Powering the future of heating: How geothermal energy enables efficient electrification
With regulatory pressure driving the transition to renewable energy sources, heating is electrifying rapidly. Now, the question is no longer whether to electrify, but how to do it without overloading the power grid. Geothermal energy coupled with heat pumps offers a feasible answer, writes QHeat CEO Erika Salmenvaara.
"The answer isn’t to slow down electrification, it’s to guide it intelligently."
- Erika Salmenvaara, CEO, QHeat
As electricity consumption continues to grow in the coming years, the International Energy Agency (IEA) dubbed the time we’re living in “the new Age of Electricity”. Industrial production is growing, air conditioning use is rising, electrification is accelerating, and data centres are being expanded worldwide. Driven by these trends, global electricity consumption is expected to increase over 2025–2027 at the fastest pace in years.
And then there’s heating. It already accounts for up to 50 percent of total energy consumption, and is rapidly shifting to electric sources. But it is not happening efficiently enough: average coefficient of performance (COP) values remain low, leaving significant room for improvement in the electrification of industrial heating. With limited grid capacity and mounting pressure to get rid of fossil-based heating solutions, power infrastructure is under growing stress.
How can geothermal energy help shape a smarter future for electrified heating? The answer isn’t to slow down electrification, it’s to guide it intelligently.
1. More heat with less electricity
"Energy security urgently requires systems that need less electricity and enable on-site production. Efficient heat pump solutions are one of the most effective ways to achieve that."
- Randi Kalskin Ramstad, Energy expert, Asplan Viak
Making electrification more efficient isn’t just a technical upgrade. It’s a strategic move toward more reliable and resilient energy systems and progress on climate and regulatory goals. According to the IEA, the pace of electrification should double to meet the 2030 milestone of the Net Zero Emission scenario. But how to scale up without overloading the system?
To understand how heating fits into the broader electrification challenge, we spoke with Randi Kalskin Ramstad, an energy expert at Asplan Viak, a large and independent consulting company within architecture, planning and infrastructure in Norway.
"Energy security urgently requires systems that need less electricity and enable on-site production”, says Ramstad. Efficient heat pump solutions are one of the most effective ways to achieve that.
She emphasises that the benefits go beyond efficiency:
“Efficient heat pumps with low electricity demand speed up the electrification of resource-heavy industries. This is important for the competitiveness of the industry, and by that helps secure and create new jobs.”
Already, geothermal heat holds an increasingly strong market position as a renewable energy resource in the Nordics. It’s one of the most cost-efficient forms of heating available, both in terms of energy efficiency and operating costs.
Energy efficiency and cost comparison of different heating solutions
Among other available technologies, geothermal energy coupled with heat pumps stand out for their potential to deliver high performance with minimal grid impact.
2. Flexibility strengthens the energy system
On one hand, the transition to renewable energy sources is accelerating. On the other, these sources are weather-dependent, and can thus introduce volatility. During colder periods, Dunkelflaute events (when there’s a lack of both wind and solar power) pose significant challenges to energy production, consumption, and cost.
According to Ramstad, heating accounts for one third of electricity use in Norway, and during the coldest hours, it can consume up to two-thirds of the total capacity.
That’s why built-in flexibility is necessary. The high COP of a geothermal heat pump is made possible by the stable temperature of the ground, unlike air-to-water heat pumps that are reliant on outside conditions. Geothermal energy remains consistently warm and reduces the electricity consumption of the heat pump. In short: the solution is not weather-dependent.
QHeat’s geothermal wells, for example, are able to take advantage of the changing weather – especially in the Nordics, where winters tend to be long and harsh. Heat generated during warmer periods can be stored in the well, making it available when it’s needed the most. Heat storage offers a flexible option when energy demand peaks while enhancing electricity security and easing the load on the power grid.
This flexible storage capacity is crucial when building a more resilient and future-proof energy network for generations to come.
3. Fewer infrastructure changes, more impact
The current energy infrastructure is the result of engineering experience and significant investment. But even the best systems have their limits. When the limit is met, challenges arise.
Without more efficient solutions, electricity shortages could delay new construction and development projects and strain the existing infrastructure, driving up costs. Inefficient electric heating or a fallback to fossil fuels could also increase emissions, making it harder for buildings to meet energy performance targets.
In fact, Randi Ramstad notes that in Norway, the easiest way for buildings to reach energy class A and B is by adopting geothermal heating-compared to other energy efficiency measures and renewable energy solutions.
Meeting future needs cost-efficiently requires adopting smart energy sources such as heat pumps. McKinsey & Company refers to future-proofing the power grid as a critical strategic capability, combining technical expertise with market insight. Geothermal energy contributes directly to that goal. Deep wells paired with heat pumps can be integrated without overhauling existing infrastructure or investing in entirely new developments.
Instead, they reinforce and build on the systems already in place – systems that are, in many ways, the backbone of our society.
QHeat’s solution achieves a competitive COP value: Case Finnoo
QHeat’s heating system combines geothermal energy and state-of-the-art heat pump technology to deliver an effective, electricity-based heating system. It achieves a COP of up to 6 compared to the typical range of 2,5–3,5 of traditional ground or air-to-water source systems.
According to operational data gathered from the Finnoo district heating plant, where QHeat’s solution was installed, the heat pump’s COP ranged between 4,6–6,4. In addition to QHeat’s technology, this high efficiency was enabled by a low-temperature district network, where the produced heat is around 40 degrees Celsius.
District heating temperatures typically reach approximately 90 degrees, which would result in a significantly lower COP. The value would still be higher than with other heat pump technologies.
High COP performance during cold weather: Finnoo plate operational data (Nov 2023)
As electricity demand grows, the way we electrify heating matters. Geothermal energy combined with heat pumps offers a reliable and energy-efficient path forward. It reduces pressure on the grid, works with existing infrastructure, and supports long-term climate goals.
The shift is already happening. Now is the time to scale the solutions that make it work.
Want to electrify heating efficiently without overloading the grid? Get in touch!