Geothermal handbook: PlanninG and Financing power Generation t e c h n I c a L r e p o r t 2 / 2

T A B L E 1 . 3
 
Market Structure of Various Segments of Geothermal Industry
DEVELOPMENT PHASE/
BUSINESS SEGMENT
INDUSTRy/MARKET STRUCTURE
Early Development
Approximately 5 companies worldwide specialize in early geothermal development/exploration 
as their main line of business. 
Infrastructure
Infrastructure development (such as, access road work, drill pads, water and communication 
systems) is usually handled by the domestic construction sector.
Drilling
Less than 5 companies worldwide specialize in geothermal drilling as the main line of business; 
more than 20 additional companies worldwide (including large oil and gas and mining 
companies) may conduct geothermal drilling as a secondary line of business. 
Geothermal Power Plant 
Equipment
Heat exchangers, cooling towers, condensers, pumps, valves, piping, etc., are off-the-shelf 
products, with many suppliers competing in the market.
Geothermal Turbines and 
Generators (gensets)
Competition in this segment is limited to 3 to 5 companies supplying large and medium size 
conventional flash turbines and generator units.
Power Plant Construction and 
Steam Gathering System
The market for power plant construction and pipeline installation is highly competitive, as this 
work can be performed by many steel work companies. 
Interconnection
Substation and transmission line construction and maintenance is a highly competitive sector, 
using the same equipment as other power projects.
Operation and Maintenance
More than 20 companies worldwide, often assisted by local or domestic companies.
Miscellaneous
Feasibility studies and power plant design and engineering can be provided by more than 20 
companies worldwide, partly assisted by local or domestic companies. However, only around 
3 companies have a solid track record in the design of power plants when difficult geothermal 
fluids are involved.
Source | Authors.
Once the equipment has been supplied, the construction of a geothermal power plant has to be done 
on-site, requiring a customized design in most cases. Geothermal expert knowledge is required for 
the lead contractor, but the marketplace for geothermal power plant construction itself is competitive. 
Smaller units, especially binary, can be purchased as turnkey units. 
It should also be noted that although some companies operate in several production segments, 
only very few of them are vertically integrated in the sense of operating in all segments from early 
development to power plant construction and operation. Vertical integration requires a comprehensive 
set of technological know-how and technical expertise dedicated to geothermal power that is rarely 
found within one company. For example, exploration of the geothermal field can only be done by 
a company experienced in geosurvey techniques. Only a few power companies in the geothermal 
business have geosurvey and drilling competences and equipment in-house. 
As further illustrated by Figure 1.11, some of the vertically integrated geothermal developers may be 
better known for their operations in other sectors, such as oil and gas (e.g., Chevron) or conventional 
electric power (e.g., Enel). 

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