Geothermal energy is beginning to attract new investors to the space with a combination of emerging technologies and an increasing recognition of the ability of geothermal energy to provide predictably priced, long-term, low-carbon heating and power. Investors have historically been put off by the high upfront capital cost of geothermal projects relative to the perceived risks of development, however, with an improved understanding of the risks (combined with improvements in mitigation available), attention is now turning to the sector. There have been steps to increase policy support, notably in the EU, and more targeted support, commensurate with other renewable technologies would accelerate the next stage of growth for the sector.

Key Takeaways:

Record Investment & Lower Risks: New technologies and robust policy support are driving record investments in geothermal energy despite its high upfront costs.

Competitive & Low-Carbon: Geothermal delivers reliable, base load, low-carbon energy with competitive economics and an excellent efficiency profile.

Policy Acceleration: Streamlined permitting and targeted financial incentives, especially in the EU and UK, are fast-tracking geothermal project development.

Tech Innovations & Industry Expertise: Emerging systems like EGS/AGS and expertise from the oil and gas industry are reducing risks and improving cost efficiency.

Diverse Applications: Beyond power and heat generation, geothermal is expanding into data centre power and even lithium extraction, opening new revenue streams.

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