China and India could lead Asia's geothermal market, IEA says - Nikkei Asia
Published February 22, 2026
China and India Poised to Dominate Asia's Geothermal Sector, According to IEA
The International Energy Agency (IEA) has projected that China and India are set to emerge as leaders in Asia's geothermal energy market. As countries increasingly seek renewable energy sources to meet their growing energy demands and combat climate change, geothermal energy is gaining attention for its potential to provide a stable and sustainable energy supply.
Geothermal energy harnesses heat from the Earth’s interior for electricity generation and direct use applications. This renewable energy source has been recognized for its reliability, as it can provide a continuous power supply unlike some other renewable sources that are dependent on weather conditions.
Current State of Geothermal Energy in Asia
As of now, the global geothermal energy capacity is approximately 15 gigawatts (GW), with Asia accounting for a significant portion of this capacity. The IEA report indicates that the region has the potential to develop much more geothermal energy, especially in countries like China and India, where the demand for energy is rapidly increasing.
China currently leads the world in geothermal power capacity, with around 3.3 GW installed. The country has invested heavily in geothermal technology and infrastructure, aiming to diversify its energy mix and reduce reliance on coal. According to the IEA, China’s geothermal capacity could reach 10 GW by 2030 if the government continues to support the sector through favorable policies and investments.
India, on the other hand, has a geothermal capacity of about 1 GW, with significant untapped potential. The IEA estimates that India could increase its geothermal capacity to 5 GW by 2030, driven by government initiatives and the need for clean energy solutions. The Indian government has recognized geothermal energy as a key component of its renewable energy strategy, which includes ambitious targets for overall renewable energy capacity.
Geothermal Potential in the Region
The IEA’s report highlights that both China and India possess substantial geothermal resources. China’s geothermal resources are primarily located in the eastern and southwestern regions, particularly in areas such as Tibet, Sichuan, and Yunnan. These regions have favorable geological conditions that facilitate the harnessing of geothermal energy.
In India, geothermal resources are mainly found in the Himalayan region, including states like Jammu and Kashmir, Himachal Pradesh, and Uttarakhand. The country’s geological formations present opportunities for developing geothermal power plants and direct use applications, such as heating and cooling systems.
Investment and Policy Support
The growth of geothermal energy in both countries will depend significantly on investment and supportive policies. The IEA emphasizes that government backing is crucial for the development of geothermal projects, which often require substantial upfront capital and long-term commitment.
In China, the government has established a range of policies to encourage geothermal development, including financial incentives, research and development support, and streamlined permitting processes. These initiatives have helped create a favorable environment for both domestic and foreign investments in the geothermal sector.
India is also taking steps to promote geothermal energy through policy frameworks that facilitate exploration and production. The government has introduced measures to attract private investment and encourage research in geothermal technologies. Furthermore, initiatives such as the National Geothermal Energy Policy aim to provide a structured approach to harnessing the country’s geothermal potential.
Challenges Facing Geothermal Development
Despite the promising outlook for geothermal energy in China and India, several challenges remain. The development of geothermal resources can be technically complex and requires specialized knowledge and expertise. Additionally, the exploration phase can be expensive and time-consuming, which may deter some investors.
Another challenge is the need for a comprehensive regulatory framework that addresses environmental concerns and ensures the sustainable development of geothermal resources. Both countries will need to establish guidelines that balance the benefits of geothermal energy with environmental protection and community engagement.
Future Outlook
The IEA’s report underscores the significant role that China and India could play in the global geothermal market as they work to expand their capacities. The agency forecasts that by 2030, the combined geothermal capacity of these two countries could account for a substantial share of Asia’s total geothermal generation.
As the world increasingly shifts towards renewable energy sources, geothermal energy presents a viable option for countries looking to diversify their energy portfolios. With the right investments, policies, and technological advancements, China and India are well-positioned to lead the way in geothermal energy development in Asia.
In conclusion, the IEA’s insights highlight the potential of geothermal energy in addressing energy needs while contributing to sustainability goals. As both China and India continue to develop their geothermal resources, the region may see a significant transformation in its energy landscape, paving the way for a cleaner and more sustainable future.
No comments:
Post a Comment