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Germany has three regions, located in the far north and in the south of the country, well suited for geothermal electricity generation as shown in Figure 7.100 The German Renewable Energy Association estimates that 600 MW of geothermal energy for will be installed for electricity generation in Germany by 2020.101 There may be even more geothermal potential in Germany. The country’s Ministry for Environment and Nuclear Safety estimates that Germany has 15,000 MW of geothermal potential for electricity generation, both through improved technologies and through new sites projected to be in the north of the country.102 Figure 8: Potential Geothermal Growth in Germany Through 2020 Source: Geothermie-Dialog Germany has been increasing its support for geothermal energy, especially at the front end of geothermal projects in order to reduce investors‘ risk related to the initial exploration. The German Environment Ministry and two German banks are supporting deep-drilling projects with overall € 60 million (around US$ 77 million).103 A geothermal drilling project in Germany can often cost over € 10 million.104 Further to Germany’s 2004 Renewable Energy Sources Act, a new amendment in 2011increased the geothermal feed-in tariff from 25 Euro cents/KWh to 30 Euro cents/KWh.105 Although an earlier amendment of the Act reduced bonuses and other incentives for power plants going online, the 2011 amendment postponed the reduction for geothermal energy to the year 2018. Maintaining the bonuses until 2018 is meant to speed up geothermal R&D and technology development.106 Overall, the 2011 decisions increase compensations for wind and geothermal energy in comparison to the Act’s 2009 amendment.107 Germany’s largest geothermal plant, located in Bavaria, and with a capacity of 38 MW power and heat, was developed with public aid.108 So far all geothermal deep-drilling projects in the state of Bavaria have been developed with public aid from municipalities. One current project in Aying, Bavaria (estimated to cost € 35.6 million, or around US$ 46 million) is to be the first geothermal power plant to be developed with private financing only.109 The plant is planned to generate 46,000 MWh of electricity for about 18,000 households, and is expected to come online this year.110 May 2012 20PDF Image | Geothermal International Market Report
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