Geothermal draft law a “key lever” for climate-friendly heating in Germany – associations

Germany's draft law to speed up geothermal projects is a "key lever" to ramp up the climate friendly heat supply, said associations during a parliamentary hearing, as reported by Tagesspiegel Background. Under the planned geothermal acceleration act, which also includes large heat pumps, heat storage facilities and district heating pipelines, these projects are given an "overriding public interest", a step previously taken for wind and solar power installations to speed up their construction.

Germany's geothermal association BVG welcomed the draft law overall, but called for improvements such as removing the mandatory requirement for an environmental impact assessment for larger projects, or for the state and municipalities to make land available specifically for drilling sites and heating networks, Tagesspiegel Background reported. Energy industry association BDEW was also supportive of the law, the newsletter service added.

The economy and energy ministry under Katherina Reiche built on the previous draft for the law, which was planned by Olaf Scholz's old government before its collapse. It is scheduled to be adopted by cabinet on 6 August, Tagesspiegel background reported. The goal is to grow geothermal energy output to 10 gigawatt hours per year by 2030.

Geothermal energy from deep rock formations could meet 25 percent of Germany's heat demand, according to a 2024 report by NGO Deutsche Umwelthilfe (DUH). More than half of final energy use in Germany goes towards heating buildings and industrial processes, meaning that a climate-neutral heat supply is crucial for meeting climate targets.