Key takeaways
- Increasing demand for clean, reliable, and affordable power is prompting increased attention in geothermal, as advances in technology expand its applications and geographic reach.
- Geothermal offers 24/7 baseload electricity, as well as valuable non-power uses like heating, cooling, and long-duration energy storage.
- Many countries are now pursuing national geothermal strategies to enhance energy security and support long-term climate goals.
- A holistic, country-wide approach—supported by coordinated infrastructure planning, financing mechanisms, and strong stakeholder engagement—is essential to unlocking geothermal’s full potential in the global energy transition.
As the energy transition accelerates, the demand for clean, reliable, and affordable power has never been greater.
Solving the energy trilemma requires contributions from both renewable and traditional sources, including solar, wind, hydro, nuclear, hydrogen, and natural gas. While geothermal has historically not been part of the energy conversation, the narrative is changing as new technologies propel it from being a niche resource to becoming a viable solution for sustainable baseload power in many regions of the world.
Accelerating widescale geothermal adoption
With the ability to provide 24/7 electricity generation, geothermal is increasingly being considered in applications ranging from industrial facilities and data centers to commercial buildings and entire cities. At the same time, geothermal applications have moved beyond power into other areas relevant to the energy transition, such as process heating, district heating and cooling, and long-duration energy storage.
Access to geothermal resources is currently expanding. In the past, large-scale geothermal systems were only considered in regions with high subsurface heat, natural permeability, and accessible reservoirs, typically located along tectonic boundaries and other tectonically active regions. However, newer technologies such as enhanced geothermal systems (EGS) are opening opportunities in geologic conditions that were once considered unsuitable because of their low permeability. EGS is broadening the map of countries that can cost-effectively harness their geothermal potential.
There’s no question that momentum across the geothermal industry is building. But like other nascent technologies that came before it, the widescale adoption of EGS and other forms of geothermal energy hasn't happened overnight. It has taken time, technological improvements, innovation, and a coordinated effort among the public and private sectors. Geothermal practitioners and stakeholders have an important role to play in educating policymakers on the practical benefits and capabilities of the technology. Governments must also take action to implement pragmatic policies and regulatory frameworks that remove barriers and incentivize implementation.
Several decades of geothermal-specific experience tell me that capturing the full potential of geothermal will ultimately require nations to embrace a holistic, country-wide strategy that encompasses infrastructure planning, workforce development, community engagement, and long-term financing. I have had the honor of supporting many countries at different stages of their geothermal journeys.
The case for a national geothermal strategy
Long-time geothermal practitioners have worked for more than 60 years to provide advice, training, and technologies to many nations around the world as they embrace geothermal energy. This has enabled geothermal energy to become a blueprint for sustainable energy leadership around the world. For countries with geothermal energy resources, embracing a national development approach represents a strategic opportunity to support energy transition goals by:
- Enhancing energy security—Geothermal power projects are indigenous, local, and reliable, providing stable, dispatchable electricity that improves grid reliability and reduces dependence on imported energy. Geothermal power has a significantly higher capacity factor (meaning availability) than many other energy sources—at least 75% and more in some projects. For context, the global weighted average capacity factor of wind power is around 36%–41%, and the availability of solar photovoltaic (PV) power is a little more than 16%.
- Supporting climate goals—Geothermal is a low-carbon energy source, helping countries meet their Nationally Determined Contributions (NDCs) under the Paris Agreement and reducing emissions by providing clean heat and electricity.
- Driving economic development—Geothermal projects create jobs in exploration, drilling, construction, and operations, using many of the same skills required in oil and gas projects. They also stimulate local supply chains and attract foreign investment. In addition, they can be integrated within industrial parks, data centers, greenhouses, and district heating systems.
- Improving public finance efficiency—A coordinated geothermal strategy allows governments to prioritize investments, leverage donor and climate finance, and derisk private capital, thereby maximizing the impact of public funds.
- Building institutional capacity—A national strategy fosters technical expertise, regulatory clarity, and interagency coordination, all of which are essential for successful long-term geothermal development and operations.
Why a holistic approach to geothermal energy matters
History has shown that fragmented energy policies result in inefficiencies, duplicated efforts, and missed opportunities for national progress. In contrast, a holistic strategy empowers governments to align policy, regulation, and investment across ministries, agencies, and financiers. It also enables coordination of infrastructure planning (i.e., for roads, water access, transmission lines, etc.) and workforce development—two facets that are crucial to creating a robust and scalable geothermal industry.
A national strategy that takes a proactive approach to risk mitigation helps streamline the development process and minimize project delays, while fostering public trust through transparent communication and community engagement.
Several countries across Latin America, East Africa, and Southeast Asia are demonstrating what’s possible with the right mix of policy, financing, and technical capacity. These nations offer a blueprint for policymakers seeking to make geothermal a cornerstone of their national energy strategy.
For example, Indonesia is targeting a geothermal power capacity of 5.2 GW by 2034, almost double what exists today. Türkiye was an early adopter of geothermal and deliberately put national geothermal policies in place in the mid-2000s. Over the last two decades, the country has seen its geothermal capacity grow exponentially—from about 17.4 MW in 2006 to 2,000 MW (or 2.0 GW) at the end of 2025.
Croatia is still in the early stages of its geothermal journey but is taking decisive steps to tap into its high-temperature geothermal resources for district heating and, potentially, small-scale power generation. Through its National Recovery and Resilience Plan (NRRP), the government is funding exploratory wells, data mapping, and regulatory reforms to lower investment risks and make geothermal a reliable part of its energy transition.
Other countries in the Middle East and parts of Asia have taken similar steps to assess and prioritize the development of their geothermal resources.
Overall, the list of top 10 nations ranked by installed geothermal capacity has remained relatively consistent over the past decade. However, the number of countries making it a part of their national energy strategy is increasing—a reflection of the technology’s long-term potential.
Laying the foundation for national success
While the process for implementing a national geothermal strategy will look different for every country, there are pragmatic steps that policymakers can take to increase the likelihood of success. By embracing best practices from countries with both long and short geothermal histories, governments can lay the foundation for a holistic development approach that incentivizes technology implementation and adoption at scale.
- Resource assessment and mapping: This provides fundamental data for developing a nationwide geothermal resource assessment. This includes a thorough review of existing geological, geophysical, and geochemical data from published papers and studies. In areas where this information is sparse, it may be necessary to conduct new surface-based geoscientific studies, with the goal of creating a geothermal atlas or another mapping system to identify high-potential zones where exploration and investment can be targeted.
Publicly available information through tools such as Project Innerspace’s GeoMap™ can support these initial assessments. - Policy and regulatory enablement: To foster industry growth and attract financing, countries should update legal and regulatory frameworks to:
- Define clear licensing and concessioning processes
- Establish geothermal-specific environmental, social, and safety standards
- Develop a master plan for geothermal development, prioritizing the most promising areas
- Create mechanisms to enable public-private partnerships (PPPs) and foreign investment.
- Technical assistance and capacity building: Establishing a geothermal industry that is self-sustaining and supportive of growth requires investing in building a local talent pool and national expertise. Strategies for accomplishing this are well documented and can be replicated from more mature industries, like oil and gas or mining.
A specific example would be promoting training and education programs for geoscience and engineering students. Early geothermal projects can also lean on established companies that provide bespoke advisory services for exploration, early drilling, feasibility studies, and overall project design. Fostering an environment where information is shared between governments and energy agencies can strengthen governance and improve project outcomes. - Infrastructure planning: Large-scale geothermal project development does not take place in a vacuum. It requires significant investment in infrastructure, including new roads to access drilling and power plant sites, along with a reliable supply of water. In some cases, geothermal power projects are in remote locations that are difficult to reach. Transmission lines may need to be built to evacuate the geothermal power. Projects also require a long-term power purchase agreement (PPA) from a credible off-taker and a binding agreement for grid interconnection and energy delivery. Both of these processes may be implemented by government agencies.
A national strategy to coordinate geothermal infrastructure needs with broader development plans can help provide the certainty needed to secure financing and ensure that projects move beyond the conceptual phase. - Risk mitigation instruments: Geothermal development is capital-intensive and risky, especially during early drilling. In response, governments can use full grant funding to enable capacity building, refine policies and regulations, initiate community engagement, assess and plan infrastructure needs, and fund exploration.
They can also create PPPs that offer a mix of partial grants, contingent grants, and convertible loans for additional exploration, infrastructure work, and drilling the first full-diameter wells. - Financing strategy: Designing financing instruments that blend grants, loans, risk mitigation and guarantees helps ensure transparency and accountability in funding disbursements. Potential funding sources include
- National budgets
- International finance institutions and associated climate funds, such as the Green Climate Fund (GCF) and Climate Investment Fund (CIF)
- Bilateral donors and technical cooperation programs.
- Stakeholder engagement and public communication: Last, but certainly not least, project developers and policymakers should take actions to build societal acceptance by including local stakeholders in both planning and decision making. Community engagement programs that communicate the benefits and risks of geothermal can also be beneficial in areas where projects are being developed.
These efforts should begin as early as possible in the project timeline, well before any ground has been broken. Transparent communications and dialogue enable public trust to be maintained, especially for projects involving land use, drilling, and long-term operations.
A strategic opportunity for governments
For decades, geothermal energy occupied a quiet corner of the global energy mix—valued by a small group of countries with easily accessible hydrothermal resources—but largely overlooked elsewhere. Increasingly, however, this alternative energy source is emerging as an attractive complement to intermittent sources (e.g., wind and solar) and a contributor to baseload electricity generation from conventional sources, such as natural gas and hydropower.
Developing a national geothermal strategy is not just about building power plants. It’s about creating a supportive environment where policy, finance, infrastructure, and expertise come together to drive successful projects. For government agencies responsible for energy and natural resources, the time to act is now. With growing interest from development partners, climate funds, and private investors, the window for geothermal leadership and adoption is wide open.
