As Europe continues its energy transition and addresses climate change, geothermal energy is emerging as a key player in the continent's renewable energy mix. Historically dominated by countries such as Iceland and Italy, geothermal energy is now expanding across Europe, driven by technological innovations, increased investments, and the growing need for energy independence. In 2024, about 60 million Europeans already relied on geothermal energy for heating, while 10 million consumed electricity generated from this renewable source.
1. Increased Investments and Project Growth
With Hungary leading the European Union’s rotating presidency, geothermal energy has become a key priority for enhancing energy security across the continent. This push is supported by initiatives in countries like France, Poland, Hungary, and Croatia.
The European Union aims to double its geothermal capacity by 2030, with countries like Germany and Hungary projecting a 25% increase in their geothermal energy output by 2027, backed by investments exceeding €1.5 billion.
2. Technological Innovations for Greater Efficiency
Technological advancements are at the heart of this expansion. The GeoWell project in Iceland, for example, has introduced sliding casing couplings that reduce the risk of deformation due to heat, enhancing the longevity of geothermal wells and lowering maintenance costs.
In continental Europe, where geothermal resources are often located as deep as 6 kilometers, these innovations are making previously unfeasible projects viable.
Additionally, nanomaterials are being incorporated into geothermal systems to improve thermal efficiency by enhancing heat transfer, reducing energy losses, and increasing system durability. These innovations are particularly useful for harnessing low-temperature geothermal resources, expanding geothermal potential to new regions like Germany and France.
3. Eastern Europe’s Geothermal Boom
While Iceland and Italy have long been geothermal pioneers, countries like Hungary and Poland are now emerging as significant players in the geothermal market in Eastern Europe. Hungary, in particular, is pushing for EU-wide initiatives to make geological databases more accessible to boost investor confidence in geothermal projects.
This movement is further supported by European and national subsidies, as well as public-private partnerships that foster new project development.
4. Challenges and Long-Term Outlook
Despite its potential, geothermal energy in Europe faces several challenges, including high initial drilling costs, which can represent 30% to 35% of a geothermal plant’s total cost. However, technological innovations and long-term financing strategies are gradually lowering operational costs, making this energy source more accessible.
In parallel, the integration of artificial intelligence (AI) in geothermal projects allows for the optimization of operations, improving overall efficiency and minimizing operational risks.
Conclusion
The expansion of geothermal energy in Europe marks a crucial step in the continent's renewable energy transition. With major technological advancements and increasing investments, geothermal energy is becoming a cornerstone of Europe’s efforts to reduce its carbon footprint and enhance energy security. By 2030, geothermal energy could play a key role in achieving Europe’s climate targets, providing a sustainable alternative to fossil fuels.