The purpose of this project is to provide Enel with an outlook and a possible development of the geothermal sector worldwide.
We analyzed the current geothermal market, its main players, the countries in which they operate as well as the most promising areas with respect to availability and accessibility.
Further, we analyzed technological trends and pursued a risk assessment of the factors that mostly affect the exploration and development of any geothermal field. Based on the above analysis, we propose our recommendation to Enel to further strengthen its geothermal activities and global positioning.
After getting a broad overview from the main geothermal organizations, we interviewed experts with technical and business background as well as geothermal operators, and visited production power plants in order to deepen our knowledge. The analysis of the information we gathered enabled us to develop the following conclusion.
Geothermal is a clean, reliable and sustainable renewable energy, which has proved to be a viable alternative to oil, coal and gas. Its capacity has grown consistently over the last 20 years due to the rising attractiveness to energy companies. Among the reasons for this growth are the reduced exploration and drilling costs, the incentives that some governments offer and the increased corporate awareness of environmental problems (i.e., the Kyoto Protocol restrictions and the Clean Development Mechanism). A good example is Iceland, where 90% of the households already profit from energy offered at a competitive price and generated by geothermal resources.
Table of Contents
1 Executive Summary
2 ENEL S.p.A.
2.1 Company Background
2.2 Company Chart
2.3 Services and Other Activities
2.4 Geothermal Activities
2.5 Outlook
3 Definition of Geothermal Energy
4 Geothermal Industry
4.1 Geothermal Development
4.2 Current Situation
4.3 Growing Demand
5 Technology
5.1 Technology and resource type
5.2 Technology overview – Electric power generation
6 Economics
6.1 Production and Operating & Maintenance Costs
6.2 Pricing
7 Substitutes / Renewable Energy
7.1 Introduction
7.2 Biomass
7.3 Hydro
7.4 Solar
7.5 Wind
8 Real Option Risk Analysis
8.1 Definition of Real Option
8.2 Real Option and Investment in Geothermal Energy
8.3 Country Analysis
8.4 Competitors Analysis
8.5 Geothermal Exploration
8.6 Distribution
9 Recommendation
Project Goals and Thematic Areas
The primary goal of this document is to provide Enel with a comprehensive outlook on the global geothermal energy sector, analyzing current market dynamics, technological advancements, and risk factors to support future investment strategies. The report evaluates promising geographical regions and competitive landscapes to facilitate informed expansion decisions.
- Analysis of the current global geothermal market and key international players.
- Evaluation of technological trends in electric power generation and exploration.
- Risk assessment of geothermal development using real option analysis.
- Comparative review of renewable energy substitutes and economic factors.
- Strategic recommendations for market entry into the USA and Indonesia.
Excerpt from the Book
Geothermal power project development process
Geothermal projects are developed through a series of logical stages, which are summarized in the geothermal development flow chart below. This diagram shows the various stages in a typical geothermal project. Decisions to proceed to the next stage are normally made progressively throughout the project. (See - Development Process Figure 10)
Reconnaissance and exploration
Geothermal resources are usually located and defined by a progressively more intensive (and expensive) exploration program that starts at a regional level and eventually results in a drilling program to positively delineate the resource. Reconnaissance surveys will identify the most suitable prospect areas by recognition of favorable geological settings and locating any hot springs or other surface thermal discharge. Reconnaissance studies involve mapping any hot springs or other surface thermal features and the identification of favorable geological structures. The chemical composition of the discharging fluids reveals information about the deeper reservoir, including temperature and fluid characteristics. Geological studies provide information about the probable distribution and extent of aquifers, as well as the likely heat source and heat flow regime.
Summary of Chapters
1 Executive Summary: Provides an overview of the report's purpose and concludes that geothermal energy is a viable, underestimated, and sustainable power source with significant growth potential.
2 ENEL S.p.A.: Details the company background, current operational focus on electricity and gas, and its commitment to renewable energy and global expansion.
3 Definition of Geothermal Energy: Defines geothermal energy as a reliable, clean resource and categorizes it based on temperature levels and usage applications.
4 Geothermal Industry: Discusses the current state of global geothermal development and the growing demand driven by environmental awareness and governmental support.
5 Technology: Provides a technical overview of geothermal systems, including power plant types, drilling advancements, and future development processes.
6 Economics: Analyzes the cost structure of geothermal production and the challenges associated with pricing and regulatory frameworks.
7 Substitutes / Renewable Energy: Compares geothermal energy with other renewable sources like biomass, hydro, solar, and wind, highlighting their respective market growth and limitations.
8 Real Option Risk Analysis: Presents a methodology for assessing investment risks using real option analysis to manage uncertainty in project stages.
9 Recommendation: Offers strategic advice to Enel regarding market entry into the US and Indonesia and provides a long-term action plan for expansion.
Keywords
Geothermal energy, renewable energy, power generation, Enel, market analysis, real option analysis, geothermal industry, drilling technology, sustainability, investment risk, electricity generation, power plant, economic feasibility, international expansion, clean energy.
Frequently Asked Questions
What is the primary objective of this report?
The report aims to provide Enel with a comprehensive analysis of the global geothermal energy sector to guide their international expansion and investment strategy.
What are the key thematic areas covered?
The document covers market status, technological developments, economic cost structures, competitive analysis, risk management, and regulatory frameworks for various countries.
What research methodology was employed?
The authors utilized industry interviews, site visits to power plants, and secondary research on technological trends and risk assessment models, specifically applying real option analysis.
What is the role of Real Option Analysis in this work?
Real option analysis is used to handle investment uncertainty, allowing for a staged evaluation process where projects can be deferred or abandoned based on intermediate outcomes.
Which countries are identified as the most promising for expansion?
The report identifies the USA and Indonesia as the most promising markets for Enel, based on their favorable regulatory conditions and high geothermal potential.
How does geothermal energy compare to other renewable sources?
The report characterizes geothermal energy as a reliable, clean, and sustainable base-load power alternative that, while having higher initial costs, offers competitive long-term life-cycle costs.
What specific technological innovation is mentioned for the future?
The document highlights "Hot Dry Rock" technology, currently being researched in France, as a potential breakthrough that could significantly expand the availability of geothermal energy.
How is the competitive landscape analyzed?
The authors provide a detailed summary of 17 key competitors, evaluating their market presence, capacity, technological focus, and regional operations to identify potential partnership or acquisition targets.
- Arbeit zitieren
- Phillip Sack (Autor:in), 2005, Geothermal Market: A renewable energy for the future, München, GRIN Verlag, https://www.hausarbeiten.de/document/49706
