Chapter 2: Global Value Chain and Manufacturing Analysis on Geothermal Power Plant Turbines

The global geothermal power market has shown significant growth since the last decade and is expected to reach a total installed capacity of 18.4 gigawatts electric (GWe) by the end of 2021 (GEA, 2016). The global geothermal power plant turbine market is dominated by a small number of manufacturers. Between 2005 and 2015, 82% of the geothermal steam turbines were manufactured in Japan, and 74% of the geothermal binary cycle turboexpanders were manufactured in Israel. During this period, the United States played an important role in the global trade flow of fully assembled turbine units and turbine parts, with a high volume of imports and exports. Another significant growth area was in Italian turbine/turboexpander manufacturers, who have increased their market share in the last couple of years. One other important change in the manufacturing market was in Turkey, where the bonus on feed-in-tariff (FIT) for domestic hardware components boosted the national manufacturing sector between 2010 and 2020. When planning geothermal power projects, developers customize their power plant size to fit the available geothermal resource capacity. The turbine is designed and sized to optimize the efficiency and utilization of resource and revenue production. The rest of the power plant components such as heat exchangers (HX), water-cooled cooling towers (WCCT), or air-cooled condensers (ACC) are then chosen to complement the turbine size and design. These one-off manufacturing custom design turbines have relatively higher manufacturing set-up costs, longer lead times, and higher capital costs than the standard design turbines manufactured in larger volumes. However, turbines produced in standard increments and in larger manufacturing volumes could result in lower costs per turbine, but potentially lower efficiency. Based on pipeline projects and resource assessments, there is significant potential value in creating standard turbine sizes that could offer an economic advantage, as is done for modular microturbines.