Great potential for geothermal energy in the Netherlands

The Netherlands faces a major challenge in the energy transition, and geothermal energy plays an important role in this. However, the development of geothermal energy remains behind in the Netherlands, especially considering the ambitions of the government in this area. Invest-NL has taken the initiative to accelerate the application of geothermal energy in the Netherlands by drawing valuable lessons from the experiences of our neighbouring countries.

Geothermal energy is a form of power generation that utilises the Earth's natural heat, which is both constant and virtually inexhaustible, ensuring a steady supply of energy without the volatility characteristic of some other renewable sources such as solar and wind. Geothermal energy can play a significant role in reducing our dependence on fossil fuels and achieving climate targets because it has low emissions and helps stabilise the energy grid. Additionally, geothermal offers the possibility of both direct heating and electricity generation, making it versatile for use in both urban and rural areas and occupies almost no public space.

The research into the development of geothermal in other European countries, commissioned by Invest-NL and carried out by Well Engineering Partners (WEP) and the European Geothermal Energy Council (EGEC), has focused on effective financing structures, supportive regulations, and building public support. These factors have significantly contributed to the scalability and economic feasibility of geothermal projects in those countries. The analysis shows that implementation in the Netherlands lags behind due to technical, financial, and societal challenges.

The report emphasises that we can benefit from adopting robust financing models, optimised regulations, and strong public-private partnerships that have been successfully implemented elsewhere. These measures are essential to creating a more attractive investment climate and a supportive policy environment, which are fundamental for a sustainable and reliable energy supply.

The research is published on the eve of the "Global Geothermal Impact Summit 2024". This international conference, organised by the IGA, will take place on 22 and 23 April in The Hague, focusing on financing, applicability, policy, and regulations.