Unlocking Geothermal Energy Potential of Central Asia

The region's subsurface is ideal for the implementation of sustainable technology
IFC Regional Vice President for Middle East, Central Asia, Turkey, Afghanistan and Pakistan

The world must find solutions to address the climate crisis. Technology, such as artificial intelligence and electric vehicles, is receiving increasing attention, and for good reason. However, the solution may be readily available, or in this case, right beneath our feet.

When implemented wisely and on a large scale, geothermal solutions can offer consistent heating in winter, cooling in summer and clean energy. This can also create new jobs and business opportunities. The countries in the region where I work need these types of solutions.

According to IQAir, the Kyrgyz Republic and Tajikistan are among the top 20 countries in the world’s air pollution rankings. This high pollution level is linked to these countries’ increased rates of respiratory diseases. Furthermore, Central Asia relies on coal; this dependence aggravates the situation. To reduce their reliance on extractive industries, Central Asian countries are increasing their natural gas imports from neighbours. However, this transition from one type of fossil fuel to another may lead to another significant issue: reliance on external energy sources can compromise the energy security of the countries. To ensure economic sustainability these countries should prioritise their own resources.

Geothermal projects are often perceived as expensive and unaffordable for developing countries. However, geothermal energy solutions for space heating and cooling are for more than just the EU or the US. These solutions offer long-term benefits for citizens. About 28 million households in the US could be connected to geothermal district heating nationwide by 2050, potentially saving at least $300 billion over the same period.

Geothermal energy for space heating and cooling offers numerous benefits. When implemented under suitable conditions, the costs associated with these technologies are comparable to those of using coal or natural gas. This means countries can reduce their dependence on imported fuels and improve energy security. Geothermal energy can also serve as a hedge against fluctuating commodity prices. Importantly, unlike other renewable energy sources, geothermal energy can provide reliable heating and air conditioning, enabling households to plan their energy costs over the long term.

Geothermal energy development leads to local economic growth and creates job opportunities. For every megawatt of installed capacity, approximately 34 jobs are required, which is significantly higher than the 19 jobs created by wind power and the 12 jobs created by solar power plants. These jobs are generated during the design, construction, and operation of geothermal power plants. Unlike large-scale gas production or power generation projects, which typically require highly trained personnel, even small businesses can handle the implementation and maintenance of geothermal projects.

The subsurface of Central Asia, including Kazakhstan, the Kyrgyz Republic, Tajikistan, and Uzbekistan, is well-suited for implementing geothermal technologies for space heating and cooling. By harnessing the potential of geothermal energy to supply clean and sustainable energy, the region can expedite its transition towards a more environmentally friendly future while minimising reliance on energy imports. This looks like an innovative and viable solution for a region traditionally relying on fossil fuels.

IFC believes geothermal solutions are crucial for the sustainable development of Central Asia. We are committed to the region’s economic growth by exploring proven technologies, economic opportunities, financing options, legislation and regulations for the use of geothermal energy for space heating and cooling. Collaborating with state and local authorities and the private sector, we aim to facilitate the implementation of surface geothermal energy projects. With IFC’s support, Central Asia can harness significant geothermal energy resources, promoting the development of a renewable energy sector that is able to meet the region’s growing energy needs while maintaining environmental responsibility.