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5. Recommendations This report presents the results of an inter-jurisdictional review of geothermal policy in nine jurisdictions, and interviews with 13 geothermal experts. The results are categorized into key themes in relation to geothermal legislation, tenure issuance, royalties, research and fiscal and non-fiscal incentive policies. From these results, the following recommendations for the NWT are warranted: Define a vision and plan for geothermal energy use in the Territory • Geothermal energy development needs to be evaluated as a source of heat and power for communities in the NWT. The Government of the Northwest Territories could initiate a planning exercise to define a vision for geothermal energy use in the Territory. The planning exercise, conducted in partnership with relevant organizations and government agencies, would help to evaluate the areas for potential development, the economic and environmental impacts of potential projects, and the highest-priority areas for development. An outcome of the planning exercise would be greater clarity regarding the desire of governments to see the resource developed and the policy needs to see it happen. A geothermal energy strategy or a strategic environmental assessment could come out of the process and provide guidance on how geothermal energy resources should be developed, and how it fits with other heat and power options. Design policy framework to reflect the unique nature of the resource • The policy framework for geothermal energy in the NWT should reflect the nature of the resource and the desire of governments to see it developed. There is potential to develop geothermal energy for use within communities, for other industries or for export. Geothermal energy is a renewable, clean source of energy that would contribute to energy security and self-sufficiency in the NWT. The resource is currently thought to be of medium to low quality (based on available studies) and could be desirable to investors if there were a regulatory system and economic incentives in place to facilitate it. Define geothermal energy legislation and create a clear legal definition of geothermal energy • The legal framework for geothermal energy needs to be defined. There is no existing definition for geothermal energy in NWT, and lack of clarity on how companies or communities gain access to the right to explore or develop the resource. • Existing natural resource legislation can be used or modified to regulate geothermal exploration and development. Geothermal energy regulation may fit under current mining or oil and gas legislation, provided that the resource is defined and that the regulations specific to geothermal energy are clear. • Ideally, separate geothermal legislation and regulations are created that reflect the unique nature and economics of the resource. The Pembina Institute 48 Building a regulatory framework for geothermal development in the NWTPDF Image | geothermal energy development in the NWT
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