New Framework Boosts German Geothermal Market

The geothermal sector in Germany sees promising growth prospects in 2026 following the recent legislative and financial developments. A pivotal moment arrived in December 2025 with the Geothermal Acceleration Act's passage by the Bundestag, streamlining project approvals and enhancing predictability. Moreover, the KfW geothermal financing instrument offers improved risk mitigation for geothermal drilling, making projects more financially secure.

Andreas Tönies, CEO of Daldrup & Söhne AG, anticipates a significant surge in demand for geothermal projects, predicting an increase of 100 to 200 percent by 2030. This robust new framework, which includes comprehensive digitalization and accelerated procedures, markedly reduces previous bureaucratic delays.

These advancements are expected to solidify Daldrup & Söhne AG’s strategic market position, supporting Germany's heat transition goals. The combined legislative and financial backing forms a compelling package for potential investors and enhances confidence across the geothermal market.