Escalating investment in geothermal power could result in a 134% increase in total geothermal capacity between 2010 and 2020, according to a new report from Pike Research. 

Under the high-growth scenario, capacity would increase from 10.7 gigawatts (GW) to 25.1 GW by 2020. Under a more conservative business-as-usual forecast scenario, the cleantech market intelligence firm estimates that geothermal power capacity would increase 34% to 14.3 GW by 2020.

As global energy demand increases and efforts to curb greenhouse gas emissions intensify, an increasing number of countries throughout the world are looking to tap geothermal resources to drive low carbon development. A clean, base load source of power, geothermal offers consistent electricity production nearly 24 hours a day with little to no emissions.

“Worldwide potential for geothermal energy is immense,” says senior analyst Peter Asmus, “but geothermal remains an underutilized resource and represents only a small fraction of the global renewable energy portfolio. Improved access to resource data, more efficient drilling processes, increased understanding about the industry’s potential, and improving access to financing are driving expanding interest in the sector.”

Asmus adds that the current installed capacity of 10.7 GW is spread across 26 countries with a combined output of approximately 67 terawatt hours (TWh) of electricity.

Currently, the United States is the global geothermal leader with 3.1 GW of installed capacity, and seven countries represent 88% of the world market. While conventional geothermal resources account for nearly all online capacity today, enhanced geothermal systems (EGS) and co-produced wells both offer opportunities for expansion outside of rift zones or volcanically active regions throughout the world.

Pike Research’s high-growth forecast scenario assumes a continued increase and persistent volatility in the price of oil, tightening carbon regulations, improved access to capital, standardization of geothermal exploration data, contribution from EGS-enabled and co-produced resources, technological breakthroughs in exploration and drilling equipment, improved access to drills and skilled labor, and sustained policies supporting renewable energy mandates, grants, and tax subsidies.

“Even if progress falls short in these areas,” says Asmus, “the potential for geothermal market expansion remains strong, and even our conservative business-as-usual forecast is consistent with growth rates observed in the industry since 1990.”

Last month, the U.S. Department of Energy finalized a $96.8 million loan guarantee to a project sponsored by U.S. Geothermal, Inc. (AMEX: HTM) to construct a 23-megawatt (MW) geothermal power project in southeastern Oregon.

Also in February, Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF) secured the rights to purchase geothermal leasing rights to public and private lands in California owned by Iceland America Energy, Inc. (IAE).

And green investment favorite Ormat Technologies, Inc. (NYSE: ORA) announced the commissioning of a 15 megawatts (MW) geothermal power plant in Nevada.

Fluorescent and light emitting diode (LED) lighting technologies will play an increasingly important role in the U.S., making up more than 75% of the market by 2020, according to a new report.

The United States accounts for approximately 20% of the world’s total electricity consumption for lighting at an annual cost of over $40 billion. The largest share of this lighting electricity is used in commercial and public buildings, followed by residential lighting, industrial sector lighting, and outdoor/street lighting.

“Fluorescent lighting technology is becoming more and more important in many key applications,” says Pike Research senior analyst Mike Wapner. “Fluorescent lighting is already very energy efficient, it has increasingly cost-effective dimming options, and it’s been around long enough for people to have familiarity and confidence with its performance in a variety of lighting situations.”

Wapner adds that while technical, market, and other barriers will somewhat hamper the growth of LED lighting in the beginning of this decade, adoption will start to accelerate by the 2014-2015 timeframe.

Penetration of the outdoor stationary sector will grow first, partly because color rendering is less important in these applications (thus allowing use of the least expensive LEDs). When compared to the overall lighting industry, LED sales volumes will still be relatively low in those years, but high prices will lead to large revenue figures.

The long life of LED products will also mean that most sales will go into new construction and retrofit situations, and there will be relatively little replacement business.

And even though technological, policy, and market trends appear to be driving the U.S. lighting market away from incandescent lighting, they will not totally disappear any time soon. Many types of “specialty” incandescent lamps are exempted from U.S. regulations that will phase out the most common bulbs. Incandescent lamps are also inexpensive to manufacture and there is still nothing restricting their use in much of the world.

Pike Research’s study, “Energy Efficient Lighting for Commercial Markets”, examines the key technology and market trends that are driving the use of LED and other high-efficiency lighting in the Commercial, Industrial, and Outdoor Stationary sectors.

This week, Intematix unveiled an innovative LED design that it says will boost efficiency and reduce manufacturing costs. Green investment opportunities in LEDs include Cree, Inc. (Nasdaq: CREE), Rubicon Technology (Nasdaq: RBCN), Koninklijke Philips Electronics (NYSE: PHG) and GE (NYSE: GE).

In 2010, China ranked number one for the first time in the world for energy consumption and total renewable energy investing. The country will hold that ranking for at least the next five years, according to analyst firm Zpryme.

They expect a bullish, volatile commodity environment to drive demand and innovation in green technologies, even as political and fiscal policy issues remain uncertain.

The Smart Grid group was in transition with investors this year because of a post-stimulus slowdown, election inertia and project delays. Valuations and relative expectations are lower, resulting in an attractive investment opportunity.

Itron (ITRI), perhaps the best known smart meter stock, is approaching bottom. Orders have been thin, but ITRI is poised to deliver solid earnings momentum and margin expansion as on-going projects proceed.

Elster (ELT) is less well known and undervalued. It dominates in industrial gas metering solutions and has a solid backlog and project pipeline.

EnerNOC (ENOC), the industry leader in demand response, is expanding its market share in the US and abroad.

In Lighting, Universal Display (PANL) should benefit from 2011 being a break-out year for OLEDs.

In Recycling, metals recycler Schnitzer Steel (SCHN) will benefit from strong industry fundamentals as prices are trending higher and supply is constrained.

In Green Building, NCI Building Systems (NCS) is positioned to capitalize on recovery in non-residential construction. The company supplies "cool" roofs, insulated metal products and other greeen building products.

Water continues to be an attractive investment theme, even with municipal spending challenges. There's a potential push for a national infrastructure bank.

Even with very strong recent stock performance, Nalco (NLC) continues to impress because of its core competencies in Energy and Water markets.