The European Union (EU) has made clear its position to wean itself off of Russian gas following the invasion of Ukraine and has made fair progress so far with the share of Russia’s pipeline gas in EU imports dropping from more than 40% in 2021 to around 8% in 2023.
For pipeline gas and LNG, the country accounted for less than 15% of total EU gas imports.
Into this void, Norway, the US, North African countries, UK and Qatar have been the primary players stepping up to meet demand; providing a vital outlet given the Union’s reliance on gas – in 2022, member countries consumed more than 350 billion cubic metres of gas.
While the EU has found success courting new suppliers of gas to meet demands – with US LNG imports nearly tripling between 2021 and 2023 – the Council of the EU has cited the utmost need to promote the “diversification of energy supplies”. While this “lengthy and costly” process is primarily being undertaken with the Russian aspect in mind, it also holds the dual target of achieving its climate neutrality by 2050 target.
It is within this context that the Council has now called for the faster deployment of geothermal energy. Despite next-generation geothermal technologies having the potential to meet global electricity and heat demand many times over (according to the International Energy Agency), the resource meets just 1% of global electricity demand and accounted for only 2.8% of renewable energy sources used for the production of primary energy in the EU in 2021.
Recognising this, in a Council of the EU session dedicated to the promotion of geothermal energy, it was suggested the enormous potential of it could be realised by proposing or adapting measures for its promotion. This includes easier access to finance to address high upfront investment costs, as well as enhancing the workforce in the geothermal sector and strengthening cooperation in research.
To achieve such aims, the Council called on the European Commission to create a comprehensive strategy on the decarbonisation of heating and cooling, accompanied by a European geothermal action plan. The latter would detail concrete measures to accelerate the deployment of geothermal energy. In addition, the Council also called on member states to streamline their rules to make geothermal energy easier to use and issue permits faster.
“Geothermal energy is a long-lasting and always available renewable source, since it does not depend on weather events and can provide around-the-clock electricity generation and heat production,” remarked Csaba Lantos, Hungarian Minister for Energy. “Today’s conclusions aim to boost this sustainable energy source, which can help us ensure a smooth transition to a carbon-free Europe, strengthen our competitiveness, and secure our energy sovereignty.”
The Commission was also requested to eventually oversee the establishment of a European Geothermal Alliance that would gather policymakers, industry and investors to spot bottlenecks and actions for a greater deployment of geothermal energy.
Commenting on these developments, the European Geothermal Energy Council (EGEC) expressed its delight with the Hungarian Presidency for initiating the proposal and to all member states for adopting the conclusions. As Philippe Dumas, Secretary General of EGEC, concluded, “EGEC warmly welcomes the Council Conclusions agreed upon by Europe’s Energy Ministers today. Now, it is up to the European Commission to deliver.”