Geothermal energy could meet 15% of global electricity demand growth by 2050, according to a new IEA report.
Advances in next-generation technologies are unlocking vast potential, allowing geothermal to become a global clean energy solution.
With up to 800GW of capacity possible, it could match current electricity demand from the US and India combined.
The IEA highlights that cutting costs is critical. Streamlined permitting, targeted policies and clear investor incentives, could reduce project costs by 80% by 2035, making geothermal as competitive as nuclear and hydropower.
The oil and gas industry could drive this transition it says.
Around 80% of geothermal investment relies on transferable oil and gas skills, offering new business opportunities, as demand for fossil fuels declines. Geothermal could also support the growing digital economy, powering data centres with reliable, around-the-clock clean energy.
IEA Executive Director Fatih Birol said: “New technologies are opening new horizons for geothermal energy across the globe, offering the possibility of meeting a significant portion of the world’s rapidly growing demand for electricity securely and cleanly.”
Despite its promise, red tape remains a major hurdle. Projects can take up to a decade to complete due to lengthy permitting processes.
The IEA urges governments to simplify administrative steps and establish dedicated geothermal permitting regimes.
With proper policy support and investment, geothermal could see a sixfold job increase by 2030 and attract up to $2.5 trillion in investment by 2050.
This says the IEA, positions it as a key player in decarbonising energy systems worldwide.
