Italy and Geothermal Energy: a centre of excellence with historic roots
For the first time worldwide, in 1904 in Tuscany the first geothermal power plant was inaugurated, ushering in a revolution in energy production.
Where the energy originates
Geothermal energy, the ability to generate power by harnessing heat from underground, has roots in Italy. It was in Larderello, Tuscany, that in 1904 electricity was produced from natural steam for the first time in the world. The experiment, which lit a few light bulbs using a steam vent, marked the beginning of a unique industrial story. A few years later, in 1913, the first operational geothermal power plant was built in Larderello, a primacy that still earns international recognition today.
Italy, the world’s third-largest producer
More than a century on, Italy remains one of the leading players globally. After the United States and the Philippines, it is the world’s third-largest producer of geothermal energy. Italian power plants are concentrated mainly in Tuscany, the most active and technologically advanced region in this field. Here, high- and medium-enthalpy geothermal energy covers a significant share of regional demand, demonstrating how this resource can make a steady, reliable contribution to the energy transition.
From niche resource to transition frontrunner
Geothermal energy is experiencing a new season: although it is a long-standing technology, today it is classed among the renewables with the greatest growth potential. In Italy, it accounts for just 2% of national electricity production with 34 plants in Tuscany; worldwide, it covers 0.8% of energy demand. While these figures show how underutilised geothermal energy still is, new technological solutions are poised to redefine its role.
For example, advanced closed-loop geothermal systems could cut costs to 30–50 USD/MWh by 2050, making it competitive with other renewables. It is no coincidence that the PNIEC (Integrated National Energy and Climate Plan) aims to install an additional 1 GW by 2030, and global scenarios suggest that by mid-century geothermal could cover up to 15% of global electricity generation. It is this mix of technological innovation, climate targets and new applications that makes geothermal today a rapidly evolving green energy, capable of moving from niche to a leading role in the transition.
Tuscany, a laboratory of excellence
Tuscany plays a central role. Beyond hosting almost all of Italy’s production, the region has developed an integrated model in which geothermal energy is not limited to electricity generation. Subsurface heat is also used for urban district heating, to warm agricultural greenhouses and industrial facilities, and even in tourism through renowned natural spas. This multidisciplinary approach has made Tuscany a European case study, combining environmental sustainability with local development.
Made-in-Italy innovation and research
We must not overlook the role of scientific and technological research. Over the years, Italy has developed advanced know-how in plant design, well drilling, and systems management. Bodies such as INGV (the National Institute of Geophysics and Volcanology) work with institutions and businesses to monitor geothermal phenomena, study environmental impact, and improve extraction technologies. This wealth of expertise is an exportable asset that can strengthen Italy’s positioning in international markets as well.
Looking ahead
Today, in the midst of the energy transition, geothermal energy is once again at the centre of debate as a key resource. Italy, building on its historic primacy and consolidated know-how, has the opportunity to further reinforce its role. Investing in this sector means not only increasing national energy independence, but also enhancing a tradition that brings together industrial history, scientific innovation, and a commitment to sustainability. A combination that can make Italian geothermal energy not just an example from the past, but a pillar of Europe’s energy future.
Source:
Regione Toscana. “What geothermal energy is and how it works”. Regione Toscana, 26 May 2025.
INGVambiente. “The birth of geothermal energy”. INGVambiente, Tuesday, 2 September 2025.