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the EU. In 2003, a total of approximately 2 Mtoe has been supplied by geothermal heating alone; including ground-coupled heat pumps. (B) Market situation and potential 4. Geothermal energy in the form of electricity was first generated commercially in 1913 in Tuscany, Italy. Geothermal energy has been used on a large-scale for both heat and electricity (>100 M W) for over 45 years. 5. The geothermal sector is currently the fourth largest electrical power production sector using renewable energy sources, ranked behind hydraulic power, biomass and wind power. 6. Presently, geothermal energy is used in 71 countries, 24 of which use it to generate electricity; and over 80 countries have reported resource availability. Total installed capacity now stands at 8,902 MWel, generating 56.8 TWh/year, which is equivalent to 0.4% of global electricity production. Unique to geothermal is the added capability of using the heat in the separated hot water from power generation for direct-use applications, contributing significantly to the 2004 global geothermal installed capacity of 27,825 MWth for direct utilization and total energy use of 261,418 TJ (72,622 GWh). 7. If the large regions of the world are considered, two main producers of geothermal origin electricity can be seen: America (3 921 MWe) and Asia (3 291 MWe). Europe comes next, with total capacity of 1 123 MWe. 8. Current generation costs are in the range of US$ 0.02-0.10/kWh and projected to come down to US$ 0.01-0.08/kWh. Capital costs vary widely depending upon resource quality and generation size, and are currently in the range of US$ 1,150-2,300/kW installed capacity for high quality resources, down by about 50% over the last twenty years. 9. Availability factors range from 92-99%, with load factors of 84-96%. Capacity factors are typically in the range of 75-90 % and are expected to improve with further R&D. 10. A large part of geothermal energy is used by geothermal heat pumps, under the heading of the so-called very low temperature applications. The European Union is one of the main regions of the world to have developed geothermal heat pump technology (ground-coupled heat pumps). The total number of geothermal heat pumps is estimated at more than 379 000 units, equivalent to 4 531 MWth 2004 (+30.5% with respect to 2003). The heat pump industry is by far the most dynamic of the three geothermal sectors. (C) Attractiveness of geothermal technologies 11. The worldwide technical potential is very large and has been estimated to be as much as 5,000 EJ/year, corresponding to about 66% of total renewable energy potential. Important limitations to expanding its use are economics as well as the geographic distribution of the resource. 12.Geothermal energy could provide indigenous, affordable, environmentally friendly power to areas now without power or where power is currently provided by oil. Increased efficiencies in power production would be expected from development of deeper, hotter geothermal resources and more effective use of resources could be made through co-generation and cascaded use. 13. Meeting the 2020 goal of producing 5% of global generation would provide a savings of over 180 Mtoe per year and reduce CO2 emissions by 570 million tonnes annually. Direct-use of the separated hot water would also add very significantly to these savings. 79PDF Image | Economic Perspectives of Renewable Energy Systems
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