Policy Documents

The European Geothermal Energy Council (EGEC) welcomes the European Commission’s initiative to remove barriers to Power Purchase Agreements (PPAs) and accelerate their uptake as tools to finance new clean electricity assets and provide long-term price stability for consumers. PPAs can help scale renewable generation while giving electricity buyers more predictable costs. EGEC highlights that geothermal electricity is firm, non-weather-dependent, and flexible, contributing to the security of supply, grid stability, and overall system resilience. These characteristics are increasingly relevant as Europe faces more zero- or negative-price hours and greater flexibility needs to integrate variable renewables and support electrification. EGEC agrees that PPAs are important for unlocking privately financed renewable energy capacity, but stresses that PPAs alone are insufficient for capital-intensive technologies such as geothermal. High upfront costs and exploration and drilling risks are not addressed by standard PPA structures, which primarily hedge operational market-price risk. To close this bankability gap, PPAs should be complemented by targeted public de-risking instruments, including public guarantees and counter-guarantees to cover payment default risks and improve access to credit. EGEC also points to persistent non-financial barriers, notably administrative complexity and slow permitting and licensing, and calls for streamlined procedures to unlock project pipelines and expand the PPA market. Regulatory frameworks should also ensure that PPAs can coexist with public support schemes such as Contracts for Difference (CfDs), in a way that supports competition while providing sufficient investment security. Finally, EGEC underlines the need to develop EU guidance for Renewable Heat and Cold Purchase Agreements (RHCPAs), including dedicated infrastructure financing and full implementation of relevant Renewable Energy Directive provisions, notably Article 23.4 on RHCPAs. Read here EGEC's full response to the Commission initiative

The European Geothermal Energy Council (EGEC) welcomes the European Commission’s review of the energy labelling and Ecodesign requirements for space and combination heaters. These revisions are both timely and necessary to reflect technological progress and ensure consistency with EU climate objectives. EGEC considers the review a key opportunity to correct long-standing shortcomings affecting geothermal heat pumps (GHPs), whose performance has historically been misrepresented due to outdated and unrealistic testing assumptions. Under the current framework, geothermal heat pumps are assessed using inlet temperature assumptions set in 2013 that rely on unrealistically low brine temperatures. This has resulted in systematic underestimation of geothermal performance compared to other heat pump technologies, despite geothermal proven seasonal efficiency, stability and system value. We therefore welcome the Commission’s proposal to adjust the reference inlet temperature to 5 °C, which better reflects average operating conditions across Europe and restores fairness between technologies. This correction also aligns geothermal testing conditions with the way average conditions are already used for air-source heat pumps. We consider the proposed 5 °C reference temperature a pragmatic and robust compromise that improves representativeness without adding unnecessary complexity to the regulatory framework. It should be clearly defined as an average seasonal condition, not a conservative design extreme. While supporting a more differentiated testing approach in the longer term, we believe this revision is an essential step towards a level playing field and an accurate recognition of geothermal heat pumps within EU energy policy. Read EGEC's response to the consultation

The European Geothermal Energy Council (EGEC) welcomes the European Commission’s initiative to review the Climate and Environmental Delegated Acts of the EU Taxonomy legislation. We strongly support the objectives of simplification, reduction of administrative burden, and alignment of Taxonomy with the EU’s industrial and climate ambitions. In this context, and with the intention of contributing to a more coherent and technology-neutral sustainable finance framework, we wish to suggest the following modifications. Remove the emission threshold and mandatory LCA requirements for geothermal technologies Create a coherent taxonomy category for geothermal heat pumps Clarify the scope of the “Manufacturing of renewable energy technologies” category Address practical challenges in DNSH criteria for DHC networks   Read EGEC’S full position  

EGEC 's proposals for a European Geothermal Strategy and Action Plan, published on 5 December 2025. 

With a letter to Commissioner for Economy and Productivity Implementation and Simplification Valdis Dombrovskis, EGEC provided its answer to a call for feedback by the Platform on Sustainable Finance on the draft report on preliminary recommendations for the review of the Taxonomy Climate Delegated Act and additional technical screening criteria for the EU Taxonomy. 

The European Commission ‘Competitiveness Compass’ released on Wednesday  29 January sent the right signal for the Clean Industrial Deal.  EGEC supports the initiatives set out for ensuring a competitive energy for people and business.  To supply affordable energy, more competition is required on energy markets to supply electricity, heating and cooling, and for storage. 

Brussels, 16th December 2024 – The European Geothermal Energy Council (EGEC) is delighted with the Hungarian Presidency for initiating the proposal and to all Member States for adopting today the Council conclusions.

Brussels, 13th December 2024 – The European Geothermal Energy Council (EGEC) welcomes the publication of the International Energy Agency’s (IEA) historic and ground-breaking report outlining geothermal’s role in improving energy security and economic resilience whilst addressing the climate crisis.

Dan Jørgensen, the Commissioner-Designate for Energy and Housing, committed to European strategy for geothermal at his confirmation hearing in the European Parliament yesterday, November 5th, 2024. 

IOGP, the international association of oil and gas producers, outlined a series of measures required to create market maturity for geothermal across Europe. They identify three key measures: i) Strategic funding; ii) policy support, and iii) risk management as the key ingredients of Europe’s geothermal action plan. Read The Full Statement Here