Policies, data, and investments revive geothermal energy

  • The BGS launches an open platform with maps and costs to assess the UK's geothermal potential.
  • Kenya approves Olkaria VII (80,3 MW) and reinforces the grid with the Narok–Bomet line.
  • In the U.S., an Executive Order streamlines permitting and support for geothermal projects and equipment linked to data centers.
  • Hungary launches HUF 41.000 billion tenders for geothermal drilling and systems.

Geothermal Energy

Governments and energy operators from several countries are moving to accelerate geothermal energy with new planning tools, generation projects and grid improvements. interactive map of the BGS In the United Kingdom, from the expansions in Olkaria (Kenya), to a White House order facilitating permits and a tender package in Hungary, the momentum is clear.

These decisions seek to translate into more heat and electricity from geothermal sources, reduce dependence on fossil fuels and, in the process, strengthen energy security. The key is to combine Quality information, financing and agile processing with infrastructure that allows for the evacuation and use of that energy where it is most needed.

The United Kingdom launches a national platform for geothermal planning.

Geothermal potential map

The British Geological Survey (BGS) has published the UK Geothermal Platform, an open and interactive portal for exploring the country's shallow and deep geothermal potential. The tool provides regulators, developers, and researchers with a unified vision of the resource and its estimated costs.

The map explorer offers a simple interface with summary layers that allow for the examination of local scenarios and characteristics. Notable categories include:

  • Closed-loop vertical systems assisted by heat pump (shallow).
  • Open circuit systems with heat pump (shallow).
  • Deep sedimentary aquifers high temperature (hydrothermal).
  • Systems designed in granite of great depth (petrothermal).

These layers provide indicators on thermal production, temperatures and costs, based on Arup's technical and cost review. The information makes it easy to identify areas with the best resource-cost ratio and guide investment and public policy decisions.

For its part, the system indicates that the closed-loop systems They are technically deployable in almost all of Great Britain (always with local planning and regulatory conditions). Until the 55% of the population could extract around 15.000 thermal kWh per year with a single 150 m borehole, figures similar to the annual consumption of a domestic boiler.

In addition, the viewer allows you to evaluate the geothermal rehabilitation of cities and industrial centers, and early planning of new development zones. The growth corridor Liverpool–Manchester–Leeds–Sheffield exemplifies a potential integration of several geothermal technologies.

Next to the platform, a page that offers data links to expanded geoscientific information from BGS, the Mining Remediation Authority, environmental agencies, the North Sea Transition Authority and the UK Onshore Geophysical Library. The first version has been funded by the Department of Energy Security and Net Zero, and its implementation and maintenance are the responsibility of BGS.

For BGS geothermal head Dr Alison Monaghan, having a geothermal system for the first time national volume of data In digital format it facilitates the understanding of geothermal potential, accelerates the decarbonization of heating and strengthens security of supply.

geothermal energy
Related article:
Geothermal energy development: progress, challenges, and key projects

Kenya accelerates its geothermal expansion in Olkaria and on the grid

Geothermal power plant

Kenya's Cabinet has given the green light to Olkaria VII (80,3 MW), in charge of the state-owned KenGen, with the objective of dump energy into the grid starting in June 2027. The decision maintains the growth rate of the largest geothermal complex on the continent. For a more in-depth look at these developments, see the role of storage in geothermal energy.

The design contemplates 19 production wells initial and the possibility of adding another seven throughout a useful life of 25 years. Regulatory documents reflect a planned investment of around 32.000 billion Kenyan shillings (about 248 million dollars) and a viability study tendered in 2022.

The approval came at a Cabinet meeting chaired by William Rutho, which also gave the go-ahead to the Phase III of the Last Mile Connectivity ProjectThis program aims to add 180.500 new customers, relocate idle transformers and modernize substations with high demand, reinforcing the quality of supply.

Both initiatives have the support of the European Investment Bank and the Government of Japan, and are aligned with the Kenyan electricity sector roadmap, which foresees an increase in demand of at least 100 MW per year in the medium term.

Geothermal electrical infrastructure

In parallel, the transmission company KETRACO has started the construction of the new line Narok–Bomet, 81 km and 132 kV, to evacuate the surplus geothermal energy from Olkaria to the west of the country. The reinforcement will relieve saturated corridors, improve the system resilience and will allow the gas turbine to be removed Muhoroni (60 MW). For further information on the impact of geothermal energy on power grids, please refer to air conditioning systems and their relationship with geothermal energy.

The route will connect with the existing network towards Sotik and Kisii, providing alternative food to the South Nyanza region. The new line will act as evacuation corridor additional for the Olkaria geothermal energy.

The construction contract was awarded to North China Power Engineering Company by the end of 2024, within the Kenya Transmission Network Improvement Project (KTNIP), budgeted at about 15.600 billion shillings (approx. $120 million). To better understand how infrastructure supports geothermal generation, you can visit the regulation and applications of geothermal energy.

The conjugation of new capacity in Olkaria and the modernization of the grid strengthen Kenya's role as a geothermal reference in Africa and improve access to and stability of electricity supply.

The U.S. streamlines permitting and support for data center projects.

Public policy on geothermal energy

An Executive Order issued by the Trump Administration seeks to expedite federal processing for infrastructure data centers and their energy, including generation and transmission facilities. For more information on how geothermal energy can contribute to these projects, see more about geothermal energy.

The standard includes the geothermal energy equipment within the so-called "Covered Components", i.e., materials, products, and infrastructure required to build data center projects. This allows geothermal projects or equipment manufacturing plants can benefit from the "Covered Components Project" status.

To benefit, they must qualify as Qualifying Projects, which implies fulfilling one of these conditions:

  • Increase in electrical load > 100 MW associated with the project.
  • National security purpose or recognized strategic interest.
  • CAPEX commitment ≥ $500 million by the promoter.
  • Express designation of the Secretary of Defense, Interior, Commerce or Energy.

The Order provides several support levers for eligible projects:

  • Potential financial support: loans, guarantees, grants, tax incentives and purchase agreements.
  • New categorical exclusions for actions without significant environmental impact on a regular basis.
  • Via FAST-41 to convert projects into “covered” projects and speed up their processing.
  • Accelerated permits on federal and non-federal lands.
  • Site identification on federal lands for competitive bidding.

Hungary launches tenders for drilling and deployment of geothermal systems

The Hungarian Government has opened, through the Jedlik Ányos Energy Program, a public consultation for several tenders aimed at expanding the use of geothermal energy. The draft of the first call is available and admits Comments until August 15.

In total they mobilize 41.000 billion HUF (around $120 million). The first round, endowed with 10.000 billion HUF, subsidizes the first well drilling: Projects in 10–20 rural locations will be eligible for aid of between 40 million (approx. 117.000 USD) and 1.000 billion HUF (approx. 2,9 million USD).

If the perforation results successful, the state contribution could cover the 10% of eligible costs; if it fails, until the 50%The physical execution period is two years from the signing of the support agreement and, in any case, no later than 2028.

A second call will put 12.000 billion HUF available to a grid-connected system for geothermal heat and electricity based on an existing production and injection well, with the possibility of concentrating the entire amount in a single project (all of Hungary except Budapest).

The third, in preparation, will offer interest free loans for HUF 19.000 billion for investments in geothermal heat generation, including drilling costs if necessary.

This package aligns with the National Geothermal Strategy (2024), which sets as a goal double geothermal consumption in the country by 2030: from a base of 6,4 PJ, with intermediate milestones of 8 PCs in 2026 y 12–13 PJ in 2030.

The picture drawn by these measures is one of geothermal sector underway, where improved information (UK), project and network execution (Kenya), regulatory facilitation (US) and public funding (Hungary) all work together to accelerate deployments, reduce risks and make geothermal energy a key part of the energy mix.