Europe’s geothermal energy sector is set for a sharp rise in activity beginning in 2025, according to the European Geothermal Energy Council’s (EGEC) latest Geothermal Market Report, released Wednesday. The report outlines current trends and forecasts an upturn in drilling and project development across the continent.
According to EGEC, 2024 saw the addition of 40 megawatts of geothermal electricity capacity from three new power plants—one in Austria and two in Türkiye—bringing the total to 147 geothermal power facilities operating in Europe. The report also notes that around 50 additional geothermal power projects are currently in various stages of development.
District heating and cooling (GeoDHC) continued steady growth in 2024, with ten new systems deployed across eight countries, including Poland, the UK, France, and the Netherlands. EGEC says that Europe now has 412 operational GeoDHC systems, with more than 500 additional systems under development.
Despite these positive developments, sales of geothermal heat pumps dropped significantly across most of Europe last year, with Switzerland being the sole exception. EGEC attributes the decline to “a lack of favourable regulations and policies,” but remains hopeful that the forthcoming European Geothermal Action Plan, expected in 2026, will reverse the trend.
“The last few years have not been easy for the geothermal sector, with unstable energy prices and high interest rates deterring investors,” said Miklos Antics, President of EGEC. “But now we are starting to see signs of revival, notably in terms of new drilling activities linked to geothermal energy projects, including new power plants as well as heating and cooling plants.”
EGEC reports that exploration activity is on the rise. In 2024, over 17 geothermal surveys were conducted, up from 10 the year before. At least 10 new 3D seismic campaigns had already been initiated by mid-2025. The organization expects a marked increase in the number of wells drilled beginning next year, driven by expanding exploration and ongoing project development.
Philippe Dumas, EGEC’s Secretary-General, stressed that policy support would be essential for sustained growth: “The rate of growth will also depend on having a favourable financial, regulatory and policy framework that encourages investments in geothermal projects,” he said. “The highly anticipated European Geothermal Action Plan… will have a vital role to play—particularly in ensuring simpler permitting procedures for new projects.”
EGEC’s annual market report offers a comprehensive overview of geothermal energy trends in Europe, with the 2024 edition based on data from the past year and projections through 2026.
