Economy Minister Dr Caoimhe Archibald has launched a public consultation on proposals to introduce a new regulatory framework for geothermal energy in Northern Ireland, marking the first time any jurisdiction across the UK and Ireland has sought detailed public input on governing this underground heat source. The consultation, which opened at the Balmoral Show on 15 May 2026, seeks views on legislation that would license larger geothermal developments while keeping small-scale domestic systems accessible.
The move represents a significant step toward formalising the “heat beneath our feet” as a regulated energy resource, following three years of exploratory drilling and feasibility studies under the £3 million GeoEnergy NI project. However, the proposals arrive against a backdrop of criticism over the Executive’s slow progress on renewable energy targets, raising questions about how quickly regulatory changes can translate into viable heating alternatives for households currently dependent on volatile fossil fuel markets.
What the consultation proposes
The Department for the Economy (DfE) is seeking public input until 7 August 2026 on creating statutory controls for geothermal developments. The framework would introduce a licensing system scaled to project size, depth and complexity, with regulatory oversight from DfE supported by technical assessment from the Geological Survey of Northern Ireland (GSNI).
Key elements include:
- A tiered licensing regime distinguishing between small-scale domestic installations and larger commercial or district heating projects
- Data reporting and transparency measures, including publication of applications, decisions and system performance
- Regulatory oversight to ensure environmental protection and fair use of underground resources
- Provisions for public engagement and consultation on licence applications
Launching the consultation at the GeoEnergy Discovery Centre during the Balmoral Show, Dr Archibald emphasised the technology’s potential to insulate consumers from global energy shocks:
“Decarbonising heat is a major challenge, and geothermal energy offers a secure, locally available low‑carbon option for homes, businesses and district heating, helping protect consumers from global energy price spikes.”
The Minister added that the framework aims to build investor confidence while creating skilled employment:
“Further development is needed to ensure that geothermal energy can play a role in meeting our future heating needs, provide investor confidence and creating local, well-paid, skilled, ‘green’ jobs.”
Dr Archibald stressed the importance of public input in shaping the final framework:
“These proposals are intended to support a growing geothermal sector that delivers clean, affordable heat while protecting the environment and respecting our urban and rural communities. Your view will help shape how geothermal energy is regulated in here and how this local energy resource is used in the years ahead.”
The geological context
Northern Ireland possesses what geologists term “Goldilocks” conditions for geothermal energy, particularly through the Sherwood sandstone aquifer that lies beneath much of the region. This porous rock formation stores naturally heated water that can be accessed via boreholes, offering a constant heat source independent of weather conditions.
The GeoEnergy NI project has already drilled exploratory boreholes at the Stormont Estate in Belfast and conducted feasibility studies at the College of Agriculture, Food and Rural Enterprise (CAFRE) Greenmount Campus near Antrim. Phase 1 of the project completed in late 2025, with findings indicating that buildings currently using gas boilers could reduce carbon emissions by 50–85% by switching to ground source heat pump systems.
Unlike solar or wind, geothermal provides baseload heating capacity available 24 hours daily, potentially offering a stable alternative for the 62.5% of Northern Irish households currently reliant on home heating oil—the highest proportion in the UK.
How Northern Ireland compares
The consultation positions Northern Ireland as the first UK or Irish jurisdiction to seek detailed statutory frameworks for geothermal, though it follows policy developments elsewhere. The Scottish Government published updated regulatory guidance for geothermal projects in March 2024, establishing licensing through the Scottish Environment Protection Agency and distinguishing between shallow boreholes (under 200 metres) and deeper developments.
The Republic of Ireland has progressed through policy statements and strategic environmental assessments since 2021, with the Department of Climate, Energy and the Environment working toward dedicated legislation. Meanwhile, England currently regulates geothermal primarily through the Environment Agency’s water abstraction regimes and local planning authorities, without bespoke geothermal licensing.
This regulatory gap across the UK has previously deterred investment, with industry analysts noting that the lack of clear subsurface ownership rules and licensing procedures creates uncertainty for developers.
Unanswered questions and scrutiny
While the consultation represents progress, several significant gaps remain in the published proposals. The document does not specify numerical targets for geothermal deployment, unlike Scotland’s statutory net zero commitments or the Republic of Ireland’s Climate Action Plan targets. Nor does it detail financial support mechanisms or subsidy schemes that would help households transition from oil heating to geothermal systems—a crucial consideration given that Northern Ireland remains the only UK region without a renewable energy support scheme for private residential properties.
The timing also invites scrutiny. An Audit Office report published in October 2025 concluded that the Executive’s Energy Strategy was “lagging considerably,” with only 1% of the 2030 energy savings target achieved and renewable electricity generation at 45% against an 80% target. Dr Archibald defended the £107 million expenditure on the strategy during a visit to Derry last autumn, arguing that invest-to-save programmes were generating £8–9 million annually in public sector savings.
However, with the geothermal consultation closing in August 2026 and no timeline provided for subsequent legislation, the sector may face further delays before drilling licences become available. This contrasts with the urgency suggested by recent energy price volatility; the Minister wrote to the UK Energy Secretary in March 2026 requesting emergency support for households facing doubled oil prices following geopolitical disruptions.
Broader implications
The geothermal framework intersects with separate DfE plans to regulate heat networks—distribution systems that could carry geothermal heat to multiple buildings. Industry experts suggest that without coordinated development of both frameworks, Northern Ireland risks creating regulatory silos that complicate district heating projects.
For vulnerable households, the stakes are significant. National Energy Action has previously highlighted that 22% of Northern Irish households experience fuel poverty, with excess winter deaths reaching 1,120 in 2020/21. Geothermal energy offers potential long-term price stability, but only if initial installation costs are addressed through grants or low-interest loans not yet detailed in government plans.
What happens next
Responses to the consultation must be submitted by 7 August 2026 via the Department for the Economy website or by emailing [email protected]. DfE has committed to publishing responses and using them to inform final policy proposals and future legislation.
Key questions stakeholders may wish to consider include:
- How will the licensing regime balance environmental protection with the need to attract private investment in a nascent sector?
- Will the framework establish specific deployment targets for shallow versus deep geothermal resources, and how will these align with the 2050 net zero commitment?
- What mechanisms will ensure that small-scale domestic adopters are not priced out by compliance costs associated with the new regulatory regime?
- How will geothermal regulation integrate with the parallel development of heat network legislation to ensure coherent planning for district heating systems?
- Given the Audit Office criticism of implementation delays, what statutory deadlines will govern the transition from consultation to operational licensing?
The consultation closes at midnight on 7 August 2026.