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

As a renewable energy source, geothermal development has lagged wind, solar and hydroelectric power. Even though geothermal exhibits a higher availability rate, the viability of this energy being produced on a commercial scale is limited by geography, as deposits of high-temperature subsurface water are required to produce geothermal electricity. Therefore, over the five years to 2017, revenue for the Geothermal Electricity Plant Operation industry has increased modestly. Over the five years to 2022, the industry is poised to experience strong growth. As the deadlines for renewable portfolio standards approach, state utilities will increasingly demand higher quantities of renewable energy, stimulating demand for geothermal power producers...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Ample untapped geothermal resources in the United States will enable industry expansion
  • Growth remained muted because of poor conditions
  • Renewable alternatives will become increasingly attractive as traditional prices rise
  • Industry Report - Industry Investment Chapter

    This industry's level of capital intensity, which is based on the ratio of depreciation to wages, is very high. In 2017, wages are estimated to account for 11.5% of total industry revenue. Meanwhile, depreciation costs, which serve as a proxy for capital investments, are estimated to total 26.1% of revenue. This means that for every dollar spent on wages in 2017, industry operators are estimated to spend $2.27 on capital costs. Although federal grants for geothermal developments can offset the capital costs of new plants by as much as 30.0%, the high cost of exploration, development, construction and production continually outweigh relatively marginal wage costs...purchase to read more.

    Additional Insights for the Geothermal Electricity Plant Operation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Geothermal Electricity Plant Operation Industry are

  • Ability to find new resource deposits
  • Access to the latest technologies
  • Understanding government policies and their implications
  • IBISWorld analysts also discuss how external factors such as Government assistance and Technological change in the Geothermal Electricity Plant Operation industry impact industry performance..

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    What's in this report

    What is the Geothermal Electricity Plant Operation Industry?

    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.

    Industry Products
  • Dry steam geothermal systems
  • Flash geothermal systems
  • Binary geothermal systems
  • Industry Activities
  • Producing electricity from dry steam geothermal systems
  • Producing electricity from flash geothermal systems
  • Producing electricity through binary geothermal systems
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Government assistance
  • Technological change
  • Price of electric power
  • Price of natural gas
  • World price of steaming coal

  • Current Performance
  • Beneficial legislation
  • Rising electricity price and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Electricity costs continue rising
  • State funding
  • Industry expansion
  • Table: Geothermal Electricity Plant Operation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Geothermal Electricity Plant Operation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Electric Power Transmission
  • Construction
  • Manufacturing
  • Consumers

  • Key Selling Industries
  • Construction
  • Engine & Turbine Manufacturing
  • Metal Pipe & Tube Manufacturing
  • Transmission Line Construction

  • Products & Services
  • Dry steam geothermal systems
  • Flash geothermal systems
  • Binary geothermal systems
  • Chart: Geothermal Electricity Plant Operation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private leases
  • Federal leases
  • Chart: Major Market Segmentation for the Geothermal Electricity Plant Operation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitDepreciationPurchasesWagesRent and utilitiesOther costs and marketing
  • Chart: Cost Structure Benchmarking – Sector vs Geothermal Electricity Plant Operation

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Geothermal Electricity Plant Operation Industry

  • Industry Globalization
    Calpine Corporation, Ormat Technologies Inc., Terra-Gen LLC, BHE Renewables,
  • Table: Calpine Corporation - financial performance
  • Table: Ormat Technologies Inc. - financial performance
  • Table: Terra-Gen LLC - financial performance
  • Table: BHE Renewables - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Geothermal Electricity Plant Operation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Geothermal Electricity Plant Operation Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Annual geothermal electricity generation megawatt hours (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Co-Produced Geothermal
  • Hot water produced as a byproduct of oil and gas production that can be harnessed to power turbines and generate electricity.
  • Enhanced Geothermal System
  • A subsurface system that injects water through open fractures in hot rock to extract steam to the surface and transfer it to a power unit.
  • Geothermal
  • Of or relating to the heat of the earth's interior.
  • Hydrothermal
  • Of or relating to hot water.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Geothermal Electricity Plant Operation can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Geothermal Electricity Plant Operation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Geothermal Electricity Plant Operation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Geothermal Electricity Plant Operation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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