A comprehensive report on the major market trends in geothermal technologies has been released! This report presents the recent market developments in geothermal technologies and the outlook for the market in 2030.
In 2022, a devastating war erupted In Ukraine and made energy security central to European energy policy. Inflation is again a major characteristic of the European economy, driven by the explosion of the cost of hydrocarbons on energy prices. It led to higher interest rates and then lower buildings construction and renovation rates.
In reaction to these geopolitical and macroeconomic disruption, the energy transition is back at the highest level of policy making, with more importance than ever. The EU recently adopted a Net Zero Industry Act (NZIA) and gives specific attention to geothermal as one of the eight strategic net zero technologies. The EU's Commissioner for Energy, Kadri Simson, has called on Europe to "harness geothermal energy's potential. For too long the benefits of this sector have not been well understood - now is the time to learn."
Geothermal is as the unearthed energy gem as a key solution to supply base load electricity, heating and cooling for all consumers, critical raw materials such as geothermal lithium. Moreover, geothermal energy shall be regarded as the bedrock of the energy transition in Europe and in the world.
We are facing a significant moment of growth and anticipation for the European geothermal market. 2023 was a year of significant transformation for geothermal. Moving from a niche market, constituting just 2-3% of the energy mix, towards becoming a major player in Europe's energy landscape. This development blends perfectly with our goal of supplying sustainable, local and reliable energy to all inhabitants and industry of Europe and beyond.
The journey from niche to mainstream energy demands a robust framework based on critical components. First and foremost, we need effective and streamlined permitting rules. These regulations must facilitate the development of geothermal projects. Financial resources are another pillar of this transformation. Investing in geothermal energy is investing in securing Europe's energy future. A consolidated supply chain is equally vital. The geothermal sector must continue building and maintaining a resilient supply chain that can support the expansion of this energy across Europe. From technology providers to service companies, every link in the chain must be strong and reliable.
Moreover, the growth of geothermal energy also depends on the availability of a qualified workforce. As the sector expands, geothermal offers opportunities to re-skill and up-skill workforce in collaboration with regions and from the oil & gas industry, and the next generation of professionals is getting ready to drive innovation in the geothermal field.
The geothermal exploration of new regions of Europe represents an exciting challenge. We have the technologies at our disposal, but now we need to replicate best practices across the borders. Sharing knowledge and experiences will be key to overcoming geological and technical aspects in order to support the continued growth of geothermal networks in Europe.
