Department for Energy and Climate Change (DECC) has awarded a funding of GBP1.1m for three geothermal projects in the UK.
This grant has been awarded from the second round of its Deep Geothermal Challenge Fund, electric.co.uk reported.
The objective of the project is to use natural heat found underground and heat homes and buildings.
DECC said that geothermal is a low-carbon, renewable energy source that will become a viable option for the UK in its plans to reduce its reliance on fossil fuels.
Minister of state for energy and climate change Greg Barker said that geothermal sources in the south-west of the UK can alone have the capacity to meet 2% of UK’s annal electricity demand.
The news agency said that the UK is going to have to fund a lot of different types of renewable energy in order to make sure that its energy needs are met.