 The International Energy Agency (IEA) has unveiled a groundbreaking report highlighting the untapped potential of geothermal energy as a cornerstone for sustainable energy solutions worldwide. The report, “The Future of Geothermal Energy,” outlines a visionary pathway for geothermal to meet 15% of global electricity demand growth by 2050, with an ambitious deployment target of 800 gigawatts of geothermal capacity.
Currently, geothermal energy accounts for a mere 1% of the world’s electricity supply. However, advancements in technology and strategic investments could transform this renewable source into a key player in the global energy landscape. According to the report, if project costs continue to decline, geothermal energy could produce as much electricity as the current combined demand of the United States and India.
IEA Executive Director Fatih Birol emphasizes the transformative potential of geothermal energy, stating, “New technologies are opening new horizons for geothermal energy across the globe, offering the possibility of meeting a significant portion of the world’s rapidly growing demand for electricity securely and cleanly.” Birol further highlights the synergistic opportunities for the oil and gas industry, noting that geothermal growth could drive investments worth $1 trillion by 2035.
Despite its potential, geothermal energy policies lag behind those for solar PV and wind, with only 30 countries having supportive frameworks in place. The report advocates for enhanced policy support and strategic goals to bolster geothermal’s role in national energy agendas. Clear regulatory frameworks and long-term investment visibility are vital for reducing perceived project risks and attracting new investments.
Financially, the geothermal sector presents a robust opportunity for growth. The report projects that costs could plummet by 80% to $50 per megawatt-hour by 2035, with global geothermal investments potentially reaching $2.5 trillion by 2050. Employment in the sector is expected to see a sixfold increase, potentially creating 1 million jobs by 2030.
The oil and gas industry is poised to play an instrumental role in geothermal expansion. With up to 80% of geothermal investments involving skills and capacities transferrable from oil and gas operations, this transition offers a strategic pivot for the industry amid declining fossil fuel demand. By leveraging their expertise, oil and gas companies can diversify into the burgeoning clean energy economy, mitigating commercial risks and securing future growth.
The collaboration between the IEA and Project InnerSpace underscores the technical feasibility of next-generation geothermal technologies, capable of exceeding global electricity and heat demand several times over. As nations grapple with the twin challenges of energy security and climate change, geothermal energy stands as a beacon of sustainable development with vast, largely untapped potential.
As this sector gains momentum, stakeholders across industries are encouraged to harness the collaborative potential of geothermal energy, fostering a sustainable future that aligns with global climate goals. With strategic investments and supportive policies, geothermal energy could redefine the global energy landscape, delivering clean, reliable power for generations to come.
