Geothermal energy could power 15% of global demand - Asian Power
Published December 17, 2025
Geothermal Energy: A Potential to Meet 15% of Global Energy Demand
As the world seeks sustainable energy solutions, geothermal energy has emerged as a promising resource that could satisfy a significant portion of global energy demand. According to recent analyses, geothermal energy has the potential to provide up to 15% of the world's total energy requirements. This figure underscores the importance of harnessing geothermal sources as part of a diversified energy portfolio aimed at reducing reliance on fossil fuels and mitigating climate change.
The International Energy Agency (IEA) has highlighted the growing interest in geothermal energy, noting its potential to contribute to both electricity generation and direct heating applications. Geothermal energy is derived from the natural heat of the Earth, which can be harnessed through various technologies for power generation and heating purposes. This renewable energy source is particularly advantageous due to its reliability and low emissions compared to conventional fossil fuel sources.
Current Global Geothermal Capacity
As of now, the global installed capacity for geothermal energy stands at approximately 15.6 gigawatts (GW). This capacity is primarily concentrated in regions with significant geothermal resources, such as the United States, Indonesia, and the Philippines. The U.S. remains the leader in geothermal electricity generation, with around 3.7 GW of installed capacity, followed closely by Indonesia, which has approximately 2.1 GW. The Philippines ranks third, boasting around 1.9 GW of geothermal capacity.
Despite the current capacity, experts believe that the potential for geothermal energy remains largely untapped. The IEA estimates that with the right investments and technological advancements, the global geothermal capacity could reach 200 GW by 2050. This ambitious target reflects the increasing recognition of geothermal energy's role in achieving energy security and sustainability.
Technological Advancements Driving Growth
Technological innovations are playing a crucial role in the expansion of geothermal energy. Enhanced geothermal systems (EGS), for instance, have gained attention for their ability to extract heat from areas that were previously considered unsuitable for traditional geothermal energy production. EGS technology involves injecting water into hot rock formations, creating steam that can then be used to generate electricity.
Additionally, the development of binary cycle power plants has further improved the efficiency of geothermal energy extraction. These plants utilize a secondary fluid with a lower boiling point than water, allowing for energy generation from lower temperature resources. This advancement broadens the range of geothermal sites that can be developed, making it feasible to harness geothermal energy in regions that were previously overlooked.
Geothermal Energy and Climate Goals
Geothermal energy is increasingly recognized as a vital component in the global effort to combat climate change. The energy sector is one of the largest contributors to greenhouse gas emissions, and transitioning to renewable energy sources like geothermal is essential for reducing these emissions. By utilizing geothermal resources, countries can decrease their dependence on fossil fuels, thus lowering their carbon footprints.
Furthermore, geothermal energy has the potential to provide a stable and continuous power supply, unlike some other renewable sources that are dependent on weather conditions. This reliability makes geothermal energy an attractive option for countries aiming to achieve their climate goals while ensuring energy security.
Geothermal Energy in Asia
Asia is poised to play a significant role in the development of geothermal energy. Countries such as Indonesia and the Philippines are already leading the way in geothermal energy production, and there is considerable potential for expansion across the region. In Indonesia, the government has set ambitious targets to increase geothermal capacity to 7.2 GW by 2025, reflecting a strong commitment to renewable energy development.
In addition to Indonesia and the Philippines, countries like Japan and New Zealand are also investing in geothermal energy projects. Japan, in particular, is focusing on geothermal energy as part of its strategy to diversify its energy sources following the Fukushima nuclear disaster. New Zealand has a long history of utilizing geothermal resources and continues to explore new opportunities for expansion.
Challenges and Opportunities
While the potential for geothermal energy is significant, several challenges must be addressed to fully realize its capabilities. One of the primary challenges is the high upfront capital costs associated with geothermal projects. Drilling and exploration can be expensive, and securing financing remains a hurdle for many developers. However, innovative financing models and government incentives can help mitigate these costs and encourage investment in geothermal energy.
Another challenge is the need for skilled labor and expertise in geothermal technology. As the industry grows, there will be a greater demand for trained professionals who can design, implement, and maintain geothermal systems. Educational institutions and training programs will play a crucial role in developing the workforce needed to support the expansion of geothermal energy.
Conclusion
Geothermal energy has the potential to significantly contribute to global energy demands, with estimates suggesting it could meet up to 15% of total requirements. As technology continues to advance and investments in geothermal projects increase, the capacity for harnessing this renewable resource is expected to grow. The commitment of countries in Asia and around the world to develop geothermal energy will be critical in the transition to a more sustainable energy future. By overcoming existing challenges and leveraging the opportunities presented by geothermal energy, nations can make substantial progress toward achieving their climate goals while ensuring energy security for their populations.
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