The publication of the EGEC Market Report provides an in-depth assessment of the geothermal market during the year 2023.
The European Geothermal Energy Council (EGEC) is pleased to announce the release of the 2023 Geothermal Market Report, a comprehensive analysis of the geothermal sector's progress and outlook over the next years. Despite various economic challenges, the geothermal industry in Europe has continued its growing trajectory, demonstrating resilience across multiple sectors.
The geothermal sector in Europe made significant strides in 2023, supplying electricity to 11 million consumers and providing heating and cooling to about 20 million people and 400 cities and factories. The geothermal heating and cooling sector maintained growth in traditional markets, including individual buildings, districts, and greenhouses. Moreover, the sector expanded into new markets with innovative technologies such as geothermal smart heat networks (5th generation) and advanced geothermal systems and entered new regions and countries.
Key Findings
Geothermal Heat Pumps: Sales and new installations were robust across nearly all countries, with a growth rate of approximately 12%. A record 155,000 units were sold in 2023. Germany, the Netherlands, Finland, and Sweden led the market, accounting for half of the installed geothermal heat pumps in Europe and nearly half of the annual sales. However, increased interest rates and high electricity prices posed challenges, particularly in Germany.
Geothermal District Heating and Cooling: The number of new projects continued to grow, with eight new district heating and cooling systems commissioned in the EU. This included heat networks in Germany, Finland, the Netherlands, Romania, and Slovakia. Although 2023 saw fewer new plants installed compared to previous years, as the sector faced delays due to permitting, supply chain disruptions, and increased competition with fossil fuels, the good news is 60 cities announced new geothermal DH projects.
Geothermal Electricity: The sector continued its supply of base load electricity, with 143 geothermal electricity plants generating about 20 TWh/year in 2023. Despite regulatory uncertainties and changes to incentive frameworks, the industry saw the development of 50 new power plants at various stages, including eight new projects initiated in 2023. Underground Thermal Energy Storage (UTES): UTES technology, which stores heat below ground for future use, has advanced significantly. This cost-effective technology supports Europe's decarbonisation efforts and provides a stable energy supply, crucial for reducing reliance on fossil fuels.
The 2023 EGEC Geothermal Market underscores the remarkable progress and potential of Europe's geothermal industry. With continued growth in electricity generation, heating and cooling systems, innovative technologies like UTES, and a supply of minerals such as lithium, geothermal energy is poised to continue playing a critical role in Europe's transition to a sustainable and independent energy future. However, addressing several factors, such as reinforcing the supply chain and enhancing domestic manufacturing, remains essential to fully unlock the potential of geothermal energy in Europe and beyond.
ABOUT EUROPEAN GEOTHERMAL ENERGY COUNCIL (EGEC)
The European Geothermal Energy Council (EGEC) is a not-for-profit organisation promoting all aspects of the geothermal industry. Founded in 1998, its objective is to facilitate awareness and expansion of geothermal applications across Europe by shaping policy, improving investment conditions and steering research. It has over 200 members from 30 countries, ranging from developers to equipment manufacturers, energy providers, national associations, consultants, research centres, geological surveys, government agencies, departments and public authorities. This allows EGEC to represent the entire geothermal sector.
EGEC is listed in the European Transparency Register No. 11458103335-07. For more information visit www.egec.org
Contact:
Philippe Dumas / Secretary General/ p.dumas@egec.org // +32 2 318 40 61
Consuelo Serrano / Communications Manager /c.serrano@egec.org // +32 498 06 79 12
