Geothermal Energy in the European Union: Regulatory Frameworks, Delivery Challenges and Project Finance

CEEnergyNews says the study was conducted by Ecorys on behalf of the European Commission Directorate-General for Energy.[1]The European Commission says it published the report on 17 July 2026, presenting best practices and solutions for geothermal energy across EU countries for regulation, permitting, data availability, financing, and business models.[2]According to the Publications Office of the EU, the study finds that deployment remains uneven and below the estimated technical potential.[3] It links this gap largely to regulatory heterogeneity, complex and lengthy permitting procedures, constraints in access to subsurface data[3].Ecorys says permitting is a major barrier, particularly for deep geothermal projects, due to lengthy, complex, multi-authority processes[4]. CEEnergyNews reports that deep projects must deal with complex mining laws and multi-authority approvals[1].On financing, Ecorys says financial support is scarce, especially for deep geothermal projects[4], and that risk-sharing mechanisms for drilling risk are still rare. It adds that projects with large off-takers or extra revenue, such as lithium, are better positioned to overcome this demand risk.[4]CEEnergyNews says the study names more state guarantees and links to district heating networks as crucial steps for increasing adoption across the region[1].The Commission notes that geothermal is 1 of 8 strategic technologies included on the Net-Zero Industry Act[2].