Geothermal energy has been gaining prominence in the international energy debate, thanks to its capabilities as a reliable renewable source and the variety of uses it allows. From electricity generation to more innovative applications such as heating and cooling historic buildings or even volcanic cooking, geothermal energy is proving to be a versatile option for diversifying and decarbonizing the energy mix.
In recent years, the growing pressure to meet climate goals and the need for alternatives to conventional electricity supply have placed geothermal energy in the spotlight. However, its development entails overcoming regulatory and infrastructure challenges, especially in markets where this technology is not yet sufficiently implemented.
Canada: Opportunity and Regulatory Challenge in Geothermal Development
The Cascade Institute recently published a report that marks a turning point in the regulatory approach to geothermal energy in Canada. This document compiles best practices adopted by the ten leading geothermal producing countries —such as the US, Iceland, and New Zealand—offering a roadmap for Canadian provinces to harmonize and improve their regulations.
The analysis, based on international experience, shows that the lack of a clear and consistent regulatory framework has hindered the development of large geothermal projects in Canada, despite the country's abundant resources and advanced drilling technologies. Key factors identified for successful development include a precise definition of activities, regulatory independence from the technology used , streamlined permitting procedures, limiting monopolies through surface area restrictions , realistic implementation timelines, and early public engagement.
The reconfiguration of the energy sector in North America and other regions
The reconfiguration of the energy sector in North America and other regions is driven by the rise of data centers, artificial intelligence, and electrification. These new consumption hubs require a secure and continuous supply, where geothermal energy is emerging as an ideal candidate compared to the intermittency of other renewable energy sources.
According to various industry studies, advanced geothermal systems could provide a significant portion of the electricity demanded by technology centers in the next decade. The possibility of installing plants close to the point of consumption—minimizing losses and avoiding grid overloads—places this technology in the spotlight for major energy operators and investors. However, barriers remain, such as lengthy permitting processes , a lack of legal clarity regarding the ownership of geothermal heat, and the need to develop local supply chains and industry.
Unique uses of geothermal energy: from heritage to volcanic gastronomy
Beyond electricity generation, geothermal energy is finding its way into increasingly creative applications . In Spain, for example, some innovative projects have adapted this resource to heat and cool historic homes or improve energy efficiency in protected buildings. This is the case of a medieval castle in northern Spain, where heating and hot water are obtained thanks to geothermal heat , integrating contemporary comfort into a building of heritage value without resorting to traditional fuels.
Another outstanding example can be found in Lanzarote, where natural geothermal energy is the cornerstone of a unique culinary experience. At the restaurant nestled in Timanfaya National Park, dishes are cooked directly using the heat emanating from volcanic activity , reaching temperatures sufficient to roast meats and fish without the need for external energy. This integration of nature and tradition highlights not only the uniqueness of the environment but also the potential of geothermal energy as a cultural and tourist resource.
Real weight and growth prospects in renewable generation
Although geothermal energy's contribution to the global renewable electricity mix is ​​still modest compared to other sources such as solar, wind, or hydroelectric power, its presence is strategic in countries with abundant underground resources. In the European Union, for example, geothermal energy only accounts for around 0,5% of renewable electricity generated , far behind wind or solar, but with expectations of growth as new technologies and appropriate support frameworks are developed.
The sector's progress is linked to both investment and regulatory compliance. Globally, geothermal generation exceeded 99 TWh in the last year, with new projects standing out in countries such as New Zealand, the Philippines, Turkey, Indonesia, the United States, and Japan. More than half of the newly installed capacity is concentrated in these markets , which serve as a benchmark for countries seeking to expand their geothermal infrastructure.
