Geothermal district heating is continuing to show dynamic development in Europe, with eight new systems becoming operational in 2014, adding 76.2 MWth to installed capacity, according to the 4th edition of the European Geothermal Energy Council’s (EGEC) geothermal Market Report, published in December. According to the report, the total installed capacity at Europe’s 247 plants is now 4.5 GWth.

EGEC President Burkhard Sanner highlighted two key findings in his introduction to the report. The first is that, if geothermal power and district heating is to attract investors, then some coverage of geological risk will be critical. This is an issue that some Member States have begun to address - French Minister Ségolène Royale recently announced the setting up of a risk insurance fund for deep geothermal in France. Secondly, Sanner noted that for geothermal heat pumps to reach their full potential there needs to be a level playing field with gas and other fossil fuels. For this to happen, the regulatory barriers against the wider use of heat pumps need to be removed, he said.

According to the EGEC, political decisions and actions will continue to drive the development of the geothermal district heat sector, as governments increasingly look for energy supplies which are local, secure and steady - demands that are met by geothermal.

However, the report found that geothermal energy is struggling to reach its full potential. “The European Geothermal Electricity market is struggling for three main reasons: underestimation of potential, a lack of financial support and associated public policy measures, and insufficient recognition of the role of geothermal to balance the grid, being baseload and flexible,” EGEC Secretary General Philippe Dumas said in a statement.

For more information
http://egec.info/wp-content/uploads/2011/03/EGEC-Market-Report-Update-ONLINE.pdf
http://egec.info/steady-development-for-geothermal-in-2014-but-markets-still-to-reach-full-potential/