Consultation on Geothermal Regulation

Overview

Overview

The Department for the Economy (DfE) is seeking views on proposals to introduce a new regulatory framework for geothermal energy in Northern Ireland.

Geothermal energy is the natural heat stored underground. It can be used to heat buildings, provide hot water, and in some cases cool buildings. It is a local, low‑carbon energy source that is available at all times and does not depend on the weather. Increasing its use could help reduce carbon emissions, improve energy security, and reduce reliance on imported fossil fuels. 

Northern Ireland has significant potential for geothermal energy. While small scale systems for individual buildings are already in use, there is currently no specific regulatory framework in place, particularly for larger or more complex geothermal developments. 

This consultation sets out proposals to introduce new legislation that would create clear and proportionate rules for geothermal development. The aim is to support the growth of a sustainable geothermal sector, while ensuring environmental protection and fair use of underground resources. 

What the proposals include

The consultation seeks views on proposals to:

• Introduce a licensing system for larger, deeper, or more complex geothermal developments.
• Keep small scale domestic systems (such as those used for single homes) largely exempt from licensing.
• Ensure licensed projects meet standards for safety, environmental protection, and technical design.
• Require ongoing monitoring of geothermal systems to ensure compliance with licence conditions.
• Provide opportunities for public engagement, including consultation on licence applications.
• Establish a geothermal data portal to publish information on projects and improve transparency.
• Introduce a framework for public ownership of geothermal heat below 100 metres, while maintaining existing land ownership rights.
• Improve cost transparency by requiring developers to provide information on project costs.

Who may be affected

These proposals are expected to primarily affect:

• Commercial and public sector geothermal developers.
• Operators of larger or shared heating systems.
• Organisations exploring geothermal heat for multiple buildings or heat networks.

Most households using small scale geothermal systems for a single property are unlikely to require a licence.

Why your views matter

DfE wants to ensure that geothermal energy develops in a way that is safe, fair, and beneficial for Northern Ireland.

Your responses will help shape future legislation and policy, supporting the development of a low carbon energy system while protecting the environment and local communities.

What happens next

Once the consultation has closed, the Department for the Economy (DfE) will review and analyse all responses received. 

A summary of responses will be published, setting out the key themes and evidence provided by respondents. 

The feedback will be used to inform further development of the policy proposals. Alongside this, environmental assessments, including a Strategic Environmental Assessment and Habitat Regulations Assessment, will be undertaken to ensure the proposals appropriately protect the environment. 

Once all assessments are complete DfE plans to consult further on the final policy proposals before bringing forward legislation to introduce a geothermal regulatory framework in Northern Ireland.