Finance
EU looks to geothermal in drive for energy security, document shows
Published by Global Banking & Finance Review®
Posted on December 9, 2024
2 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 9, 2024
2 min readLast updated: January 27, 2026
The EU plans to promote geothermal energy to replace Russian gas and lower energy prices, with a strategy to reduce emissions and speed up projects.
By Kate Abnett
BRUSSELS (Reuters) - European Union countries plan to promote geothermal energy as they hunt for ways to replace Russian gas and bring down energy prices, a draft EU document showed.
The 27 EU members will jointly endorse geothermal energy for the first time at a meeting of EU energy ministers in Brussels next week, according to a draft document seen by Reuters, and will ask the European Commission to come up with a bloc-wide plan to get projects off the ground.
The draft requests an EU strategy to reduce emissions from heating and cooling systems, and specific EU measures to speed up geothermal projects. Ministers will suggest this includes financial guarantees to de-risk investments and simpler permitting rules, the document showed.
Geothermal projects drill underground to access local subterranean heat, which is brought to the surface to provide a constant source of heating to buildings, or to generate electricity.
"The use of geothermal energy contributes to the strategic objectives of the European Union by decreasing energy dependence and fossil fuel imports," the draft document said.
High energy prices for industries and households, and the loss of most Russian gas since Moscow's 2022 invasion of Ukraine, have prompted European countries to speed up their expansion of renewable energy.
But while wind and solar capacity have jumped, geothermal energy - another renewable source which the EU hopes can help replace fossil fuels - remains much smaller. Projects still struggle with high upfront investment costs and complex regulations.
EU data show geothermal produced less than 3% of the bloc's energy in 2022. That's despite it having the potential to cover three-quarters of EU heating and cooling needs in residential and commercial buildings by 2040, according to industry group the European Geothermal Energy Council.
Most EU countries already have geothermal district heating systems, but only a handful - including France, Germany and Italy - use it to generate electricity.
(Reporting by Kate Abnett; Editing by Susan Fenton)
The article discusses the EU's plan to promote geothermal energy to enhance energy security and reduce reliance on Russian gas.
Geothermal energy is seen as a way to decrease energy dependence and fossil fuel imports, contributing to the EU's strategic objectives.
Geothermal projects struggle with high upfront investment costs and complex regulations, limiting their expansion.
Explore more articles in the Finance category
