France overhauls geothermal licensing: key changes at a glance

Geothermal energy offers a lot of potential in the energy transition agenda and can be a tool for energy sovereignty and a solution to fight against global warming and adapt to its consequences. Indeed, heating and cooling accounts for about half of the global final energy consumption (40%).

France is sitting on considerable geothermal potential as nearly one-third of its territory harbours deep geothermal resources ready to be tapped, especially in regions like the Paris Basin, Aquitaine, the southeast, the Massif Central, the Rhine Rift, and volcanic zones overseas.

As part of its energy transition strategy and efforts to combat climate change, France has launched a reform to accelerate the development of deep geothermal energy. The national action plan presented in February 2023 aims to increase the number of geothermal projects by 40% by 2030. Moreover, the draft Multiannual Energy Program aims to achieve 10 TWh of final heat consumption from deep geothermal sources by 2035.  

Geothermal operations are regulated under the French Mining Code. The reform of this Code, initially launched by Law No. 2021-1104 of 22 August 2021 on Climate and Resilience, was finalized with the adoption of several implementing decrees and ministerial orders on 27 August 2025. Among them, Decree No. 2025-852 of 27 August 2025 on geothermal exploration and exploitation activities (Decree) and Ministerial Order of 27 August 2025 setting out the procedures for submitting applications for geothermal licences establish the updated regulatory framework for the application, issuance, renewal, and extension of geothermal licences.

Licences for geothermal activities fall into two categories:

• Exploration licences, which may be obtained either as an exclusive exploration licence or a research authorization, at the applicant’s discretion;
• Exploitation licences, which include:
  • a concession, when the primary extracted power exceeds 20 MW; and
  • an exploitation permit when the primary extracted power is below that threshold.

 

KEY FEATURES OF THE GEOTHERMAL LICENCES REFORM

Early-stage environmental review requirements

Applications for the grant of an exclusive exploration licence or for the grant, renewal, or extension of a concession are subject to environmental, economic, and social analysis. Applicants seeking an exclusive exploration licence must submit an environmental, economic, and social report, while those applying for a concession (or its renewal or extension) are required to provide an environmental, economic, and social feasibility study. The previous Mining Code was widely criticised for its insufficient consideration of environmental impacts, as details of the proposed works to be undertaken were only disclosed at the works authorisation stage. As a result, licences were often granted without a clear understanding of the techniques and scope of operations. This situation had also led to legal uncertainty, particularly in the recent years, due to the implementation of the EU directives requiring environmental assessment for projects, plans and programs and their interpretation by courts.

By conducting this analysis at the stage of the application for the geothermal licence, the administration can now assess the potential environmental, economic, and social impacts of the project early in the decision-making process.

The specific content requirements for both documents are detailed in the Decree.

Applications for research authorizations and exploitation permits must undergo an environmental assessment, a process that notably includes the preparation of an environmental impact study, when the applicant intends to carry out works that may have significant environmental impacts.

Strengthening transparency with regards to local authorities and the public

The revised legal and regulatory framework enhances procedural transparency by strengthening the role of various stakeholders in both the permitting process and the lifespan of the geothermal projects.

Once a geothermal licence application is deemed complete, the relevant préfet (the State’s local representative) is required to notify the concerned local authorities of its submission. This newly introduced requirement aims to enhance procedural transparency and ensure that local authorities are promptly informed of projects that may impact their jurisdiction.

Local authorities will be consulted during the application process and may issue an opinion on whether the geothermal licence should be granted. Additionally, the public will be involved through participatory mechanisms, either via online consultation or a formal public inquiry, depending on the type of licence requested.

Following the submission of an application or the granting of a licence, the préfet may establish a site monitoring commission covering all or part of the relevant area. This commission may remain active until the licence expires or until the formal closure of operations. The commission may discuss the risk prevention measures proposed by the applicant or licence holder, follow on their implementation and the execution of the work program, and facilitate dialogue around these measures.   

Revised rules for competition in licence allocation

The procedure for the submission of competing applications was revised.

Competing applications for the granting of an exclusive exploration licence or a concession may now be submitted within 45 days following the publication of the notice in the Official Journal of the French Republic. Previously, the deadline was 30 days from the publication in the Official Journal of the European Union.

Competing applications for research authorizations and exploitation permits may be submitted within 30 days of the notice’s publication in two regional or local newspapers with distribution covering the entire area concerned by the application. This requirement remains unchanged from the previous regime.

The Decree also sets out the criteria for evaluating and selecting the competing applications.

Simplified procedure for combined applications for geothermal licences and mining licences for substances found in the heat-transfer fluids of geothermal reservoir

The revised Mining Code allows applicants to submit simultaneous applications for a geothermal licence and a mining licence for mineral or fossil substances, excluding liquid or gaseous hydrocarbons, when these substances are found in the heat-transfer fluids of geothermal reservoirs. The Decree sets out a simplified procedure for handling such combined applications.

State prerogative to refuse geothermal licences  

The State may refuse to grant, extend or renew an exclusive exploration licence or a concession if there is serious doubt that the proposed operations can be conducted without causing significant harm to worker safety, public health, infrastructure, or the environment.

Such refusals must follow an adversarial procedure, and applicants will be given the opportunity to amend their applications.

Revised exploration timelines

Exclusive exploration licences may now be granted for a maximum duration of 15 years. This extended term addresses significant issues under the previous regime, where exclusive exploration licences were limited to an initial five-year term, renewable twice for a total of up to 15 years. However, the licence itself did not authorize exploration works, which required separate approval from the préfet. Due to the time needed to obtain this authorization, licence holders often lacked sufficient time to carry out exploration activities before the licence expired. Additionally, the administration’s review of extension requests was frequently slow, with approvals sometimes granted only shortly before the end of the licence’s validity period. The new 15-year term is designed to resolve these timing and procedural challenges.

Additionally, the 15-year exclusive exploration licence may be renewed exclusively for the purpose of conducting production tests, with the renewal period capped at three years.

Guidelines on exclusive exploration licences approvals

The Decree sets out several evaluation criteria that must be considered when determining whether to grant or not an exclusive exploration licence:

• The technical quality of the proposed study and work program;
• The consistence and quality of the financing plan for executing the program;
• The extent to which the research program takes into account public safety, health and environmental matters.

Bridging exploration and exploitation – the development phase

A holder of an exclusive exploration licence who wishes to apply for a concession may either submit a direct application or first enter a development phase.

This phase is intended to assess the technical, environmental, and social feasibility of the proposed exploitation project, in consultation with local stakeholders. The application for the development phase must include:

• A technical report demonstrating the discovery of an exploitable geothermic resources;
• A description of the proposed exploitation program;
• The requested duration of the phase of development;
• A plan for public consultations.

The ministerial order granting the development phase will specify its duration.

The development phase includes a public consultation aimed at discussing various implementation options and necessary external infrastructure, evaluating their environmental, economic, and social impacts to define optimal project conditions. The phase concludes with either the submission of a concession application, or a declaration of project abandonment.

Accelerating the works authorization process

The Decree expressly provides and organizes the possibility of filing a research authorization, an exploitation permit or concession application, and an environmental permit application simultaneously – the latter allowing to perform the work once granted.

Overall, in this situation, the research authorization, exploitation permit or concession application file must be supplemented with the information required for an environmental permit.

Guidelines on concession approvals

The Decree sets out several evaluation criteria to determine whether to grant or not a concession:

• The existence of a geothermal resource that is technically and economically viable;
• The quality of preliminary studies supporting the proposed work program;
• The adequacy of the applicant’s economic, financial, and technical resources to exploit the geothermal reservoir and restore the site after operations;
• The extent to which the proposed operation accounts for public safety, health and environmental matters.