The UK government has set aside GBP 6 million for deep underground heat exploration in order to push the development of geothermal energy technology in the country.

Companies will be able to tap into the newly announced fund to carry out exploration needed to identify sites with economically viable geothermal resources. According to UK Energy and Climate Minister, Lord Hunt, deep geothermal energy is an innovative technology that can provide clean, low carbon, renewable power and heat for the UK energy market. Deep geothermal resources in South West England alone are though to be enough to provide 2% of the country's annual electricity demand. Furthermore, new jobs would be provided both during construction and later during maintenance of these power plants.

Introducing a non-intermittent source of electricity would significantly strengthen UK's energy mix, reducing foreign fossil fuel dependency. Currently, there is a single geothermal power station in the UK – the Southampton District Energy Scheme. The facility uses water from a depth of about 1800 m, and is part of the district's heating network. It has been in operation for 20 years.

The GBP 6 million in funds will be split into two parts – 4 million available this year, and another 2 million available next year. Project bids for qualifying for the funding will be assessed and managed by a panel established by the Department of Energy and Climate Change. The first round bidding process will be closed on November 20, 2009. Successful projects will be announced soon after this date.