Realizing the tremendous potential of geothermal energy in Australia, government has announced an investment of A$14 Million in an attempt to develop its nascent geothermal power sector.

The government of Australia noted that it has granted A$14 Million (US$9.8 Million) for two geothermal power projects in order to boost the development of geothermal power industry in Australia, as reported by earth2tech.

Producers of geothermal power pump water below ground, which at times may be 5 Km deep). There it is heated by ‘hot rocks’. As a result steam is produced that, in turn, is used to produce electricity.

For developing an advanced geothermal power project in Paralana (South Australia), MNGI, a unit of Pentratherm, will be given A$7 Million (US$4.9 Million). Similarly, Panax Geothermal will also receive A$7 Million (US$4.9 Million); however, it will develop a traditional project in Limestone Coast region. As per Australian Geothermal Energy Association’s last year report, by 2020, Australian toddler geothermal power sector could provide a maximum of 2,200 Megawatts baseload capacity, although A$12 Billion in all would be required to run these power plants.

Though, funding is a subject to negotiations for both the companies, but they could begin drilling in 2009 itself. Currently, there are only few geothermal power plants in Australia, of which the only prominent one is tiny Birdsville (Queensland) located, 120-Kilowatt Birdsville Geothermal Power Station.

Geoscience Australia has highlighted that extraction of only 1% Australian geothermal energy would be equivalent to 26,000 times of total yearly power consumption of the country. This astonishing potential of the country is the main reason why the government of Australia is investing in the geothermal power sector under the Renewable Energy Fund of worth A$500 Million.

Besides being a low-carbon source of energy, geothermal power is capable of adding baseload power to the country’s energy grid. It would not just diversify the Australian power supply but also add to the overall energy security.

According to a Research Analyst at RNCOS, “In the next decade, the Australian power sector is expected to face substantial pressure as it shifts to a low emission power supply system. It is also going to drastically increase the share of renewable energy in the power generation. However, government will provide all the essential help to the sector.”

Related Market Research Reports:
Global LNG Market - The Road Ahead
Nuclear Energy - A New Hope for India
US Nuclear Energy Outlook