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)

Next Story
Infrastructure Energy

TKIL, KIS Partner to Boost Biogas in Clean Energy Push

In a strategic move to diversify its operations and support India’s clean energy goals, TKIL Industries (formerly thyssenkrupp Industries India) has entered the bio-chemicals sector through a new partnership with KIS Group, a global leader in sustainable biofuel technologies. The collaboration focuses on boosting Compressed Biogas (CBG) production using advanced technology and localized biomass resources. This association marks a significant step for TKIL Industries as it expands into the renewable energy space. By leveraging KIS Group’s expertise and proprietary technologies, the company..

Next Story
Real Estate

Noida & Jewar Set for Sharp Rise in Property Costs

Noida and Jewar may oversee significant price hikes for properties. This is due to a recent proposal from Gautam Buddha Nagar which outlines plans to increase circle rates, the minimum price at which a real estate property can be sold to a buyer as determined by the government, in both cities. This increase in circle rates would lead to an increase in the stamp duties a homebuyer would have to pay. Under the proposal, high-rise apartments in Noida may see a 20 per cent increase, while Greater Noida is set for a 30 per cent hike. The most substantial rise is expected in agricultural land pric..

Next Story
Infrastructure Urban

KPIL Bags Rs 6.21 Bn Orders Across Railways and Infra

Kalpataru Projects International Limited (KPIL) has announced the acquisition of new orders worth approximately Rs 6.21 billion across its Buildings & Factories (B&F) and Railway businesses in India. This development comes as a significant addition to the company's growing list of orders, underlining its strong presence in India’s infrastructure sector. Speaking on the milestone, Manish Mohnot, Managing Director & CEO of KPIL, expressed optimism about the company’s continued momentum. “We are delighted with the order wins in our B&F and Railways business. These wins will help us further..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?