logo

Assignment Renewable Energy: Geothermal in the UK

   

Added on  2020-05-28

9 Pages1776 Words38 Views
1Geothermal in the UKName:Course Professor’s nameUniversity nameCity, StateDate of submission

2IntroductionUndertake broad scanning to get a picture of the marketAlthough the UK does not fall in the category of top ten countries that produce the most and have installed capacity of geothermal energy resources, the market for heat pumps still has potential. There is a high utilization rate for the geothermal heat pumps considering that they form 71% of all the application of geothermal energy resources. Energy production from renewable and other fuel sources are growing by 6% in the U.K and by 2035, these sources of energy will produce 45% of the increment in energy, this shows that the market for geothermal heat pumps still has potential (Becker, 2010).Macro economic factors The macro economic environment consists of the followingPolitical environmentThe UK has a heavy reliance on oil and gas as the conventional sources of energy. However, Geothermal energy might be considered due to the increasing political instability in the middle East. There are also laws and policies that have been passed by the government to reduce global warming and carbon emissions which also encourages products in this market to be bought. There are also numerous incentives in form of tax credits and subsidies for low carbon energy.SocialThere are a lot of social factors that affect the geothermal market, such as the difficulty by companies to obtain planning permission (Black and Flarend, 2010). This is due to Not-in-my

3backyard opposition from locals. The population is key to the design of effective corporate strategies that have an impact on local biodiversity over a relatively long period of time.Economical factorsThe UK has a relatively high GDP and this has a positive effect on renewable energy demand. GDP for the country will also be improved if the country reduces the import and use of fossil fuel and start using renewable source of energy. A rise in inflation favors investment because there will be higher returns accrued to factors of production (Gibilisco, 2013).Technological factorsThere are technological advancements that support the production of renewable energy. fOr easy acceptance by consumers, affordable solutions and sustainable developments in technology need to be put in place through research and development in this area. There is a lot of reaserach and development that is being carried out by players in the gas industry for alternative sources of energy.Micro Economic factorsinvestorsAlthough the threat of new entrants is low, the availability of incentives will go a long way in wooing investors in the UK for the next five to ten years. New companies which are injecting huge capital could neutralize the power of existing competitor if they have the right managementteam and dedicated staff (Simon, 2007).Competitors

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Assignment on Business Economics (pdf)
|8
|1201
|21

Review and Analysis of Renewable Energy Development in Asian Economies
|7
|1892
|54

Carbon Tax as a Solution for Climate Change
|6
|2084
|257

GEOU5022-Global Energy Outlook Within Contemporary
|7
|2101
|137

Economic Feasibility Study of Using Existing Water Wells for Energy Storage in Agricultural Lands
|32
|5730
|436

Low Carbon District Heating Using Combined Heat and Power in U.S
|21
|5343
|41