China maintains a leading position in the global geothermal industry, particularly in the direct use of geothermal energy for heating and other applications. According to the International Geothermal Association and Chinese government reports, China has led the world in installed capacity for direct geothermal use for several years.
The country's 14th Five-Year Plan for Renewable Energy, released in 2022, set ambitious targets for geothermal development. It aimed to increase the national geothermal heating (cooling) area to 1 billion square meters and raise geothermal power generation capacity by 50% by 2025 compared to 2020 levels.
Major projects, such as the Xiong'an New Area, are being developed as "geothermal cities," utilizing clean geothermal heating on a large scale. Industry analysts note that while China leads in direct use, it continues to develop enhanced geothermal systems (EGS) technology to unlock deeper, hotter resources for more electricity generation.
The growth is driven by national policies supporting clean energy to meet carbon peaking and neutrality goals. The China Geothermal Energy Association reports ongoing investments and technological advancements to expand the resource's contribution to the nation's energy mix.
