Geothermal energy refers to heat from deep within the Earth. It can be used to generate electricity. Additionally, cool temperatures underground (close to the surface) can directly to heat or cool bui...Geothermal energy refers to heat from deep within the Earth. It can be used to generate electricity. Additionally, cool temperatures underground (close to the surface) can directly to heat or cool buildings. While it is reliable and generates minimal air pollution, building geothermal power plants is costly and limited to specific locations.