Market for Geothermal Energy in the EU and the Legal Aspects by Dr. Burkhard Sanner

Market for Geothermal Energy in the EU,

and the Legal Aspects Dr. Burkhard Sanner

European Geothermal Energy Council, Brussels

Conference

Innovative Solutionsin Energy Sector: Geothermal Energy

Tallin, Estonia17. April 2009

EU Energy Policy

From :

Coal & Steel

and

Nuclear

(5 decades ago the starting points of the

European unification!)

To :

Security of Supply

Competitiveness

Sustainability

=> and as a result: - CO2 reduction - clean energy - safe supply

European Geothermal Energy Council

The geothermal development – high enthalpy

European Geothermal Energy Council

Map showing main basins and high-enthalpy geothermal areas

Current main growth regions for high enthalpy geothermal in Europe

high enthalpy (el. power)high tem perature basins (el.power, district heating)medium temperature basins(district heating)everywhere: EGS, shallow geothermal

EGS

EGS

EGS

European Geothermal Energy Council

Geothermal heat flux(from Cermak & Rybach, 1979)

Geothermal Electric PowerHigh Enthalpy Resources

European Geothermal Energy Council

Iceland, Italy and Turkey

Krafla power plant, Iceland

Valle Secolo power plant, Italy

Geothermal Electric Power

EGS: Enhanced Geothermal Systems

European Geothermal Energy Council

Principle of EGS system for geothermal power production

Geology(left) and drilling rig atthe European R&D site Soultz-sous-Forêts (F)

Graph and Photo: GEIE Soultz

power plant

Enhanced Geothermal System

Geothermal Electric Power

EGS: Enhanced Geothermal Systems

European Geothermal Energy Council

Status April 2009:

• Power production in Soultz inaugurated in June 2008

• DHM-project in Basel (CH) still on halt after seismic events Dec. 2006 and Jan. 2007 => Research on induced seismicity

• New activities in Germany, England, Spain and elsewhere

• EGS is crucial for achieving 2020 targets for geothermal power

• Transferring EGS from Soultz to other sites

will be a strategic technology step !

Soultz wellheads in June 2008

Geothermal Electric Power

European Geothermal Energy Council

Installed capacity since 1912, world-wide(after data from IGA andWGC 2005)

0

1

2

3

4

5

6

7

8

9

10

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

GW

e

0

5

10

15

20

25

30

35

2005 2010 2015 2020 2025 2030

Inst

alle

d C

apac

ity (G

W)

conservative, all Europe

ecologically driven, all Europe

conservative, EU 27 (EREC)ecologically driven, EU 27 (EREC)

Installed capacity according to EGEC targets 2008, and to EREC roadmap for EU 27 (up to 2020)

In 2006, ca. 7 TWh of power production !

The geothermal development - deep

European Geothermal Energy Council

Map showing main basins and high-enthalpy geothermal areas

Current main growth regions for deep geother-mal in Europe

high enthalpy (el. power)high tem perature basins (el.power, district heating)medium temperature basins(district heating)everywhere: EGS, shallow geothermal

?

The geothermal development - deep

European Geothermal Energy Council

Map showing main basins and high-enthalpy geothermal areas

Current main growth regions for deep geother-mal in Europe

high enthalpy (el. power)high tem perature basins (el.power, district heating)medium temperature basins(district heating)everywhere: EGS, shallow geothermal

?

Geothermal District Heating

European Geothermal Energy Council

doublet systems, used since the late 1970s in France and since 1984 in (Eastern) Germany, Hungary, etc.

Geothermal central in Chevilly-la-Rue, south of Paris, France (photo 1995)

District Heating Network

>1 km

ca. 1

.5 k

m

Geothermal District Heating

European Geothermal Energy Council

doublet systems, used since the late 1970s in France and since 1984 in (Eastern) Germany, Hungary, etc.

Geothermal central in Chevilly-la-Rue, south of Paris, France (photo 1995)

Situation in 2008, with additional gas-turbine powered CHP (building to the left)

Geothermal Energy in Agriculture

European Geothermal Energy Council

Greenhouses throughout Europe are heated by geothermal energy, from Iceland to Turkey and from Poland to the Azores

Geothermal central in Chevilly-la-Rue, south of Paris, France (photo 1995)

Production of Spirulina-Algae using geothermal heat

Geothermal District Heating - CHP

European Geothermal Energy Councilduring construction 1994

Geothermal heating plant Neustadt-Glewe photo O. Joswig

Graph: Erdwärme Neustadt-Glewe

Geothermal District Heating - CHP

European Geothermal Energy Council(Graph and Photo: Erdwärmekraft GbR)

First geothermal power plant in Germany, Neustadt-Glewe (98 °C, 200 kW el.)

Low-temperature geothermal power

InaugurationNov. 2003, German Minister of Environment Jürgen Trittin

(VDI-Nachrichten)

Geothermal CHP

European Geothermal Energy Council

New Plant in Unterhaching, GermanyDH operational fall 2007, power Jan. 20082 wells each 3200 mWater temperature ca. 122 °CKalina-Cycle-Powerplant 3,6 MW

(Photos: Gem. Unterhaching)

The geothermal development - shallow

European Geothermal Energy Council

Map showing main basins and high-enthalpy geothermal areas

New growth regions for GSHP in Europe

high enthalpy (el. power)high tem perature basins (el.power, district heating)medium temperature basins(district heating)everywhere: EGS, shallow geothermal

The

„old

“ m

arke

t

?

Shallow Geothermal Energy

European Geothermal Energy Council

Heat pumps are required to use the heat at low, but constant temperatures

The various shallow geothermal methods • horizontal loops 1.2 - 2.0 m depth• borehole heat exchangers 10 - 250 m depth (vertical loops) • energy piles 8 - 45 m depth• ground water wells 4 - 50 m depth• water from mines and tunnels

Verte iler im H aus

Pum pe

Grundwasser-spiegel

BHE

Groundwater wells

Serienschaltung

Paralle lscha ltung

R ohre in G raben

Shallow Geothermal Energy

European Geothermal Energy Council

All material for GSHP today available from manufacturers

Brine-water heat pumps

Borehole heat exchanger (BHE, right)

Material for BHEand grouting on site (below)

Shallow Geothermal Energy

European Geothermal Energy Council

Examples from Germany

Heat pump and BHE manifold for county administration Gelnhausen

(86 BHE) Drilling in granite for educational centre

Shallow Geothermal Energy

European Geothermal Energy Council

(Ground Source) Heat Pump market data

0

5

10

15

20

25

30

35

40

45

50

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Hea

t pum

p un

its s

old

(x10

00)

Austria

Switzerland

Germany

Heat pump sales in Austria, Germany and Switzerland(after data from LGWA, BWP, FWS)

Shallow Geothermal Energy

European Geothermal Energy Council

Ground Source Heat Pump market data

Total number of existing GSHP for 2007(calculated after data from EHPA)

0

50

100

150

200

250

300

350

Austria Finland France Germany Norway Sweden Switzerland

GSH

P x

1000

2007

Shallow Geothermal Energy

European Geothermal Energy Council

Ground Source Heat Pump market data

Total number of existing GSHP for 2007, per capita and per area(calculated after data from EHPA)

0

5

10

15

20

25

30

35

40

Austria Finland France Germany Norway Sweden Switzerland

GSH

P/pe

rson

x 1

000

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

GSH

P/km

2

GSHP per capita

GSHP per area

2007

Geothermal Heating and Cooling

European Geothermal Energy Council

Heat produced from geothermal sources (deep and shallow),according to EGEC targets 2008, and to EREC roadmap for EU 27 (up to 2020)

0

5

10

15

20

25

2005 2010 2015 2020 2025 2030

Heat

pro

duct

ion

(M to

e) all Europe

EU 27 (EREC roadmap)

New Development for all EU

European Geothermal Energy Council

EU Directive on Promotion of Renewable Energy Sources

Based upon the „20/20/20 by 2020“ decision of the EU spring 2007 summit (incl. 20 % renewables by 2020)

European Commission draft published January 2008 European Parliament decision on amendments in ITRE

committee in September 2008 Agreement between EP, Council and Commission in

December 2008

New Development for all EU

European Geothermal Energy Council

EU Directive on Promotion of Renewable Energy Sources

A lot of support from the EP was required to get the Directive right!

New Development for all EU

European Geothermal Energy Council

EU Directive on Promotion of Renewable Energy Sources

New Development for all EU

European Geothermal Energy Council

EU Directive on Promotion of Renewable Energy Sources

Art. 2:• “energy from renewable sources” means renewable non-

fossil sources, namely wind, solar, geothermal, aerothermal, hydrothermal and ocean energy, hydropower, biomass, snow, landfill gas, sewage treatment plant gas and biogases;

(ab) “geothermal energy” means energy stored in form of heat beneath the surface of solid earth;

New Development for all EU

European Geothermal Energy Council

EU Directive on Promotion of Renewable Energy Sources

Art. 13.1:Member States shall, in particular, take the appropriatesteps to ensure that:(c) administrative procedures are streamlined and

expedited at the appropriate administrative level;(d) rules governing authorisation, certification and

licensing are objective, transparent, proportionate, do not discriminate between applicants and take fully into account the particularities of individual renewable energy technologies;

New Development for all EU

European Geothermal Energy Council

EU Directive on Promotion of Renewable Energy Sources

Art. 13.1:Member States shall, in particular, take the appropriatesteps to ensure that:(e) administrative charges paid by consumers, planners,

architects, builders and equipment and system installers and suppliers are transparent and cost-related;

(f) simplified and less burdensome authorisation proce-dures, including through simple notification … are established for smaller projects and for decentralised devices for producing energy from renewable sources, where appropriate.

New Development for all EU

European Geothermal Energy Council

EU Directive on Promotion of Renewable Energy Sources

Art. 14.3:Member States shall ensure that certification schemes or equivalent qualification schemes become or are available by 31 December 2012 for installers of small-scale biomass boilers and stoves, solar photovoltaic and solar thermal systems, shallow geothermal systems and heat pumps.

New Development for all EU

European Geothermal Energy Council

EU Directive on Promotion of Renewable Energy Sources

Will enter into force soon, with publication in official journal of EU

Member states will have to deliver the National Action Plans by 2010

Commission currently works on templates for National Action Plans

Project in IEE-ALTENER-Program on Geothermal Legislation:

http://www.gtrh.eu

European Geothermal Energy Council

Thank you for your attention!

For more information:www.egec.org