Geothermal Energy in the European Union - 2025 Status Report on Technology Development, Trends, Value Chains and Markets

Geothermal energy, a high-capacity factor renewable, remains underutilized in the EU, contributing 0.2% of electricity and 0.7% of heat production. Despite its potential for energy transition, EU policy support—via the Net Zero Industry Act, Horizon Europe, and the Innovation Fund—is critical for scaling. While deep geothermal technology is commercially viable, global R&D leadership lies with the U.S. and China, with the EU lagging in high-value patents. The EU maintains a robust value chain in resource development and drilling but there is a lack of systematic data on component manufacturing capacities. Skills shortages persist, though oil and gas expertise can partially address workforce gaps. Political calls for a dedicated EU geothermal action plan, highlights growing recognition of its strategic role.