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Geothermal power gains greater favour among German utility companies

Germany’s utility companies are increasingly backing geothermal energy as a key resource in the country’s renewable transition, with industry leaders like Stadtwerke München (SWM) and Deutsche ErdWärme expressing support for the proposed Geothermal Energy Acceleration Act (GeoWG).

The bill, aimed at expediting approval procedures for geothermal systems, heat pumps, and heat storage projects, has been met with enthusiasm from the German Geothermal Association (BVG) and utility firms alike. Key provisions include streamlining approval processes, digitalizing procedures, and reducing administrative redundancies.

Bundestag representative Bernhard Hermann described geothermal as a “treasure from the depths,” asserting that it could supply at least a quarter of Germany’s heat requirements. Hermann also emphasized that the bill would send a clear signal to the industry to recruit skilled workers and streamline project planning, helping Germany reduce its reliance on fossil fuels and strengthen energy security.

As an example of geothermal expansion in the country, Eavor GmbH signed a heat supply contract with Isar Loisach Naturwärme GmbH (ILN), a subsidiary of Geretsried’s municipal utilities last March. The agreement ensures the delivery of up to 81,200 MWh of heat annually to ILN. The partnership highlights the growing role of geothermal energy in Germany’s renewable landscape, especially as utility companies in the country recognize its potential to deliver clean, reliable energy to district heating networks.

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