Process and Prospects of Industrialized Development of Geothermal Resources in China - Country Update Report for 2000-2004

Abstract

Geothermal development in China reflects some facts of its industrial development in recent years. Along with the restructuring of the economy from a socialist planned economy to a market economy in China, national investment in geothermal exploration has decreased, on the other hand, along with the rise of people's living standard, geothermal development found favor with consumers since geothermal water is used more and more for health, tourism and balneology in various hot spring resorts. Investors look now to further increase their investment in geothermal utilization schemes - although it contains some risks, it also can yield high repayments. This has caused an upsurge in geothermal drilling and utilization, especially in Beijing, Tianjin and towns in coastal regions. Investors intending to enter the existing market should allow for the introduction of new concepts and new styles of design. This could set up a new pattern of enterprise-like operations, which would adapt to the present market economy, replacing the previous pattern of welfare oriented operations. This is a great opportunity for new geothermal development in China. Finally, management of geothermal resources plays a big role in some large cities. Extraction of geothermal energy does not necessarily have to be increased by new development. For example in Beijing the total geothermal extraction of hot water has been kept stable and has even decreased slightly, but energy utilization (in terms of GWh produced) has increased significantly.