Geothermal Energy
State of Development and Prospects for the Future
Pfalzwerke geofuture In the past ten years, a number of power and heat plants have been put in operation in central Europe. In this way, the region has finally caught up with global standards. The geothermal industry is expanding and a new energy market is about to develop.
Even though global climate change continues to threaten all of us and economic development in particular, in the past two years, a new form of energy supply is beginning to gain momentum.
Security of energy supply!
Particularly in Europe, which is mainly dependent from oil and gas imports, this new form of energy supply became the focus of almost all national energy supply plans. As a sustainable and environmentally friendly source of energy, geothermal energy offers a number of advantages in this regard.
- Since geothermal energy is always available and not subject to changes in weather, it is a base-loadable form of energy supply.
- Geothermal energy is also a local and politically secure source of energy.
- Nevertheless, geothermal energy forms part of an extensive mining industry that posts a number of challenges. Like other mining methods, geothermal energy relies on technological progress, the experiences of the operating companies, and the approval of the public in particular.
Geothermal energy and the energy transition
The energy transition will eventually occur, but it is still unsure how long this process will take, what consequences it will have and how profitable it will actually be for producers, operators and consumers alike.
From the perspective of the industry, energy must be cheap and secure. Being a base-load source of energy, geothermal energy can contribute significantly to energy security, particularly since geothermal energy makes can unlock a vast energy potential that can be used for heat and power production. Many unanswered questions remain regarding the costs. It is true that, today, geothermal energy is still more expensive than conventional energy sources or wind power. Nevertheless, from experiences made in other areas of the mining industry, we know that there is a huge potential for future cost reduction, a potential which is, admittedly, not as evident as it in other technologies. Apart from conventional technological development, which is necessary for the prospecting of the underground, the experiences of the operating company are pivotal in this regard. In the future, and with an increasing market share, geothermal energy should be able to disengage from the price structure of a generally cost-insensitive oil and gas market. With this objective in mind, the future of geothermal energy relies on