Hot stuff: geothermal energy in Europe

The report highlights that 'next generation geothermal' technologies, such as Enhanced Geothermal Systems (EGS), have expanded the geographic viability of geothermal power beyond volcanic regions. In the EU, approximately 43 GW of capacity could be developed at costs below 100 €/MWh, potentially generating 301 TWh of electricity annually. While Europe has a strong historical foundation in geothermal energy, the report warns that the EU risks losing its leadership to the US and Canada due to slow permitting and a lack of coordinated policy frameworks. It also notes geothermal's potential to meet the rising energy demands of AI data centres and its ability to provide firm, low-carbon power and mineral recovery, such as lithium.

• Technological advances in drilling and reservoir engineering, specifically 'next generation geothermal' and Enhanced Geothermal Systems (EGS), have removed the requirement for naturally occurring permeability, allowing geothermal power to be produced outside of volcanic regions.
• Within the European Union, approximately 43 GW of enhanced geothermal capacity is technically and economically viable at costs under 100 €/MWh, which is comparable to the short-run marginal costs of coal and gas in European markets. This capacity could generate about 301 TWh of electricity per year, representing roughly 42% of the EU's 2025 coal- and gas-fired generation.
• Hungary possesses the highest techno-economic potential for geothermal power in continental Europe at the <100 €/MWh threshold with 28 GW, followed by Türkiye (almost 6 GW), and Poland, Germany, and France (around 4 GW each).
• Geothermal energy offers system flexibility through the ability to store thermal and pressure energy, with simulations indicating storage efficiencies comparable to lithium-ion batteries. Additionally, geothermal brines can be used to recover up to 95% of lithium using direct extraction techniques.
• Geothermal power is well-positioned to meet the electricity demands of AI data centres; research indicates it could cost-effectively supply up to 64% of the anticipated increase in US data-centre demand by the early 2030s.
• Despite Europe's early leadership—having 147 operational plants as of 2024 and the highest number of EGS projects (42)—it risks losing its advantage to the US and Canada due to lengthy permitting and the absence of a coordinated EU strategy.
• The levelised cost of electricity (LCOE) for geothermal power in Europe is approximately USD 60/MWh, which is lower than most fossil-fuel generation, which averages around USD 100/MWh.

APA

Mindeková, T., & Geneletti, G. (2026). Hot stuff: geothermal energy in Europe. Ember. https://ember-energy.org/app/uploads/2026/02/Hot-stuff-geothermal-energy-in-Europe-1.pdf

Chicago

Mindeková, Tatiana, and Gianluca Geneletti. Hot stuff: geothermal energy in Europe. Ember, 2026. https://ember-energy.org/app/uploads/2026/02/Hot-stuff-geothermal-energy-in-Europe-1.pdf.

Wikipedia

{{cite report |last1=Mindeková |first1=Tatiana |last2=Geneletti |first2=Gianluca |title=Hot stuff: geothermal energy in Europe |publisher=Ember |date=4 February 2026 |url=https://ember-energy.org/app/uploads/2026/02/Hot-stuff-geothermal-energy-in-Europe-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mindekov2026hot, author = {Mindeková, Tatiana and Geneletti, Gianluca}, title = {{Hot stuff: geothermal energy in Europe}}, institution = {Ember}, year = {2026}, month = feb, url = {https://ember-energy.org/app/uploads/2026/02/Hot-stuff-geothermal-energy-in-Europe-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }