Europe's largest geothermal operator, Enel Green Power, announced that it is expanding away from Italy. The company said that, for this venture, it will spend a capital of around US$1.2 billion. The investment will be spent over four years as the company takes its engineering technology from Europe to Latin America.
The global market for this technology, according to researcher Frost & Sullivan Inc., is expected to grow up to US$6 billion in the coming years as governments trim down green subsidies and search for other alternatives to wind and solar. One of these alternatives is geothermal energy.
"A lot of people can do solar or wind, but geothermal is quite complex. The fact that we're already ahead of others is an advantage. It's a good hedge against risks for us," Chief Executive Officer of Enel Green Power, Francesco Starace, said.
A report by Bloomberg New Energy Finance said that the most common form of geothermal power costs approximately $64.20 per megawatt-hr. Geothermal energy cost relatively lower than the $78.30 for coal, $82.61 for inland wind turbines and $142.68 for solar panels.
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