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EGEC – EUROPEAN GEOTHERMAL ENERGY COUNCIL RECOMMENDATIONS Here some measures are suggested to overcome the barriers identified before, which are: 1. legal and administrative procedures 2. high initial cost 3. no guarantee of the geological success 4. the need to have both the resource and the heat consumers in close vicinity 5. in low-temperature plants, poor efficiency on the electric power production side to 1: Harmonisation of the legal status of the geothermal resource and the rights to use it, with the goal to give the investor a secure and exclusive right to use a specific geothermal resource. Also the licensing procedures, relevant fees, etc. have to be made coherent and suited for the purpose of both supporting geothermal energy and protecting groundwater reservoirs. The request for exaggerated fees, or for royalties for the energy, should be abolished in all member states, to allow geothermal energy the same conditions as other renewable energies. It is not a consistent policy to support geothermal CHP plants with state money, and to ask for royalty payments to the state for the resource. to 2: For the initial cost, financial incentives are crucial. For such large plants as geothermal CHP, direct subsidies typically are not well suited, as they bind to much public money. Low-interest loans and guarantees are more appropriate. Also tax incentives might help to interest private investors in the technology (as done in the 1980s for the geothermal district heating in France). An additional help for sound economics of a project are feed-in tariffs for the energy produced, as for power in the German EEG. A similar scheme for the heat sold through the network would be highly helpful. to 3: On the level of EU, member countries and states/regions, a continued geological investigation and the built-up and/or extention of underground databases can help to reduce risks. Also guarantees and complementary measures to private-sector insurance schemes might be considered. to 4: The geology cannot be changed by policy. Possible action therefore can be the increased support for R&D on Enhanced Geothermal Systems (EGS), mainly in order to replicate the Soultz results at other sites in Europe. Also the support of settling new industrial or agricultural heat consumers close to the resource will be helpful. to 5: The only way to put away this barrier are increased R&D-efforts on low-temperature power generation cycles. Improved ORC-plants with new working media are a possible solution as well as improved Kalina cycle plants (only one exists up to now, in Husavik in Iceland, the construction of which had been supported in FP5). The goal is to bring the practical engineering possibilities closer to the limits given by the laws of physics. 15PDF Image | COMBINED GEOTHERMAL HEAT AND POWER PLANTS CHP
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