Drilling: Where Geothermal Value Begins
Dec 2, 2025
Every renewable industry has its foundation. For geothermal, it’s drilling.
This is where natural potential becomes measurable energy and where investment turns into tangible assets. Drilling represents up to 50–60% of a project’s total capital cost (World Bank, 2024), making it both the most capital-intensive and the most value-creating stage of the geothermal chain.
In fact, drilling is not only a technical requirement but a strategic growth driver.
Each new well expands capacity, employment, and infrastructure. Each completed project builds knowledge, supply chains, and export potential.
In this sense, the drilling stage acts as the multiplier that transforms geothermal development into industrial growth, national competitiveness and bankable energy.
“The value of geothermal is unlocked not at the surface, but at the point where engineering meets the Earth’s heat.”
Challenges and the Path Forward
No transformative industry comes without challenges. Geothermal requires higher upfront capital for exploration and drilling, and managing resource risk demands technical expertise.
The Turkish regulatory and operational framework effectively addresses the major challenges in geothermal Development through mandatory practices and specific incentive programs.
The combination of legislative mandates, governmental support and local know how, has significantly improved the geothermal sector's risk profile, making it a reliable destination for energy investment.
Geothermal Risk Mitigation Table in Türkiye (2025 Context)
Risk | Miligation | Law |
|---|---|---|
Exploration Risk |
| Geothermal Resources and Natural Mineral Waters Law No. 5686 (2007) and supporting financing decrees.
Law No. 5686, MTA’s mandate. |
Technical & Performance Risk | Strict environmental and technical regulations require the reinjection of spent geothermal fluids to sustain reservoir pressure and resource longevity. | Regulation on Geothermal Resources and Natural Mineral Waters and environmental regulations. |
Supply Chain & Import Risk | Local Content Premium & Import Exemptions:
| YEKDEM Law No. 5346 and Investment Incentive Regime (Presidential Decrees and Official Gazette listings). |
Environmental Governance | Strict EIA Process: All geothermal projects are now subject to the rigorous Environmental Impact Assessment (EIA) process. | Regulation on Environmental Impact Assessment. |
By addressing these risks, the Turkish market is successfully reducing geothermal's risk.
This strategic approach is the foundation upon which large-scale investment is built.
Türkiye hosts a German delegation to showcase Geothermal expertise:
The Geothermal Energy Association (JED) of Türkiye recently hosted a delegation from Germany, considered as Türkiye’s most important trade partner.
The delegation included the German Ministry of Energy and Natural Resources, the German Energy Agency (DENA), and the German-Turkish Chamber of Commerce and Industry (AHK).
During the meeting, Türkiye’s position as Europe’s leader in Georthemal energy was reiterated. The Turkish officials shared with their German counterparts Türkıye’s willingness to share all kinds of expertise, knowledge, and technology with Germany in this field, as well as joint investment proposals.
Türkiye hosts German delegation to showcase geothermal expertise, technology, and development
Conclusion
Türkiye remains one of the most dynamic geothermal drilling markets in the world.
Türkiye’s geothermal roadmap 2030 highlights drilling as the engine of the sector’s growth, emphasizing that each new well expands national capacity, deepens resource understanding, and strengthens the long-term economics of geothermal energy. As investment shifts toward well construction and subsurface development, drilling continues to stand out as the most strategic value creator in Türkiye’s geothermal ecosystem.
About this Journal
This is the third of our installment series. Each issue will deliver global and regional energy market trends in investor-friendly language, with an emphasis on opportunities and actions.
Next issue: “Türkiye at the Heart of the Energy Transition.”
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Sincerely,
GEOSIMA TEAM
