A meeting between Chinese government and research institutions was recently held to launch the “China Geothermal Industry Development Report 2025.” The document provides a summary of the current state of geothermal heating, power, research, and technology development and sets new targets for growth until 2035.
China holds a commanding lead in the global geothermal heating market, with an estimated capacity of 168 MWth as of the end of 2024 based on the 2025 REN21 report. This accounts for about 2/3 of the global geothermal heating capacity. It is also the fastest growing market for geothermal heat, supported by strength of policy direction and domestic supply chains.
As China reports its heating capacity in terms of floor area of heated dwellings, the industry development report states that the geothermal heating and cooling capacity has reached 1.65 billion square meters by the end of 2025. During the 14th Five-Year plan (2021-2025), this capacity grew by an average annual rate of 6.5%
The report forecasts the the growth rate will remain at round 7% over the next 10 years, reaching a total of 3 billion square meters by 2035.
Intriguingly, the report forecasts a total installed capacity of geothermal power generation of 500 MW by 2035. In recent years, there have been a few reports of new geothermal power pilot projects in China. These include:
- An 80-kW pilot running on produced fluids from the Chuanzhong Gas Mine in Sichuan Province
- The first geothermal power pilot project of Sinopec in Shaanxi province, with an estimated 80 kW capacity
- A 200kW pilot in Jiangsu province that produces electricity from a 108 °C geothermal resource
China previously had a larger operating geothermal power plant in Yangbajing, which started operations in 1977 and had a maximum 24-MW nameplate capacity. The facility ceased operations in 2020 due to falling reservoir pressures and has not been operational since. In 2018, the 16-MW Yangyi power generation unit in Damxung County was put into operations.
Targets for geothermal power generation had already been previously declared by China, but it appears to be better positioned now to deliver on those targets. In 2024, the National Key Laboratory of Deep Geothermal was established jointly by Sinopec, China University of Geosciences, and China University of Petroleum. Over the past year, the laboratory has aimed to be a world-class innovation hub for deep geothermal technology by coordinating work in research, technological breakthroughs, and skills development.
Recently, high-temperature geothermal resources were discovered in the eastern coast of China, notably in the Shandong and Jiangsu provinces. Such temperatures are rare in the region and may present new opportunities for geothermal power development.
