In this article, we will look into the 15 countries that produce the most geothermal energy in the world. If you want to skip our detailed analysis, you can go directly to the 5 Countries that Produce the Most Geothermal Energy in the World.
Global Geothermal Energy Outlook
According to the Global Geothermal Market and Technology Assessment report by the International Renewable Energy Agency (IRENA), electricity generation from geothermal energy has increased at a rate of 3.5% annually, reaching 15.96 gigawatt electric (GWe) of total installed capacity in 2021. It accounts for 0.5% of renewable installed capacity. The deployment of geothermal for heating and cooling increased at an average rate of 9% annually from 2015 to 2020, reaching 107 gigawatts thermal (GWth) in 2020.
The technical potential of hydrothermal and geothermal resources is estimated at 200 GWe and 5,000 GWth, respectively. According to the IPCC, geothermal energy can supply nearly 18% of the global electricity demand and cater to the electricity needs of 17% of the world’s population. The environmental impacts of geothermal energy generation are considered benign. The life-cycle emissions of geothermal power plants with 100% reinjections are estimated at 11.3 grams of CO2 per kilowatt hour. Its water consumption and land requirement are estimated at 0.66 liters/kWh and 7.5 square kilometers/terawatt hour, respectively. Geothermal plants are capable of providing stable and reliable electricity by utilizing proper reservoir management, with a capacity factor of over 80%. In 2021, geothermal energy produced electricity at a Levelized Cost of Electricity (LCOE) of $0.068/KWh for newly commissioned plants. Integrating geothermal electricity into grids in the US can save around $21/kWh. Despite these benefits, it faces many challenges such as high upfront costs, technical hurdles, and long development timelines. However, these challenges present a variety of opportunities for major market players to improve technology and provide cost-effective techniques and methods, with the help of supportive policies. You can also look at the 20 Countries with the Highest Renewable Energy Consumption in the World.
Many countries are realizing the promising benefits of geothermal energy by setting ambitious development targets. The United States pledges for an installed geothermal capacity of 60 GWe by 2050. On March 18, the US Department of Energy (DOE) announced its Pathways to Commercial Liftoff: Next-Generation Geothermal Power report, which states that by integrating advanced geothermal technology the United States can achieve an energy production of 90 GW by 2050, representing a twentyfold increase. Kenya aims to double its geothermal electricity capacity to 1.6 GWe by 2030. On October 5, 2023, Reuters reported that Kenya is leading the charge of geothermal power in the world, with the largest geothermal capacity under construction than any other country. Once these projects are completed, it will become one of the top 5 countries that produce the most geothermal energy in the world.
Other countries are also accelerating their geothermal energy production. For instance, on January 10, Reuters reported that Columbia has awarded its first geothermal electricity production license to a Canadian oil and gas exploration company, Parex Resources Inc. (OTC:PARXF). The project located in Casanare province, is expected to have an initial production of 15 to 60 kilowatts. However, the potential is expected to expand further to 120 kilowatts. The license issued to Parex Resources Inc. (OTC:PARXF) is valid until 2041. Columbia is working on expanding its renewable energy sources as a part of President Gustavo Petro’s goal to accustom the major coal and oil producers to renewable energy sources. The license is provided to Parex Resources Inc. (OTC:PARXF) as a result of its pilot geothermal project in 2021 in Casanare. Check out the 6 Best Geothermal Stocks To Invest In.
Major Players in the Geothermal Energy Market
Some of the companies involved in the exploration and development of geothermal energy across the world include Ormat Technologies, Inc. (NYSE:ORA), First Gen Corporation, and Fervo Energy.
Ormat Technologies, Inc. (NYSE:ORA) is a leading renewable energy company, engaged in geothermal power and recovered energy across the world in countries including the US, Indonesia, Honduras, Guatemala, Chile, Kenya, and Turkey, among others. It builds, owns, and operates geothermal, solar, and recovered energy power plants. It is also involved in the design and manufacturing of geothermal equipment. Furthermore, it provides operation and maintenance services for geothermal and recovered energy power plants. On April 18, Ormat Technologies, Inc. (NYSE:ORA) announced the acquisition of renewable energy assets from Enel Green Power in North America. The company will leverage its expertise to optimize the performance of geothermal assets from Enel Green Power North America. The companies finalized the acquisition agreement in January 2024 for a transaction of $270 million. The portfolio consists of nearly 150 megawatts of operational geothermal and solar facilities.
First Gen Corporation is a leading power generation and renewable energy company in the Philippines. The company provides geothermal, hydropower, solar, natural gas, and wind power services. It boasts a power portfolio of 30 operational plants in three main island grids of the country. It has a total installed capacity of approximately 3.5 GW. On April 23, the company announced that the leading electronics company in the Phillippines, PMM has renewed its renewable electricity provision agreement with First Gen Corporation. The company will be responsible for providing renewable electricity for PMM’s production facility, to help it achieve its goal of 100% renewable energy by 2050. The electricity will be provided by First Gen Corporation’s Bacon-Manito Geothermal Plant, which is one of the world’s largest vertical integrated geothermal energy providers. Moreover, its subsidiary, Pi Energy will provide additional support to PMM by providing reliable power supply and minimum interruption risks.
Fervo Energy is a renewable energy company, located in Houston, Texas. It is engaged in the development of next-generation geothermal power. It utilizes fiber optic cables in its wells to gather real-time data for various factors such as temperature and flow, and with the help of advanced algorithms it optimizes the extraction process and the geothermal resources used. It optimizes system performance, well design, and drilling techniques. On February 29, the company announced that it has raised funding of $244 million by Devon Energy Corporation (NYSE:DVN). This will help Fervo Energy commercialize its clean energy technology. The company has launched its first commercial project which is an enhanced geothermal system, since its last fundraising. It has also started drilling at Cape Station, a geothermal energy project of 400 megawatts in Beaver County, Utah. This funding will support the company’s operations at Cape Station.
On April 22, Fervo Energy announced that it has partnered with a leading Organic Rankine Cycle (ORC) systems company, Turboden. This collaboration will accelerate companies’ efforts to spearhead geothermal energy innovation. Turboden will provide engineering and procurement services of power plant equipment to Fervo Energy for the initial 90 megawatts phase of its project, Cape Station. The agreement also includes the installation of three generators along with six ORC turbines to provide optimal energy conversion.
With this context, let’s have a look at the 15 countries that produce the most geothermal energy in the world. You can also check out the 12 Most Undervalued Renewable Energy Stocks To Buy According To Analysts and 25 Countries with Highest Renewable Energy Generation Per Capita.
Photo by Mark Kuiper on Unsplash
Methodology
To compile our list of the 15 countries that produce the most geothermal energy in the world, we consulted the Renewable Energy Statistics 2023 report by the International Renewable Energy Agency. Countries that produce the most geothermal energy in the world appear in ascending order of their bioenergy production in gigawatt-hours (GWh), as of 2021 on our list.
15 Countries that Produce the Most Geothermal Energy in the World
15. Honduras
Geothermal Energy Production (2021): 348 GWh
Honduras produced 384 GWh of geothermal energy in 2021. It is ranked 14th on our list of the countries that produce the most geothermal energy.
14. Russia
Geothermal Energy Production (2021): 421 GWh
Russia is one of the countries that produce the most geothermal energy in the world. The country produced 421 gigawatt-hours of geothermal energy in 2021.
13. Nicaragua
Geothermal Energy Production (2021): 734 GWh
Nicaragua is one of the biggest producers of geothermal energy in the world. In 2021, it generated 734 GWh of geothermal energy. It is ranked 13th on our list.
12. El Salvador
Geothermal Energy Production (2021): 1,559 GWh
Ranked 12th on our list, El Salvador had a total geothermal energy production of 1,559 GWh in 2021. It is one of the countries that produce the most geothermal energy in the world.
11. Costa Rica
Geothermal Energy Production (2021): 1,602 GWh
Costa Rica generated 1,602 gigawatt hours of geothermal energy in 2021. It is ranked 11th on our list.
10. Japan
Geothermal Energy Production (2021): 3,008 GWh
Another country that produces the most geothermal energy is Japan. In 2021, the country produced 3,008 gigawatt-hours of geothermal energy.
9. Mexico
Geothermal Energy Production (2021): 4,243 GWh
In 2021, Mexico produced 4,234 GWh of geothermal energy. It is ranked 9th on our list of the countries that produce the most geothermal energy in the world
8. Kenya
Geothermal Energy Production (2021): 5,183 GWh
Kenya is one of the biggest producers of geothermal energy, In 2021, the country had a total geothermal energy production of 5,183 gigawatt-hours. It is ranked 8th on our list.
7. Iceland
Geothermal Energy Production (2021): 5,802 GWh
Iceland ranks 7th on our list of the countries that produce the most geothermal energy in the world. In 2021, the country generated 5,802 gigawatt-hours of geothermal energy.
6. Italy
Geothermal Energy Production (2021): 5,914 GWh
In 2021, Italy generated 5,914 gigawatt-hours of geothermal energy. It is ranked 6th on our list of the countries that produce the most geothermal energy in the world.
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