Germany’s government approved a new bill on October 25, 2023, aimed at accelerating the development of geothermal energy. This legislation seeks to expedite the approval process for geothermal projects, including plants, district heating pipelines, heat pumps, and thermal storage systems. By classifying these projects as being of “overriding public interest,” the government places geothermal energy on equal footing with solar and wind power initiatives.
The draft law, which still requires parliamentary approval to become law, also relaxes certain restrictions on geothermal exploration in the country. With Germany striving to reduce emissions from buildings, the push for geothermal energy is increasingly seen as vital. According to research from the NGO Deutsche Umwelthilfe, geothermal energy could meet approximately 25% of Germany’s heating demand by 2040, providing around 300 TWh/year, equivalent to 72 GW.
The NGO’s analysis indicates that the levelized cost of heat (LCOH) for geothermal energy in Germany is competitive with other energy technologies. This is encouraging news for the sector, which has seen a significant increase in planning permits in recent years. The Bundesverband Geothermie (BVG), the German Geothermal Association, recently published a map detailing the geothermal projects across the country. Currently, there are 42 geothermal plants operational, with an additional 16 plants under construction.
Germany is also committed to enhancing its solar and wind energy capabilities, implementing ambitious targets and legislative reforms to streamline the permitting process. Despite these efforts, the country faces challenges in meeting its official targets for both onshore and offshore wind energy. While onshore wind installations have increased, a gap remains between the current rate of capacity expansion and the legally mandated goals outlined in the Renewable Energy Sources Act (EEG). Germany aims to install 10 GW of wind power capacity annually to ensure that renewables make up 80% of its electricity generation by 2030.
As Germany navigates its energy transition, the focus on geothermal energy represents a significant step towards achieving its climate goals while also addressing the pressing need for sustainable heating solutions. The outcome of the parliamentary vote on this bill will be crucial in determining the future pace of geothermal development in the country.
