The EU can lead on geothermal energy, but it needs to define its plan
Last month, the European Commission released its Affordable Energy Action Plan and its Clean Industrial Deal. The action plan is focused on cutting energy costs, attracting investment, and strengthening energy security, with a projected savings of EUR 45 billion this coming year. Yet, despite the urgency to develop cost-effective and reliable energy solutions, the plan overlooks one of the most promising options: geothermal innovation. Despite growing calls from the Parliament and the Council to give more attention to this technology, it was conspicuously absent from the plan.
The missed potential beneath our feet
Clean Air Task Force estimates that tapping just 1% of Europe’s high-temperature geothermal resource could generate nearly 18,000 terawatt-hours (TWh) of electricity. That’s enough to power over 1,400 cities the size of Berlin. Unlike wind and solar, geothermal offers stable, round-the-clock energy, as well as a source of direct heating, which can serve to both reduce reliance on fossil fuel imports and strengthen grid resilience.
Excluding geothermal from action plans developed within the Clean Industrial Deal is a strategic misstep. Without clear direction, incentives, and targeted geothermal policies, Europe risks lagging behind countries actively funding next-generation geothermal technologies, including Iceland, New Zealand, Japan, and China.
Europe’s opportunity to lead on geothermal innovation
The EU has a history of geothermal thought-leadership, and is well-positioned to establish itself as the global leader in this field. Europe could develop a competitive advantage in this clean technology while also supporting its transition towards secure, domestic energy sources. In contrast, while the U.S. has launched some next-generation geothermal projects, it lacks a coordinated national geothermal strategy and is also taking a step back on many climate initiatives. This creates an opening for the EU to define the global agenda. By developing a clear path forward, defining specific actions and their timelines, the EU has an opportunity to step up and emerge as a leader in this transformative clean technology.
However, the Affordable Energy Action Plan fails to provide concrete steps to advance geothermal deployment. The European Geothermal Energy Council (EGEC) has rightly criticised the omission, calling it a “significant hole” in the strategy. The Council and the European Parliament had previously called for a geothermal strategy. Commissioner Dan Jørgensen also committed in his hearing in the Parliament that the Commission will bring forward such a plan – yet it remains undelivered.
How the EU can secure its geothermal leadership
There are three ways the EU must take immediate action:
- Follow through with their commitment to publish a comprehensive EU Geothermal Strategy by Q1 of 2026. The Commission must follow through on existing announcements, set a clear pathway for geothermal innovation, and outline the measures needed.
- Make sure that next-generation geothermal is included in innovation and demonstration funding. Enhanced and closed-loop technologies, and these technologies in superhot rock geothermal conditions, can unlock vast new resources, providing both electricity and industrial heat. Funding mechanisms like Horizon are well-positioned to take this step.
- Ensure that geothermal is fully integrated in the EU plan to develop clean, affordable, and secure energy for Europe.
The cost of inaction
Europe has the expertise, resources, and political backing to lead in geothermal. But without concrete policy actions, it risks watching other nations take the lead. The EU Affordable Energy Action Plan was an opportunity to advance geothermal as a cost-effective, scalable solution to energy security and decarbonization. The EU still has time to course correct. By failing to act, Europe delays its own progress – and risks its global competitiveness.
