- Think tank Ember estimates enhanced geothermal systems could generate up to 301 TWh of electricity annually – about 42 % of the EU’s coal and gas output – at costs below €100/MWh. Modern drilling techniques now make geothermal competitive with gas across much of Europe.
- A coalition of cleantech investors and industry groups notes that geothermal offers reliable, always‑on power, is largely immune to physical attacks and weather, and can provide both electricity and heat.
- More than 60 companies and investors urged the European Commission to boost its forthcoming Geothermal Action Plan with risk‑sharing facilities, long‑term revenue frameworks and streamlined permitting.
As Europe scrambles to replace oil and gas imports from the Middle East, a growing coalition of investors and technologists is promoting geothermal energy as a domestic solution that can provide secure baseload power.
A February report by the think‑tank Ember concludes that advances in deep‑earth drilling enable enhanced geothermal systems to tap heat far below conventional depths, allowing projects to operate in regions well beyond volcanic hotspots. The study calculates that these systems could produce roughly 301 TWh of electricity per year – equivalent to around 42 % of the EU’s coal and gas generation – at costs comparable to fossil‑fuel power.
An open letter coordinated by Cleantech for Europe and signed by more than 60 companies, investors and civil‑society organisations echoes the report’s findings. It emphasises that geothermal plants are largely underground, making them difficult targets for sabotage, and that they can provide both power and heat, stabilise the grid and even yield lithium as a by‑product.
The letter argues that Europe’s heavy dependence on imported fossil fuels leaves it vulnerable to price spikes and supply disruptions, and it urges Brussels to turn its forthcoming Geothermal Action Plan into an investment catalyst.
Specific recommendations include establishing an EU risk‑sharing facility to cover the high upfront costs of drilling, introducing two‑way contracts for difference and corporate power‑purchase agreements to provide revenue certainty, and simplifying permitting and grid connection procedures.
Without these measures, the signatories warn, Europe risks ceding leadership in geothermal technology to the US and China.
Investor appetite is rising sharply: Bloomberg data shows geothermal investments jumped from €22 million in 2018 to €2.2 billion in 2025. Hungary has the region’s largest potential capacity (28 GW), followed by Poland, Germany and France.
Analysts note that even partial deployment could cut Europe’s dependence on imported gas and provide a stable, always‑available renewable resource. For the UK, geothermal represents opportunities in drilling services, supply chains and co‑production of critical minerals. The challenge is whether EU policy-makers will provide the risk‑mitigation tools and market signals needed to unlock this underground energy source.
