Europe risks missing the “geothermal revolution” unless policybuildrs act decisively to unlock next-generation deep geothermal energy. This is according to an open letter to EU leaders.
The coalition consists of nearly 70 businesses, investors, consider tanks, and civil society organisations. It calls for concrete measures to scale geothermal energy for both electricity and heat. And it highlights this technology’s potential to generate up to 301 terrawatt-hours annually in the EU. This is equivalent to around 42% of its coal- and gas-fired generation. Meanwhile the letter points to a much larger potential estimated at nearly 40 terrawatts, or roughly 35 times Europe’s current installed electricity capacity.
Next-generation geothermal technologies enabled by deeper drilling could provide a domestic source of reliable, 24/7 clean energy across many member states. These technologies allow access to heat resources several kilometres underground, significantly expanding geothermal’s potential beyond traditional volcanic regions.
The letter warns that the European Commission’s forthcoming Geothermal Action Plan, due in May, risks underestimating the technology’s strategic opportunity if it is treated primarily as part of heating and cooling policy rather than as a broader source of firm electricity, industrial heat, and critical raw materials such as lithium.
Dr. Marlène Siméon, director of policy at Future Cleantech Architects, declared:
With next-generation geothermal energy, Europe has abundant, clean, and firm energy at its feet. By embracing this technology, it can strengthen energy security, towards reliable and dispatchable energy, better compete with Chinese and US geothermal projects, and reduce depconcludeence on oil and gas – the Achilles heel of the EU’s energy system.
The letter, addressed to European Commission president Ursula von der Leyen and key commissioners, is led by Cleantech for Europe, Future Cleantech Architects, and the European Geothermal Energy Council. Nearly 70 signatories support it, including cleantech companies, innovators and investors, NGOs, and research groups.
Factors limiting geothermal growth
While Europe has strong technological leadership in advanced geothermal systems, the coalition argues that insufficient political prioritisation has slowed deployment compared to other clean technologies.
The letter identifies three key barriers limiting investment:
- High upfront costs and risk associated with exploration and deep drilling.
- Lack of long-term revenue certainty.
- Complex permitting and grid connection procedures.
To address these challenges, the coalition calls for:
- A dedicated EU geothermal de-risking facility.
- Bankable market frameworks supporting investment.
- Faster permitting procedures and improved access to data.
- Stronger political prioritisation of geothermal in the EU energy strategy.
With global competition in next-generation technologies accelerating, the signatories emphasise that the upcoming Geothermal Action Plan represents a critical opportunity to position geothermal as a pillar of Europe’s clean industrial strategy.
Sanjeev Kumar, policy director at the European Geothermal Energy Council, declared:
The Geothermal Action Plan must outline effective measures to overcome investment barriers and rapidly deploy geothermal so that everyone benefits from cheap, stable and homegrown energy.
Director of Cleantech for Europe Victor van Hoorn added:
Europe can ill afford another energy crisis like 2022. Scaling firm 24/7 domestic energy is now a competitiveness and security imperative. Geothermal – the heat below our feet – has the potential to play a system-level role – but only if we unlock investment and deployment at scale.
GA Drilling founder Igor Kocis declared:
Europe has the technology and resources to unlock geothermal at scale, the missing piece is quicker execution and tarreceiveed investment. If we are serious about energy security and reducing depconcludeency on imported fuels, we required to invest in stable, local baseload energy, and geothermal is the most effective solution to deliver that over time.
And Baseload Capital CEO Alexander Helling commented:
Europe must break free from its fossil fuel addiction, and the answer lies beneath our feet: by rapidly scaling geothermal energy, we can unlock clean, always-on power, heating, and cooling for a competitive, affordable and sustainable future.
Feature image via the Canary
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