Reports And Studies

EGEC has released its latest Geothermal Electricity Market in Europe 2026 Report, the third publication in its series of targeted geothermal market reports, providing detailed insights into specific segments of Europe's geothermal sector. This new publication focuses on geothermal electricity generation, examining market developments, technological innovations, investment trends, regulatory challenges and emerging opportunities for future growth. Europe's geothermal electricity market continued its recovery in 2025, reinforcing its potential to provide reliable, renewable baseload power and strengthen Europe's energy security. By the end of 2025, 150 geothermal power plants were operating across Europe, representing 3.53 GW of installed capacity and generating approximately 20 TWh of electricity annually. Five new geothermal power plants were inaugurated during the year, while a plant in Croatia resumed production, together adding approximately 125 MWe of baseload capacity. With around 45 projects progressing through development and further opportunities emerging across Europe, the sector shows significant potential for expansion towards 2030. The evolving EU electricity market framework offers new opportunities for geothermal electricity, but stronger policy support and investment mechanisms remain essential to accelerate deployment. The revised Electricity Market Design introduces measures to improve price stability and encourage renewable energy investment, including Power Purchase Agreements (PPAs) and two-way Contracts for Difference (CfDs). However, lengthy permitting procedures, high upfront investment costs and geological uncertainties continue to constrain project development. Recognising the contribution of geothermal electricity to grid stability, flexibility and security of supply will also be essential as Europe advances towards a more resilient and decarbonised electricity system. Key Findings of the Geothermal Electricity Market in Europe 2026 Report Europe's geothermal electricity market continued to recover in 2025, with 150 operational power plants representing 3.53 GW of installed capacity, including 1.02 GW within the EU. Geothermal electricity generation reached approximately 20 TWh across Europe, of which 7 TWh were generated in EU Member States. The project pipeline highlights significant growth opportunities towards 2030. Around 45 geothermal power plants are progressing through various stages of development, while proposals for 152 additional plants are under investigation across Europe. Germany leads in project development, with growing activity in Türkiye and emerging markets such as Greece and Spain. Next-generation geothermal technologies are expanding electricity generation potential. Advances in Enhanced Geothermal Systems (EGS), Advanced Geothermal Systems (AGS), closed-loop technologies and superhot geothermal resources are opening new opportunities for geothermal power generation. Innovations in drilling techniques, well designs and binary turbine systems are also supporting technological progress and new applications. High upfront investment costs and geological risks remain major barriers to market expansion. Geothermal electricity projects typically require capital investments of €4–7 million per MWe of installed capacity. Dedicated risk mitigation instruments, improved financing conditions and mechanisms such as Contracts for Difference (CfDs) are essential to reducing investment uncertainty and supporting project development. Geothermal electricity can make a greater contribution to Europe's energy security and electricity system flexibility. Its ability to provide continuous renewable baseload power, alongside opportunities for combined heat and power generation, makes geothermal an important component of a resilient energy system. Stronger recognition of these benefits, together with simplified permitting and supportive regulatory frameworks, will be crucial to accelerating deployment. Read the Full Report The contents of this report are partially based on the contents of the Geothermal Market Report 2025, which was published by EGEC in July 2026. 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 Key Findings: The Key Findings of the EGEC Geothermal Market Report 2025 are available on the EGEC website. Read the Key Findings. 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

EGEC launches its Geothermal District and Industrial Heating & Cooling Systems Market Report 2026, continuing the new series of targeted geothermal market reports providing detailed insights into specific segments of Europe's geothermal sector. Europe's geothermal district heating and cooling market continues to expand, with a strong project pipeline showing significant growth potential towards 2030. In 2025, 10 new geothermal district heating systems were commissioned across Europe, bringing the total to 434 operational plants and more than 6 GWth of installed capacity. With over 500 projects under development and an additional 6 GWth of capacity in the pipeline, geothermal energy is well positioned to play a growing role in decarbonising European cities and industries. However, accelerating deployment will require stronger policy support and improved investment conditions. The revised Renewable Energy Directive (RED), Energy Efficiency Directive (EED) and Energy Performance of Buildings Directive (EPBD) provide an important framework for expanding renewable heating and cooling. Simplifying permitting procedures, improving access to geological data, introducing effective risk mitigation schemes and strengthening financing mechanisms will be essential to unlocking the sector's potential. Greater support for geothermal district heating infrastructure and long-term heat purchase agreements will also be critical to attracting investment and accelerating market growth. Key Findings of the Geothermal District and Industrial Heating & Cooling Systems Market Report 2026 The European geothermal district heating and cooling market continued to grow in 2025, with 10 new systems commissioned across France, Germany, the Netherlands, Denmark, Serbia and Spain. These installations added approximately 70 MWth of capacity, bringing the total to 434 operational plants across Europe, including 317 in EU Member States. A strong project pipeline points to significant market expansion by 2030. More than 500 geothermal district heating projects are currently under development, representing approximately 6 GWth of additional planned capacity. Germany remains a leading market, while Italy and Denmark are showing strong momentum in new project development. Technological innovation is expanding the potential of geothermal heating and cooling. The increasing integration of large-scale industrial heat pumps allows lower-temperature geothermal resources to supply district heating networks. Advances in drilling technologies, underground thermal energy storage, geothermal cooling and low-temperature thermal networks are creating new opportunities for buildings, industrial processes and data centres. Simplified permitting and stronger regulatory frameworks are critical to accelerating market growth. Lengthy administrative procedures, limited access to subsurface data and regulatory uncertainty continue to delay projects. The report highlights the need for streamlined permitting, targeted financial incentives and national geothermal strategies to support deployment. Geothermal district heating and cooling offers a competitive, long-term alternative to fossil-fuel heating. Despite high initial investment costs, geothermal systems benefit from relatively low operating and maintenance costs and stable heat generation costs, offering significant opportunities to strengthen Europe's energy security and decarbonise heating and cooling. Read the Full Report The contents of this report are partially based on the contents of the Geothermal Market Report 2025, which was published by EGEC in July 2026. 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 Key Findings: The Key Findings of the EGEC Geothermal Market Report 2025 are available on the EGEC website. Read the Key Findings. 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

EGEC publishes its first dedicated Geothermal Heat Pump Market Report! This publication marks the launch of a new series of targeted geothermal market reports by EGEC, providing more detailed insights into specific segments of Europe's geothermal sector. Building on the findings of the annual EGEC Geothermal Market Report 2025, the new publication focuses specifically on geothermal heat pumps (GHPs), examining market developments, technological innovations, regulatory challenges, competitiveness and future growth opportunities. The EU policy context is increasingly favourable to geothermal heat pumps, but further action is needed to translate Europe's decarbonisation ambitions into market growth. The revised Renewable Energy Directive (RED) and Energy Efficiency Directive (EED) set a stronger framework for renewable heating and cooling, while the EU's broader electrification and energy-efficiency objectives reinforce the role of highly efficient geothermal solutions. The implementation of these policies, alongside the forthcoming EU Electrification Action Plan and measures to simplify permitting, improve access to finance and strengthen skills and manufacturing capacity, will be critical to accelerating deployment. Unlocking the full potential of geothermal heat pumps will also require greater recognition of their ability to provide efficient heating and cooling and underground thermal energy storage, supporting both building decarbonisation and more flexible energy systems. Philippe Dumas, Secretary General of EGEC: “Geothermal heat pumps are a key technology for Europe's transition towards secure, affordable and decarbonised heating and cooling. The recovery of the market in 2025 is encouraging, but we must now build on this momentum by addressing persistent barriers, particularly permitting, financing and skills. With the right policy framework, geothermal heat pumps can make a much greater contribution to Europe's energy independence, competitiveness and climate objectives. This new report provides policymakers and industry with the market insights needed to turn that potential into tangible progress.” Key Findings of the Geothermal Heat Pump Market Report 2026 The geothermal heat pump market returned to growth in 2025, with approximately 123,000 units sold across the EU, a 10% increase compared with 2024. More than 2.5 million units are now installed, representing 39.2 GWth of capacity and supplying around 88 TWh of heat annually. Larger geothermal heat pump systems are gaining importance, particularly in residential, commercial and public buildings, industrial applications and district heating and cooling networks, creating new opportunities for collective geothermal systems and underground thermal energy storage. Technological innovation is expanding geothermal applications, with advances in drilling, passive cooling, thermal energy storage and data centre solutions. New business models, such as Heat-as-a-Service, could also help accelerate deployment. Permitting remains a major barrier to market growth. Lengthy administrative procedures, inconsistent regulations and shortages of skilled professionals continue to slow deployment, highlighting the need for stronger policy support and investment. Geothermal heat pumps offer competitive long-term heating and cooling solutions, thanks to their high efficiency, low operating costs and long lifetimes. Despite higher upfront investments, they represent an affordable renewable alternative to fossil-fuel heating systems. Read the Full Report Read the Press Release The contents of this report are partially based on the contents of the Geothermal Market Report 2025, which was published by EGEC in July 2026. 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 Key Findings: The Key Findings of the EGEC Geothermal Market Report 2025 are available on the EGEC website. Read the Key Findings. 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

Following a successful Geothermal Innovation Days in Strasbourg (3 - 4 December 2025), ETIP Geothermal is proud to present the second edition of the Geothermal Innovation Trends report, which has been produced in partnership with the European Geothermal Energy Council (EGEC). The geothermal sector is one of the most innovative sectors in Europe’s economy. Every year, new research and innovation, also in terms of business models, help geothermal to provide better solutions to decarbonize our economy. Geothermal also supports local economic development by supplying electrical power, heating, cooling, thermal storage and minerals to industry and communities. To accelerate the market development of geothermal energy technologies, research and innovation allows these technologies to be less costly, more efficient, and easier to install anywhere. The aim of EGEC’s annual report on Geothermal Innovation Trends is to describe all these technological developments. The first report on major technological trends, published in 2024, consisted of Major Technological Trends 2024 and the Report on major market trends, both of which were published in the framework of the Geotherm Fora project. These reports covered not only developments in 2024 but also the trends of the decade 2020-2030. This 2025 report on Geothermal Innovation Trends covers general trends with a particular focus on innovations in terms of ‘market ready’ technologies and first demonstrations of ‘close to market’ technologies. Read the report

On April 24, Invest-NL, the National Promotional Institute of the Netherlands, released a report to explore opportunities for scaling geothermal energy in the Netherlands. This report, prepared by EGEC and WEP, delves into the geothermal landscape, focusing on key European countries including Germany, Denmark, and France, to provide invaluable insights for the market in the Netherlands.

The European Technology & Innovation Platform on Geothermal (ETIP-G) is pleased to announce the release of its Strategic Research and Innovation Agenda for Geothermal technologies. This R&I agenda aims to shape the strategic plan for research and innovation (R&I) in the geothermal sector and to outline research priorities for the upcoming decades. The European Union (EU) has implemented several legislative measures to guide the energy transition in the last few years. Geothermal energy is a distinct and pivotal form of renewable energy, and its capabilities encompass electric generation, heating, cooling, hot water provision and thermal underground storage for short and seasonal storage. The imperative to respond effectively to the climate crisis, ensure energy supply resilience, and offer accessible energy necessitates our journey toward a climate-neutral economy by 2050.  To be successful in these endeavours, R&I of improved next-generation geothermal systems and technologies are key for new applications, markets, and meeting deployment in the EU for the 2050 milestone. The Strategic Research and Innovation Agenda (SRIA) recommends actions and research priorities that should be addressed to achieve the key technological and transversal challenges that could make the vision a solid reality between now and 2050. “The ETIP geothermal members have done immense work to write this Strategic Research and Innovation Agenda on geothermal technologies. I want to thank all of them. The merger with the RHC-Plaform geothermal panel from 2023 has even strengthened the power of the ETIP and made it a unique and relevant platform for geothermal R&I. Developing these technologies will make geothermal the key energy source of the transition towards climate neutrality by 2050. Geothermal technologies are a solution for the electricity system, the heating and cooling supply, the system integration with thermal underground storage, and the sustainable extraction of minerals such as lithium. Geothermal will support local economic development and security of energy supply in a sustainable way.” Fausto Batini, ETIP Geothermal President. The SET Plan Geothermal IWG estimates that current annual investment, both public and private, in national and transnational research and innovation projects in the geothermal sector needs to be tripled from €100 million to €300 million by 2030 in order for Europe to reach its goals on transitioning to renewable energy sources. This is in line with the ambitions and the potential for geothermal energy. Therefore, ETIP Geothermal would like to request more funding for geothermal research and innovation in WP 2025 – 2027 in order to properly implement the key climate & energy, and industrial policies. Download the Strategic Research and Innovation Agenda for Geothermal.

This Strategic Research and Innovation Agenda (SRIA) on geothermal heating and cooling technologies constitutes an update and blending text of the previous Geothermal Strategic Research Agenda (SRA) and subsequent Geothermal Implementation Roadmap.

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