Geothermal Energy

In the present era, the world is facing unprecedented challenges in the field of energy and environment. Increasing concerns about climate change, the need to reduce dependence on fossil fuels, and international pressures to achieve decarbonization goals have led countries to develop renewable energy sources. In the meantime, geothermal energy, as one of the most sustainable and reliable sources of clean energy, has found a special place in the world’s future energy strategies. This technology not only has the ability to provide basic electricity with negligible greenhouse gas emissions, but also has played a vital role in energy security and sustainable development as the backbone of electricity production in countries such as Iceland and Kenya.

Despite having huge oil and gas reserves, Iran is forced to utilize clean energy capacities due to the growing demand for electricity, environmental challenges, and the need to diversify the energy portfolio. The country’s geothermal resources, especially in volcanic and tectonic areas, provide a unique opportunity to enter the field of sustainable electricity production.

Geothermal energy is a renewable energy source that uses the Earth’s internal heat to generate electricity or direct heating. This energy comes from the heat deep within the Earth, which is created by the decay of radioactive materials and heat left over from the early formation of the Earth. Geothermal energy refers to the heat stored in the Earth’s interior, which is mainly generated by the decay of radioactive isotopes and heat left over from the formation of the planet. This energy is stored in the form of hot water, steam, or hot rocks deep within the Earth and can be extracted and exploited using various technologies to generate electricity, heating, and industrial uses.

Main technologies for generating electricity from geothermal energy:

Dry Steam Power Plant: Direct use of natural steam to drive turbines; suitable for sources with natural hot steam.
Flash Steam Power Plant: Extraction of hot water under pressure and conversion of it into steam by reducing the pressure; the most common technology in the world.
Binary Cycle: Transfers heat from hot water to a secondary fluid with a lower boiling point (such as isobutane) and uses its steam to generate electricity; suitable for medium to low temperature sources.
Enhanced Geothermal Systems (EGS): Creates artificial fractures in dry hot rocks and injects water to extract heat; a new technology with potential for expansion in areas without traditional hydrothermal resources.
Closed Loop Systems (CLS) and Superheated Heat (SHG): New generation technologies to increase efficiency and reduce geographical constraints.

Geothermal energy has a variety of applications, both in electricity generation and direct thermal consumption. The following is a complete and structured list of applications for this technology:

Power generation applications

Geothermal power plants: stable and round-the-clock electricity generation with a high capacity factor (70–90%).
Grid support: baseload supply and reduced dependence on fossil power plants.
Combination with other renewable energies: supplement solar and wind energy to create a sustainable grid.

Direct thermal applications

District heating: heating buildings and residential complexes (successful example in Iceland).
Greenhouse heating: increasing agricultural productivity and producing off-season products.
Swimming pool and recreation center heating: using natural hot water for therapeutic and tourist pools.
Industrial heating: providing heat for the food industry, drying agricultural products, chemical industries, and material processing.
Snow and ice melting: Use on roads and airports for transportation safety in cold regions.

Industrial and innovative applications

Mineral extraction: Use of geothermal fluids to extract lithium and rare metals.
Green hydrogen production: Use of sustainable heat for water electrolysis and production of clean hydrogen.
Wood and paper drying: In the cellulose and wood industries.
Food industry applications: Pasteurization, milk, and dairy processing.

Domestic and commercial applications

Geothermal heat pumps: For heating and cooling buildings with very low energy consumption.
Sustainable air conditioning: Reduce energy costs in office and commercial buildings.

Environmental and social applications

Reducing carbon emissions: Replacing fossil fuels in electricity and heating production.
Health tourism development: Hot springs and hydrotherapy centers.
Creating local employment: in drilling, power plant construction, and related industries.

Globally, Iceland, the United States, the Philippines, Kenya, Indonesia, and Turkey are among the pioneers in geothermal power generation. According to the International Energy Agency (IEA), as technology advances and costs decline, global geothermal power capacity could reach more than $1 trillion in investment by 2035, playing a key role in providing baseload electricity and reducing carbon emissions.

Key Trends in the Next 10 Years

Market Growth: According to reports, the global geothermal market will reach about $13.5 billion by 2030, with a compound annual growth rate (CAGR) of about 5.3%.
Generation Capacity: The International Energy Agency (IEA) predicts that with technological advancements, geothermal could create about 800 gigawatts of capacity by 2050, generating nearly 6,000 terawatt-hours of electricity. In the 10-year horizon (2035), this technology could make a significant contribution to sustainable electricity supply.
Emerging technologies:
- Advanced geothermal systems (EGS): Using horizontal drilling and hydraulic fracturing, deeper and wider resources will be exploited.
- Closed-loop systems: No need for groundwater, by transferring heat from deep underground to the surface, allowing for use in more areas.
Investment and employment: More than 180 global investors have entered this field, and employment in this industry is expected to grow significantly over the next 10 years.
Geographical dispersion: Currently, the United States, Iceland, Indonesia, Turkey, and Kenya are leading the way, but with new technologies, more countries (including Iran) can enter this field.

Role in energy transition and decarbonization

Sustainable and round-the-clock source: Unlike solar and wind, geothermal power plants can continuously generate electricity with a capacity factor of over 75%.
Carbon Emission Reduction: This technology can replace fossil-fired power plants as a clean baseload source and help achieve decarbonization goals.
Synergy with renewables: Geothermal can complement solar and wind and ensure the stability of the electricity grid.

History and Exploration Studies

Geothermal energy studies in Iran began in 1975 in cooperation with the Ministry of Energy and Italian consulting engineers. In these studies, areas such as Sabalan, Meshginshahr, Damavand, Khoy, Maku, and Sahand were identified as potential areas. These areas have significant hot water and geothermal resources due to the presence of dormant volcanoes, faults, and geological activities.

Potential Areas and Geothermal Potentials of Iran

Based on the Geothermal Energy Atlas of Iran and academic studies, more than 50 potential areas have been identified in 15 provinces of the country, mainly located in the north, northwest, parts of Khorasan, the central plateau, south, and southeast of Iran. The most important areas are:

Sabalan Domains (Meshginshahr, Sarein, Busheli): The largest and most active geothermal reservoir in the country, with a potential of more than 400 MW of electricity.

Mount Damavand: has high temperature resources suitable for two-stage flash power plants.

Mount Sahand, Maku-Khoi, Taftan, Bozman, Tabas, Shiraz, Markazi, Mashhad, Neyshabur, Sabzevar, Quchan, Bojnourd, Gorgan, Zabol, Khash, Sirjan, and Zahedan: each with different potentials for electricity and heating production.

Geophysical and magnetotelluric studies in the Sabalan region have shown that the main reservoir in this region is more than twice as large as initial estimates, and the operational capacity of geothermal power plants in the country is estimated to be up to 2000 MW.

Ongoing and planned projects

Meshginshahr Geothermal Power Plant (Sabalan)

Location: The slopes of Mount Sabalan, Ardabil province, near the village of Moil.
Capacity: First phase 5 MW (pilot), planning to increase to 50 and then 100 MW; final potential up to 400 MW.
Status: Phase 1 will be connected to the national grid in the summer of 2025; 11 wells drilled to a depth of about 3,000 meters; 29 km of power transmission line constructed.
Technology: Use of binary cycle and steam flash; Drilling and exploitation know-how is largely localized.
Challenges: Delays due to sanctions, withdrawal of foreign experts, high costs of drilling and equipment procurement, but the project has been completed relying on domestic capacity.

Future projects and other areas

Increasing Meshginshahr capacity: The Plan to increase by 26 MW is underway, and necessary permits are being obtained.
Studies in Damavand, Sahand, Taftan, Bozman, and other areas: Mainly in the exploration and reservoir identification phase; entry into the implementation phase is subject to the results of the Meshginshahr pilot and investment attraction.
Operational potential: The estimated operational capacity for constructing geothermal power plants in the country is up to 2000 MW, but the current operational capacity is less than 10 MW, and development requires overcoming technical and economic challenges.

Sustainability and Baseload Power Supply

Unlike solar and wind, geothermal power plants are capable of generating stable, 24-hour electricity and can serve as baseload power for the country’s power grid. This feature is particularly important for large industries, data centers, and remote areas.

Reducing greenhouse gas emissions and air pollution

The use of geothermal energy helps to significantly reduce greenhouse gas emissions and air pollutants and plays an important role in achieving carbon reduction goals and improving air quality.

Diversifying the energy portfolio and energy security

The development of geothermal power reduces dependence on fossil fuels and increases the country’s energy security. It also allows for the export of natural gas and the creation of added economic value.

Industrial Development and Job Creation

The construction and operation of geothermal power plants create numerous job opportunities in the fields of drilling, construction, operation, and maintenance, and contribute to the development of related industries (drilling equipment, heat pumps, control technologies).

Various non-electrical applications

In addition to electricity generation, geothermal energy can be used for district heating, greenhouse heating, aquaculture, industrial processes, and even tourism (hot pools, spas), and creates multifaceted added value.

Iceland: A Global Model for Geothermal Power Development

Location and Policies

Relying on abundant geothermal resources due to its geographical location in a volcanic belt, Iceland supplies more than 85% of its primary energy from geothermal and hydroelectric sources. Geothermal energy is the backbone of the country’s electricity and heating production and plays a key role in sustainable development, carbon reduction, and social welfare.

Technology and Featured Power Plants

Hellisheiði Power Plant: Iceland’s largest geothermal power plant and one of the largest in the world, with a capacity of 303 MW of electricity and 400 MW of heat; operated from 2006 to 2011; uses flash steam and combined cycle technology; supplies electricity and heating to the capital Reykjavík and the aluminum industry.
Nesjavellir Power Plant: 120 MW of electricity and 300 MW of heat; supplies hot water to the capital through an extensive pipe network.
Krafla Power Plant: 60 MW of electricity; exploiting the volcanic resources of the Krafla Caldera.
Svartsengi Power Plant: producing electricity and hot water for district heating and the famous Blue Lagoon spa.

Environmental management and sustainability

Closed-loop system and water reinjection: After extracting heat, the used water is reinjected into the reservoir to maintain pressure and stability of the source and minimize water consumption.
Reduced greenhouse gas emissions: Very low and controlled CO2 and H2S emissions; the Orca carbon capture and storage project at the Halishidi Power Plant is operational as the largest direct CO2 capture project in the world.
Minimal land and ecosystem disturbance: designing power plants with a small physical footprint and integrating with the natural landscape; aesthetic considerations and preservation of natural habitats.

Economic and social benefits

Job creation and economic growth: The development of the geothermal industry has created jobs, stimulated the local economy, and reduced dependence on imported fuels.
Cultural integration: Geothermal energy is part of the Icelandic identity and culture and plays a role in everyday life, art, and tourism.

Innovation and education

Leadership in technology and education: Icelandic universities and research institutes play a key role in developing new technologies and training skilled manpower, and Iceland is recognized as a global reference in geothermal technology education and transfer.

Kenya: Africa’s leader in geothermal power

Position and policies

Kenya, exploiting geothermal resources in the Great Rift Valley, supplies 47% of its electricity from geothermal energy and is the largest producer of geothermal power in Africa. Supportive policies, feed-in tariffs (FIT), attracting private investment, and international cooperation are key factors in Kenya’s success.

Projects and capacities

Installed capacity: Over 800 MW of geothermal power; planned to increase to 1,500 MW in the next decade.
Key projects: Olkaria power plants of various capacities; new projects in Menengai and public-private partnerships.
Investment: KenGen is raising $4.2 billion to develop 1.5 GW of geothermal power; Germany and other countries are involved in technology transfer and financing.

Supportive policies and legal framework

Feed-in tariffs (FIT): Guaranteed purchase of electricity generated from renewable sources at a reasonable price to attract investment.
Structural reforms: Establishment of an Energy Regulatory Commission and facilitation of private sector participation.
Kenya Vision 2030: Targets universal access to sustainable energy and increasing the share of renewable energy to 100% by 2030.

Introducing Geothermal Energy