Recently, the General Office of the National Energy Administration issued the Notice on Organizing Pilot Work for the High-Quality Development and Utilization of Geothermal Energy (NEA General New Energy〔2026〕No. 55), launching pilot programs for the high-quality development and utilization of geothermal energy. The key areas include the large-scale use of medium- and deep-layer geothermal energy, promotion of downhole heat-exchange technology, cluster-based use of shallow geothermal energy, research and development of geothermal power generation, industrial heating, conversion of abandoned oil and gas wells into geothermal wells, and cascade development of geothermal fields rich in strategic mineral resources such as lithium, helium, and boron.

Geothermal energy is a stable, reliable, clean, low-carbon renewable energy source with enormous resource potential. The notice focuses on four key directions: large-scale utilization of medium- and deep-layer geothermal energy, promotion of downhole heat-exchange technology, application of shallow geothermal energy, and diversified development and utilization. It provides clear guidance for removing policy barriers in geothermal development and utilization and exploring reform pathways.

In the field of medium- and deep-layer geothermal energy, the notice encourages large-scale development and utilization, substantially increasing the share of geothermal energy in urban heating systems, and exploring business models that couple geothermal energy with traditional heating methods, with priority given to replacing natural gas heating. It also encourages long-distance heat transmission from medium- and deep-layer geothermal resources and the formation of viable business models, so as to address the spatial mismatch between geothermal resource distribution and heat demand. The notice calls for innovative promotion of downhole heat-exchange technology that “extracts heat without extracting water,” simplifying preliminary approval procedures and accelerating project implementation. Large-scale application pilots will be carried out in areas with suitable geological conditions to verify the technology’s adaptability and stability under different scenarios.

In the field of shallow geothermal energy, the notice proposes exploring advanced technology routes and investment and operation models. In rural areas, shallow geothermal heating will be promoted to replace traditional fossil-fuel heating such as natural gas heating. In urban areas, cluster-based shallow geothermal energy projects will be developed, project construction and management procedures will be optimized, and spaces such as parks and green areas outside building boundary lines will be coordinated for use to improve heating and cooling performance.

In terms of diversified applications, the notice requires stronger scientific and technological research and industrial cultivation related to geothermal power generation, and promotes the application of geothermal energy in industrial production. It encourages the full use of abandoned oil and gas wells by converting them into geothermal wells, thereby realizing comprehensive resource utilization. In geothermal fields rich in strategic mineral resources such as lithium, helium, and boron, the notice calls for exploration of cascade development models combining geothermal heating with mineral extraction. It also calls for equipment upgrades and renovation of existing old geothermal heating projects to improve operational efficiency and intelligence levels.

According to the notice, the National Energy Administration will be responsible for coordinating and organizing the pilot work. Provincial energy authorities must submit pilot application forms and implementation plans to the New Energy Department of the National Energy Administration by July 31. In principle, the implementation period of pilot projects shall not exceed two years. Provincial energy authorities are required to submit progress reports on the pilots every six months, while NEA regional offices will track pilot progress.

The full notice is attached below:

Notice of the General Office of the National Energy Administration on Organizing Pilot Work for the High-Quality Development and Utilization of Geothermal Energy

NEA General New Energy〔2026〕No. 55

To the energy administrations of all provinces, autonomous regions, and municipalities directly under the central government; the development and reform commissions of relevant provinces, autonomous regions, municipalities directly under the central government, and the Xinjiang Production and Construction Corps; all regional offices; and relevant central enterprises:

To thoroughly implement the guiding principles of the 20th National Congress of the Communist Party of China and the plenary sessions of the 20th CPC Central Committee, earnestly implement the arrangements of the Fourth Plenary Session, and carry out the decisions and deployments of the CPC Central Committee and the State Council on carbon peaking, carbon neutrality, and the green and low-carbon energy transition, we will address policy bottlenecks in geothermal energy development and utilization, explore reform pathways, and promote high-quality geothermal energy development. Pilot work for the high-quality development and utilization of geothermal energy is hereby organized, with pilot projects used to drive quality and efficiency improvements in geothermal energy development and utilization nationwide. The relevant matters are notified as follows.

I. Pilot Objectives

During the 15th Five-Year Plan period, through the construction of pilot projects for the high-quality development and utilization of geothermal energy, a relatively complete regional management and policy system for geothermal energy development and utilization will be formed. A number of large-scale geothermal energy development and utilization projects featuring advanced technologies, standardized management, and significant benefits will be built. Replicable and promotable typical technology routes and operation models for shallow and medium- to deep-layer geothermal energy development and utilization will be developed.

II. Key Directions

1. Medium- and Deep-Layer Geothermal Energy

New models for large-scale utilization of medium- and deep-layer geothermal energy. Large-scale development and utilization of medium- and deep-layer geothermal energy will be encouraged, with efforts to substantially increase its share in urban heating systems. Business models that integrate geothermal energy with traditional heating methods will be explored, with priority given to replacing natural gas heating. Long-distance heat transmission from medium- and deep-layer geothermal resources will be encouraged to form viable business models and address the mismatch between geothermal resource distribution and heat demand.

Promotion of downhole heat-exchange technology. Innovative downhole heat-exchange technology that “extracts heat without extracting water” will be promoted. Preliminary approval procedures will be simplified to accelerate project implementation. Large-scale application pilots will be carried out in areas with suitable geological conditions to verify the technology’s adaptability and stability under different geological conditions and heating-demand scenarios, and to continuously improve the economic performance of downhole heat-exchange technology.

1. Shallow Geothermal Energy

Advanced technology routes and investment and operation models will be explored. In rural areas, shallow geothermal heating will be promoted as a replacement for natural gas heating and other traditional fossil-fuel heating methods. In urban areas, cluster-based shallow geothermal energy utilization projects will be developed. Project construction and management procedures will be optimized, and spaces such as parks and green areas outside building boundary lines will be used in a coordinated manner to improve the heating and cooling performance of shallow geothermal energy.

1. Diversified Applications

Scientific and technological research and industrial cultivation related to geothermal power generation will be strengthened. The application of geothermal energy in industrial production will be promoted. Abandoned oil and gas wells will be fully utilized and converted into geothermal wells to realize comprehensive resource utilization. In geothermal fields rich in strategic mineral resources such as lithium, helium, and boron, cascade development models combining geothermal heating and mineral extraction will be explored. Equipment upgrades and renovation will be carried out for existing old geothermal heating projects to improve operational efficiency and project intelligence levels.

III. Organization and Implementation

The National Energy Administration will be responsible for organizing pilot work for the high-quality development and utilization of geothermal energy nationwide. Based on submissions from provincial energy authorities, it will coordinate the announcement of pilot lists and guide pilot project construction.

Provincial energy authorities will be responsible for organizing, preparing, evaluating, and summarizing local pilot implementation plans. They must submit pilot application forms and implementation plans to the National Energy Administration’s New Energy Department by July 31. In principle, the implementation period of pilot projects shall not exceed two years. During pilot implementation, they should actively coordinate project construction and give priority support to pilot projects by coordinating existing funding channels for renewable energy, clean heating, energy conservation and carbon reduction, and equipment upgrades and renovation. Progress reports on the pilots must be submitted to the National Energy Administration’s New Energy Department every six months.

Regional offices will track pilot progress and promptly report important developments to the National Energy Administration’s New Energy Department.

Contact: 010-81929528

Attachment: Application Form for XX Province, Autonomous Region, or Municipality Geothermal Energy High-Quality Development and Utilization Pilot

General Office of the National Energy Administration

May 28, 2026

ECF Comment:

China is rich in geothermal resources, with shallow geothermal energy and medium- to deep-layer geothermal resources widely distributed across the country. However, the current scale of development and utilization remains limited, the policy system is not yet sound, approval procedures are complex, and business models are still immature.

The National Energy Administration’s launch of pilot programs for high-quality geothermal energy development and utilization is aimed primarily at breaking through policy bottlenecks through pilot projects and forming replicable management experience and business models. The proposals to “prioritize replacing natural gas heating” and develop “long-distance heat transmission” mean that geothermal energy will participate more actively in urban heating systems, potentially easing winter natural gas supply pressure in northern China. The promotion of downhole heat-exchange technology that “extracts heat without extracting water” focuses on addressing concerns over the environmental impact of geothermal development on groundwater and simplifying approval procedures. In addition, converting abandoned oil and gas wells into geothermal wells and combining geothermal development with mineral extraction reflect the concepts of comprehensive resource utilization and the circular economy.

As the pilots are implemented, geothermal energy is expected to become an important force in China’s green and low-carbon energy transition during the 15th Five-Year Plan period.