Geothermal energy is a sustainable energy, which has been historically used by Man. This energy is indeed the heat caused by magma and radioactive decay of minerals, which is conducted to underground water resources and makes hot water or hot steam. The hot water comes up through interrelated faults and fractures and appears on surface of the ground in forms of hot springs or hot steam. It may also erupt in forms of geysers or fumaroles due to the high pressure of resources. Geothermal energy does not appear in all spots of the earth. Only locations with specific geological conditions, like active volcanic areas and earthquake zones, have a very high level of geothermal energy. Iran, being located in earthquake and volcanic zone, house conjunction of tectonic plates whit great potentials of this sustainable energy. At the time being, 15 promising zones have been identified in the country. One of these zones is Meshginshahr Region located on the mountain slopes of volcanic Mount Sabalan. Appearance of hot springs like Ghinerje and Ilando, with temperature of more than 70° C, on the northern mountain slopes of Sabalan and in southeast of the city of Meshginshahr, are indicative of great potentials of geothermal energy in this region. In order to examine the level of geothermal energy in the region, New Energies Research Center of Iran’s Ministry of Energy dug three discovery wells “A”, “B”, and “C”. Only two wells (A and B) have relatively adequate water supply for generating electricity. These wells have paved the way for accessing the underground hot water or hot steam resources that can be used for generating electricity or for heating houses, green houses, hot spring baths, and fish farms, as well as other industries and waste water filtration. The examinations show that a 260 megawatt combined cycle (steam and hot water) power plant can be established in this region.