At the last Energy Council under the Hungarian Presidency of the Council of the European Union on Monday 16 December, the European energy ministers will publicly discuss the potential of geothermal energy, which will be the subject of Presidency conclusions, and the future of energy policy in the run-up to the new term of office of the European Commission.
At the start of a long morning of discussions, the Executive Director of the International Energy Agency (IEA), Fatih Birol, will present to the ministers the IEA’s new report on the future role of geothermal energy, unveiled on Friday 13 December.
This report indicates that geothermal energy could meet 15% of the growth in global electricity demand by 2050. Today, geothermal energy meets around 1% of demand.
The report also states that in Europe, geothermal energy accounts for less than 3% of district heating, but acknowledges that countries have been offering greater political support since 2022, “due to energy security concerns arising from the energy crisis”.
China, followed by the United States, represents the biggest growth market for geothermal heating.
To see the IEA report: https://aeur.eu/f/et3
Conclusions on geothermal energy. The ministers will then discuss the Hungarian Presidency’s conclusions on the promotion of geothermal energy within the EU, which should be adopted without difficulty (see EUROPE 13538/13).
In particular, the document proposes the creation of an Industrial Alliance and calls on the Commission to present a revision of the heating and cooling strategy, accompanied by an action plan for geothermal energy, as confirmed by the European Commissioner for Energy, Dan Jørgensen, at his hearing (see EUROPE 13518/5).
However, the conclusions make no mention of the action plan for heat pumps, which had previously been abandoned by the European Commission, but which could re-emerge as part of the action plan for EU electrification, integrated into the future ‘Clean Industrial Deal’.
The energy ministers had already discussed the development of geothermal energy at length at their informal meeting last July, largely recognising its potential, but also the need to take into account the different geological realities, the high initial costs and the lack of data (see EUROPE 13454/4).
Future of energy policy. The morning’s discussions will continue with a third public debate on the future of EU energy policy, which should focus on European competitiveness. In particular, the ministers will discuss their short- and long-term priorities, as well as their expectations regarding the future action plan for affordable energy prices, which is due to be unveiled by the Commission at the end of February 2025.
The ministers are also expected to return, in greater detail, to the need to develop networks and interconnections between Member States, as well as how to deal with internal congestion problems.
It is also possible that they will introduce the subject of the roadmap for a complete phase-out of Russian fossil fuels, which the Commission is expected to present within the first 100 days of its mandate.
The ministers could also discuss the proposal for a new renewable energy target for 2040, as set out in Commissioner Jørgensen’s updated mission statement. They could also reiterate their respective priorities in terms of preferred technologies to promote the transition.
Ministers who are members of the ‘Nuclear Alliance’ and the ‘Friends of Renewables’ respectively are due to meet for breakfast before the EU Council.
Electricity markets. The working lunch will be devoted to developments in the electricity markets. ACER Director Christian Zinglersen will present the ministers with new reports on security of supply and the capacity of existing networks in order to continue the debate on how to ensure sustainable, flexible and affordable energy prices in the future.
Miscellaneous items. Other topics include an update on winter supply, an update on external energy relations, a report on the implementation of the Network Action Plan (see EUROPE 13543/8) and a report on the SET Conference held in Budapest on 14 and 15 November.
The future Polish Presidency of the Council will also present its priorities, which will focus on the security aspect of energy policy (see EUROPE 13542/12).
Another ‘ Any other business’ point concerns the promotion by the Benelux countries of higher standards for the export of petrol and diesel fuels to third countries (see EUROPE 13543/9).
Austria, the Czech Republic and Slovakia will once again call on Germany to abolish the application of the gas neutrality levies (‘Gasspeicherumlage’) at the borders with neighbouring countries from 1 January 2025, as it announced last May (see EUROPE 13420/3 - https://aeur.eu/f/et4 ). (Original version in French by Pauline Denys)