Geothermal Energy

Energy Mix

<1% of world 🌎
<1% of U.S. 🇺🇸

Electricity Generation

<1% of world 🌎
<1% of U.S. 🇺🇸

Global Uses

Direct use heat: 68%
Electricity: 32%

Changes in Global Demand

Direct Use Heat
Increase:
⬆138%
(2018-2023)

Electricity
Increase:
⬆9%
(2018-2023)

Largest User of Direct Heat

China 64% 🇨🇳
of global geothermal direct heat use

Direct Heat Uses

Swimming and Bathing: 44%
Space Heating: 39%
Greenhouse Heating: 9%
Industrial Applications: 4%
Other: 4%

Highest Direct Heat Penetration

Iceland 90% 🇮🇸
of country’s heating demand is met by geothermal

Most Geothermal Electricity Capacity

U.S. 18% 🇺🇸
Indonesia 16% 🇮🇩
of global geothermal electricity capacity

Most Geothermal Electricity Generation

U.S. 17% 🇺🇸
Indonesia 17% 🇮🇩
of global geothermal electricity generation

Highest Geothermal Electricity Penetration

Kenya 46% 🇰🇪
of country’s electricity comes from geothermal

Most Geothermal Electricity Generation

California 67%
of U.S. geothermal electricity generation

Highest Geothermal Electricity Penetration

Nevada 10%
of state’s electricity comes from geothermal

Enhanced Geothermal Systems

Enhanced Geothermal Systems (EGS) are being explored and developed:

• The combination of heat, permeability, and naturally occurring water exists in limited locations
• EGS expands the geographic availability of the geothermal resource by creating permeability and/or adding water in locations where those don’t occur naturally

Co-Location

Geothermal projects have promising co-location opportunities with energy-intensive systems that have location flexibility such as:

• Direct Air Capture (carbon removal)
• Data centers

Lithium extraction is another opportunity for co-location. Geothermal brines often contain dissolved lithium, and geothermal power generation could be integrated with extraction.

Unsubsidized LCOE*: $66 - $109/MWh
Subsidized LCOE: $44 - $93/MWh

Geothermal is subsidized in the Inflation Reduction Act and other policies.

*_{LCOE (levelized cost of energy) - allows for the comparison of different electricity generating technologies}

Compare costs with subsidies and for other resources on the Introduction to Renewable Energy Fast Facts

Unlike wind and solar which have been getting increasingly cheaper, geothermal’s costs have remained relatively steady over the last 10 years.

Geothermal is starting to adopt technological advances from the oil and gas industry. Costs are expected to decline in the coming years as advancements continue.

Exploration, drilling, and power plant infrastructure are the vast majority of geothermal costs. Once operating, geothermal power plants have low production costs.

Drivers

• Abundant resource: heat from the Earth
• Baseload source of energy: can run day and night regardless of weather
• High capacity factor compared to other renewable energy systems (90-95% for new geothermal plants, 78% for all geothermal plants)
• Relatively low climate and environmental impacts
• Technology and practices can be leveraged from oil and gas industry, such as drilling methods
• New EGS technologies are expanding places where geothermal can be used

Barriers

• Tapping a subsurface resource is inherently risky and very capital intensive
• Site-specific resource (conventional methods require the presence of heat, permeable rock, and water)
• Potential siting challenges, such as NIMBY/BANANA* or insufficient electricity transmission infrastructure
• Resource must be managed to be sustainable: geothermal reservoirs naturally recharge, but can be depleted if over-exploited
• Potential seismicity risk for EGS projects
• Some air emissions possible, including H₂S
• Some systems (such as EGS) may require additional water supply

*NIMBY - not in my backyard; BANANA - build absolutely nothing anywhere near anything

Climate Impact: Low

• Small amounts of CO₂ can be released in some geothermal processes
• New binary systems have zero GHG emissions

Environmental Impact: Low

• Small amounts of air pollution (primarily H₂S) can be released in some geothermal processes
• Some EGS projects can pose a low risk of seismicity and require additional water supply
• Can have land and habitat impacts

Updated August 2025