Germany's Geothermal Project Powers Up Despite Setbacks

A German town south of Munich just became home to something the renewable energy world has been waiting years to see: electricity flowing from deep underground loops that don't need volcanic hot spots or special rock formations to work.

Eavor's geothermal plant in Geretsried started feeding power into Germany's grid in late 2025, making it the first commercial closed loop geothermal system generating electricity anywhere in the world. The technology drills deep sealed pipes through hot rock, circulates fluid to collect heat, and brings that energy to the surface for power and heating.

The current output of 0.5 megawatts is about a quarter of what one loop was expected to produce. That's a significant gap from the original 8.2 megawatt target for the site's first phase, and the project has cost more than initially planned.

But here's what matters: it's actually working. For decades, geothermal power has been limited to places like Iceland or California where hot water naturally flows near the surface. This approach could theoretically work almost anywhere on Earth if you drill deep enough.

Germany chose to support this first of a kind demonstration with €91.6 million from the EU Innovation Fund, plus loans from European banks. The country needs firm, low carbon energy that can provide heat and power around the clock, especially after phasing out nuclear plants and losing access to Russian gas.

Bavaria already runs multiple geothermal district heating systems, so local engineers understand the underground challenges. Geretsried became the testing ground for scaling up from concept to commercial reality.

The Ripple Effect

Every transformative energy technology starts with imperfect first versions. Early solar panels were expensive and inefficient. First generation wind turbines were small and unreliable. This closed loop system represents real learning that other projects worldwide can build on.

The breakthrough isn't just about one small German town getting clean electricity. It's proof that sealed underground loops can extract heat through solid rock without fracturing, without producing fluids that might cause problems, and without needing the rare geological jackpot that conventional geothermal requires.

Dozens of other closed loop geothermal projects are now in development globally, watching what works and what doesn't in Geretsried. Each challenge solved here makes the next project cheaper, faster, and more effective.

Germany's energy transition needs solutions that provide steady power to complement wind and solar, and heat for homes and industry through cold winters. This plant does both, drawing from an energy source that never runs out and never needs fuel.

The team is still optimizing the system and working toward bringing additional loops online. Sometimes the most important progress happens when engineers turn ambitious concepts into working reality, even if the first version needs improvement.