Energy resiliency and security of supply are two driving forces that could add momentum to the geothermal sector across Europe, amid oil and gas price spikes triggered by the Iran conflict in the Middle East.
In the UK, wind and solar blunted the worst of the price shocks in the first four weeks of the current fossil fuel crisis by displacing gas generation, delivering critical cost savings, according to a new report by Ember Energy.
It stated that new wind and solar saved Britain approximately £7mn per day in gas purchases.
The international price of gas surged in March 2026 following the start of the US-Israel war with Iran on 28 February, initiating the second fossil fuel crisis in Europe in just four years, after the Russia-Ukraine conflict.
As a result of new wind and solar capacity, in March 2026 gas power generation was 39% lower than in March 2021.
“The latest fossil fuel crisis proves that wind and solar have already lowered our dependence on gas and delivered genuine savings,” said Josie Murdoch, Energy Analyst, Ember.
“We now need to deploy more renewables and reduce our reliance on volatile gas for good.”
While the report does not explicitly cite geothermal, it claims that Britain is “better insulated” since the 2021-23 energy crisis.
As well as providing ‘unblockadable’ energy, geothermal can also deliver consistent 24/7 baseload power, unlike more intermittent solar or wind, making it attractive in terms of security of supply and resiliency.
Since October 2021, Ember said over 130 wind and solar projects have been delivered — 7.7 GW of new wind power (onshore and offshore, including floating) and 7.6 GW of new solar power.Britain now has close to 55 GW of wind and solar capacity, leading to higher renewable generation and increasingly displacing gas in Britain’s power system, it noted.
More broadly, across the European Union, analysis shows the cost of gas-fired power increased by more than 50% in the first 10 days of the Iran conflict, with some countries, such as Italy, more affected than others.
In a February 2026 report, Ember suggested that geothermal could replace 42% of the EU’s coal and gas-fired generation, providing a stable, ‘always-on’ alternative to fossil fuels for less than €100/MWh – the cost of coal and gas electricity.
“Once restricted to a few geological hotspots like Iceland or Tuscany, modern geothermal is now cost-competitive with gas across much of the continent,” said Tatiana Mindekova, Ember Policy Advisor and author of the February report.
“As Europe seeks to slash emissions while meeting the energy demands of heavy industry and AI data centres, this untapped resource offers a clean, firm power supply that remains insulated from the price volatility of imported fossil fuels.”