At the end of 2002 Germany had an installed capacity of 65 MWt in the large plants and more than 400 MWt in small- and medium-size geothermal heat-pump plants. The first geothermal power is expected to be on-line by autumn 2003, with an installed capacity of about 0.25 MWe. The economic situation in the electric power market is dominated by the new law on renewable energy (EEG), which sets a fixed rate for geothermal power sold to the utilities (about 70-80 Euro /MWh, depending on the size of the plant). Ratification of this law in 2000 has created a sound economic basis for the development of geothermal projects, and several have indeed been launched since then, mainly in the Upper Rhine graben, the Munich area and northern Germany. The Geothermische Vereinigung (GtV) is promoting the "1-GW Scheme", which is targeted at achieving the installation of 1 GW(e) of geothermal power from Enhanced Geothermal Systems (such as Hot Dry Rocks) and deep hydrothermal resources within the foreseeable future. (C) 2003 CNR. Published by Elsevier Ltd. All rights reserved.