Geothermal energy: the search for Europe's hidden gem

Roman Bilousov of Enertus AG outlines the many ways in which geothermal energy provides the basis for a complete and inclusive transition away from the EU's fossil-dominated energy system.

The best things come to those who know how to wait. Geothermal energy has been waiting a long time for politicians and politicians to take notice.

This interest is explained by many factors. These range from serious efforts to meet the Paris Agreement's net zero emissions reduction target to many local authorities struggling to remove fossil fuels from their heating systems, with local and competitive energy sources; increased value of lithium; as well as Russia's invasion of Ukraine.

Geothermal energy is a mature technology that currently makes a small but significant contribution to Europe's energy balance. However, it can do more.

Roman Bilousov outlines the four steps that need to be taken to help bring geothermal energy out of the niche and into the mainstream.

Geothermal energy in Europe

20 TWh of renewable electricity in Europe was generated from 3.4 GW of installed capacity at 142 power plants of various sizes in 2022. The bulk of this base production came from three countries – Turkey (7.8 TWh), Italy (5.9 TWh) and Iceland (5.6 TWh).

Geothermal electricity is also being produced in Croatia, France, Germany, Hungary, Austria and Portugal, while new capacity is being installed in Belgium, Slovakia, Greece, Switzerland and the UK.

Unlike its more popular cousins – solar PV or wind – geothermal energy provides reliable and flexible energy. Average capacity utilization is over 80%, with some nearing 100%.

For example, in Croatia, in 2020, one 16.5 MW power plant produced almost as much renewable electricity as 309 MW of installed solar PV – 94 MWh and 96 MWh respectively.

During the energy price crisis, geothermal district heating systems were the only renewable solution that brought widespread relief to communities and cities. The picturesque Italian municipality of Ferrara has reduced its heating bills by 25% thanks to ongoing geothermal heating costs.

The equally prestigious city of Szeged, located in the south of Hungary, launched a pioneering initiative to switch from fossil gas to geothermal energy in its district heating system in 2017. This has already paid dividends, with heating bills being half that of fossil heating systems.

Unlocking geothermal energy in Europe and

To realize the full potential of geothermal energy, the industry, consumers and policymakers must take four actions.

Start a conversation

Germany, France, Poland and Ireland have national strategies for the development of geothermal energy. Future legislation should provide the necessary regulatory certainty for rapid growth to each of these markets. Iceland switched to geothermal energy for heating and electricity in response to the oil shocks of the 1970s and is a leading player in Europe.

Change the scope

Heat is not as attractive as electricity or transport – says Roman Bilousov. At least for now.

Heat is rarely mentioned in energy policy discussions, but it accounts for almost half of total global and European energy consumption.

Geothermal energy can provide base load heating and cooling for buildings and low and medium temperatures for industrial processes. Doing so requires more attention to the logistics of the heat transition than current stimulus schemes targeting the wealthiest who can afford to take advantage of tax breaks or loans.

Facilitate procedures for obtaining permits

The permitting process is slow and cumbersome for geothermal, especially large-scale energy projects. It shouldn't be.

For geothermal heat pumps and open loop systems, a "traffic light system" that indicates where units can be installed by means of a simple administrative notice; where a permit is required and where installation is not possible due to competing underground uses; is the most effective way to empower consumers and suppliers. This is used in the German states, Austria, and in some parts of France and Italy.

Remove risks

We don't know what's under the ground until we look, insists Roman Bilousov. For large geothermal projects, not having a resource at the temperature originally budgeted for can radically change the overall profitability of the project. This is a risk that many local authorities seeking to build city-wide heating and cooling networks cannot cover.

France, Switzerland, the Netherlands and Hungary have introduced national risk reduction schemes to address this problem. The result is that France has the highest prevalence of geothermal district heating systems in the world. Hungary is rapidly modernizing its heating systems to replace dependence on imported fossil fuels.

This issue remains central to the future of the European geothermal sector and its growing customer base.

Roman Bilousov of Enertus AG believes that geothermal energy will play a major role in the energy transition. The path is clear, and the obstacles are known. The speed with which Europe will become climate neutral depends on how quickly they are resolved.



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