The utilisation of shallow geothermal energy is possible in many regions around the world and is particularly suitable for use in houses, blocks of flats, public institutions, administrative buildings, hospitals, schools and businesses. In addition to favourable natural conditions, deep geothermal energy projects also require stable political conditions.

Issues involving drilling and the regulation of the use and return of extracted thermal water are particularly relevant in this context. A clear legal framework governing the feeding-in of electricity to the grid is another key factor for successfully connecting geothermal power plants to the power grid. In Germany, the Renewable Energy Sources Act (EEG) promotes the use of geothermal energy to generate electricity, depending on the size of the plant. Long-term financial modelling and insurance solutions can mitigate exploration risk, helping to remove existing barriers to investment. The KfW Bankengruppe – the federal and state development bank – can grant loans for geothermal deep drilling in Germany under the Federal government’s “Exploration Risk of Deep Geothermal Energy” programme. Partners from the insurance industry support KfW by assuming part of the risk.