The Council of the European Union is advocating for the accelerated deployment of geothermal energy by introducing measures to promote its adoption. These include improved access to financing to mitigate high upfront costs, workforce development in the geothermal sector, and increased collaboration in research. This initiative follows the recent release of the International Energy Agency’s (IEA) special report, The Future of Geothermal Energy.
Hungary’s Minister for Energy, Csaba Lantos, who chaired the Council’s ministerial meeting on December 16, emphasized the reliability and sustainability of geothermal energy. He stated, “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.”
A Comprehensive Strategy for Geothermal Energy
The Council has urged the European Commission to develop a robust strategy for decarbonizing heating and cooling systems. This strategy would include a dedicated European Geothermal Action Plan, outlining specific measures to enhance the adoption of geothermal energy.
Streamlining Processes for Geothermal Projects
To make geothermal energy more accessible, the Council recommends that member states simplify their regulatory frameworks and expedite permit issuance. Additionally, it proposes facilitating the conversion of underground fossil fuel facilities into geothermal energy sites. To support this transition, retraining programs could be established to create a skilled workforce for the burgeoning geothermal industry.
Addressing Financial Barriers
The Council highlights the importance of reducing financial barriers to geothermal projects. Member states are encouraged to develop schemes and incentives to help offset high initial costs associated with drilling and exploration. This includes promoting the development of geothermal infrastructure, such as district heating networks, to broaden geothermal’s application and impact.
Building Capacity and Collaboration
To enhance the capacity of European industries involved in drilling, construction, and equipment manufacturing, the Council proposes targeted measures. A European Geothermal Alliance, coordinated by the European Commission, is envisioned as a platform for policymakers, industry leaders, and investors to identify challenges and develop solutions for widespread geothermal deployment.
Insights from the IEA Report
The IEA’s report underscores the potential of technology and expertise from the oil and gas industry to reduce costs in the geothermal sector. The agency estimates that next-generation geothermal technologies could attract $1 trillion in investments by 2035, generating over a million jobs worldwide.
This collective effort by the European Union aims to position geothermal energy as a cornerstone of a sustainable, carbon-free energy future, contributing to economic growth, energy sovereignty, and environmental goals.
