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
Technology

Atlas Copco Unveils Innovation Centre in Pune for Smart Manufacturing

Atlas Copco Tools has inaugurated its first Smart Factory Innovation Centre in India, a cutting-edge facility in Pune designed to showcase advanced technologies powering Smart Integrated Assembly ecosystems. The centre will serve as a hub for businesses across automotive, aerospace, electronics, heavy machinery, and manufacturing sectors to explore automation and smart manufacturing solutions for zero-defect production.The Innovation Centre offers hands-on demonstrations of the latest torquing and dispensing technologies, highlighting software-driven solutions that optimize efficiency, enhance..

Next Story
Resources

Elite Elevators Unveils India’s First Fully Customizable Home Elevator

Elite Elevators, a leader in the premium home lift segment, has launched Elite Elevators Bespoke—India’s first fully customizable luxury home elevator. The launch event, held at the company’s Chennai headquarters, showcased how the new offering redefines residential mobility by integrating state-of-the-art technology with personalized design.Speaking on the launch, Vimal Babu, Founder and CEO, Elite Elevators, said, “At Elite Elevators, our mission has always been to revolutionize home mobility with world-class innovations. Through its enhanced customizable features, our Bespoke elevat..

Next Story
Real Estate

Under-Construction Homes Now Costlier Than Ready-to-Move Properties

Under-construction (UC) homes are now more expensive than ready-to-move (RTM) properties across major Indian metros, according to the latest insights from Magicbricks.In Delhi, UC homes are priced at Rs 25,921 per sq. ft., surpassing RTM properties at Rs 18,698 per sq. ft. Similarly, in Gurugram, UC homes cost Rs 17,185 per sq. ft., compared to Rs 14,617 per sq. ft. for RTM properties.Mumbai, India’s costliest real estate market, has also seen a sharp rise, with UC home prices soaring 33.4 per cent Y-o-Y in Q1 2025 to Rs 32,371 per sq. ft., while RTM properties stand at Rs 28,935 per sq. ft...

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?