EGEC launches Special Market Report on Geothermal District & Industrial Heating & Cooling Systems!

EGEC launches its Geothermal District and Industrial Heating & Cooling Systems Market Report 2026, continuing the new series of targeted geothermal market reports providing detailed insights into specific segments of Europe’s geothermal sector.

Europe’s geothermal district heating and cooling market continues to expand, with a strong project pipeline showing significant growth potential towards 2030. In 2025, 10 new geothermal district heating systems were commissioned across Europe, bringing the total to 434 operational plants and more than 6 GWth of installed capacity. With over 500 projects under development and an additional 6 GWth of capacity in the pipeline, geothermal energy is well positioned to play a growing role in decarbonising European cities and industries.

However, accelerating deployment will require stronger policy support and improved investment conditions. The revised Renewable Energy Directive (RED), Energy Efficiency Directive (EED) and Energy Performance of Buildings Directive (EPBD) provide an important framework for expanding renewable heating and cooling. Simplifying permitting procedures, improving access to geological data, introducing effective risk mitigation schemes and strengthening financing mechanisms will be essential to unlocking the sector’s potential. Greater support for geothermal district heating infrastructure and long-term heat purchase agreements will also be critical to attracting investment and accelerating market growth.

Key Findings of the Geothermal District and Industrial Heating & Cooling Systems Market Report 2026

• The European geothermal district heating and cooling market continued to grow in 2025, with 10 new systems commissioned across France, Germany, the Netherlands, Denmark, Serbia and Spain. These installations added approximately 70 MWth of capacity, bringing the total to 434 operational plants across Europe, including 317 in EU Member States.
• A strong project pipeline points to significant market expansion by 2030. More than 500 geothermal district heating projects are currently under development, representing approximately 6 GWth of additional planned capacity. Germany remains a leading market, while Italy and Denmark are showing strong momentum in new project development.
• Technological innovation is expanding the potential of geothermal heating and cooling. The increasing integration of large-scale industrial heat pumps allows lower-temperature geothermal resources to supply district heating networks. Advances in drilling technologies, underground thermal energy storage, geothermal cooling and low-temperature thermal networks are creating new opportunities for buildings, industrial processes and data centres.
• Simplified permitting and stronger regulatory frameworks are critical to accelerating market growth. Lengthy administrative procedures, limited access to subsurface data and regulatory uncertainty continue to delay projects. The report highlights the need for streamlined permitting, targeted financial incentives and national geothermal strategies to support deployment.
• Geothermal district heating and cooling offers a competitive, long-term alternative to fossil-fuel heating. Despite high initial investment costs, geothermal systems benefit from relatively low operating and maintenance costs and stable heat generation costs, offering significant opportunities to strengthen Europe’s energy security and decarbonise heating and cooling.

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