Why Is Geothermal Energy A Good Resource To Invest In?

Geothermal energy is a clean, renewable form of energy that harnesses heat from the Earth’s core to generate electricity. Geothermal power plants utilize underground reservoirs of hot water called hydrothermal resources to produce energy without carbon emissions or pollution. There are several reasons why investing in geothermal energy represents a wise choice:

Abundant Resource

Geothermal energy is abundant across large parts of the planet and is not at risk of depletion. This renewable energy source is essentially heat from the Earth’s core, which has been continuously radiating for billions of years.

According to Geothermal energy abundant sustainable, geothermal resources are available in some form across more than 80 countries. While countries like Iceland and New Zealand have ample high-temperature resources for power generation, lower temperature geothermal resources suitable for direct heating are widespread globally.

The Earth has an immense amount of thermal energy, estimated to be about 42 million megawatts at a depth of 6 kilometers. As explained by the Geothermal Energy Factsheet, this vast energy can be tapped with currently available technology for the next 100,000 years. This makes geothermal effectively inexhaustible as an energy resource.

In summary, geothermal energy is abundant across continents and available for the long-term due to the vast heat beneath the Earth’s surface. This gives it a key advantage over finite resources like oil and gas.


Unlike wind and solar power, geothermal energy is not dependent on weather conditions and provides consistent baseload power 24/7. Geothermal power plants produce electricity reliably regardless of external factors, with some geothermal facilities achieving capacity factors over 90%. This is because geothermal energy relies on the constant temperatures in the Earth’s interior rather than variable resources like wind and sunlight. The geothermal resource itself acts as a baseload fuel source. According to the U.S. Department of Energy, “Geothermal power is ‘homegrown,’ offering a domestic source of reliable, renewable energy. Geothermal energy is available 24 hours a day, 365 days a year.” https://www.energy.gov/eere/geothermal/geothermal-faqs This round-the-clock reliability makes geothermal a valuable renewable energy source.


Geothermal energy is extremely affordable compared to other energy sources, both renewable and traditional. The levelized cost of energy (LCOE) for geothermal power plants is very competitive:

– Geothermal: $0.046 per kWh

– Natural gas: $0.049 per kWh

– Coal: $0.095 per kWh

– Nuclear: $0.097 per kWh

– Wind: $0.050 per kWh

– Solar PV: $0.058 per kWh

Geothermal plants have low operational costs since the fuel (heat from the earth) is free. The upfront capital costs for drilling and plant construction are comparable to other technologies. Overall, geothermal provides energy at a very low and stable price over decades of operation.


Geothermal energy can work for both small and large-scale operations. Conventional hydrothermal resources, where hot water reservoirs are located close to the surface, can provide energy for small-scale operations like residential heating and electricity generation. According to a report from the National Renewable Energy Laboratory, there is over 30 gigawatts of untapped conventional hydrothermal potential in the western U.S. alone[1].

geothermal energy systems can work for small and large-scale operations

Emerging technologies like enhanced geothermal systems (EGS) offer the potential to dramatically scale up geothermal. EGS involves injecting fluid into deep, dry hot rock formations to create an artificial geothermal reservoir. Though still in the demonstration phase, studies show EGS could provide over 100 gigawatts of power generation capacity in the U.S. and open up geothermal resources across the country[2]. EGS and other technologies may make geothermal scalable from single houses to large utility-scale power plants.

Low Emissions

Geothermal power plants release far fewer greenhouse gas emissions compared to fossil fuel power plants. According to a study, geothermal heating produces 77-78% less particulate matter emissions per GJ of heat generated versus coal-fired heating. The U.S. Energy Information Administration notes geothermal plants release small amounts of sulfur dioxide and carbon dioxide, but at much lower levels than burning coal or natural gas.

This is because geothermal plants utilize heat from the Earth’s core directly to spin turbines, rather than burning fossil fuels to boil water into steam. The minimal emissions from geothermal make it an environmentally friendly alternative to traditional power sources that emit high levels of greenhouse gases linked to climate change.

Minimal Land Use

One of the biggest advantages of geothermal energy is its small land footprint compared to other renewable energy sources like solar or wind. According to the Bureau of Land Management (BLM), geothermal power plants require just 1-8 acres per megawatt of installed capacity, whereas solar thermal plants require 5-10 acres and solar photovoltaic requires 6-10 acres per megawatt (BLM). This makes geothermal the least land intensive renewable energy technology.

The small land requirements for geothermal plants gives it a leg up over other renewables that require vast areas of land to be dedicated to energy production. This allows geothermal to be developed even near populated areas with less impact. Additionally, geothermal plants can co-exist alongside existing land uses like agriculture or recreation. Overall, the minimal land footprint makes geothermal an extremely scalable and low impact source of renewable energy.

Low Maintenance

Geothermal systems require significantly less maintenance than conventional HVAC systems. According to Long Refrigeration, geothermal systems have an average annual maintenance cost between $150-$300. This covers the cost of inspecting and replacing air filters every 3-6 months. In comparison, an air-source heat pump or furnace typically costs $300-$600 per year for maintenance.

Geothermal systems also have a longer lifespan and require fewer repairs than conventional systems. The underground loop portion can last over 25 years with the heat pump unit lasting 15-20 years on average. Repairs are also less frequent, with typical geothermal systems only needing minor repairs every 3-5 years such as fixing leaky pumps or valves. Overall, the lower operating and maintenance costs make geothermal systems cheaper in the long run.

Job Creation

Geothermal energy development creates numerous jobs across multiple industries. According to the Bureau of Labor Statistics, there were approximately 620 jobs in the U.S. private sector related to geothermal energy as of 2010, with key occupations including geothermal production managers, geologists, engineers, technicians, construction workers, and equipment operators (Bureau of Labor Statistics). Globally, Statista estimates there were around 196,000 geothermal energy jobs worldwide in 2022, with China hosting the largest share (Statista). From geologists to identify sites, to engineers and technicians to design and build plants, to construction workers and equipment operators, geothermal facilities require skilled labor across multiple disciplines. Ongoing plant operation also creates permanent jobs for plant managers, technicians, and maintenance workers. Development of geothermal heating applications similarly generates employment for heating engineers and workers in the building and agriculture sectors (Renewable Energy Jobs). Overall, geothermal energy serves as a major job creator globally.


In conclusion, geothermal energy presents a compelling opportunity for investment due to its abundant and reliable nature as a renewable resource. With geothermal power generation on the rise globally, projections point to continued growth and scalability to meet energy demands. The technology emits little to no greenhouse gases, requires minimal land usage, and provides easy maintenance once facilities are constructed. Investing in geothermal energy creates jobs while transitioning energy dependence toward an affordable, clean resource. Considering its environmental benefits and constant availability, geothermal power generation is a sustainable solution worth supporting.

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