The energy ministers in the EU Energy Council approved the outline of a European geothermal energy action plan on December 17.

“This is a pivotal moment for geothermal energy in Europe,” the council said in a press release. The Council calls on the EU Commission to draw up a European geothermal action plan with concrete measures to accelerate the deployment of geothermal energy.

The move comes shortly after the International Energy Agency (IEA) released a landmark report on December 15 highlighting the potential of geothermal energy. The IEA decupled its estimate of the potential energy generation potential to 800GW. The IEA also called on governments, especially in Europe, to slash the red tape surrounding permits for drilling as the main obstacle to developing geothermal energy. The agency said that around $1 trillion of investment is needed and geothermal could account for 15% of the energy mix by 2050 compared to 1% today if this investment is made.

Still struggling from the legacy of the 2022 energy crisis and on the hunt for new cheap sources of energy, the EU Council has been quick to respond. In it draft plan, the Council also urges member states to:

·        Streamline permitting for faster processes.

·        Improve access to financing to address high upfront investment costs.

·        Take measures to enhance the workforce in the geothermal sector.

“The conclusions highlight the role of geothermal energy to ensure a smooth transition to a carbon-free Europe, strengthen our competitiveness, and secure our energy sovereignty,” said Csaba Lantos, Hungarian Minister for Energy in a press release.

The IEA says that the sector has the advantage of being able to tap well-established drilling technologies from the oil and gas sector. Geothermal energy has the potential to supply 25% of the EU’s heating and cooling needs and 10% of its electricity production, according to the European Commission’s Strategic Energy Technology Plan. Next-generation technologies such as “closed loop” geothermal energy production – basically an upside-down radiator buried deep in the ground -- could significantly increase these figures.

Additionally, the EU Energy Council calls for the EU Commission to establish a European Geothermal Alliance to unite stakeholders in advancing geothermal solutions across Europe.

“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 EU said in a press release.

At the EU Energy Council meeting on December 17, the IEA Executive Director Fatih Birol addressed the ministers, presenting the IEA’s report on the future of geothermal energy.

Alexander Helling, Baseload Capital CEO, said: “At Baseload Capital, we welcome this pivotal moment for geothermal energy in Europe and will continue doing our part to scale up this clean, reliable source that delivers 24/7, no matter the weather or time of day.”