Abstract:Geothermal resources are very rich in China, which has great practical potential. Vigorous expansion of geothermal can ease the energy shortage, and largely solve the serious problem of air pollution caused by the massive use of fossil fuels. In China, geothermal development planning should be drawn up, according to distribution characteristics of geothermal resources and local social characteristics. In the west and southwest of China, geothermal power should be priorly developed. Because the grade of geothermal resources is relatively high in this area, density of population is small, the effect of geothermal power on human's life and production is little, electricity is easy to transport and it can ease the pressure on the national electricity demand to a certain extent. In the southeast coastal areas, temperature is high in summer, the hot weather lasts long, thus the energy consumption for refrigeration is quite large. If the rich geothermal resources can be used for refrigeration, the problem of power supply shortage can be greatly alleviated. In the northeast and north of China, the demand for heating is huge. Now coal is the main fuel, so air pollution is very serious, which affects seriously the quality of life of local people. As a kind of clean and high quality energy, geothermal energy can supply heat sustainably and stably, and it is the best alternative to northern heating energy. The ground source heat pump can be developed in the area where geothermal resource grade is relatively low, which is the effective way of saving energy and reducing energy's consumption. The development of geothermal energy is of important strategic significance for China's economic and social development. But in fact, the quantity of government investment is limited, the development of geothermal heating and ground source heat pump depends on enterprises mainly. Profit is the only purpose of enterprises, so a lot of high-quality resources have been exploited preferentially because of high return from investment, and geothermal resources which are difficult to be exploited are generally ignored. Exploitation for geothermal resources by enterprises is in a state of disorder, which makes geothermal resources wasted tremendously. All of above are not benefit for long-term development of geothermal energy. Measures are necessary to be adopted for the development of geothermal energy. Firstly, researchers and investors should be banded together to realize important role of themselves and considerable economic benefit in the development of geothermal energy, and to be inspired of great enthusiasm on the exploiting geothermal resources. Secondly, government guidance and policy support are necessary, and enthusiasm will be greatly improved if regulation about subsidy measures of geothermal exploitation is launched. Thirdly, it is necessary to actively guide the large state-owned enterprises intervention, such as PetroChina and Sinopec. The funds, resources, and appeal in the industry of them can attract people to the exploitation and utilization of geothermal resource, which will inject new vitality into the geothermal industry. Finally, SMEs should be encouraged actively to invest the geothermal energy continually, and geothermal heating, ground source heat pump, and other industries should be developed vigorously by expanding the financing scale with BOT mode or PPP mode. At present, the policies on geothermal energy are applicable to the macro-control, and there is no detailed rule on the development of geothermal industry, so it is difficult to implement those policies. So following suggestions are put forward. Firstly, subsidy policy on utilizing geothermal energy should be implemented as soon as possible to stimulate people's investment enthusiasm. Secondly, the industrial access threshold should be elevated to improve the technology level of productions. Finally, industry development plan should be enacted to make the exploitation of geothermal resources ordered.