Geothermal energy is the heat stored beneath the Earth’s surface. This resource comes from the natural decay of radioactive materials and the planet’s molten core, producing a nearly limitless supply of heat. Tapping into this heat proves to be one of the most reliable ways to generate clean, renewable energy.
In the context of the global energy transition, geothermal stands out because it can provide continuous, low-carbon power while also supporting heating, cooling and industrial applications. Unlike other renewables that depend on weather or seasons, geothermal offers steady output and diverse benefits that go well beyond electricity alone.
To understand its growing role in meeting global demand, let us look closely at the different uses of geothermal energy.
Uses of geothermal energy
Geothermal resources can be harnessed in several ways, depending on temperature, depth, and technology. Broadly, these applications fall into three categories: electricity generation, heating and cooling, and direct use. Each represents a different way of unlocking the Earth’s heat to power homes, businesses, and industries.
Electricity generation
One of the most recognized geothermal energy uses is power generation. Deep underground, reservoirs of hot rock, fluid, and natural permeability create ideal conditions for electricity production. Engineers drill wells that allow heated fluid to rise to the surface, where it is converted into steam to drive turbines.
Different technologies, such as dry steam, flash steam, and binary cycle, allow geothermal power plants to operate in varied geological conditions. Unlike solar or wind, geothermal can supply stable baseload electricity around the clock. According to the U.S. Energy Information Administration, more than 90 billion kilowatt-hours (kWh) of electricity were produced worldwide from geothermal sources in 2022, with countries like Indonesia and Kenya leading the way.
Dependability on geothermal energy translates into steady returns for investors. By reducing reliance on imported fuels, geothermal energy enables nations to enhance their energy security. It also implies a constant supply of reasonably priced electricity and fewer blackouts for various communities.
Heating and cooling
Beyond electricity, geothermal resources are widely used for heating and cooling. The steady temperatures just below the Earth’s surface make it possible to regulate indoor environments efficiently.
Geothermal heat pumps draw on this subsurface heat. In warm seasons, they move excess heat into the ground. In cooler months, they reverse the process, drawing heat from the earth to warm buildings. These systems cut energy consumption and lower utility costs, making them increasingly popular in both residential and commercial developments.
For regulators, geothermal heating and cooling systems offer an opportunity to decarbonize the building sector, which contributes significantly to emissions. For communities, they mean comfortable living spaces with reduced reliance on fossil fuels.
Direct use
What else is geothermal energy used for? Another category of utilization is through direct application. This involves drawing hot water from wells that are usually deeper than those used for heat pumps but shallower than those required for electricity generation.
Direct use supports a wide range of industries. In agriculture, geothermal heat sustains greenhouses and fish farms. In manufacturing, it is applied in drying lumber, processing pulp and paper, and even food dehydration. Iceland offers one of the most striking examples, where geothermal energy not only powers the grid but also heats nearly 90 percent of homes and supports thriving greenhouse agriculture.
For investors, direct usage projects open up new revenue streams. They generate jobs and assist local industries for governments. Moreover, they result in economic development and reasonably priced access to heating and hot water for local populations.
How is geothermal energy used for meeting global demand
As the world faces growing energy needs, geothermal energy stands out for its versatility. With a wide geographic presence, geothermal energy today already spans electricity, heating, cooling and industry, but its future potential is even greater.
- Baseload power: Geothermal provides consistent electricity output, stabilizing grids alongside intermittent renewables like solar and wind.
- Decarbonization: By replacing coal or gas plants, geothermal cuts carbon emissions and helps countries meet climate targets.
- Industrial transformation: From agriculture to mineral recovery, geothermal supports industries that require heat while reducing operational costs and emissions.
- Community development: Access to stable, affordable energy fosters local growth, improves living conditions, and builds resilience.
Globally, the International Energy Agency notes that new technologies such as enhanced geothermal systems (EGS) could unlock geothermal potential in regions where conventional hydrothermal resources are scarce (IEA). This means more countries could access geothermal’s benefits, helping to meet the twin goals of energy security and climate action.
ACEN’s commitment to Energy Transition
The uses of geothermal energy extend far beyond what many might expect. From powering homes and industries to heating and cooling entire communities, geothermal is already playing a crucial role in meeting global energy demands. And its potential is only beginning to unfold.
For ACEN, geothermal is a core part of its strategy to accelerate Asia’s shift to clean energy. Building on its strong renewable energy projects in the Philippines and across the region, the company is well placed to unlock new geothermal opportunities that deliver both environmental and economic value.
As the energy transition gathers pace, geothermal offers one of the most dependable and versatile solutions for sustainable growth. ACEN views it not just as a technology but as a pathway toward resilient economies, empowered communities, and a healthier planet.
References:
- International Energy Agency. (n.d.). The future of geothermal energy. https://www.iea.org/reports/the-future-of-geothermal-energy
- U.S. Department of Energy. (2018a, February 14). 5 things to know about geothermal power. Energy.gov. https://www.energy.gov/eere/articles/5-things-know-about-geothermal-power
- U.S. Energy Information Administration. (2024b, April 03). Use of geothermal energy. https://www.eia.gov/energyexplained/geothermal/use-of-geothermal-energy.php
- Helgadottir, B. K., & Tomasson, E. (2022, April 1). Iceland offers case study of geothermal’s powerful potential. POWER Magazine. https://www.powermag.com/iceland-offers-case-study-of-geothermals-powerful-potential/
