Amidst rising global electricity demands, geothermal energy is gaining momentum as technology improves its viability, with potential contributions of up to 8% to global supply by 2050.
Geothermal energy, often considered an underutilised resource, is gaining attention as advancements in technology unlock its potential for wide-scale adoption. Recent reports from the International Energy Agency (IEA) indicate that while geothermal energy currently accounts for less than 1% of global electricity demand, there exists the capacity to elevate this figure significantly, provided investments and technologies are optimally harnessed.
Historically, geothermal energy generation began in 1904 in Italy, with the first commercial power plant established nine years later. Over the decades, the number of countries generating geothermal energy has increased, with current production approaching 100 terawatt-hours (TWh) globally, which is about 0.3% of total electricity generation. The IEA’s report highlights that improvements in techniques such as horizontal drilling and hydraulic fracturing—developed primarily for oil and gas extraction—are set to transform this sector.
The potential for geothermal is especially promising in areas rich in geothermal resources, such as the East African Rift Valley, where Kenya stands out as a regional leader with 891.8 MW of installed capacity as of 2023. KenGen, Kenya’s national electricity-generating company, is capitalising on its expertise by conducting geoscientific studies in Eswatini to assess geothermal potential in the country, following a partnership with the Eswatini Electricity Company. This initiative presents an opportunity to expand geothermal energy infrastructure, with completion of the feasibility studies expected soon.
Globally, countries such as the United States, Indonesia, Türkiye, the Philippines, and New Zealand are pivotal in geothermal power generation, collectively accounting for about two-thirds of the total. While these nations demonstrate the effectiveness of geothermal energy in their power systems—surpassing 10% of total electricity supply in locations like Iceland and El Salvador—many regions continue to overlook this resource due to lack of accessible infrastructure and policy frameworks.
In an optimistic projection, the IEA highlighted that if $2.8 trillion were invested into the sector, geothermal energy could contribute as much as 8% of the global electricity supply by 2050. “New technologies are offering the possibility of meeting a significant portion of the world’s rapidly growing demand for electricity securely and cleanly,” remarked Fatih Birol, Executive Director of the IEA. The potential of geothermal energy, particularly if innovations continue to shape its efficiency and applicability, could see it rivaling established renewable sources like wind and solar.
Technological innovations are paving the way for geothermal systems that could yield increased efficiency. For example, closed-loop geothermal systems contain water within deep pipes, and enhanced geothermal systems can utilise artificial fracking to enhance heat extraction from deep rock formations, potentially making geothermal energy viable in nearly every country.
In recent years, tech giants have also begun to invest in geothermal energy, recognising its potential for sustainable operations. In May, Microsoft announced a collaboration with UAE-based G42 to develop a geothermal-powered data centre in Kenya. Likewise, Google and Meta have committed to projects centred around geothermal energy for their data facilities, demonstrating a robust interest from the tech sector in this form of renewable energy.
As the global focus on sustainable and scalable energy solutions grows, geothermal energy presents a versatile approach to meeting energy demands while contributing to climate change mitigation. The ongoing advancements and investments in geothermal technologies may mark a pivotal shift in the renewable energy landscape, enhancing energy security and promoting cleaner options for electricity generation worldwide.
