Asia to lead global geothermal capacity growth - Asian Power
Published December 17, 2025
Asia Set to Dominate Global Geothermal Capacity Expansion
According to a recent report, Asia is poised to take the lead in the expansion of global geothermal energy capacity. The report highlights that the region is expected to account for a significant portion of the world's installed geothermal power capacity over the next several years. This growth is driven by a combination of increasing energy demands, supportive government policies, and the region's rich geothermal resources.
The International Renewable Energy Agency (IRENA) has noted that the global geothermal power capacity reached 15.7 gigawatts (GW) in 2022, with Asia contributing a notable share. The report indicates that the region's geothermal capacity is projected to grow at an accelerated pace, driven by countries such as Indonesia, the Philippines, and Japan, which are investing heavily in geothermal projects.
Indonesia, in particular, is leading the charge in geothermal development. The country is home to the largest geothermal reserves in the world, estimated at around 29 GW. Current installed capacity stands at approximately 2.1 GW, with plans to increase this figure significantly in the coming years. The Indonesian government has set a target to reach 7.2 GW of geothermal capacity by 2025, supported by various incentives and regulatory frameworks aimed at attracting investment in the sector.
The Philippines is also making substantial strides in geothermal energy production. The country ranks third globally in terms of installed geothermal capacity, with around 1.9 GW currently operational. The Philippine government has implemented policies to encourage the development of renewable energy sources, including geothermal, as part of its commitment to reduce greenhouse gas emissions and transition to a more sustainable energy system. The government aims to increase the country’s geothermal capacity to 3.1 GW by 2030.
Japan is another key player in the Asian geothermal landscape. Following the Fukushima disaster in 2011, Japan has sought to diversify its energy mix and reduce its reliance on nuclear power. Geothermal energy has emerged as a viable alternative, with the government promoting its development through various initiatives. Currently, Japan has an installed geothermal capacity of approximately 0.5 GW, with plans to expand this to 1.5 GW by 2030.
In addition to these countries, other Asian nations are also exploring their geothermal potential. For instance, countries like Thailand, India, and Malaysia are beginning to invest in geothermal projects, recognizing the benefits of this renewable energy source. The Asian Development Bank (ADB) has been actively supporting geothermal development in the region, providing funding and technical assistance to help countries harness their geothermal resources.
The report highlights several factors contributing to the growth of geothermal energy in Asia. One key driver is the increasing demand for clean and sustainable energy solutions. As countries strive to meet their climate commitments and reduce carbon emissions, geothermal energy presents a reliable and stable source of power. Unlike other renewable sources, such as solar and wind, geothermal energy can provide baseload power, ensuring a consistent energy supply.
Furthermore, advancements in geothermal technology are making it more accessible and cost-effective. Enhanced geothermal systems (EGS) and improved drilling techniques are enabling the exploration and development of geothermal resources in areas previously considered unfeasible. These technological innovations are expected to further boost the growth of geothermal capacity in Asia.
Despite the promising outlook, the report also notes several challenges that could hinder the growth of geothermal energy in the region. One major obstacle is the high upfront costs associated with geothermal projects. The exploration and drilling phases can be capital-intensive, making it difficult for some countries to attract investment. Additionally, regulatory frameworks and permitting processes can vary significantly across countries, creating uncertainty for potential investors.
To address these challenges, the report emphasizes the need for governments to create supportive policies and regulatory environments that facilitate geothermal development. This includes streamlining permitting processes, providing financial incentives, and investing in research and development to advance geothermal technologies.
In conclusion, Asia is set to become a leader in global geothermal capacity growth, with countries like Indonesia, the Philippines, and Japan at the forefront of this expansion. The region's rich geothermal resources, coupled with supportive government policies and increasing energy demands, position it well for significant growth in the coming years. However, addressing the challenges associated with high upfront costs and regulatory hurdles will be crucial to realizing the full potential of geothermal energy in Asia.
As the world continues to shift towards renewable energy sources, the advancements in geothermal capacity in Asia will play a vital role in achieving a sustainable energy future. The ongoing investments and developments in this sector highlight the region's commitment to harnessing its geothermal resources for a cleaner and more sustainable energy landscape.
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