Geothermal energy could account for 15% of global electricity demand growth by 2050, provided project costs continue to decline, according to a new report by the International Energy Agency on Friday.
The report titled The Future of Geothermal Energy, projects 800 gigawatts of geothermal capacity worldwide, delivering annual output equivalent to the current electricity demand of the US and India combined, the Paris-based energy watchdog said in a statement.
While geothermal energy currently supplies about 1% of global electricity demand, next-generation technologies have the potential to meet global energy needs multiple times over, according to the IEA report.
The report estimates $1 trillion in geothermal investment by 2035 and $2.5 trillion by 2050.
Current leaders in the geothermal include the US, Iceland, Indonesia, Türkiye, Kenya and Italy, the report added.
China, the US, Türkiye, Sweden, Indonesia, Iceland, Japan, New Zealand, Germany, and the Philippines are the top 10 geothermal energy consumers, accounting for 90% of global usage, according to the report.
Commenting on the report, IEA executive director Fatih Birol said new technologies are unlocking geothermal’s potential to meet a significant portion of global electricity demand cleanly and securely.
“What’s more, geothermal is a major opportunity to draw on the technology and expertise of the oil and gas industry,” Birol added.
“Our analysis shows that the growth of geothermal could generate investment worth $1 trillion by 2035,” he said.
