IEA: Geothermal Energy Has Vast Potential For Growth

Despite being an often-overlooked source of clean, sustainable energy, geothermal production has immense potential to address growing electricity demands while reducing carbon emissions.

According to a recent International Energy Agency (IEA) report, advancements in geothermal technology could transform the sector into one of the world’s largest sources of clean power, second only to solar.

Currently, geothermal energy accounts for just 0.3% of global electricity production, with a capacity of 16.3 gigawatts (GW) producing 97 terawatt-hours annually. The U.S. accounts for 3.794 GW of geothermal production, accounting for around 23% of global geothermal production, and less than one percent of U.S. energy production total.

 Traditional geothermal production relies on water circulating through hot rock formations, returning to the surface to create steam that can power a turbine. It is now limited to specific, hot geographic locations, mostly in Western states in this country.

However, proposed next-generation technologies, which are benefiting from the oil and gas industry’s drilling advances, are showing promise to utilize geothermal energy from deeper, hotter underground sources in other regions, extending its reach to areas previously considered unsuitable.

This would not only substantially increase access for geothermal energy production, but the increased temperatures in these deeper underground formations, when combined with new technologies, could result in more efficient electricity production.

The IEA estimates that with new drilling tools and enhanced geothermal systems (EGS), the sector could deliver up to 600 terawatt-hours of carbon-free energy capacity by 2050, representing an over 500% increase in current geothermal production.

These advancements could support the deployment of 800 GW of geothermal power capacity using current technologies, meeting the present combined electricity needs of the U.S. and India. Companies like Fervo Energy and Sage Geosystems, supported by initiatives such as Utah FORGE, the U.S. Department of Energy’s field laboratory project, are spearheading efforts to develop economically viable geothermal energy solutions.

While most geothermal projects have been undertaken in the West, studies are being undertaken in other states that have significant unconventional oil and gas drilling activity, including Pennsylvania. Some already-drilled deep wells have the potential to be repurposed to serve as geothermal wells with the use of next-generation technology.

Project Innerspace, the leading independent organization dedicated to rapid global development of geothermal energy, plans to release a report on the future of geothermal in Pennsylvania next week. The W&J Center for Energy Policy was selected to participate in this project and authored a chapter of the report.

Despite its potential, the geothermal sector faces significant challenges. Tapping resources buried as deep as five miles underground requires overcoming technological and financial barriers. The upfront costs of geothermal projects remain high compared to other renewable sources. Additionally, integrating geothermal energy into national grids alongside intermittent sources like solar and wind will demand significant infrastructure upgrades to ensure reliability, especially in nations with already vulnerable national grid infrastructure.

If successfully implemented, geothermal energy could play a vital role in decarbonizing power grids, replacing coal-fired plants, which make up around 37% of world energy production, and stabilizing electricity supplies in major economies like the U.S., China, and India.