Geothermal energy is the heat that comes from the sub-surface of the Earth, originating from the planet’s core and stored in rocks and fluids beneath the Earth’s surface. This renewable energy source can be harnessed for a variety of uses, including electricity generation and direct heating. Geothermal power plants tap into the Earth’s natural heat by drilling wells into geothermal reservoirs, where steam or hot water is brought to the surface to drive turbines and produce electricity. It is considered a sustainable and eco-friendly energy source because it produces little to no greenhouse gas emissions and provides a reliable, constant supply of energy.
“Geothermal energy is often hailed as a sustainable and eco-friendly source of power, harnessing the Earth’s natural heat to provide clean, renewable energy without the harmful emissions associated with fossil fuels.”
New drilling techniques and renewed investor interest are increasingly bringing geothermal energy into play as a source of electricity. So far, geothermal production facilities are located in only a few countries, but that could change. After decades of simply extracting heat from the subsurface as the primary goal of geothermal energy, the focus is increasingly shifting to generating electrical energy from the heat from deep underground. Technological advances, often borrowed and adapted from the development of oil and gas deposits , have opened up new possibilities for energy production from geothermal energy in virtually every country in the world in recent years. The motto: You just have to drill deep enough to get hot enough. On average, the temperature rises by 25 to 30 degrees Celsius per kilometer of depth. Tectonic conditions, such as volcanic activity, geological spreading zones, subduction zones, rift zones, or hot spots, can even increase the crustal temperature regionally. With new drilling technologies, the earth’s heat can now be extracted for heat and power generation even in places where previous technologies could not reach very deep.
Investors have increasingly recognized the profitability of geothermal energy, both in the short and long term. Last year, prominent North American geothermal startups such as Fervo Energy, Sage Geosystems, Eavor, and Quaise Energy secured over $1.3 billion in funding, marking significant advancements in showcasing their innovative technologies. Major tech companies like Google and Meta, alongside leading utilities, have already committed to purchasing geothermal electricity to meet their expanding energy demands.
“The Earth contains over 40 million megawatts of geothermal energy — an immense reservoir of heat — yet only a small fraction is currently harnessed. Estimates suggest we could sustainably extract hundreds of gigawatts worldwide with current technology, making it a powerful yet underused clean energy source.”
As of early 2025, the global energy landscape is undergoing significant changes. According to the International Energy Agency (IEA), renewable energy sources, including solar, wind, and hydropower, are projected to account for over one-third of global electricity generation in 2025, surpassing coal for the first time .​ In 2024, renewable energy sources contributed to 38% of the growth in global energy supply, with natural gas at 28%, coal at 15%, oil at 11%, and nuclear at 8% .​ Despite these advancements, fossil fuels remain dominant in global energy consumption. In 2022, fossil fuels accounted for approximately 81.9% of total final energy consumption, with oil, natural gas, and coal comprising 40.8%, 22.9%, and 18.3% respectively .​ While renewable energy sources are growing rapidly, fossil fuels continue to play a significant role in meeting global energy demands. The transition to a more sustainable energy mix is ongoing, with renewables gaining ground but still facing challenges in replacing fossil fuels entirely.
“Geothermal energy is found beneath the Earth’s surface, where heat from the planet’s core rises through cracks, hot springs, and volcanic regions, offering a constant, renewable power source.”
