France Geothermal Energy 2026: Heating, Power, Policy, Investment Growth

France's geothermal sector is at a crossroads. The country is Europe's undisputed leader in deep geothermal district heating, with the Paris Basin hosting the world's largest concentration of deep geothermal systems.

Yet geothermal still supplies only 1% of France's final heat consumption, and the Court of Auditors has warned that current ambitions are "unrealistic" without structural reform.

⚡ Deep Geothermal (Power Generation): Marginal Output, Major Potential Untapped

France's geothermal power generation remains almost negligible. As of 2026, only two plants produce electricity: the Bouillante plant in Guadeloupe (15.5 MW) and the Soultz-sous-Forêt EGS pilot in Alsace (1.7 MW).

Total geothermal electricity production capacity was approximately 17.17 MW in 2023, forecast to reach just 19.47 MW by 2028.

The Bouillante plant is set to double its production with a third unit scheduled for commissioning by the end of 2026, making it an exemplary model for French overseas territories.

Mainland France's power potential is limited, partly due to seismicity concerns in the Alsace region, where the Soultz project is located.

🌡️ Deep Geothermal (District Heating): Europe's Undisputed Leader

Deep geothermal for heat is where France truly excels. As of the end of 2025, France has 73 deep geothermal systems producing heat, totaling 2.28 TWh, almost entirely in the Paris Basin.

Major operational and upcoming projects include:

· Plessis-Robinson and Chatenay-Malabry: Operational as of 2026, this €96 million project draws 68°C water from the Dogger aquifer at depths of 1,600–1,700 meters, distributing up to 133 GWh per year and avoiding 31,500 tonnes of CO₂ annually. It operates on 88% renewable energy.

· Meudon-la-Forêt: Drilling began in 2026 for a geothermal doublet targeting depths over 1,500 meters, with thermal waters at about 64°C. The project will supply 7,800 homes, reducing CO₂ emissions by 17,700 tonnes annually.

· Saint-Denis: A deep geothermal plant with wells drilled to 1,800 meters tapping 60°C water was commissioned after two years of work.

· Aulnay-sous-Bois: Coriance Group completed drilling of a geothermal doublet in 2026, targeting the Dogger formation at 1,700 meters.

🌡️ Shallow Geothermal (Heating & Cooling): Vast Potential, Stagnant Market

France has 209,000 shallow geothermal systems (under 200 meters), producing 4.82 TWh of heat. Shallow geothermal is technically viable across 95% of French territory.

However, the market is contracting. Geothermal heat pump sales fell 6.2% in 2025 to just 2,513 units, down from 2,679 in 2024. The industry experienced a negative CAGR of -8.47% from 2020 to 2024, with a dramatic -50.27% decline from 2023 to 2024.

France's ratio of air-source to ground-source heat pumps is a catastrophic 400:1, compared to the EU average of 40:1.

📜 Policies in Action: Ambitious Targets, Structural Gaps

PPE3 (Third Multiannual Energy Programme, adopted February 2026) sets ambitious targets:

· 2030: 5× increase in geothermal production to 16 TWh

· 2035: 28 TWh total (15–18 TWh shallow, 8–10 TWh deep)

Financial support in 2024 totaled €123 million for deep geothermal and €110 million for shallow geothermal.

The Heat Fund subsidizes 3–5 deep projects per year, but meeting targets requires commissioning 6–10 geothermal doublets annually by 2030, requiring €96–200 million in annual subsidies.

Regulatory reforms include:

· Raising the "minimal importance geothermal" threshold from 500 kW to 2 MW to simplify intermediate projects

· From September 2026, "Coup de pouce Chauffage" bonuses for geothermal heat pumps will require prior approval and quality criteria

· 90% coverage of exploration costs for electric geothermal projects, capped at €20 million per project

🚧 What's Hindering Growth?

The Court of Auditors' January 2026 report identified structural obstacles:

· Administrative complexity: Slow, complex permitting procedures are a primary barrier. Drilling regulations are seen as a growth bottleneck

· High upfront costs and geological risk: Deep geothermal requires very high initial investments with uncertainties about resource availability, particularly in less-explored geological zones

· Lack of subsurface knowledge: Geological data from developers is kept confidential for ten years, slowing project development

· Overseas inequality: The geothermal guarantee fund does not cover resource risk for electricity projects in overseas territories, creating a major barrier to new plants in Guadeloupe, Martinique, and Réunion

· Workforce shortage: France lacks qualified drillers and available machinery, creating a bottleneck

· Shallow geothermal support gap: The aid system is complex and fails to account for long-term savings

🚀 The Way Forward

· Géoscan programme: BRGM is mapping subsurface resources through GeoScan Hexagone, GeoScan Arc, and GeoScan IdF, with first application in the Paris Basin

· Geothermal lithium co-production: The Lithium de France project in Alsace combines geothermal heat with direct lithium extraction (DLE) from deep brines, targeting 27,000 tonnes of lithium carbonate annually by 2031–2033 enough for 800,000 EV batteries

· Accelerating project pace: The Court recommends commissioning 6–10 geothermal doublets per year by 2030, requiring a significant scale-up from the current 3–5

· Financial innovation: The Court suggests using repayable advances, subsidized loans, or equity investments instead of pure subsidies

🏢 5 Key French Geothermal Companies

1. Arverne Group , France's leading geothermal solutions provider. H1 2026 gross business volume grew 60.1% to €16.8 million. Operates the Lithium de France project in Alsace, targeting 27,000 tonnes of lithium carbonate annually. Created La Francilienne de Géothermie with Banque des Territoires (up to €45.1 million commitment).

2. CFG Géothermal , Specialized engineering and consulting firm. Pioneered new doublet technology, including in Chevilly-Larue with horizontal drilling sections up to 800 meters in the reservoir.

3. Coriance Group , Major district heating operator managing 37 heating and cooling networks with 28 geothermal doublets. Completed drilling in Aulnay-sous-Bois in 2026 and operates the Plessis-Robinson/Chatenay-Malabry network.

4. Idex – Manages 50 heating and cooling networks with €890 million revenue. Investing €70 million to harness geothermal and data centre waste heat in Levallois, producing 90 GWh per year.

5. ENGIE Solutions , Through subsidiary GéoMeudon (90% ownership), investing €36.8 million in the Meudon-la-Forêt geothermal project serving 7,800 homes.

France's geothermal sector possesses world-class deep heating expertise and a rapidly emerging lithium co-production story. But the gap between its PPE3 targets and current reality is stark. As the Court of Auditors concluded, success depends less on more subsidies and more on simplifying regulation, clarifying risk coverage, and accelerating project execution.

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