Bloomberg: Asia to see more than 50% of overall geothermal investment
Darajat Unit I owned by Indonesia Power (a PLN subsidiary) with steam supplied by Chevron (source: wienblog-growingtree/ blogspot)
Alexander Richter
8 Apr 2012
Bloomberg New Energy Finance sees Asia as the predominant geothermal market. Late-stage projects, good resources and increasing policy support will attract more than 50% of overall geothermal investments to go to Asia.
In a recent news piece on a recently released report on the U.S. geothermal energy market, Bloomberg New Energy Finance talks about the impact of a potential loss of federal subsidies on U.S. development and expected investment internationally.
As geothermal projects need longer to be developed they are less vulnerable to an expiration of production tax credits in the U.S. For the wind sector, where the tax credits run out at the end of this year, this means an immediate drop in the order of turbines and a loss in jobs. For geothermal, where tax credits are not expiring until the end of 2013, this won´t have that immediate effect.
On international investment into the geothermal market, Bloomberg New Energy Finance sees the Asian market attracting a majority of funds. Over 50 percent of investment into the geothermal sector will go to Asia due to “the number of late-stage projects, high-grade resources and increasing policy support.” It is also expected that Japan will see an increase in geothermal power capacity to up to 2,000 MW in the next 10-20 years.
Source: Bloomberg
