In a major push to decarbonize heating systems, the German federal cabinet on Wednesday, August 6, approved a draft law aimed at accelerating the rollout of geothermal energy across the country. The proposed legislation is part of Germany’s broader commitment to phase out fossil fuel-based heating by 2045, with the building sector identified as a key area for emission reductions.
Legislation to Cut Red Tape and Accelerate Permits
The draft law seeks to streamline the approval process for geothermal energy infrastructure, including heat pumps, thermal storage systems, and district heating pipelines. These projects will be designated as having “overriding public interest,” putting them on par with wind and solar energy initiatives and qualifying them for fast-track permitting.
To further ease implementation, the proposal includes amendments to existing mining, water, and environmental laws. It also sets binding deadlines for public authorities to process applications and relaxes current restrictions on geothermal exploration.
Geothermal Seen as Underused Asset in Climate Transition
A 2023 study by the Fraunhofer Institute estimates that Germany possesses some of Europe’s largest geothermal reserves, potentially capable of supplying over 25% of the nation’s annual heating demand. Despite this, development has been sluggish due to local resistance and a complex regulatory framework.
The new law aims to reverse these hurdles by creating a clearer, more efficient permitting landscape, thereby encouraging municipalities and energy companies to invest in low-carbon heating alternatives.
Awaiting Final Parliamentary Approval
With cabinet clearance now in place as of August 6, the draft legislation will proceed to the Bundestag (lower house) and Bundesrat (upper house) for deliberation and final approval. If passed, the law is expected to significantly boost Germany’s renewable heating ambitions and position geothermal energy as a central pillar of its long-term climate strategy.
