The main design issues that determine the economics of European geothermal district heating schemes are examined. Four different types of geothermal installation, designed to use different temperature resources, are identified. The heating performance is analyses in each case and the costs are estimated. The unit costs of heat produced from these schemes are compared with conventional fossil fuel-fired sources in three competitive contexts. In today＇s fuel markets, in Europe, only the highest temperature geothermal resources are economically viable in all competitive contexts. Lower temperature resources are only viable in more restrictive contexts. Heat pump schemes probably require special, local, circumstances for them to be economically viable.