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Innovative schemes in support of the geothermal ernergy industry © Joëlle Arnaud, Pierre-Grégoire Scholl Ambitious development targets for geothermal energy In recent years, France has set itself the target of multiplying the contribution of geothermal heat to the French energy mix by 6, representing a total of 1.3 million tonnes of oil equivalent by 2020, while the production of geothermal electricity in France should increase from 15 to 80 MW. These targets are consistent with one of the general objectives for France, defined in the framework of the European Union- level negotiations, which aims to increase the share of renewable energies in final energy consumption to 23% by 2020 (50% for the French Overseas Départe- ments). These targets were set during the Gre- nelle environmental round table, a vast consultation process initiated in 2007 that aims to prepare long-term environmental and sustainable development decisions in France. France – pioneering the coverage of geological risks in geothermal energy One of the major obstacles to the deve- lopment of geothermal energy projects is what is referred to as the geological risk. ADEME Advertisement for the Renewable Heat Fund. This risk is linked to the fact that the exploitable geothermal energy resource can only be precisely known after the drilling of bore- holes – a costly opera- tion which may result in failure (e.g. due for ins- tance to a lack of re- sources, to insufficient temperature or exploi- table capacity in relation to the forecasts or to the inability to exploit the geothermal fluid due to excessive acidity). Since the 1980s, to hedge this type of risk and allow for the effective execution of geothermal energy projects, France has implemented an innovative solution consisting of an insurance system that covers the geological risk, managed by ADEME and SAF Environnement (a sub- sidiar y of the French Consignments and Loans Fund [Caisse des Dépôts et Consi- gnations]), and financial aid for the imple- mentation of projects. This scheme has allowed for the execution of several dozen geothermal heat installa- tion systems in mainland France, which provide heating for over 200,000 dwelling equivalents, mainly in the Paris and Aqui- taine regions. In keeping with this experiment, steps were taken since 2011 to create an ex- por t suppor t scheme that focuses on both financial aspects and the coverage of geological risk for the international projects of the French geothermal energy industr y. Renewable Heat Fund (Fonds chaleur renouvelable) The Renewable Heat Fund, with a budget of 1.2 billion euros for the 2009-2013 period, is dedicated to the funding of projects using renewable heat in the collective housing, tertiary and industrial sectors. It allows installations that produce heat from renewable energies to be eco- nomically competitive in relation to instal- “Geological risk” in geothermal energy. lations that cover the same energy needs but operate using conventional energy sources. ADEME has been appointed to manage this scheme. With regard to geothermal energy, the eligible operations are deep geothermal energy installations with or without hea- ting networks, installations with heat pumps on surface water bodies or on probe fields, in addition to installations that recover energy from wastewater or sea- water. The Heat Fund may be approached for aid in the upstream phase of projects for the implementation of feasibility studies, thermal response tests or experimental drilling. 182 geothermal energy projects, allowing for the exploitation of more than 50,000 TOE/year, have been funded in France by the heat fund since the scheme was created in 2009. It should also be noted that in France, in addition to the aid granted by the Rene- wable Heat Fund, heat networks exploiting more than 50% of renewable and recove- red energy sources, including geothermal energy, benefit from a reduced VAT rate (5.5%) applied to the heat that they distri- bute. French know-how in the field of geothermal energy 4/ 5PDF Image | GEOTHERMAL ENERGY District heating
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