The European Commission has presented (on 9 September 2026) a series of legislative proposals that are relevant to the development and deployment of geothermal energy solutions in the European Union. According to EGEC, these proposals include some positive aspects, but there are also some missing elements and others that should be improved before the proposals are finally adopted.
PHOTO: Stéphane Séjourné (Executive Vice-President – Prosperity and Industrial Strategy) and Ekaterina Zaharieva (EU Commissioner for Startups, Research and Innovation) presenting the European Commission’s proposals in Brussels on 9 September 2026 (© European Union, 2026, licensed under CC BY 4.0 )
1. European Innovation Act
The Commission has proposed a new European Innovation Act, which it claims will strengthen the EU’s long-term competitiveness, prosperity and technological sovereignty by helping Europe’s most innovative ideas be developed, financed and scaled up in Europe.
EGEC believes that the measures proposed by the Commission should boost innovation and help Europe to maintain its leadership in geothermal technologies.
“The geothermal sector is one of the most innovative sectors in Europe’s economy,” says Philippe Dumas, EGEC’s Secretary General. “Each year, new research and innovation – also in terms of business models – enable the geothermal sector to provide better solutions to decarbonize our economy. Research and innovation also allows geothermal technologies to become less expensive, more efficient, and easier to install anywhere. It thereby helps to expand the market for these technologies and enhance the competitiveness of Europe’s geothermal sector.”
See EGEC’s latest report on Geothermal Innovation Trends (published in December 2025).
2. Public Procurement Rules
EGEC also welcomes the European Commission’s proposal for a new Regulation to modernise and simplify the EU’s Public Procurement Rules in order to support effective investments in public services and infrastructure in line with the Union’s policy objectives.
“Following the Net-Zero Industry Act (NZIA), the Public Procurement rules should also consider non-price criteria on sustainability and resilience,” says Philippe Dumas, EGEC’s Secretary General. “Geothermal is a local renewable energy source with technologies provided by a European Supply Chain to supply affordable power, heating, cooling, storage and sustainable minerals to people, cities and industry. EGEC insists that geothermal technologies must be rewarded for these advantages to the economy in public procurements.”
3. Affordable Housing Act
EGEC is concerned that the Affordable Housing Act, announced by the European Commission does not include adequate measures to tackle energy poverty and accelerate the uptake of efficient heating and cooling – including geothermal solutions.
EGEC is calling for an ambitious and comprehensive European Action Plan to build and renovate social housing, hospitals, nurseries, nursing homes schools, sport centres and other public buildings. Such a plan should enable these building to enjoy the benefits of geothermal heating and cooling solutions – including lower energy costs.
“Over 60% of household energy bills are spent on keeping us warm, cool and providing hot water,” says Sanjeev Kumar, EGEC’s Policy Director. “These costs can be dramatically reduced by installing geothermal heating and cooling systems. The EU should empower municipalities and citizens to invest in truly affordable housing with sustainable heating and cooling using geothermal solutions.”
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