A new study examining the world’s leading geothermal energy nations, including Iceland, the United States, Kenya, and Indonesia, has revealed a surprising truth about Earth’s heat. Geothermal energy, which taps the natural heat stored beneath the planet’s surface, is increasingly being seen as a solution to two of the most pressing challenges facing governments today: sustaining economic growth and addressing climate change.
Unlike solar or wind power, geothermal plants can provide electricity 24 hours a day, seven days a week, making them one of the few truly reliable renewable energy sources. This constant availability is particularly appealing for countries that face rising energy costs, fluctuating fossil fuel markets, or unreliable electricity grids. As governments and businesses worldwide seek energy solutions that are both environmentally responsible and economically viable, geothermal energy is gaining renewed attention as a long-term investment.
The 2024 study asked two questions that concern voters, taxpayers, and policymakers alike: does geothermal energy stimulate economic growth, and does it actually help reduce greenhouse gas emissions? The answers, according to the researchers, are nuanced and require careful consideration.
Geothermal Energy and Economic Growth
The study analyzed data from 2000 to 2019 and found that once a geothermal power plant becomes operational, it can significantly boost a country’s economy. In wealthier nations such as the United States, Japan, Iceland, Italy, New Zealand, and Turkey, a one percent increase in geothermal capacity was linked to roughly a 0.25 percent increase in long-term GDP growth.
Geothermal energy provides constant power, which makes it a reliable source for households, businesses, and industries. Factories benefit from lower electricity costs, households enjoy more affordable energy bills, and the energy sector creates thousands of well-paying jobs for engineers, drillers, and plant operators. Additionally, countries save billions in energy imports by reducing dependence on fossil fuels, strengthening both their economic and energy security.
Kenya provides a striking example. In less than twenty years, the country went from almost no geothermal capacity to using geothermal energy to power one in every seven light bulbs nationwide. This expansion not only created thousands of local jobs but also established Kenya as a regional leader in renewable energy, demonstrating how geothermal development can combine environmental goals with tangible economic benefits.
The Carbon Cost of Geothermal Expansion
Despite its reputation as a clean energy source, geothermal energy is not entirely free of carbon emissions, especially during construction. The study found that every one percent increase in geothermal capacity corresponded with a 0.15 to 0.16 percent increase in greenhouse gas emissions in the long term. Developed countries experienced slightly smaller emissions increases compared with developing nations.
The reason lies in the construction and drilling process. Drilling deep wells requires diesel-powered rigs, plant construction consumes large amounts of concrete and steel, and additional infrastructure such as roads and power lines contributes further to the carbon footprint. Once operational, geothermal energy ranks among the cleanest sources of electricity, but the build phase leaves a measurable environmental mark that cannot be ignored.
Differences Between Developed and Developing Nations
The economic and environmental impacts of geothermal energy vary depending on a nation’s technological capacity and resources. Developed nations such as the United States, Japan, and Iceland see larger economic benefits and produce slightly fewer emissions during construction due to advanced equipment and building techniques. Developing countries, including Indonesia, the Philippines, Kenya, and Mexico, experience moderate economic gains but slightly higher emissions during plant construction. These differences highlight the importance of investing in technology transfer and infrastructure development to maximize benefits while minimizing environmental costs.
What Drives Countries to Invest in Geothermal Energy
Interestingly, nations do not adopt geothermal energy simply because they have extra wealth to spend. The primary driver is concern over climate change and energy security. Rising carbon emissions, volatile fossil fuel markets, and the need for reliable electricity prompt governments to invest in geothermal power as a sustainable, long-term alternative. Geothermal energy is particularly attractive for countries seeking a renewable solution that operates continuously, providing energy even when wind and solar resources are unavailable.
Implications for Citizens
Geothermal energy will not solve climate change on its own, and it carries emissions during construction. However, it offers unique advantages. It delivers reliable electricity around the clock, creates local jobs that cannot be outsourced, and reduces household energy costs over time.
Experts advise governments to ease the initial financial burden of geothermal projects through low-interest loans, tax incentives, and streamlined permitting processes. When these measures are implemented, the long-term benefits include more jobs, more affordable energy, and a cleaner energy landscape.
Conclusion
Geothermal energy is not perfect. It produces emissions during construction and requires significant upfront investment. However, it remains one of the few renewable energy sources capable of providing continuous, reliable electricity. For countries serious about sustainable and stable energy, the heat is already beneath the ground, waiting to be harnessed. By investing wisely, governments can turn Earth’s natural heat into both economic growth and a step toward a cleaner future.
