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Jurisdictional review and tenure regulations, are the Ministry of Economic Development in cooperation with the Ministry for the Environment.134 Administrative functions for the issuance of exploration permits and exploitation concessions have been delegated to the regional governments.135 Exploration for, and utilization of, thermal water, meaning those waters to be used for therapeutic purposes, are excluded from regulation under this law. The injection of water and the reinjection of geothermal fluids from the same formations, or at least below aquifers usable in civil or industrial purposes, including marine area, are regionally regulated.136 Operations and productions are regulated by the National Mining Office for Hydrocarbons and Geothermal, but also delegated to regional authoritities. Royalties Royalties are paid to the regional authorities. In addition to an exploitation fee a royalty is required of 0.13 euro cents per kWh of electricity produced in the geothermal field.137 3.8 Iceland Resource potential and installed capacity Iceland is at the global forefront of geothermal development. It ranks seventh in the world for overall electrical generation with 575 MW installed electrical capacity in 2010, which is an increase of 184% from 2005.138 Iceland ranks fourth in the world for direct use, with about 6800 GW per year that provides 90% of the house heating needs in the country.139 Most electrical development occurs on high-temperature resources, but Iceland has considerable low-temperature resources as well, and an experimental low-temperature (120°C) binary plant began production in 2008.140 Definition of geothermal resource Iceland governs geothermal as a “resource” along with all other subsurface resources. A resource is defined as “any element, compound and energy that can be extracted from the Earth, whether in solid, liquid or gaseous form, regardless of the temperature at which they may be found.”141 134 Personal communication, Fausto Batini, January 31, 2011. 135 International Energy Agency, Energy Policies of IEA Countries: Italy (2009). www.iea.org/textbase/nppdf/free/2000/italy2003.pdf 136 US Commercial Service, Italy: HVAC - Geothermal Heat Pump Market 137 Personal communication, Fausto Batini, January 31, 2011. 138 Bertani, “Geothermal Power Generation in the World 2005–2010 Update Report.” 139 Islandsbanki Geothermal Research, Iceland Geothermal Energy Market Report (2010). 140 Bertani, “Geothermal Power Generation in the World 2005–2010 Update Report.” 141 Government of Iceland, Act on Survey and Utilization of Ground Resources (No. 57/1998) The Pembina Institute 34 Building a regulatory framework for geothermal development in the NWTPDF Image | geothermal energy development in the NWT
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