How Much Of Geothermal Energy Is Used?

Geothermal energy is heat energy generated and stored in the Earth (U.S. Energy Information Administration, 2022). It is considered a renewable energy source because the heat is continuously produced inside the Earth through radioactive decay and residual heat from its formation (TWI Global, 2022). Geothermal energy can be accessed by drilling water or steam wells in areas where underground reservoirs are available, and it has a wide range of applications from producing electricity, to heating buildings, to industrial processes.

Global usage of geothermal energy remains relatively small, but is growing steadily. As of 2020, geothermal energy provided about 0.3% of total worldwide energy consumption (International Renewable Energy Agency, 2021). However, many experts see great potential for expansion, especially for direct heating applications. This article will provide an overview of current geothermal energy use worldwide, by country and region. It will also discuss the different types of geothermal systems, what geothermal energy is used for, how it compares to other renewable energy sources, and the future outlook and challenges for this technology.

Global Geothermal Energy Usage

According to a recent report by IRENA, global installed geothermal capacity reached about 15 GW in 2022, supplying around 90 TWh of electricity annually. This represents only around 0.5% of total global renewable energy capacity for power generation and heating/cooling applications. While geothermal capacity has grown, the growth rate has been relatively slow compared to other renewable energy sources like solar and wind.

The countries with the most installed geothermal capacity are the United States, Indonesia, Turkey, New Zealand, and Philippines. The US leads with over 3.8 GW, followed by Indonesia at around 2.2 GW. New Zealand generates up to 17% of its electricity from geothermal sources. Overall, the Asia Pacific region accounts for around 44% of global geothermal capacity.

Global geothermal capacity has grown at an average annual rate of 5% over the past decade. However, annual additions have declined in recent years, from around 630 MW added in 2018 to under 400 MW in 2021. Growth is expected to pick up again, with over 1 GW of new capacity projected to come online annually by 2026. Realizing the full potential of geothermal will require tackling challenges around project development costs and risks.[1]

Geothermal Energy Usage by Country

The top countries for installed geothermal capacity in 2022 were the United States, Indonesia, Philippines, Turkey, and New Zealand according to GlobalData (GlobalData). The United States led with over 3,900 MW of installed capacity, followed by Indonesia with over 2,400 MW. The Philippines, Turkey, and New Zealand round out the top 5 with 1,900 MW, 1,500 MW, and 1,000 MW respectively.

In terms of growth trends, the countries that added the most new geothermal capacity in 2022 were Kenya (+83 MW), Indonesia (+80 MW), and the United States (+77 MW) (ThinkGeoEnergy). Several countries have plans for continued growth in the coming years, with Indonesia aiming to reach 7,241 MW total capacity by 2025.

The share of renewable energy from geothermal varies significantly by country. In Kenya, geothermal accounts for about 50% of renewable generation. By contrast, geothermal makes up only about 5% of renewables in the United States. Iceland gets the highest share from geothermal at about 70% of its renewable mix.

Geothermal Energy Usage by Region

Some regions of the world have greater geothermal energy capacity and potential compared to others. According to the International Energy Agency, the Asia Pacific region accounted for the largest share of geothermal capacity additions in 2019-2021, followed by North and Central America. https://www.iea.org/data-and-statistics/charts/geothermal-capacity-additions-in-selected-regions-2019-2021

Countries with high geothermal capacity include the United States, Indonesia, Philippines, New Zealand, Iceland, Italy, and Kenya. The United States leads with over 3,700 MW of installed geothermal capacity. Indonesia ranks second globally with around 2,000 MW. The Philippines, a relative newcomer, tripled its geothermal capacity from 1,972 MW in 2010 to 1,916 MW by the end of 2014. https://www.thinkgeoenergy.com/thinkgeoenergys-top-10-geothermal-countries-2022-power-generation-capacity-mw/

Areas with high geothermal energy potential include countries along the “Ring of Fire” in the Pacific region, such as Philippines, Indonesia, Japan, New Zealand and Mexico. Other promising areas include East Africa, Central America, the Andes Mountains in South America, Iceland and Turkey. With further exploration and development, geothermal could play a major role in providing clean, renewable baseload power globally.

Types of Geothermal Energy Systems

Geothermal energy can be used directly for heating and cooling or to generate electricity. There are two main types of geothermal energy systems:

Geothermal electricity involves piping hot water or steam from geothermal reservoirs to spin turbines and generate electricity. According to the Geothermal Technologies Program, in 2004 the worldwide installed capacity for geothermal electricity was 8,933 MW. The top countries were United States (2,564 MW), Philippines (1,904 MW), Indonesia (812 MW), Mexico (753 MW), and Italy (791 MW).

Direct use of geothermal energy refers to directly using hot water or steam from geothermal reservoirs for applications like heating buildings, greenhouse heating, aquaculture, and industrial processes. According to the Geothermal Energy Direct Use guide, worldwide installed capacity for direct geothermal heating was estimated at 70,000 MWt in 2010 with 70 countries reporting direct use projects. The top countries were China (16,000 MWt), Turkey (2,000 MWt), Japan (1,900 MWt), Iceland (1,800 MWt), and Hungary (1,300 MWt).

Applications of Geothermal Energy

Geothermal energy has many direct-use applications that tap into the Earth’s natural heat for a variety of purposes. Some of the main uses of geothermal direct use include:

• Greenhouse heating – Geothermal heat can warm greenhouses for growing plants and flowers year-round. This allows greenhouses to grow produce and crops in colder climates. (NREL)
• Aquaculture – Geothermal reservoirs provide warm water to raise tropical fish and alligators in places where it would otherwise be too cold.
• District heating – Networks of pipes distribute geothermal heat to multiple buildings or neighborhoods.
• Industrial processes – Factories can use geothermal heat for food dehydration, laundries, and lumber mills.

Some examples of geothermal direct use applications include heating buildings like the Oregon Institute of Technology and Boise State University, heating 40 million square feet of floor space in Iceland, generating electricity at The Geysers in California, and pasteurizing milk for dairy products. (EIA)

Geothermal vs Other Renewables

Geothermal energy currently accounts for a small percentage of total renewable energy production globally. According to a 2013 study, geothermal power constituted about 0.3% of total worldwide renewable electricity generation, compared to solar at 0.7% and wind at 2.5% (Li, 2013).

However, geothermal energy has seen steady growth and has potential for further expansion. Between 2010 and 2019, geothermal capacity grew at an average annual rate of 3%, comparable to solar at nearly 25% and wind at 14% over the same period. While the growth rate lags behind other renewables, the base load availability and higher capacity factors of geothermal plants provide more reliable and consistent power generation (Bolinger, 2023). With improved technologies and drilling techniques, geothermal may play a larger role in renewable energy mixes going forward.

Growth Potential

While geothermal energy currently makes up a small percentage of global energy production, there is significant potential for growth in the coming decades. According to the Geothermal Energy Association, the global geothermal market could grow over 26 GW of installed capacity by 2025, a 26% increase from current levels.[1]

Areas with high geothermal potential that could see expansion include countries along the Pacific Ring of Fire like Indonesia, Philippines, New Zealand and Chile where there are ample untapped hydrothermal resources.[2] Enhanced geothermal systems also show promise in locations without natural hydrothermal activity but sufficient underground heat and permeability.

One forecast estimates the global geothermal electricity generation market could grow at a 4.1% CAGR from 2024-2028 as more capacity comes online.[3] With rising energy demand and the need for clean baseload power, geothermal is poised for strong growth if challenges around upfront costs and site development can be overcome.

Challenges

While geothermal energy has many benefits, it also faces some key challenges that limit its growth and adoption:

Technical challenges include the location constraints of geothermal resources, as viable sites are limited to tectonically active areas with accessible heat reservoirs. Drilling and exploration can also be risky and uncertain in identifying viable reservoirs.¹ There are additional technical hurdles in developing and maintaining geothermal systems to ensure optimal efficiency and minimal environmental impact over decades of operation.

High upfront costs pose another barrier, as exploratory drilling and plant construction require major capital investment before energy generation begins. Costs per kilowatt hour are competitive once plants are operational, but the initial investment causes hesitancy.²

Finally, regulatory barriers including permit requirements, environmental regulations, and grid access policies can hinder geothermal adoption. Streamlining and standardizing regulations could encourage appropriate geothermal development.³

Conclusion

In summary, geothermal energy makes up a small but important part of the global renewable energy portfolio. While only about 0.3% of total energy usage comes from geothermal sources, some countries like Iceland generate up to 25% of their electricity from geothermal. Geothermal offers reliable baseload power and provides energy independence from fossil fuels. The three main types of geothermal systems each have their advantages in terms of feasibility and scalability. Uses range from electricity generation to heating and cooling of buildings. Compared to other renewables, geothermal provides consistent always-on power regardless of weather conditions. While upfront costs can be high, geothermal energy offers a sustainable long-term energy solution. With further technological improvements, geothermal energy has strong potential for growth globally.

Overall, geothermal energy serves as a clean, renewable alternative to fossil fuels for heat and electricity generation. As countries seek to reduce carbon emissions and achieve energy independence, geothermal can provide a stable solution that is not subject to intermittency challenges. With further research and investment, geothermal can play an increasing role in the global transition to sustainable energy.