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GEOTHERMAL INDUSTRY
Low natural gas prices in 2015 created unfavourable conditions
for geothermal energy. However, the relatively low oil prices
also reduced global demand for drilling rigs, making more rigs
available and reducing the associated costs of geothermal
exploration and development of new fields. 44
In Europe, renewed calls were made to policy makers to support
geothermal energy development, primarily through technologyneutral
policy measures such as improved data collection
in the heat sector; the provision of financing that is directed
towards renewable heat and cooling; and a formal examination
of the potential for dispatchable renewable energy resources
to complement rising shares of variable renewables. Another
requirement that is specific to geothermal energy is public risk
insurance to mitigate geologic risk. 45 In that context, the French
government announced a new USD 54.6 million (EUR 50 million)
geothermal risk fund in 2015 that will facilitate the initiation of new
exploration efforts that carry the greatest risk profiles. 46
The industry continued to work towards broader recognition
of geothermal power as a valuable ally in the effort to integrate
larger shares of variable renewable power. In addition to serving
baseload demand, geothermal power also can balance variable
grid supply, provide system inertia i , regulate voltage when needed
and assist in overall system stability. 47
Some important partnerships were launched during 2015. In
October, Ormat Technologies and Toshiba Corporation signed
a strategic collaboration agreement to offer their customers
more competitive solutions, drawing on both Ormat’s binary
technology and Toshiba’s flash technology in a combined-cycle
configuration. The first project expected under this collaboration
is the Menengai plant, under development in Kenya. 48
In addition, Engie (formerly GDF-Suez) and Reykjavik Geothermal
(RG) announced that Storengy (Engie’s subsidiary) and RG will
pursue geothermal energy projects in Mexico, where RG was
awarded one of the first two private geothermal exploration
permits in the Ceboruco region and expects to complete a new
plant by 2018. 49
HYDROPOWER
HYDROPOWER MARKETS
An estimated 28 GW of new hydropower capacity was
commissioned in 2015, with total global capacity reaching
approximately 1,064 GWii. 1 The top countries for hydropower
capacity remained China, Brazil, the United States, Canadaiii, the
Russian Federation, India and Norway, which together accounted
for about 63% of global installed capacity at the end of 2015. 2
(pSee Figure 12 and Reference Table R5.) Global hydropower
generation, which varies each year with hydrological conditions,
was estimated in 2015 at 3,940 TWh. 3 Global pumped storage
capacity (which is counted separately) was estimated to be as
high as 145 GW at year’s end, with approximately 2.5 GW added
in 2015. 4
As in the past several years, the most significant share of new
hydropower capacity was commissioned in China, which
accounted for about one-half of the global total. Other countries with
substantial additions in 2015 included Brazil, Turkey, India, Vietnam,
Malaysia, Canada, Colombia and Lao PDR. 5 (p See Figure 13.)
China commissioned 16 GW of new hydropower projects (a
26% decline relative to 2014) for a year-end total of 296 GW; in
addition, the country has 23 GW of pumped storage capacity. 6
Hydropower generation in China increased for the second
consecutive year, up by more than 5% in 2015 (at 1,126 TWh). 7
Hydropower infrastructure investment declined sharply for
the second year in a row, down 17% to USD 12 billion (CNY 78
billion), following a 21.5% drop in 2014. 8 China is pursuing largescale
projects including the 10.2 GW Wudongde plant, which is
targeted for completion by 2020, as well as smaller projects in
more remote regions, such as Tibet. At the same time, however,
some potential projects have not advanced because Chinese
authorities have refused construction permits for some untapped
resources on ecological grounds. 9
Following the launch of the Global Geothermal Alliance at the UN
Climate Summit in 2014, the Alliance issued a joint statement at
COP21 in Paris regarding its mission to consolidate government,
industry and other stakeholder efforts in order to significantly
increase global use of geothermal energy. The Allliance’s goal is
to achieve a five-fold increase in geothermal power capacity and
a more than two-fold increase in geothermal heating, all by 2030
(relative to 2014 levels). 50
02
i System inertia refers to the aggregate stored kinetic energy in power
generators that acts as a short-term buffer in the event of loss of power
by slowing down the frequency decline on the grid.
ii Unless otherwise specified, all capacity numbers exclude pumped
storage capacity if possible. Pure pumped hydro plants are not energy
sources but means of energy storage. As such, they involve conversion
losses and are powered by renewable and/or non-renewable electricity.
Pumped storage plays an important role in balancing power, in particular
for variable renewable resources.
iii Despite slightly lower total capacity, Canada’s baseloaded output
exceeds the more load-following output in the United States.
RENEWABLES 2016 · GLOBAL STATUS REPORT
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