EU Energy Ministers to Discuss Geothermal Energy in Budapest Meeting

Geothermal energy will take center stage at an informal meeting of EU energy ministers in Budapest on July 16-17, marking a significant moment as it is the first time the European Council has focused on this under-utilized energy source. Sanjeev Kumar, head of policy at the European Geothermal Energy Council (EGEC), expressed optimism about the discussions, highlighting the potential of geothermal energy to contribute to Europe’s energy landscape despite its current low visibility compared to other renewables. The term 'geothermal' encompasses various installations, including 'shallow' geothermal systems that utilize low heat near the surface, often in conjunction with heat pumps for building heating. Despite its promise, geothermal energy faces challenges, particularly in securing financing due to inherent deployment risks. The background document for the meeting emphasizes geothermal energy as a locally available, cost-effective source capable of providing dispatchable electricity and heat, which could enhance Europe’s energy security and reduce reliance on fossil fuels. As energy prices rise, local authorities are increasingly exploring geothermal options. Notable examples include the NATO headquarters in Brussels and the Elysée Palace in Paris, both powered by geothermal energy. However, Kumar pointed out that the technology has struggled to gain traction, primarily due to financial uncertainties and a lack of understanding about geothermal resources, which complicates investment decisions and site assessments.