EGEC Geothermal Market Report 2025 – Now available!

Europe’s geothermal sector is ready to meet the growing demand for affordable decarbonised energy solutions, but more supportive policies and legislation are needed to encourage investments and accelerate growth. This is the main conclusion to draw from the latest Geothermal Market Report, which has been published today by the European Geothermal Energy Council (EGEC).

Published each year, the EGEC Geothermal Market Report provides a comprehensive snapshot of the European geothermal sector, highlighting current trends and projecting future developments.

The EGEC Geothermal Market Report 2025, which is published today, focuses on developments during 2025 and presents forecasts of future activity, based on the best available data.

Here are some of the Key Findings contained in EGEC’s latest Market Report:

• The geothermal district heating and cooling (DHC) sector experienced steady growth, with ten new systems launched: three in France, two each in Germany and the Netherlands, and one each in Denmark, Serbia and Spain, representing a total of 70 MWth additional capacity. This brought the total number of operational GeoDHC systems in Europe to 434 (with a combined capacity of more than 6 GWth). Meanwhile, more than 500 GeoDHC projects are currently under development, and so we can expect an additional 6 GWth of new capacity to be added in the next few years.

• Following the sharp contraction observed in 2024, the geothermal heat pump market returned to growth in 2025. We see that around 123,000 geothermal heat pump (GeoHP) units were sold in 2025. This represents a 10% increase compared with 2024. The total stock of geothermal heat pumps installed across the EU has now surpassed 2.5 million units, confirming the growing importance of geothermal heating and cooling in Europe’s energy transition. The exponential growth of Europe’s GeoHP market is set to continue this year with many large systems being installed.

• 2025 saw the commissioning of five new geothermal power plants — three in Türkiye, one in Germany and one in Iceland. Furthermore, the geothermal power plant in Croatia is about to recommence electricity generation. Altogether, these six plants add about 125 MW of additional baseload capacity. In total, there are now 150 geothermal power plants in operation across Europe, with a combined capacity of more than 3.5 GW (1.02 GW of which is located in EU countries). In addition, around 45 geothermal power plants are progressing through various stages of development, and proposals for a further 152 plants are currently being studied.

Miklos Antics, EGEC President, stated: “While 2025 has been marked by macroeconomic challenges such as inflation, high interest rates, and permitting delays, these hurdles do not change the fundamental truth: geothermal technologies are ready. What remains is to unlock their deployment at scale. Europe stands at a decisive moment. An ambitious Geothermal Action Plan at European level can provide the clarity and confidence needed to scale the sector and mobilise investment across the continent.”

Philippe Dumas, EGEC’s Secretary-General, added: “The past year reflects both resilience and momentum. The geothermal heat pump market is gradually recovering, district heating continues to expand steadily, and geothermal power is re-emerging with new developments. These are not isolated signals; they are the foundations of a much larger transformation. Now we need an ambitious European Geothermal Action Plan to ensure continued market growth and remove barriers to deployment!”

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

READ THE KEY FINDINGS

READ THE PRESS RELEASE

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

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

Watch the webinar: EGEC Geothermal Market Report 2025 – Key Findings & Insights

EGEC would like to thank the sponsors of our Geothermal Market Report 2025