Could Geothermal Energy Rescue Germany's Fading Coal Towns?

By Haley Zaremba - Jul 14, 2026

• New exploratory drilling near Weisweiler suggests the site could support geothermal heating systems as the nearby coal plant prepares to close by 2029.
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• Researcher Hauke Hermann says rising EU carbon allowance prices could push Germany's coal exit to 2032, six years ahead of the legal 2038 deadline.
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• Chancellor Friedrich Merz has signaled he won't sacrifice industrial power supply for phase-out timelines, even as Europe faces its third energy crisis in four years.
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Europe’s largest economy is walking a precarious tightrope toward carbon neutrality, trying to balance energy security with climate goals as this summer’s heat waves create mounting pressure on the continent’s energy grids while simultaneously highlighting the importance of mitigating emissions. The German government aims to source 100 percent of the national energy mix from renewables by 2035, but has hedged some of its energy-transition rhetoric in recent months against the backdrop of major energy market volatility.

Germany has made a legally binding pledge to phase out the dirtiest fossil fuel entirely by 2038, but there is cause for speculation that the government may be reconsidering its near-term strategy. Back in March, when the shutdown of the Strait of Hormuz began and thereby ushered in Europe’s third energy crisis in four years, Chancellor Friedrich Merz made his priorities clear: “We must supply this country with electricity. I am not prepared to jeopardise the core of our industry simply because we have adopted phase-out plans that have become unrealistic.”

However, even with the market volatility in mind, some experts think that timely the phase-out of coal in Germany is an economic inevitability, and could happen even sooner than the goal date. Hauke Hermann, a senior researcher for energy and climate action at the Institute for Applied Ecology, thinks that coal will die out in Germany by 2032. While some pundits have questioned whether the latest energy crisis will push Germany back to coal (and strengthen its dependence on natural gas), Hermann believes that the opposite is true, thanks in large part to the European Union’s emissions trading system or ETS: “Our electricity market models indicate that coal will be phased out faster than envisaged under the coal exit agreement, meaning the market is outpacing the schedule,” Hermann told Clean Energy Wire. “This is due to comparatively low gas prices until recently, and higher ETS allowance prices.”

However, Germany needs to replace that coal with clean energies instead of natural gas if it wants to achieve its decarbonization goals. The country has already made great strides when it comes to expanding wind and solar capacity as it has attempted to wean itself off of Russian fossil fuel imports in recent years against the backdrop of the War in Ukraine. But Germany will need to double down on clean energy expansion, and especially round-the-clock clean energy alternatives if the country has any hope of achieving a 100 percent renewable grid in less than ten years.

Enter geothermal energy. Capable of producing energy 24 hours a day, seven days a week with zero greenhouse gas emissions, geothermal could be a critical part of Germany's decarbonization strategy. And it looks like coal country could be the perfect place to build up geothermal capacity as coal-fired plants are phased out, creating critical opportunities for communities dependent on coal for their livelihoods and therefore offering a feasible pathway for a just transition.

Exploratory drilling New geological data gathered from exploratory drilling near Weisweiler in Germany’s Rhineland region has revealed that the site could be well-suited to geothermal energy development, and is “expected to strengthen underground models and accelerate the development of geothermal heating systems” according to a recent report from Interesting Engineering. The drilling is taking place near the site of a major coal-fired power plant that is slated to shut down by 2029.

The findings of this initial study could be the beginning of a much bigger data-gathering operation, which could kickstart a geothermal renaissance in the region. In the future, surveys will dig deeper and use seismic imaging to look for geothermal reservoirs that can be tapped for round-the-clock energy production.

“The study forms part of broader efforts to support the energy transition in Germany’s Rhineland, where former coal infrastructure is being reimagined for renewable energy applications,” Interesting Engineering goes on to say. “By reducing geological uncertainty, the new data could help attract investment in geothermal projects and strengthen the region’s shift toward cleaner, more sustainable heat production.”

By Haley Zaremba for Oilprice.com