The Affordable Energy Action Plan: a welcome first step but rudderless without firm action on geothermal

Brussels, 26^th February 2025 – The European Geothermal Energy Council (EGEC) welcomes the recognition of the critical role of geothermal energy in the newly announced Action Plan for Affordable Energy. This ambitious plan is key to decreasing energy prices for citizens, businesses, and communities across the European Union.

The plan correctly states that the “cost of inaction is higher than the cost of action’. The proposed measures, however, fall short of what is required to deliver the urgent and systemic change to Europe’s energy system especially for heating and cooling.

We welcome the Action Plan’s call to “foster investment” in geothermal but are surprised by the lack of specific actions to deliver this outcome. “We are concerned that the Geothermal Action Plan was omitted from the Affordable Energy Action Plan,” said Philippe Dumas, EGEC’s Secretary-General. “This leaves a significant hole in the Action Plan,” he added. We agree on the need to complete the integration of our energy market to allow geothermal supply affordable energy to people and businesses.

Energy ministers, the European Parliament, the Committee of Regions, the European Economic and Social Committee and even Dan Jorgensen, the Commissioner for Energy and Housing, committed to a geothermal action plan because it facilitates lower energy costs for industry, families and farmers, provides stability to the electricity system and accelerates strategic autonomy in raw material production.

Sanjeev Kumar, EGEC’s Policy Director, added that “excluding geothermal from the tripartite agreements initiative is counter-productive”.

• Geothermal’s value chain is almost entirely European. It has been the leading component exporter of European renewable technologies.

• The industry and major consumers, such as cities, have been campaigning for a European financial guarantee derisking scheme for some time. The European Commission even commissioned the Investors Dialogue in Energy to design a European scheme.

• The business models outlined in the Action Plan’s tripartite agreements were central pillars of the Energy Council’s call in the Geothermal Action Plan. Furthermore, Dan Jorgensen stated these would be a key part of the geothermal action plan during his confirmation hearing in the European Parliament.