Latin America Geothermal Energy Market size exceeded USD 2.6 Billion in 2020 and is projected to witness 5.3% CAGR from 2021 to 2027.
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The market growth is on account of increasing investments toward smart technologies and escalating power demand. Introduction of government policies focusing on adoption of clean fuels along with expansion of renewable energy sources is set to boost the product adoption. Favorable private financing schemes for projects through procurement of permits, concessions, licenses, leases, agreements, and registrations will augment the market landscape.
Binary technology segment will expand at significant CAGR through 2027 owing to stringent government regulations to limit carbon footprint and growing adoption of district heating technologies. These plants ensure high efficiency & low initial cost along with capability to easily integrate with energy sources including solar and biomass sources including biomass and solar. Increasing applicability across medium and low-temperature geothermal facilities coupled with improved efficiency and environmental benefits will propel the industry outlook.
Increasing energy security concerns along with rising environmental awareness will positively sway the dry steam based geothermal energy industry. This technology offers key advantages including ease of installation, least expensive and lowest thermal efficiency. Wide scale utilization across mineral & mining sector and ability to operate at low inlet pressures ranging between 20 bar and 2 bar will fuel the market revenue.
Costa Rica geothermal energy market is projected to observe substantial growth rate during the forecast period due to flourishing industrial & commercial sector and large scale integration of renewable energy. Abundant potential for district heating & cooling applications across buildings, agriculture, services, and other sectors will foster the market size. Increasing electricity demand in line with formation of development groups with Inter-American Development Bank will stimulate promotion of geothermal energy.
As per the WHO, COVID- 19 pandemic has hardly impacted the global economy by delay in various project across several industries by disturbing supply chain operations. The virus has adversely affected over 150 countries with disadvantageous impact on the economies resulting in lockdown and migration of population to their homes, thereby limiting the industry dynamics. However, paradigm shift toward renewable energy resources to meet environmental targets will favor the market expansion.
Eminent industry players operating across Latin America include Toshiba Energy Systems & Solutions Corporation, General Electric, Ormat, Fuji Electric, Calpine, Halliburton, Terra Gen, Mitsubishi Power, and Enel Green Power. Manufacturers operating across are focusing to develop advance technologies and establishment of new production facilities.