The European Geothermal Energy Council (EGEC) has welcomed the recognition of the critical role of geothermal energy in the European Union's (EU) newly announced Action Plan for Affordable Energy, but says more needs to be done
In a statement, EGEC said it welcomes the new plan as a first step, but called it “rudderless” without firm action on geothermal.
The ambitious action plan is seen as vitalto decreasing energy prices for citizens, businesses and communities across the EU.
According to an EGEC statement, the plan “correctly” states that the cost of inaction is higher than the cost of action, but that the proposed measures fall short of what is required to deliver the urgent and systemic change to Europe’s energy system, especially for heating and cooling.
Philippe Dumas, EGEC’s Secretary-General, was broadly supportive, but wants to see more detail in the action plan.
“We welcome the action plan’s call to foster investment in geothermal but are surprised by the lack of specific actions to deliver this outcome,” he said.
“We are concerned that the Geothermal Action Plan was omitted from the Affordable Energy Action Plan.”
He added: “This leaves a significant hole in the [Affordable Energy] Action Plan. We agree on the need to complete the integration of our energy market to allow geothermal to supply affordable energy to people and businesses.”
The EGEC statement also singled out the EU’s Commissioner for Energy and Housing, Dan Jorgensen.
EU energy ministers, the European Parliament, the Committee of Regions, the European Economic and Social Committee and Jorgensen committed to a geothermal action plan, EGEC noted, because it facilitates lower energy costs for industry, families and farmers, provides stability to the electricity system and accelerates strategic autonomy in raw material production.
The business models outlined in the Affordable Energy Action Plan’s tripartite agreements were central pillars of the Energy Council’s call in the Geothermal Action Plan, the statement added.
“Furthermore, Dan Jorgensen stated these would be a key part of the geothermal action plan during his confirmation hearing in the European Parliament,” it noted.
Founded in 1998, EGEC is a not-for-profit organisation promoting all aspects of the geothermal industry.
Its objective is to facilitate awareness and expansion of geothermal applications across Europe by shaping policy, improving investment conditions and steering research.
There was hope that the new action plan details might include a financial derisking scheme to boost the geothermal sector.
The industry and major consumers, such as cities, have been campaigning for a European financial guarantee derisking scheme for some time, EGEC noted.
The European Commission even commissioned the Investors Dialogue in Energy to design a European scheme, it added.
Sanjeev Kumar, EGEC's Policy Director, said that excluding geothermal from the tripartite agreements initiative was “counter-productive”.
The EGEC statement reiterated how geothermal’s value chain is almost entirely European and that it has been the leading component exporter of European renewable technologies.
EGEC boasts over 200 members from 30 countries, from across Europe, ranging from developers to equipment manufacturers, energy providers, national associations, consultants, research centres, geological surveys, government agencies, departments and public authorities.