The European Commission Competitiveness Compass' released on Wednesday 29 January sent the right signal for the Clean Industrial Deal.
EGEC supports the initiatives set out for ensuring a competitive energy for people and business.
To supply affordable energy, more competition is required on energy markets to supply electricity, heating and cooling, and for storage.
More competition is needed between energy technologies to allow geothermal to show its competitiveness. The EC must highlight this element in its Action Plan for affordable energy and Member States must provide these fair and open energy markets.
Better competitiveness requires also better market conditions. The EU provisions already adopted to simplify permitting must all be implemented by Member States. We also must see an open market for infrastructures including heat infrastructures for cities and businesses.
The Geothermal sector contributes the three core areas for action of the EU Competitiveness Compass': more innovation, the decarbonisation of our economy and a security of supply.
To fulfill the five horizontal enablers for competitiveness for geothermal, the EU Action plan must ensure:
- Simplification of the permitting process for geothermal with a better implementation of EU legislations;
- Lowering barriers to the energy Markets for electricity, heating, cooling and storage for more competition;
- Financing competitiveness: The Commission must present an EU-wide financial risk guarantee scheme with EU funds. European Commission Guidance on Power and heat Purchase Agreement is also required together with the reform on PPP to allow a leverage of private finance;
- Promoting skills and quality jobs in the geothermal sector, including a plan to transfer skills from Oil&Gas sector;
- Better coordination of policies at EU and national level: The Geothermal Action Plan must be incorporated into the Commission's 2025 Work Programme or is published alongside the Electrification Action Plan in Q1 2026. This includes the launch of the Geothermal Industrial Alliance to allow for the sharing of best practices to ensure the effective implementation of recently agreed legislation. This was one of the main recommendations from the energy ministers in the Council conclusions December 2024.
