Geothermal Energy: A Strategic EU Response to the Energy Crisis

To reduce its dependency on Russian gas, the European Union is betting on geothermal energy, a renewable and local solution. This strategic lever aims to strengthen its energy sovereignty and accelerate the transition to a decarbonized future.

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The energy crisis caused by the Russia-Ukraine conflict has exposed structural weaknesses in the European Union’s (EU) energy strategy. Before the conflict, around 40% of the EU’s gas supply came from Russia, highlighting the urgent need to diversify its energy sources. In this context, geothermal energy is emerging as a strategic alternative.

Geothermal energy, a renewable and local resource, offers significant potential to reduce reliance on energy imports. It is particularly suited to meeting heating and cooling needs in buildings as well as generating electricity. Countries like Italy, Iceland, France, and Germany possess exploitable geothermal resources, increasing the appeal of this energy within the EU.

Untapped Potential

Geothermal energy stands out for its ability to produce continuous energy, unlike solar and wind energy, which depend on weather conditions. Geothermal infrastructure can also be modularly integrated, facilitating gradual adoption and reducing long-term costs. Despite these advantages, its potential remains largely underutilized in Europe.

Obstacles to implementing geothermal projects are numerous. Among them, high initial investments related to drilling and equipment installation pose a major challenge. Furthermore, heterogeneous regulatory frameworks across member states complicate coordination and project execution at the European level. Finally, limited awareness among policymakers and investors hinders the development of this sector.

Initiatives to Accelerate Adoption

To address these challenges, the EU is working to harmonize regulatory frameworks to simplify access to permits and financing. The creation of European funds dedicated to energy transition could also help cover initial project risks, thus attracting more investors. Moreover, support for research and technological innovation is essential to reduce drilling costs and improve the efficiency of geothermal systems.

Simultaneously, educating and raising awareness among stakeholders is crucial. Policymakers and investors need to understand the economic and environmental benefits of geothermal energy to promote broader adoption. Success stories from countries like Iceland, where this technology is used on a large scale, can serve as inspiring models.

Economic and Environmental Impact

The growth of geothermal energy could have significant economic benefits. Building and maintaining infrastructure could create numerous local jobs, particularly in civil engineering and heat network management. Environmentally, this technology significantly reduces CO₂ emissions by limiting the use of fossil fuels.

Additionally, by leveraging local geothermal resources, the EU strengthens its energy sovereignty and reduces its vulnerability to fluctuations in international markets. This strategic positioning is especially important in a context marked by increasing geopolitical tensions.

Towards Greater Energy Sovereignty

To maximize geothermal energy’s potential, the EU must adopt a coordinated approach combining ambitious policies, tailored financing, and technological innovations. While challenges remain, this renewable energy offers a unique opportunity to enhance energy security while meeting climate goals. With a clear vision and coordinated efforts, geothermal energy could become a cornerstone of Europe’s energy transition.

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DEEP Earth Energy Production Corp. and SLB partner to develop an innovative geothermal project in Saskatchewan, aiming to produce 30 MW of emission-free energy.
Bihor County in Romania accelerates geothermal energy integration into its energy economy. With over €45 million invested, mostly funded by the European Union, the region highlights the growing profitability of this resource.
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Daldrup & Söhne AG, a specialist in drilling technology and geothermal energy, has won two research drilling contracts in Germany, totaling 3 million euros, for projects in Krefeld and Grasellenbach.
Ormat Technologies and Calpine Energy Solutions enter into an agreement to supply 15 MW of clean geothermal energy starting in 2027, highlighting the growing demand for renewable electricity in California.
Toshiba will equip Unit 2 of the Patuha Geothermal Plant in Indonesia, adding 60 MW to strengthen the country’s energy capacity and support its ambitious climate goals.
Star Energy increases its stake to 71% in A14 Energy Ltd, solidifying its influence in geothermal exploration in the Pannonian Basin with three strategic licenses.