China's geothermal energy potential roughly equals 853 billion tons of standard coal, and has the potential to replace coal in energy consumption, the country's energy regulator said on Thursday.

Current annual exploration of geothermal energy has reached only about three million tons, according to the National Energy Administration (NEA).

Exploration of geothermal energy will facilitate the restructuring of energy consumption as coal consumption amounts to about 66 percent of China's total energy consumption.

It will also reduce air pollution as one geothermal facility can replace 3,000 tons of coal each year, saving over 75 million tons of carbon dioxide and 30 tons of sulfur dioxide.