Investing Opportunities in Clean Technologies: Geothermal Energy
Geothermal energy, comprising geothermal power and geothermal heat production, is a renewable energy source with vast potential. Geothermal energy has the benefit of low CO2 emissions, low running costs, high security of supply, and long life. It comprises geothermal power and geothermal heat and is best utilized as base load.
Geothermal energy is divided into three systems:
Low-temperature - used for heat production- Middle and high temperature - for generating both power and heat
- Hot dry rock technology - still being developed
Switzerland is currently world leader when it comes to the utilization of geothermal sensors. No other country in the world has so many in places in proportion to its surface area. The potential for geothermal electricity production in Switzerland is very high, but considerable uncertainties continue to exist with respect to costs and feasibility. Nonetheless, the outlook for this inexhaustible, clean and uninterrupted energy source is very promising: it is CO2-free, delivers a constant energy supply and requires little space. Experts anticipate that by 2030 a dozen or so power plants will be in operation with a combined output of around 800 GWh. Over the long term it is conceivable that geothermal power plants will meet a significant proportion of Switzerland's electricity demand.
Investment Themes
- Renewable base load power.
- Advanced technologies to use low temperature reservoirs.
- Increasing attractiveness of geothermal heating due to soaring prices for fossil fuels
