The European Geothermal Energy Council (EGEC) has broadly welcomed the new Clean Energy Investment Strategy announced this month by the European Commission but has urged for both public and private financing to be available for geothermal projects.
The group noted in a statement that it was pleased to see the emphasis on the need to de-risk investments in clean energy projects through the strategic use of public funds.
EGEC’s Secretary General, Philippe Dumas, also flagged the significance of the timing of the strategy, as energy prices spiked amid escalating conflict in Iran and across the Middle East.
“When it comes to energy policy, Europe must avoid the trap of always reacting to external shocks and lurching from crisis to crisis,” he said. “What we need is a strategic, long-term approach to support the transition away from imported fossil fuels towards renewable and decarbonised energy sources – with geothermal solutions playing a key role.”
He added: “Geothermal must be at the heart of Europe’s approach to providing clean electricity as well as heating and cooling, with security of supply and affordable prices for all energy consumers – from households to industries.”
Dumas said that geothermal canhelp to bring down energy costs for people and businesses, thereby strengthening the EU’s competitiveness.
“But, in order to access these benefits, we need a more encouraging environment for investment, with targeted European financial instruments that can leverage private capital."
He also called for a geothermal strategy and action plan at EU level with “ambitious targets” to support the roll-out of geothermal across member states, as well as a an industrial alliance to facilitate the sharing of best practice.
“The EU has a vital role to play when it comes to public funding and financing for geothermal energy projects,” said Dumas. "In this regard, we would like to see the European Commission develop a sectoral tripartite contract for geothermal energy, similar to those already announced in relation to offshore wind and energy storage under the umbrella of the Affordable Energy Action Plan."
The Commission’s proposals also include aCitizens Energy Package, to support the establishment of energy communities at local level and enable them to invest in geothermal heating and cooling networks.
“Reducing heating and cooling costs with secure supplies and stable prices benefits everyone, and is especially vital if we want to tackle energy poverty,” said Dumas.
Geothermal heating and cooling solutions, including district heating and cooling networks that utilise the stable temperatures found underground, can offer benefits including no pollution, zero emissions, extended lifetimes and low costs for operation and maintenance.
“The Citizens Energy Package should also enable fair competition between different energy sources, with an emphasis on long-term costs and affordability for consumers,” added Dumas, calling for a more level playing field.
Heating currently represents 50% of the EU’s overall energy consumption, 80% of the energy consumption for individual buildings, more than 50% of energy for commercial buildings and a large part of the energy consumption for industry and farmers, he noted.
“When installing a new heating and cooling system, consumers – from households and building owners to cities, industry or farmers – should be offered a choice between all heating sources that lets geothermal compete with other solutions on a level playing field that takes emissions and long-term running costs into account,” he added.
EGEC also underlined the importance of strengthening competition between energy technologies in heating and cooling markets, as emphasised in the Citizens Energy Package and to be highlighted in the upcoming Heating and Cooling Strategy.