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Executive Summary There is high potential for geothermal energy use for heat and power in the Northwest Territories (NWT). Adoption of geothermal energy production to replace existing power or heat production from carbon-based fuels could help the Government of the NWT reach its commitment to reduce greenhouse gas emissions from its own operations to 10% below 2001 levels by the year 2011 and establish longer-term reductions targets.1 This report documents the key policy issues associated with geothermal energy development and makes recommendations for developing a regulatory framework for geothermal energy in the NWT. This report contains the results of a jurisdictional review focused on nine countries as well as interviews with geothermal energy experts around the world. This report will support discussions on the development of geothermal energy policy in the Northwest Territories. The objectives of the study are: • To outline the key policy issues associated with geothermal energy developments. • To provide an overview of the regulatory framework that other leading jurisdictions in Canada and the world have established to address policy issues. • To provide the Government of the Northwest Territories with recommendations and next steps for developing a regulatory framework to support geothermal energy development in the NWT, with a focus on tenure and royalty regimes. Government policy in other jurisdictions in the world has reflected the type of geothermal resource, the technology employed, the size of the project, the economics of the geothermal industry, the end use of the power or heat, and the desire of governments to see it developed. Several key themes emerge from the jurisdictional review of legislation and policy for geothermal energy development: the definition of geothermal energy; legislation; resource ownership; tenure and leasing system; fees and royalties; research; and fiscal and non-fiscal incentive policies. In developing a geothermal energy policy, the Government of the Northwest Territories should: • Define a vision and plan for geothermal energy use in the Territory • Design policy framework to reflect the unique nature of the resource • Define geothermal energy legislation and create a clear legal definition of geothermal energy • Define geothermal resource ownership • Establish a process for geothermal tenure issuance and permitting • Set appropriate fees and royalties • Invest in geoscience data and programs 1 Northwest Territories Environment and Natural Resources, Greenhouse Gas Strategy 2007-2011. http://www.enr.gov.nt.ca/_live/documents/content/Greenhouse_Gas_Strategy_FINAL.pdf The Pembina Institute 7 Building a regulatory framework for geothermal development in the NWTPDF Image | geothermal energy development in the NWT
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