Changes from report parliamentary committee draft to plenary report

Change 4

Added13. Considers that the presence of geothermal energy should be taken into account when designating the geographical location of ‘net-zero industry valleys’ as part of the Net-Zero Industry Act;

Policy recommendations

Change 5

Changed5.14. HighlightsCalls on the Commission to present an EU geothermal strategy giving concrete guidance to Member States and local administrations to accelerate the deployment of geothermal energy in order to decarbonise heating and contribute to the EU’s energy independence and to meet the objective of at least tripling the share of energy demand covered by solar heat and geothermal energy by 2030 as announced in the EU Solar Strategy; highlights that 151 businessbusinesses and industries called on the Commission in 2022 to prepare a European strategy to unlock the potential of geothermal energy;

Change 6

Changed6.15. Stresses that national and EU-wide measures for geothermal energy should be based on an assessment of theEurope’s geothermal potential of Europe,potential, taking into account the diverse geological and climate conditions, and an estimate of the cost-efficiency of deploying geothermal solutions;

Change 7

Removed7. Welcomes the growing awareness of and support for geothermal at national level; notes that some Member States have developed geothermal roadmaps, targets and dedicated policy measures; stresses the need to facilitate the exchange of information about these measures and data to support geothermal policies; considers that this can be achieved through the establishment of a ‘geothermal alliance’;

Added16. Calls on the Commission to base the strategy on a comprehensive assessment of the potential of geothermal energy in the shallow, medium, deep, and ultra-deep subsurface across all 27 Member States; notes that this assessment should help identify the potential of geothermal energy for various uses, including but not limited to, district heating, cooling, industrial processes, food production, heat pumps, electricity generation, and renewable hydrogen and lithium production; notes that this study should also assess the impact of developing geothermal energy on the decarbonisation of the economy, job creation, competitiveness, empowering of consumers, and cost-effectiveness compared to other energy sources;

Added17. Calls on the Commission to address in the strategy the obstacles for the development of geothermal projects, including cross-borders issues and to provide a guide on best practices in geothermal energy use in the EU for national and local authorities, project developers, and financial institutions;

Added18. Welcomes the growing awareness of, and support for, geothermal at national level; asks the Member States to follow the example of countries that have developed geothermal roadmaps, targets and dedicated policy measures for geothermal; stresses the need to facilitate the exchange of information about these measures and data to support geothermal policies and to promote existing best practices and knowledge sharing;

Added19. Calls on the Commission to establish a ‘geothermal alliance’, including Member States, geothermal adoption enablers, industry, the scientific community and civil society that would facilitate the exchange of best practices and to implement the future geothermal strategy;

Added20. Asks the Commission to explore the potential of geothermal energy to contribute to objectives production of clean hydrogen established in the REPowerEU plan;

AddedGeothermal district heating and cooling

Added21. Underlines the need to modernise existing heating and cooling networks and build new ones using the potential of geothermal energy; calls on the Commission and the Member States to create strong incentives to support the above and to favour 4th and 5th generation heating and cooling systems; notes that the development of heating and cooling networks is integral to the preparation of comprehensive municipal heating plans, as required by the Energy Efficiency Directive, and is aligned with the objectives of national energy and climate plans; calls on the Commission to provide the Member States with guidelines for the preparation of these plans, including for the assessment of geothermal potential;

Added22. Welcomes the growing number of projects involving conversion of existing district heating and cooling (DHC) infrastructure into geothermal-based DHC; emphasises in particular the potential of such conversions in Central and Eastern European countries, where they can significantly contribute to decarbonisation policies; stresses that these actions should be broadly supported by the Modernisation, Just Transition and Cohesion Funds; calls for investments supported by the Modernisation Fund, which support the conversion of exiting district heating systems, to always consider the potential for geothermal energy to be supplied to such systems;

Added23. Expresses concern that all too often the development of geothermal projects is prevented or significantly delayed by the lack of developed district heating and cooling networks; stresses the need to ensure coordination between energy companies and local authorities to jointly plan, invest and manage district heating and cooling networks;

Added24. Draws attention to the fact that some of recent geothermal DHC projects have been implemented with new business models allowing private companies, including utility companies, to build public infrastructure on behalf of local authorities; invites Member States to explore innovative regulatory possibilities to foster the development of geothermal DHC;

Added25. Highlights the importance of making data available from existing district heating networks, including the level of modernisation and heat demand, to geothermal stakeholders across Europe; underscores that this data is crucial to evaluating the potential of a region and engage with local authorities throughout the initial stages of a project; calls on the Commission to facilitate and coordinate the availability of existing DHC data;

Data availability

Change 8

Removed8. Urges the Member States to explore methods of collecting different types of geological data from public and private entities with a view to organising, systematising and making it available to the public; notes that this should be achieved in compliance with confidentiality requirements and data protection rules, and, where necessary, include incentives and compensation for data sharing by private entities;

Added26. Notes the lack of easy access to subsurface data is currently an important barrier to de-risking and thereby the fast deployment of geothermal energy projects; underscores that easy and equitable access to subsurface data in Member States is crucial for the project appraisal phase; underlines, furthermore, that this lack of data access prevents scientists from creating the geological models that are essential to predict the potential and yield of geothermal energy in a given subsurface area and are thus crucial in reducing uncertainty for project developers;

Removed9. Stresses that for areas with insufficient subsurface data, governments can play a role in funding geothermal resource mapping and exploratory drilling; welcomes the fact that some Member States have already taken steps in this direction; calls for EU funding to support this data collection with a view to creating an EU-wide atlas of geothermal potential;

Added27. Urges the Member States and the Commission to explore methods of collecting different types of geological data from public and private entities with a view to organising, systematising and making it available to the public by expanding existing basic geological databases using the digital formats for collection of the data and making it available; notes that this should be achieved in compliance with applicable rules on data protection, on protection of commercially sensitive data, including the protection of trade secrets, and the protection of intellectual property rights, as well as security considerations and, where necessary, include incentives or compensation for data sharing by private entities; expresses opinion that publicly funded geological data needed for geothermal projects (such as those obtained due to public support received for exploratory drilling) should be made available to the public within a short period of time set by the Member State concerned; draws attention to the fact that in some Member States geological data held by private entities is made available free of charge to the public after a certain period of time;

Removed10. Emphasises the geothermal potential of repurposed inactive oil and gas wells; calls on the Member States, in cooperation with oil and gas companies, to produce publicly available maps of decommissioned wells with their specifications;

Added28. Urges the Commission to explore the benefits of and barriers to harmonising national legislation on granting access to subsurface data and the storing of geological data on a centralised portal at the EU level that is freely and easily accessible to all;

Removed11. Expresses its concern about the fragmented nature of statistics on geothermal energy; calls on the Member States, in cooperation with the industry and the Commission, to overhaul existing data collecting procedures for geothermal and to replicate best practices in the sector;

Added29. Stresses that in areas with insufficient subsurface data, governments can play a role in funding geothermal resource mapping and exploratory drilling; welcomes the fact that some Member States have already taken steps in this direction; calls on the Commission to continue supporting this data collection through relevant projects, such as European Geological Data Infrastructure (EGDI), which aims to create a EU-wide atlas of geothermal resources; highlights the relevance of the Copernicus Land Monitoring Service (CLMS), which can provide reliable land temperature data, which is particularly useful for surface geothermal energy;

Added30. Emphasises the geothermal potential of repurposing inactive oil and gas wells and mines; calls on the Member States, in cooperation with oil, gas and coal companies, to prepare public inventories and maps, including specifications, of depleted, abandoned and end-of-life hydrocarbon infrastructure that has the potential to be used as a geothermal resource; stresses the need to prioritise funds to carry out detailed studies of the conditions of this infrastructure in order to assess the potential of each site;

Added31. Expresses its concern about the fragmented nature of statistics on geothermal energy; stresses that it is very difficult to assess deployment of geothermal energy in Europe because of the lack of standards for industry data reporting; calls on the Member States, in cooperation with the industry and the Commission, to overhaul existing statistical data collecting procedures for geothermal and to replicate best practices in the sector by creating standards for industry data reporting;

Funding

Change 9

Changed12.32. Reiterates that uncertainty about subsurface resources makes it challenging to secure project funding; notes that the initial project phase, such as the exploration and construction phase, requires a significant amount of upfront costs and major entrepreneurial risks that hinder the investment decision calls on the Member States to explore financial de-risking solutions appropriate to the maturity of their local marketsmarkets, (grants,such as grants, loans that are convertible to grants, state-backed guarantees),guarantees, asexploration wellinsurance asand thehedging potentialmechanisms, benefitsnotes examples of risk coverage mechanisms that are backed up not only by public funds but also by contributions from the private sector; notes, in this regard, that an EU-wideEU financial risk mitigation scheme;scheme would be particularly useful for the least mature markets in the geothermal sector; notes the importance of other de-risking measures such as granting easy access to subsurface data, sharing best practices on new types of business models offering synergies between public and private funding;

Change 10

Changed13.33. Expresses concern that whilehigh geothermalupfront heatdrilling pumpsand (GHPs)installation arecosts currentlytend to discourage the mostselection efficientof geothermal heat pumps,pumps producing(GHPs) morein heatfavour forof less electricityefficient intechnological coldsolutions; climatescalls comparedon the Member States to airexplore sourcepossible heatfinancial pumps,incentives theirto muchbridge higherthis upfrontgap, drillingincluding andthrough installation‘pay costsas tendyou tosave’ discourage(PAYS) theirfinancing selection;models; calls on the Member StatesCommission to exploreaddress possiblethis financialissue incentivesin tothe bridgeupcoming thisEU gap;heat pump action plan;

Change 11

Changed14.34. CallsStresses that high upfront costs are stunting the growth of geothermal energy, particularly for actors with limited financial resources, making them to favour investments that are more profitable in the short term, but offer lower environmental sustainability; calls on the Commission to take appropriate steps to ensure that geothermal projects are better taken into account when using existing European funds and instruments; asks the Commission to considerdedicate settingresources upunder aexisting dedicatedfunds to support exploration, development, modernisation of geothermal fund;projects, particularly based on innovative technologies, and reskilling and upskilling of workers;

Regulatory issues

Change 12

Changed15.35. NotesStresses that faster permitting rules for geothermal, in compliance with existing EU environmental legislation, would facilitate the requirementsdeployment of mininggeothermal energy projects across the EU; notes that deep geothermal energy projects are currently subject to laws designed for large-scale mining projectsprojects, which are difficult to upholdcomply inwith, muchparticularly for smaller-scale geothermal projects; calls therefore on the Member States to review and simplify existing mining laws,laws wherein necessary,order orto better reflect the specificity of geothermal projects and to develop dedicated permitting rules for geothermal;geothermal, while taking into account the fact that different geothermal technologies have significantly different impacts and risks for the geology and environment; asks the Commission to provide guidelines to ensure the requisite level of coherence;coherence, similar to the approach taken for the regulatory framework supporting CO2 storage (Directive 2009/31/EC);

Change 13

Removed16. Notes that permits for geothermal installations must be made extensible to cover the extraction of lithium or the production of hydrogen from existing capacity under the same lease;

Added36. Draws attention to the fact that in some Member States project assessment deadlines are rooted in the tacit approval principle under clearly defined conditions unless a reply is required by EU or national law; calls on Member States to explore the benefits of, and barriers to, applying this principle to geothermal projects and to consider its introduction in their legislation;

RemovedSkills and technology development

Added37. Expresses concern that geothermal projects encounter lengthy permitting processes; urges the Member States to create more efficient streamlined and digitalised permitting processes for new geothermal projects and for the expansion of existing facilities, including by creating a one-stop shop – where this has not been done already – for the whole permitting process across authorities and to provide support for local authorities to ensure their workforce is adequately skilled; believes that these one-stop shops should also promote information sharing about funding opportunities collected by the Commission via a centralised portal;

Removed17. Expresses its concern over the reported backlogs and delays in the installation of GHPs, the drilling of wells and the granting of the requisite permissions due to a shortage of qualified staff;

Added38. Notes the differences between geothermal exploitation in urban and rural settings; draws attention to the specificity of urban geothermal heating projects and calls on the Member States to develop more efficient and streamlined permitting procedures for geothermal heating projects, including facilitating access to urban plots suitable for geothermal plants; calls, therefore, on the Commission to issue recommendations to distribution system operators on the modalities of working with local authorities to establish local heating and cooling plans with a focus on geothermal energy, in order to facilitate the integration of geothermal energy use in both urban management plans and modern approaches to underground space management;

Removed18. Stresses that while the EU is the leader in geothermal research and development and manufacturing, support measures for next-generation geothermal technologies are needed at European and national level in order to support this position, particularly in geothermal storage and industrial applications;

Added39. Notes that permits for geothermal installations must be made easier for project promoters to expand to cover the extraction of raw materials or the production of hydrogen from existing capacity under the same lease;

Added40. Calls on the Commission to issue guidance for permitting agencies on best practices about managing shallow geothermal permitting applications and potential interference with drinking water to accelerate the permitting process while ensuring the full application of environmental standards;

Added41. Regrets that a life-cycle analysis is being applied to geothermal energy but not to other renewables, which contradicts the technology-neutral approach of the Taxonomy Regulation, reduces the considerable potential of geothermal energy as a contribution to decarbonisation, especially in heat supply, and exposes it to unequal competitive conditions to other renewable energy sources; calls, therefore, on the Commission to review the classification of geothermal energy applications in the taxonomy provisions in order to put geothermal on an equal regulatory footing with wind and solar;

Added42. Stresses that geothermal should have the same regulatory status, including in EU procurement, as already exists for other renewables, and in the Temporary Crisis and Transition Framework, as well as in any subsequent measures;

AddedWorkforce, training and skills

Added43. Expresses its concern over the reported backlogs and delays in the installation of GHPs, the drilling of wells and the granting of the requisite permissions owing to a shortage of qualified staff; highlights that the need for a skilled workforce will further increase in future and urges the Member States, in collaboration with industry and, where appropriate, with trade unions, to step up measures for the skilling and reskilling of specialists for geothermal since having an adequate pool of workers will be critical to meeting the objectives for geothermal deployment;

Added44. Calls on the Member States to ensure that certification schemes or equivalent qualification schemes are available, particularly for installers of small-scale shallow geothermal systems and heat pumps;

Added45. Notes that only a limited number of university courses are dedicated to geothermal energy and are of short duration and optional, with the majority of classes offered only covering basic skills; therefore encourages the Member States to cooperate with educational establishments with a view to updating and strengthening degrees dedicated to geothermal energy so as to adequately train the future generations of workers in the sector; welcomes projects supported by Erasmus+ to remedy the lack of qualified junior graduates in the geothermal energy value chain, such as the Geo3En programme, which aims to lay the foundations for a future Erasmus Mundus Master’s degree in geothermal engineering; underlines, that the geothermal industry needs to raise awareness among students, and teaching staff about the geothermal sector and the career opportunities it offers;

AddedTechnology development

Added46. Stresses that while the EU is the leader in geothermal research and development, high-value patents, publications and manufacturing, support measures for next-generation geothermal technologies are needed at European and national level in order to maintain this position, particularly in geothermal storage and industrial applications;

Added47 Notes that investment in research and development (R&D) in the geothermal energy field has received considerably less funding than other sectors, with only two projects on geothermal energy being supported so far by the Innovation Fund; calls, therefore, on the Commission to support investments in R&D in geothermal technologies, such as, the development of reliable pump technology and new drilling techniques;

Added48. Underlines, in particular, the importance of underground pumped hydroelectric and thermal storage projects; calls on the Commission and the Member States to support R&D in these solutions and to implement large-scale pilot plants; asks for broader support for these projects, particularly those developed on a basis of decommissioned mines and quarries that can be converted into water reservoirs, in calls of EU Innovation Fund and Horizon Europe framework, since this solution can be a vital piece in development of decarbonised electricity systems;

49. Highlights that some Member States have expressed concerns over the lack of conformity of some imported heat pumps to their declared energy efficiency status; stresses that third-party conformity assessment (instead of self-declaration) should be discussed as part of the revision of the ecodesign energy labelling rules;

Territories in transition

Change 14

Removed20. Regrets that the potential of depleted hydrocarbon reservoirs for geothermal applications is not being fully tapped;

Added50. Stresses that the exploitation of geothermal potential, in particular for district heating, is one of the natural resources that can contribute to a just energy transition in the affected areas by offsetting job losses, as mines and other extractive facilities close, eradicating energy poverty, and strengthening the self-sufficiency of local communities and their administrations by reducing their dependence on energy imports;

Removed21. Draws attention to existing repurposing projects in decommissioned mines, where applied cavern thermal energy storage technology is able to provide heating or cooling; notes the development of projects which plan to use oil reservoirs for energy storage; takes note of ongoing projects to repurpose decommissioned oil and gas wells for geothermal applications, thereby greatly reducing exploration risks and drilling costs;

Added51. Regrets that the potential of repurposing for geothermal applications of depleted, abandoned and end-of-life hydrocarbon reservoirs as well as oil and gas wells is not being fully tapped;

Removed22. Notes that many of these projects are implemented by the hydrocarbon industry, which sees them as an opportunity to be part of the energy transition, and that there is a need for the even stronger involvement of this industry in exploring the potential for geothermal; stresses that early assessment of resources, when the mines are still accessible, ensures the more efficient development of their alternative use;

Added52. Draws attention to existing repurposing projects in decommissioned mines, where applied cavern thermal energy storage technology is able to provide heating or cooling; notes the development of projects which plan to use oil reservoirs for geothermal energy storage; takes note of ongoing projects to repurpose decommissioned oil and gas wells for geothermal applications, thereby greatly reducing exploration risks and drilling costs;