A Critical Review of Geothermal Energy, Development, Extraction Techniques, and Its Utilization Prospects in Pakistan

ABSTRACT Geothermal energy, derived from the Earth's internal heat, is a sustainable and renewable source capable of providing continuous electricity and direct heating. While countries such as the United States, Iceland, and Italy have successfully integrated geothermal energy into their systems, Pakistan has not fully explored its potential despite favorable subsurface conditions. This review addresses the lack of updated geothermal mapping, limited reservoir characterization, and the underutilization of decommissioned oil and gas wells in Pakistan. The study synthesizes over 100 peer‐reviewed articles and validated geological data to evaluate geothermal resource characterization, extraction techniques, and international best practices. The analysis identifies geothermal gradients ranging from 1.5°C per 100 m to 4.1°C per 100 m, with wellhead temperatures reaching up to 180°C, suitable for both flash steam and binary cycle power generation. The Indus Basin, with more than 600 decommissioned wells, offers a cost‐effective pathway for geothermal retrofitting, which could be integrated with carbon capture processes. The study also highlights global innovations, including Enhanced Geothermal Systems, advanced binary cycle configurations, and the use of supercritical CO₂ as a working fluid, providing rationale for technology selection and emphasizing improved efficiency with reduced environmental risk. By combining proven technologies with strategic investment and supportive policies, Pakistan can develop its geothermal resources, diversify its energy mix, enhance energy security, and contribute to the global transition toward low‐carbon energy solutions.