Energy

Our country could provide 65% of the EU's total geothermal energy production.

Published

2026. 02. 11. 08:33

Magyar Építők

ILLUSTRATION / magyarepitok.hu

Hungary has the largest geothermal power generation potential in the EU.

The vast majority of geothermal electricity capacity identified in the European Union that can currently be exploited at a cost of less than €100/MWh (i.e. at a price comparable to fossil fuels) is linked to Hungary.

– according to the Másfélfok report published in Hungary by the Association Ember Energy report published in Hungary.

It could be a stable foundation

The technology for extracting geothermal energy is constantly evolving, making it economically competitive with fossil fuels:

Approximately 43 GW of increased geothermal capacity would be available in the European Union today at a cost of less than €100/MWh, equivalent to coal- and gas-based electricity generation.

In other words, geothermal energy is ready for expansion in Europe, as this amount would represent approximately 301 TWh of electricity per year – equivalent to around 421 TP4081T of the EU's coal and gas-fired energy production in 2025.

At a time when energy systems need stable, low-carbon supply and reduced dependence on fossil fuels, geothermal energy could be one of the most important foundations.

We could dominate the market

While geothermal energy production was previously limited to a few favourable locations, its transport is now becoming increasingly feasible, enabling us to serve most of the EU. Enhanced geothermal systems (EGS) can create artificial flow paths, bringing geothermal energy to regions that were previously unsuitable. As the study highlights:

The greatest potential is concentrated in Hungary, followed by Poland, Germany and France. Our country has approximately 28 GW of such potential, which is roughly 65% of the EU's total capacity of 43 GW.

Europe's leading role can still be restored

Although Europe was a pioneer in geothermal energy, with electricity being generated using this method in Italy as early as 1904, in 2024 the 147 geothermal power plants in operation produced less than 10% of available energy, totalling 20 TWh of electricity.

Recognising this, the Jedlik Ányos Energy Programme was launched, which, although its budget does not allow for the strengthening of Hungary's regional leadership, still far exceeds the subsidies available in recent times. It provides HUF 12 billion in incentives for the development of geothermal energy-based electricity and heat generation systems, and a total of HUF 41 billion in funding to help geothermal energy become a driving force in the domestic green economy.

However, the uptake of the technology across the continent remains slow and uneven, reflecting the lack of a coherent EU-level policy framework and increasing the risk that future growth will shift outside Europe.

Source: Link