Geothermal Energy To Address 15% of Electricity Demand by 2050: IEA
POWER & RENEWABLE ENERGY

Geothermal Energy To Address 15% of Electricity Demand by 2050: IEA

Geothermal energy has the potential to meet 15% of global electricity demand growth by 2050, with an estimated deployment of up to 800 gigawatts (GW) of capacity worldwide, according to a report by the International Energy Agency (IEA). The report, The Future of Geothermal Energy, highlights the role of emerging technologies and declining costs in advancing geothermal's share in the global energy mix. The projected capacity could generate electricity equivalent to the current combined demand of the United States and India, offering a clean, round-the-clock power source. Presently, geothermal contributes just 1% to global electricity needs. "New technologies are unlocking geothermal energy's potential, enabling it to meet a substantial portion of the world's growing electricity needs securely and sustainably," said Fatih Birol, IEA Executive Director. He added that the sector could attract $1 trillion in investments by 2035. The IEA projects geothermal costs could fall by 80% by 2035 to $50 per megawatt-hour (MWh), making it one of the most affordable low-emission power sources. This pricing would position geothermal competitively against hydropower, nuclear energy, and renewables like solar and wind when paired with battery storage. Total investments in geothermal energy could reach $2.5 trillion by 2050, with job creation in the sector expected to increase sixfold, reaching 1 million jobs by 2030. The report notes that 80% of the skills and technologies required for geothermal projects are transferable from the oil and gas industry, making this sector integral to accelerating geothermal adoption. "Geothermal represents a significant opportunity to leverage oil and gas expertise, mitigating risks associated with declining fossil fuel demand," Birol remarked. As a flexible, clean energy source, geothermal can complement intermittent renewables like wind and solar, as well as low-emission options such as nuclear power. Despite its advantages, the IEA observed that while over 100 countries have policies for wind and solar, only 30 have frameworks supporting geothermal development. The agency urged governments to streamline permitting processes, establish dedicated geothermal regulations, and provide long-term policy support to attract investment and mitigate early-stage risks. Currently, geothermal capacity is concentrated in geologically favorable regions like the United States, Iceland, Indonesia, Türkiye, Kenya, and Italy. However, advancements in technology are expanding geothermal's viability to nearly all countries. Nevertheless, significant barriers remain, including permitting and administrative delays that can extend project timelines to up to a decade. The report also highlighted geothermal’s potential in powering sectors like data centers for AI and the digital economy, with several technology companies already entering power purchase agreements with geothermal projects. (ET)

Geothermal energy has the potential to meet 15% of global electricity demand growth by 2050, with an estimated deployment of up to 800 gigawatts (GW) of capacity worldwide, according to a report by the International Energy Agency (IEA). The report, The Future of Geothermal Energy, highlights the role of emerging technologies and declining costs in advancing geothermal's share in the global energy mix. The projected capacity could generate electricity equivalent to the current combined demand of the United States and India, offering a clean, round-the-clock power source. Presently, geothermal contributes just 1% to global electricity needs. New technologies are unlocking geothermal energy's potential, enabling it to meet a substantial portion of the world's growing electricity needs securely and sustainably, said Fatih Birol, IEA Executive Director. He added that the sector could attract $1 trillion in investments by 2035. The IEA projects geothermal costs could fall by 80% by 2035 to $50 per megawatt-hour (MWh), making it one of the most affordable low-emission power sources. This pricing would position geothermal competitively against hydropower, nuclear energy, and renewables like solar and wind when paired with battery storage. Total investments in geothermal energy could reach $2.5 trillion by 2050, with job creation in the sector expected to increase sixfold, reaching 1 million jobs by 2030. The report notes that 80% of the skills and technologies required for geothermal projects are transferable from the oil and gas industry, making this sector integral to accelerating geothermal adoption. Geothermal represents a significant opportunity to leverage oil and gas expertise, mitigating risks associated with declining fossil fuel demand, Birol remarked. As a flexible, clean energy source, geothermal can complement intermittent renewables like wind and solar, as well as low-emission options such as nuclear power. Despite its advantages, the IEA observed that while over 100 countries have policies for wind and solar, only 30 have frameworks supporting geothermal development. The agency urged governments to streamline permitting processes, establish dedicated geothermal regulations, and provide long-term policy support to attract investment and mitigate early-stage risks. Currently, geothermal capacity is concentrated in geologically favorable regions like the United States, Iceland, Indonesia, Türkiye, Kenya, and Italy. However, advancements in technology are expanding geothermal's viability to nearly all countries. Nevertheless, significant barriers remain, including permitting and administrative delays that can extend project timelines to up to a decade. The report also highlighted geothermal’s potential in powering sectors like data centers for AI and the digital economy, with several technology companies already entering power purchase agreements with geothermal projects. (ET)

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