IEA Reports Geothermal Energy Could Supply 15% of Global Electricity Demand Growth

Geothermal energy plays a vital role in addressing the growing global demand for electricity, as if project costs continue to fall, it is projected that its share of global energy production will rise from the current 1% to 15% by 2050. A report by the International Energy Agency states that achieving this goal would require the installation of 800 GW of geothermal capacity globally, generating an annual output that matches the current electricity demand of both the US and India combined.

Based on a recent analysis by the IEA, the latest advancements in geothermal technology have the potential to meet global electricity and heat demands far beyond current levels. Geothermal energy can capitalise on the expertise of the oil and gas industries to access vast low-emissions energy resources by utilising existing drilling methods and equipment to reach deep beneath the earth's surface.

The agency projected that total investment in geothermal energy could reach $1 trillion by 2035 and $2.5 trillion by 2050. To accelerate this growth, the IEA highlighted the need for clear, long-term regulations. Such measures could reduce geothermal costs by 80% by 2035, making it a cost-effective, low-emissions power source competitive with hydropower, nuclear, and even solar and wind with storage.

There is also a requirement to address the lengthy permit processes, which can take as long as a decade to finalize. To accelerate development, governments have been urged to streamline and expedite the administrative procedures involved.