Experts say Mexico holds the world’s highest geothermal potential. New policies and investments could turn the country into a global clean energy powerhouse.
Mexico Sits on Vast Untapped Geothermal Energy—Experts Call It the Planet’s Largest Potential Source
Mexico may be sitting atop one of the most powerful sources of clean energy on Earth—and it’s largely untapped. Experts are calling it the world’s greatest geothermal potential, with scientists and policymakers now turning their attention to the heat beneath Mexico’s surface as a game-changer in the global push toward renewable energy.
Although geothermal energy has existed as part of Mexico’s electrical grid since 1959, it currently makes up only about 1–2% of the national electricity supply. According to national energy officials and geologists, that figure could rise dramatically in the coming decades if policy changes, exploration, and infrastructure investment align.
Heat Beneath Our Feet
Geothermal energy uses natural underground heat—often from water or steam trapped near the Earth’s surface—to generate electricity or provide direct heating. It’s constant, low-emission, and can serve as a reliable complement to variable energy sources like solar and wind.
Mexico’s geology makes it ideal for geothermal exploitation. The country sits along major tectonic boundaries, particularly the Pacific Ring of Fire, which increases the availability of subsurface heat. So far, over 1,600 thermal hot springs have been identified across 26 states, indicating massive untapped geothermal reservoirs.
Some estimates suggest that using just 0.1% of Mexico’s geothermal resource could generate over 40,000 thermal megawatts (MWth). That’s enough to power millions of homes and businesses year-round.
Current Use—and Room to Grow
At present, Mexico has roughly 1,000 megawatts of installed geothermal capacity. These are spread across five plants operated by the Comisión Federal de Electricidad (CFE), located in Baja California, Baja California Sur, Puebla, and Michoacán. A sixth, privately operated facility is in Nayarit.
While these existing operations provide a foundation, energy experts argue that the real potential remains untapped.
According to the National Strategy for Energy Transition, the Mexican government aims to boost geothermal capacity to 1,464 MW by 2050. That target, while modest compared to the nation’s total potential, marks an important step toward diversifying energy sources and cutting carbon emissions.
New Laws and Institutional Changes
A major part of unlocking Mexico’s geothermal reserves involves regulatory reform. A new Geothermal Law has been proposed that would streamline the process for obtaining permits and developing geothermal infrastructure.
If passed, the law would simplify exploration rights and usage rules, allowing for faster development of geothermal electricity and heat projects. It would also open the door to innovative applications like urban heating, industrial drying, aquaculture, and food preservation using geothermal heat.
The proposed reform is backed by structural changes within both CFE and Pemex. These state-run energy giants are being reorganized to better coordinate Mexico’s clean energy strategy. Centralizing oversight and cutting through bureaucratic red tape are key components of the government’s long-term geothermal roadmap.
Clean, Reliable, and Ready to Scale
Unlike solar and wind power, geothermal energy doesn’t depend on the weather. It provides steady output 24/7, making it one of the most reliable forms of renewable energy. That reliability could help stabilize Mexico’s electrical grid, especially as more intermittent renewable sources come online.
The upfront cost of geothermal projects is higher than solar or wind, primarily due to drilling and exploration expenses. But once operational, geothermal plants have low maintenance costs and can remain productive for decades.
Environmental advocates argue that this makes geothermal a critical part of Mexico’s energy future—not just for electricity, but also for reducing dependence on fossil fuels and meeting climate targets.
Mexico’s Opportunity
Geothermal energy is already used in more than 20 countries worldwide, with the U.S., Indonesia, and the Philippines leading the way. But Mexico has the geology and resources to surpass them all—if it chooses to.
Experts believe Mexico is on the brink of an energy revolution. By investing in exploration, updating laws, and planning for the long term, the country could not only meet its clean energy goals but become a global leader in geothermal energy production.
The heat is already there—what remains is turning that potential into power.
