This paper addresses the important problem that Kosovo is facing in responding to climate change and energy sustainability; more specifically, the country’s struggles towards meeting the renewable energy source and energy efficiency requirements of the “EU 20 20 by 2020” policy. The paper focuses on geothermal energy as a renewable energy source that could be utilized further in making the country greener. The applied research methodology was both qualitative and quantitative. Different primary and secondary research activities were undertaken, including: literature review, legal and regulatory review, and interviews. The paper provides background information on the current energy supply, demand, and sources in the country. The document also presents the country’s current level of applying alternative energy sources and its standing against the “EU 20 20 by 2020” RES and EE targets. An analysis is provided on how to approach the aforementioned targets through investments in geothermal energy. Economic and environmental implications of investing in geothermal energy projects are elaborated. Finally, recommendations and conclusions, for future action, are derived and addressed to relevant stakeholders, primarily policy-makers and government representatives.