The Clean Energy Council has congratulated Geodynamics on being the first company to successfully produce power in Australia from deep beneath the earth's surface using geothermal 'hot rocks' technology.

Clean Energy Council Policy Director Russell Marsh said the company's 1MW Habanero Pilot Plant in South Australia was a demonstration of world-beating innovation developed Down Under.

"New clean energy sources such as geothermal will transform the way we produce our electricity in the future," Mr Marsh said.

"This type of geothermal energy produces power by superheating water using hot rocks deep beneath the ground. If developed further, it could potentially produce large amounts of electricity around the clock."

The Habanero Pilot Plant is located in South Australia's Cooper Basin and will run for 100 days until August this year before its performance is evaluated.

Mr Marsh said geothermal technology was still in its early stages, but the work of Geodynamics demonstrated that the clean energy industry was attracting innovators who were interested in making breakthroughs that could change the energy landscape not just locally but across the globe.

"This milestone by Geodynamics also shows the importance of organisations such as the Australian Renewable Energy Agency, which provide targeted support to develop cutting-edge technologies to their full potential," he said.