The cost of geothermal energy could decline by as much as 80 percent by 2035, reaching approximately $50 per megawatt hour, according to the report from the International Energy Agency (IEA). This sharp reduction hinges on increased investment, technological advancements, and policy support.
As stated by the IEA, geothermal energy currently provides less than 1 percent of global electricity generation. However, the IEA report highlights its potential to supply up to 15 percent of global electricity demand growth by 2050. Geothermal has this potential due to its baseload capacity, offering continuous, reliable power, unlike wind or solar.
Notably, the IEA report stated that up to 80 percent of geothermal project investments rely on oil and gas sector expertise and technology, enhancing both feasibility and scalability, further strengthening geothermal’s potential as a major energy source.
Despite its promise, high initial costs and regulatory hurdles have slowed adoption. The IEA recommends supportive policies such as deployment targets, streamlined permitting, and improved resource mapping.
EnergyWire stated that tech giants like Google are actively investing in geothermal as a way to power energy-intensive operations, such as data centers. Federally backed research projects have also contributed to making geothermal drilling faster and more cost-effective, further accelerating interest in the technology.
Eavor co-founder Jeanine Vany emphasized that geothermal’s role in achieving a zero-carbon future is enormous, as it presents high efficiency that’s able to complement existing energy infrastructure. Furthermore, Eavor’s closed-loop systems can access these untapped resources deep within the earth to deliver reliable, clean power without environmental compromises.
