The European Geothermal Energy Council (EGEC) welcomes the Clean Energy Investment Strategy that was announced by the European Commission on 10 March 2026 (see the Press Release). In particular, EGEC is pleased to see the emphasis on the need to de-risk investments in clean energy projects through the strategic use of public funds.
Responding to the proposals published by the European Commission, EGEC’s Secretary General, Philippe Dumas, said: “When it comes to Energy Policy, Europe must avoid the trap of always reacting to external shocks and lurching from crisis to crisis. What we need is a strategic, long-term approach to support the transition away from imported fossil fuels towards renewable and decarbonised energy sources – with geothermal solutions playing a key role.
“Geothermal must be at the heart of Europe’s approach to providing clean electricity as well as heating and cooling, with security of supply and affordable prices for all energy consumers – from households to industries.
“We know that geothermal can bring down energy costs for people and businesses, thereby strengthening the EU’s competitiveness. But, in order to access these benefits, we need a more encouraging environment for investment, with targeted European financial instruments that can leverage private capital.
“This is why we urgently need a Geothermal Strategy and Action Plan at EU level with ambitious targets, which will enable and support the deployment of geothermal solutions across all of the Member States. We also need a Geothermal Industrial Alliance to facilitate the sharing of best practices and to ensure the effective implementation of relevant legislation.
“The EU has a vital role to play when it comes to public funding and financing for geothermal energy projects. In this regard, we would like to see the European Commission develop a sectoral tripartite contract for geothermal energy, similar to those already announced in relation to offshore wind and energy storage under the umbrella of the Affordable Energy Action Plan.*”
EGEC also welcomes the Commission’s proposals in relation to the Citizens Energy Package, which would support the establishment of energy communities at local level and enable them to invest in geothermal heating and cooling networks.
“Reducing heating and cooling costs with secure supplies and stable prices benefits everyone, and is especially vital if we want to tackle Energy Poverty,” continued Philippe Dumas. “Geothermal heating and cooling solutions, including district heating and cooling networks that utilize the stable temperatures found underground, offer huge benefits including: no pollution, zero emissions, extended lifetimes and low costs for operation and maintenance.
“The Citizens Energy Package should also enable fair competition between different energy sources, with an emphasis on long-term costs and affordability for consumers. Heating currently represents 50% of the EU’s overall energy consumption, 80% of the energy consumption for individual buildings, more than 50% of energy for commercial buildings and a large part of the energy consumption for industry and farmers. When installing a new heating and cooling system, consumers – from households and building owners to cities, industry or farmers – should be offered a choice between all heating sources that lets geothermal compete with other solutions on a level playing field that takes emissions and long-term running costs into account.”
EGEC underlines the importance of strengthening competition between energy technologies in heating and cooling markets, as emphasised in the Citizens Energy Package and to be highlighted in the upcoming Heating and Cooling Strategy. Consumers – including households, cities, building owners, industries and farmers – are often not presented with a full range of heating solutions when investing in new systems. This lack of competition limits the ability of the market to deliver the most affordable solutions. Ensuring a level playing field across technologies is therefore essential to achieve the objectives of the EU internal energy market and provide European consumers with low and stable energy prices.
For more information about EGEC’s position on a European Geothermal Strategy and Action Plan, see please see our recent policy statement:
The European Geothermal Strategy and Action Plan (December 2025)
* See the announcement on 5 September 2025:
Commissioner Jørgensen announces first 2 sectorial tripartite contracts
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