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Chapter 4 Geothermal Energy

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Chapter 4 Geothermal Energy ( chapter-4-geothermal-energy )

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First Order Draft Contribution to Special Report Renewable Energy Sources (SRREN) 1 4.4.4 Impact of policies 2 [TSU: cross-reference to chapters 1 and 11?] 3 Main present barriers in the geothermal market and industry, according to the taxonomy of barriers 4 , can be described as 5 follows. 6 . Support is needed for 7 programmes to standardise geothermal technologies for a reliable and efficient use independent of 8 site, to educate and enhance the public knowledge, understanding and acceptance of geothermal 9 energy use, and to conduct research towards the avoidance or mitigation of potential induced 10 hazards and adverse effects. 11 . The development of all geothermal technologies 12 relies on the availability of skilled installation and service companies with trained personnel. For 13 deep geothermal drilling and reservoir management, such services are currently concentrated in a 14 few countries. For GHP installation and district heating, there is also a correlation between local 15 availability and awareness of service companies, and technology uptake. For enhanced global 16 development, such services need to be better distributed worldwide. 17 . Distributions of potential geothermal resources 18 vary from being nearly site-independent (for ground heat pump technologies and Enhanced 19 Geothermal Systems) to site-specific (for hydrothermal sources). The distance between electricity 20 markets or centres of heat demand and geothermal resources, as well as the availability of a 21 transmission capacity, is sometimes a significant factor in the economics of power generation and 22 direct use. 23 . 24 Reducing costs and increasing the efficiency of supplying geothermal energy will enhance its 25 market competitiveness. Policies set to drive uptake of geothermal energy should take local demand 26 factors into account. Small heat customers can be satisfied with the deployment of GHP 27 technologies, with relatively small budgets. Hence, in many countries, the deployment of GHP 28 technologies can be a suitable base-line for development targets. District heating systems can be 29 operated with less auxiliary energy (for pumps) than GHPs, and have potential to provide greater 30 mitigation of CO2 emissions. However, district heating systems and industrial heat use applications 31 require larger scale investments. Hence, production from hydrothermal resources to supply district 32 heating systems and industrial heat uses can be sensibly and efficiently supported in some markets. 33 Heat from deeper geothermal wells is better suited to larger heat and electricity demands. The 34 development of geothermal energy from deeper resources requires yet larger scale investment in 35 advance of deployment. 36 . Policy support for research 37 and development is required for all geothermal technologies, but especially for EGS –as the US 38 Department of Energy currently does in the US. Public investment in geothermal research drilling 39 programs should lead to a significant acceleration of EGS development. Specific incentives for 40 geothermal development include subsidies, guarantees, and tax write-offs to cover the risks of 41 initial deep drilling. Policies to attract energy-intensive industries to known geothermal resource 42 areas can also be useful. Feed-in tariffs with confirmed geothermal prices have been very successful 43 in attracting commercial investment in some countries (e.g. Germany). However, since feed-in 44 tariffs for direct heating are difficult to arrange, direct subsidies for building heating and for district 45 heating systems may be more successful. Subsidy support for refurbishment of existing buildings 46 with GHP is also convenient. Do Not Cite or Quote 20 of 47 Chapter 4 SRREN_Draft1_Ch04_Version03 22-Dec-09 used in this report [TSU: replace by cross-reference to chapter 1.4 instead?] I1 (Clarity in concepts [knowledge, understanding]) [TSU: see above] I2 (RE know-how systems) [TSU: see above] T3 (Transport and accessibility) [TSU: see above] E2 (Cost structure and accounting) & E3 (Project appraisal and financing) [TSU: see above] P3 (Energy subsidy, taxing, other support policies) [TSU: see above]

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