Geothermal energy refers to energy that is stored underground. Globally, this energy source has been used in the generation of electricity and heat for many decades. In the last few decades, geothermal energy has only occupied a niche position in Germany. Advancing technology and incentives provided through the Renewable Energy Sources Act (EEG) have contributed to the dynamic development of geothermal energy in recent years.

Near-surface geothermal energy (geothermal heat probes) has established itself in the decentralised provision of heat. Deep geothermal energy projects reaching depths of several kilometres were successfully carried out in the Upper Rhine Valley and in Southern Bavaria. The depth of those boreholes permits the use of geothermal energy in the generation of warmth and electricity in equal proportion. The advantage of geothermal energy lies in its permanent availability, irrespective of seasonal or weather-related fluctuations. Geothermal energy thus plays an important role in the provision of base load energy.

RENERCO recognised the opportunities available in Germany at an early stage and, together with a partner, secured extensive project rights in 2004.