Geothermal energy is the second most used form of renewable energy in Russia but represents less than 1% of the total energy production. The first geothermal power plant in Russia was built at Pauzhetka, Kamchatka, in 1966, with a capacity of 5 MW. The total geothermal installed capacity in 2005 was 79 MW, with 50 MW coming from a plant at Verkhne-Mutnovsky. Russia is currently developing a 100 MW plant at Mutnovsky and a 50 MW plant in Kaliningrad.[12] Most geothermal resources are currently used for heating settlements in the North Caucasus and Kamchatka. Half of the geothermal production is used to heat homes and industrial buildings, one third is used to heat greenhouses and 13% is used for industrial processes.[22]
In October 2010, Sergei Shmatko, Russia's energy minister, stated that Russia and Iceland would work together to develop Kamchatka's geothermal energy sources.[23] Russia is also investigating foreign investment possibilities for developing geothermal energy in the Kuril Islands.[24]