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geothermal energy development in the NWT

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3.7 Italy Jurisdictional review Resource potential and installed capacity Italy is the fifth-largest geothermal electricity producer in the world with an installed capacity of 843 MW.131 Italy is the oldest producer of geothermal energy; the world’s first geothermal power plant was constructed in1911 in Larderello, Tuscany. There are two major geothermal areas in Italy, producing high temperature steam. Geothermal power produces 1.8% of the country’s electricity, and 25% for the Tuscany region.132 Definition of geothermal resource A new law, Legislative Decree, was approved on February 15, 2010, providing rules for exploration and production of geothermal resources in Italy. The general provisions of that law are as follows. 1. Exploration and production of geothermal resources for energy purposes made in Italy, its territorial seas, and on its continental shelves, are considered in the public (national community) interest (importance) and public (national community) utility (usefulness). 2. In accordance with the effects of this law, geothermal resources are defined as being in one of three categories: a. high-enthalpy, characterized by fluid temperatures above 150°C; b. medium-enthalpy, characterized by fluid temperatures between 90°C and 150°C; c. low-enthalpy, with fluid temperatures < 90°C. 3. High-enthalpy geothermal resources, or that which are economically usable for the construction of a geothermal project ensuring certified power output of at least 20 MW, are of national interest, as well as those geothermal resources found in marine areas which are economically usable. 4. Medium- and low-enthalpy geothermal resources, or that which is economically usable for the construction of a geothermal project of power less than 20 MW geothermal fluid, are of local interest.133 Resource ownership, rights issuance The authorities responsible for issuance of exploration permits and production licences relating to geothermal resources, including the functions of monitoring the application of the rules of mining 131 Geothermal Energy Association, Geothermal Energy: International Market Update (2010). 132 G. Cappetti et al., “Geothermal Power Generation in Italy 2005–2009 Update Report,” in Proceedings of the World Geothermal Congress 2010 (Bali, Indonesia, April 25-30, 2010). 133 Personal communication, Fausto Batini, January 31, 2011. The Pembina Institute 33 Building a regulatory framework for geothermal development in the NWT

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