Today EGEC sent a letter to the European Commission Executive Vice President on the European Green Deal, the Executive Vice President for A Europe Fit for the Digital Age and the Commissioner on Energy. This letter was asking for the implementation of a fair framework for State Aid, that allow European Member States to support the development of innovative technologies and the market uptake of geothermal energy, notably in the heating and cooling sector.
State Aid guidelines at the European level set the rules for European countries looking to provide public funding to fix market failures, such as the lack of suitable infrastructure for geothermal heating and cooling, or allow technologies to reach market maturity. While some renewable energy technologies are reaching market maturity, it is not the case of many others, including most geothermal energy technologies. Moreover, market barriers continue to be prevalent in the heating and cooling sector where fossil fuel infrastructure – which benefits from plentiful European funding – continue to lock out geothermal energy.