Geothermal energy: Council calls for faster deployment

The Council approved conclusions on promoting geothermal energy, which is energy generated from the natural heat of the earth’s interior.

This set of conclusions highlights the potential of geothermal energy as a local renewable energy source.

Geothermal energy can be used for affordable and secure heating and cooling, and it can provide a stable supply of electricity. Therefore, it can decarbonise the energy consumption of buildings and make industries more competitive and sustainable.

The Council calls for a faster deployment of geothermal energy by proposing or adapting measures for its promotion, including easier access to finance to address high upfront investment costs, as well as enhancing the workforce in the geothermal sector and strengthening cooperation in research on geothermal energy.

Geothermal energy is a long-lasting and always available renewable source, since it does not depend on weather events and can provide around-the-clock electricity generation and heat production. Today’s conclusions aim to boost this sustainable energy source, which can help us ensure a smooth transition to a carbon-free Europe, strengthen our competitiveness, and secure our energy sovereignty.

Csaba Lantos, Hungarian Minister for Energy

Faster permits and easier access to finance

In its conclusions, the Council calls on the Commission to draw up a comprehensive strategy on the decarbonisation of heating and cooling. This strategy should be accompanied by a European geothermal action plan with concrete measures to accelerate the deployment of geothermal energy.

The Council calls on the member states to streamline their rules to make geothermal energy easier to use, and also issue permits faster. One of the proposed actions for member states is facilitating projects which reconvert underground fossil facilities in order to use them for geothermal energy. In line with the just transition objectives, dedicated retraining programmes could be set up to develop a skilled workforce for the emerging geothermal industry.

When it comes to finance, the Council calls on the member states to ease access to financial schemes and elaborate incentives in order to help industries face the high upfront costs and address the risks related to drilling and exploration, but also to promote the construction related to geothermal infrastructure, like district heating networks.

The conclusions propose measures to increase the capacity of European industries in drilling, construction and equipment manufacturing. They also foresee a European Geothermal Alliance, to be set up by the Commission, that would bring together policymakers, industry and investors to spot bottlenecks and actions for a greater deployment of geothermal energy.

Background

In April 2024, the European Council called for a genuine energy union, to be achieved by securing a supply of abundant, affordable and clean energy, that serves the dual objective of pursuing European energy sovereignty and climate neutrality.

The EU’s net-zero industry act (adopted on 13 June 2024) aims to ensure the EU’s access to a secure and sustainable supply of net-zero technologies, including geothermal energy, by enhancing their manufacturing capacity and supply chain.

As the energy source is continuous, geothermal power plants can operate at their maximum capacity throughout the day and year. Moreover, with an incentivising framework, geothermal energy could become an important dispatchable source of low-emissions electricity that could contribute to the flexibility and resilience of the electricity network.

Despite the benefits of geothermal energy and its role in the decarbonisation of the energy sector as a mature net-zero technology, the potential of geothermal energy remains untapped. Overall, geothermal energy made up only 2.8 % of renewable energy sources used for the production of primary energy in the EU in 2021. Today, geothermal meets less than 1 % of global energy demand. Further actions are needed to fully explore and utilise its potential.

This set of conclusions builds on the discussions on geothermal energy during the informal Energy Council held by the Hungarian presidency in July 2024. During the discussions, ministers agreed that geothermal energy is an important alternative and sustainable renewable energy source for both heating and electricity generation.