Geothermal handbook: PlanninG and Financing power Generation t e c h n I c a L r e p o r t 2 / 2

and the world bank Group.

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M A I N F I N d I N g S A N d r E C O M M E N d A T I O N S
The use of geothermal steam for electricity production began in the early 20th century, with the first 
experimental installation built in Larderello, Italy, in 1904. As of 2011, about 11 GW of geothermal 
power capacity has been built around the world, most of it in the last three decades. However, 
electricity generated from geothermal sources still only represents 0.3 percent of the world’s total 
power generation. 
The exploitable geothermal energy potential in several parts of the world is far greater than the current 
utilization, and geothermal power has an important role to play within the energy systems of many 
countries. It has been estimated that nearly 40 countries worldwide possess enough geothermal 
potential that could, from a purely technical perspective, satisfy their entire electricity demand. 
Geothermal resources have been identified in nearly 90 countries and more than 70 countries already 
have some experience utilizing geothermal energy. Currently, electricity from geothermal energy is 
produced in 24 countries. The United States and the Philippines have the largest installed capacity 
of geothermal power, about 3,000 and 1,900 MW, respectively. Iceland and El Salvador generate 
as much as 25 percent of their electric power from geothermal resources. While geothermal energy 
potentially has a number of uses, including direct heating, this handbook focuses specifically on 
developing geothermal resources to generate electricity.