Investigating the geothermal potential in Iran, an oil-rich nation now grappling with an overstretched power grid, could spark a profound shift in the region’s energy dynamics. The endorsement of geothermal energy by the EU, driven by their urgency to replace Russian gas, has cast a spotlight on this clean, reliable, and virtually limitless energy source. This move could catalyze global investments, with the IEA predicting a surge to $1 trillion by 2035 and $2.8 trillion by 2050. But what does this mean for Iran and the broader energy market?
Firstly, Iran’s geothermal journey, though slow, is steadily gaining traction. The identification of 18 potential sites, with Sabalan in Ardabil province at the forefront, marks a significant turn. The commencement of Iran’s first geothermal power plant in 2025, albeit after decades of exploration, is a testament to the country’s commitment. However, the current infrastructure, or lack thereof, poses a considerable challenge. The bulk of geothermal energy lies in exploration and recovery, demanding specialized drilling and assessment technologies. This gap presents an opportunity for international players to step in, fostering technology transfer and collaboration.
The development of geothermal power plants could transform Iran’s energy landscape, reducing dependence on fossil fuels and mitigating the environmental impact of using mazut in industrial units. With a potential installed capacity of 5,000 megawatts, geothermal could substantially alleviate the stress on Iran’s national power grid. Moreover, unlike wind and solar, geothermal offers a constant power source, enhancing grid stability.
However, the path to geothermal expansion is fraught with challenges, notably the uncertainty surrounding the operation of Iran’s maiden geothermal power plant. The project’s tug-of-war between the Thermal Power Plants Holding Company and SUNA underscores the need for clear policy frameworks and streamlined bureaucratic processes. Furthermore, attracting investments remains a significant hurdle. Iran must foster a conducive environment for both domestic and foreign investors, ensuring project viability and return on investment.
The ripple effects of Iran’s geothermal push could extend beyond its borders, influencing regional and global energy markets. As the world transitions towards cleaner energy, Iran’s success story could inspire neighboring countries to tap into their geothermal potential. Moreover, the integration of geothermal into Iran’s energy mix could free up more oil and gas for exports, impacting global supply and prices.
Lastly, the convergence of shale drilling techniques and geothermal development, as highlighted by the IEA, could accelerate global geothermal growth. Horizontal drilling and hydrofracking, technologies honed during the oil and gas boom, could unlock vast geothermal reserves, hastening the energy transition.
As Iran stands on the cusp of a geothermal breakthrough, the world watches keenly. The successful harnessing of this clean energy source could not only redefine Iran’s energy sector but also reshape global energy markets, propelling us towards a sustainable future. The journey is laden with challenges, but the promise of geothermal energy is worth every effort. The stage is set for a transformative shift, and Iran could be a trailblazer in this energy revolution.
