which has prompted an exceptionally low LCOE and expanded adoption of solar and wind by various governments.
- In 2019, the installed wind capacity has reached 24128 MW, whereas the installed solar capacity reached 13398 MW with both showing significant growth compared to the previous years.
- Increasing demand for energy, along with policy-level support to geothermal plants, the demand for geothermal energy technologies is expected to increase in years to come.
The United Kingdom geothermal energy market is consolidated. Some of the major key players in the market include Geothermal Engineering Ltd., GT Energy, Eden Geothermal Ltd, Go Geothermal Ltd, and Engie SA.
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