Global investment in geothermal energy is experiencing a significant surge, with projections indicating a substantial increase by the end of the decade. According to analysis from Rystad Energy, annual spending is expected to climb from less than $2 billion to nearly $9 billion by 2030. This growth is driven by the global push for decarbonization and the need for reliable, clean power sources. While the United States currently leads in investment, emerging technologies and international interest, particularly from Indonesia, are set to reshape the geothermal landscape in the coming years.
The renewed interest in harnessing the Earth’s natural heat is a direct response to rising energy demands and ambitious climate targets. Geothermal energy, which provides a constant power source, has been utilized for decades in geologically favorable areas. However, recent technological advancements are now unlocking its potential in more challenging terrains, expanding its viability as a mainstream clean energy solution. This has fueled a new wave of enthusiasm for a resource that is available around the clock.
Europe has shown particular enthusiasm for geothermal heating, with a growing number of projects focused on thermal networks to warm multiple buildings, following the long-standing example set by Iceland. In the realm of electricity generation, however, geothermal’s contribution remains modest, accounting for less than one percent of the world’s total supply. The United States is the current global frontrunner in installed geothermal power capacity, with a significant portion concentrated in California’s Geysers region.
Reflecting its production capacity, the U.S. has also been the top investor in geothermal projects in recent years. This leadership position may be temporary, as forecasts suggest a shift in the investment landscape. Rystad Energy predicts that Indonesia, with its abundant volcanic activity, will surpass the U.S. in annual geothermal spending by 2027. Despite this, the future for geothermal in the U.S. remains promising, partly due to its rare position as a clean energy source with broad bipartisan support.