UK risks missing out on major geothermal energy opportunity

The United Kingdom faces a significant risk of falling behind in the deployment of geothermal energy despite its substantial potential, according to a recent industry analysis by Energy & Infrastructure Business Info (EIBI).

The report highlights that while geothermal systems offer low-carbon, domestic, and dispatchable energy, capabilities particularly relevant to decarbonizing heat and strengthening energy security, the sector remains underdeveloped in the UK.

Analysts point to a range of structural barriers, including uncertain regulation, high upfront drilling and development costs, and a scarcity of project pipelines and investor appetite.
Deep geothermal energy, defined as heat extraction from depths greater than 500m, is especially constrained. Although the British Geological Survey and industry studies estimate that the UK’s sedimentary basins and granitic resource zones could support both direct-use heating and small-scale power generation, actual deployment remains limited. For example, geothermal heat supplied only approximately 0.3% of UK heat demand in 2021.

The EIBI report emphasizes that wrap-around policy support, such as exploration financing, risk-sharing mechanisms, regulatory clarity, and tailored incentives, is essential to unlock this resource. Without accelerated action, the UK may miss an opportunity to deliver large-scale, low-carbon heat and firm renewable power while creating jobs and regional investment.

From a civil and infrastructure engineering perspective, the implications are substantial. Scaling geothermal requires significant well-drilling campaigns, subsurface hydro-geological characterization, heat-exchanger and reinjection system design, integration with district-heating networks, and power-plant or heat-plant equipment installation. The long asset lives and baseload nature of geothermal systems align well with utility infrastructure models, yet the front-loaded capital demands and subsurface exploration risk present a financing and engineering challenge.

With the UK pursuing net-zero heat and energy targets, geothermal energy offers a strategic complement to wind and solar. However, the report concludes that without comprehensive policy reform and efforts to derisk early projects, the UK’s geothermal industry may remain a low-volume niche rather than a core component of the clean-energy transition.