- Geothermal energy could meet up to 15% of global electricity demand by 2050, with capacity growing from 15 GW to 800 GW.
- Technological advancements in drilling and lithium extraction could expand geothermal energy’s geographic reach and reduce costs by 80% by 2035.
- Geothermal energy offers stable, continuous power, making it ideal for grid reliability, and supports energy independence through integration with lithium extraction.
Geothermal energy, which taps into the earth’s natural heat, could significantly meet global electricity demand. According to the International Energy Agency (IEA), the current installed capacity of geothermal energy stands at 15 GW and could reach 800 GW by 2050. This growth could meet up to 15% of global electricity demand.
Currently, geothermal energy accounts for just 1% of global electricity consumption. However, the IEA believes technological advancements could enable geothermal energy to play a much more significant role in global electricity supply. The IEA expects the sector to expand if project costs continue to decline.
Unlike solar or wind, which depends on weather conditions, geothermal energy provides stable and continuous power. This reliability makes it ideal for strengthening grid stability, especially where other renewable sources are less consistent. Geothermal energy can offer a steady supply regardless of external conditions.
Technological improvements in drilling techniques are expanding geothermal energy’s reach. These advancements, drawn from the oil and gas sector, now allow geothermal to access areas beyond traditional volcanic and tectonic zones, opening up new regions for development.
However, geothermal energy faces regulatory challenges. While 100 countries have adopted policies supporting wind and solar, only 30 countries have regulations promoting geothermal energy. This imbalance slows investment in the sector and limits its potential growth.
The IEA calls for more explicit long-term policies to encourage investment. It recommends offering incentives to reduce investors’ financial risks. The IEA also predicts that geothermal production costs could drop by 80%, falling to $50 per megawatt-hour (MWh) by 2035, making geothermal more competitive globally.
An emerging development integrates geothermal energy with lithium extraction. Lithium, a key component for electric vehicle batteries, can be extracted from geothermal brines – naturally heated saline solutions found underground. After lithium extraction, the hot water can generate electricity or supply heating networks before reinjecting into aquifers. Pilot projects in the U.S., Germany, and France already demonstrate the feasibility of this approach.
In the United States, geothermal energy stems from installations made in the 1980s and 1990s. However, new projects are exploring the integration of geothermal energy with other industrial and technological sectors. In Europe, countries like Germany, France, and the United Kingdom also focus on combining geothermal energy with lithium extraction. These initiatives contribute to energy independence and support the global energy transition.
The U.S., Indonesia, and Turkey lead in geothermal energy production today. Although the U.S. has a long history of geothermal installations, the country is now exploring new developments that integrate geothermal with other sectors. Europe’s growing efforts to combine geothermal energy with lithium extraction reflect a broader trend towards advancing clean energy technologies.
Geothermal energy offers a promising opportunity as the world faces rising electricity demand and seeks reliable, low-carbon energy solutions. With continued technological progress and supportive policies, geothermal energy could become a key player in global efforts to combat climate change.