Geothermal resource comes from the solar shallow geothermal energy and the high temperature of the earth. Hot springs and part of Tibet’s electricity are generated by geothermal energy.

Currently, there are 300 sites of low temperature geothermal resource, 65 sites of mid-temperature geothermal resource and over 20 sites of high temperature.

Tibet, located in Mediterranean-Himalaya geothermal belt, enjoys rich geothermal energy. The electricity generated by hydrothermal system will reach over 1,100 MW (megawatt). The electricity generated by dry-hot-rock geothermal system is estimated to be 2,700 MW in the future.

In Tibet, low temperature geothermal energy is usually used for heating and bath. The electricity is generated by high temperature geothermal power which is at the relatively temperature of 80°C to 180°C. The development potential of high temperature geothermal energy is more enormous, for which can be used for installed electricity generation. The development of high temperature geothermal energy is more efficient than medium and low temperature geothermal energy.

Before the peaceful liberation, Tibet only had one small power station, with a capacity of 125 KW, which provided electricity mainly to aristocrats. Nowadays, Tibet has a rapidly growing power industry including hydraulic power, geothermal power, wind power, solar power and other new energies. The exploitable deposits of solar power, hydraulic power, wind power and geothermal power in Tibet are almost one third of the country's total. Geothermal power is a kind of renewable energy. It can greatly decrease the pollution produced by burning coal.