Vietnam to Boost Geothermal Development

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Researched by Industrial Info Resources (Sugar Land, Texas)--As Japan, South Korea and Australia gear up for geothermal development, other nations in the Asia-Pacific region are weighing their options in that arena. The region has the largest potential for growth in the geothermal sector, with some 74 gigawatts (GW) waiting to be exploited. Current figures estimate that only 5% of the world's geothermal potential is being tapped, though the world could generate up to 200 GW by harnessing geothermal energy.

Vietnam, though only possessing mid-level potential in comparison with geothermal giants like Japan and South Korea, has an even distribution of some 300 natural geothermal hotspots throughout six geothermal regions. Though geothermal energy is more expensive per megawatt than hydroelectric power, which is a prominent method of power generation in Vietnam, it is more feasible, with greater availability and shorter construction times for power plants. Energy conferences held in Vietnam last year gave way to the government giving a nod to wide-scale geothermal development in hopes of boosting the total installed capacity to 400 megawatts (MW) in the near future.

One of these development projects is an 18-MW geothermal power plant in the Quang Ngai province, which lies midway between Hanoi and Ho Chi Minh. PetroVietnam Oil and Gas Group (Hanoi, Vietnam) and Ormat Technologies Incorporated (NYSE:ORA) (Reno, Nevada) are planning to begin construction on the power plant, which has a total investment value of $20 million, in the first half of 2012. The project, announced in 2008 ahead of the government decisions regarding geothermal development, is expected to be completed early in 2014.

So far, between the beginning of 2013 and the end of 2014, at least 14 geothermal projects are scheduled to be brought online in Asia. For additional information, see December articles - South Korea Explores Potential for Geothermal Energy and Japan Closer to New Geothermal Power Plants. Most of those will be in Indonesia, which may dominate the geothermal field in terms of investments and wattage to be incorporated into regional grids. Indonesia will see nearly $2 billion worth of investments, with more than 850 MW expected to be brought online. The Philippines, currently second-largest in geothermal energy, is likely to follow, with more than $400 million worth of geothermal projects accounting for more than 160 MW of power for the grid.

For more information on geothermal energy projects throughout the world, please visit Industrial Info Resources' Renewable Energy Database.

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