EGEC’s new Special Market Report on Geothermal Electricity Market in Europe 2026!

EGEC has released its latest Geothermal Electricity Market in Europe 2026 Report, the third publication in its series of targeted geothermal market reports, providing detailed insights into specific segments of Europe’s geothermal sector. This new publication focuses on geothermal electricity generation, examining market developments, technological innovations, investment trends, regulatory challenges and emerging opportunities for future growth.

Europe’s geothermal electricity market continued its recovery in 2025, reinforcing its potential to provide reliable, renewable baseload power and strengthen Europe’s energy security. By the end of 2025, 150 geothermal power plants were operating across Europe, representing 3.53 GW of installed capacity and generating approximately 20 TWh of electricity annually. Five new geothermal power plants were inaugurated during the year, while a plant in Croatia resumed production, together adding approximately 125 MWe of baseload capacity. With around 45 projects progressing through development and further opportunities emerging across Europe, the sector shows significant potential for expansion towards 2030.

The evolving EU electricity market framework offers new opportunities for geothermal electricity, but stronger policy support and investment mechanisms remain essential to accelerate deployment. The revised Electricity Market Design introduces measures to improve price stability and encourage renewable energy investment, including Power Purchase Agreements (PPAs) and two-way Contracts for Difference (CfDs). However, lengthy permitting procedures, high upfront investment costs and geological uncertainties continue to constrain project development. Recognising the contribution of geothermal electricity to grid stability, flexibility and security of supply will also be essential as Europe advances towards a more resilient and decarbonised electricity system.

Key Findings of the Geothermal Electricity Market in Europe 2026 Report

• Europe’s geothermal electricity market continued to recover in 2025, with 150 operational power plants representing 3.53 GW of installed capacity, including 1.02 GW within the EU. Geothermal electricity generation reached approximately 20 TWh across Europe, of which 7 TWh were generated in EU Member States.
• The project pipeline highlights significant growth opportunities towards 2030. Around 45 geothermal power plants are progressing through various stages of development, while proposals for 152 additional plants are under investigation across Europe. Germany leads in project development, with growing activity in Türkiye and emerging markets such as Greece and Spain.
• Next-generation geothermal technologies are expanding electricity generation potential. Advances in Enhanced Geothermal Systems (EGS), Advanced Geothermal Systems (AGS), closed-loop technologies and superhot geothermal resources are opening new opportunities for geothermal power generation. Innovations in drilling techniques, well designs and binary turbine systems are also supporting technological progress and new applications.
• High upfront investment costs and geological risks remain major barriers to market expansion. Geothermal electricity projects typically require capital investments of €4–7 million per MWe of installed capacity. Dedicated risk mitigation instruments, improved financing conditions and mechanisms such as Contracts for Difference (CfDs) are essential to reducing investment uncertainty and supporting project development.
• Geothermal electricity can make a greater contribution to Europe’s energy security and electricity system flexibility. Its ability to provide continuous renewable baseload power, alongside opportunities for combined heat and power generation, makes geothermal an important component of a resilient energy system. Stronger recognition of these benefits, together with simplified permitting and supportive regulatory frameworks, will be crucial to accelerating deployment.

Read the Full Report

The contents of this report are partially based on the contents of the Geothermal Market Report 2025, which was published by EGEC in July 2026.

Full Report & Annexes: The Full Report, as well as supporting data and tables (Annexes), are provided to EGEC members and they are also available for purchase from the EGEC secretariat.

Purchase options:

1. Full Report (90 pages) and Annexes (62 pages): €10.000,00

2. Full Report (90 pages): €5.000,00

3. Annexes (62 pages): €5.000,00

Key Findings: The Key Findings of the EGEC Geothermal Market Report 2025 are available on the EGEC website.

Read the Key Findings.

Should you wish to purchase the Full Report and Annexes (or learn about how to become a member of EGEC) please contact info@egec.org