Marisa Gil Lapetra

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Some introductory words about Geothermal Energy Tapping heat from the earth core is

nothing new. It dates back to 20,000 years ago. Health spas were already enjoyed by different populations across the globe, romans, paleo-indians etc...

Heat pump technology took a little bit more to develop.

Industrial uses quickly generalized during the 20th century.

Marisa Gil Lapetra

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Geothermal Essentials Geothermal energy is heat contained

and discharged from the Earth’s nucleus that can be used for generating electricity and providing direct heat for numerous applications. The use of energy extracted from constant sources at shallow depths by means of a Ground Source Heat Pump is also referred to as Geothermal Energy.

Marisa Gil Lapetra

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Advantages No seasonal variation and immunity of

weather effects and climate change impacts.

Compatibility with both centralized and distributed energy generation.

Resource availability in all world regions.

Marisa Gil Lapetra

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Barriers High capital cost (upfront costs,

exploratory, drilling…) Resource development risk Lack of awareness about geothermal

energy and perceived environmental issues.

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3-types of geothermal energy and different uses

Marisa Gil LapetraSource: Geothermie Perspectives

Marisa Gil Lapetra

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Geothermal Ground Source EnergyHigh versus Low temperature geothermal applications

(Very) Low-temperature

geothermal energy Shallow depths (35m to 50m)

and low temperatures up to 30C Sanitary hot water , heating and

cooling by means of Geothermal Ground Source Heat Pumps (GSHP’s)

Local exploitation Micro level: individual projects,

home owners and small business Public-Private financing SME nurturing

High-temperature geothermal energy

Deep wells (over 1000 m depth) with temperatures over 150C

Can be used for both electricity generation and direct heat

Global exploitation Macro level: large scale

projects involving public administrations and industries

Public financing only Involves Multinational

Corporations

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Global resources

• Red areas represent high-temp geothermal energy (over 150 C, 1500m to 2000m deep) for direct use, mainly industrial and electricity generation

• Green areas are medium-temp energy (around 90C to 150 C at lower than 1000 m)• Grey areas are low -temp geothermal energy (lower than 90c down to 300m deep).

Generally speaking all the earth area is susceptible to be exploited for geothermal energy by means of a GSHP (very low temperature up to 30 C).

Source: ADEME, BRGM

Marisa Gil Lapetra

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Medium-High temperature Geothermal Energy for Electricity Production around the world.

There’re about 350 sites for medium and high geothermal energy in the world. Still well behind hydroelectric, but together with biomass and wind power, geothermal energy represents one of the three renewable energy to produce electricity. Its distribution around the globe is uneven mainly due to the disparity of the resource. As shown above high and medium temperature geothermal energy are localized around the pacific. Main producers are in the American continent, Asia and Oceania. Geothermal energy covers today only 0.5% of world electricity needs.

Source: ADEME, BRGM

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Marisa Gil Lapetra

Electricity production Direct use (including GSHP)

COUNTRY GWH/year COUNTRY GWH/year

United States 16,603 China 20,932

Philippines 10,311 United States

15,710

Indonesia 9,600 Sweden 12,585

Mexico 7,047 Turkey 10,247

Italy 5,520 Japan 7,139

Iceland 4,597 Norway 7,000

New Zealand 4,055 Iceland 6,768

Japan 3,064 France 3,592

Kenya 1,430 Germany 3,546

El Salvador 1,422 Netherlands 2,972

Costa Rica 1,131 Italy 2,762

Turkey 490 Hungary 2,713

Papua New Guinea 450 New Zealand

2,654

Russia 441 Canada 2,465

Nicaragua 310 Finland 2,325

Market StatusGeothermal Electricity Generation and Direct

use.Top 15 countries using

geothermal energy.

Geothermal power provides a significant

share of total electricity demand in

Iceland (25%), El Salvador (22%), Kenya

and the Philippines (each 17%) and Costa

Rica (13%)

Data: Bertani, WGC 2010; Lund et al, WGC 2010

Marisa Gil Lapetra

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Geothermal outlook(according to the IEA)

Global geothermal energy installed capacity was 10.7 GWe in 2010, generating 67.2 TWh electricity.

Geothermal power production could increase to more than 1000 TWh by 2050 (upper scenario).

GSHP market worldwide represents about 2.9 million units today with over 35 GWth capacity of heat production.

Technology advancements in GSHP are expected to improve the performance and lower the costs (key components are compressors and heat exchangers). The number of units could multiply by a factor increasing the capacity to 700 GWth of heat production.

(1TWh=103 GWh)

Marisa Gil Lapetra

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TODAY3 pieces fitting 1 puzzle:(1) Finance Medium-High-temperature geothermal energy

receives most of the public finance attention. (Very)Low-temperature geothermal energy

(GSHP) requires public granting up to at least 35% of total investment costs to be attractive.

Limited finance resources. While H-T is seeing incremental resources

being allocated to its cause, L-T public participation is decreasing just as any other public subsidy, due to the crisis.

Marisa Gil Lapetra

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TODAY3 pieces fitting 1 puzzle:(2) Recipients While Medium-High temperature

Geothermal projects are large-scale investments for industrial purposes or electricity generation with a large base of recipients…

(Very) Low temperature geothermal is indicated mainly for individual use (households) or small units of heating consumption (hotels, schools, clinics, libraries..)

Marisa Gil Lapetra

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TODAY3 pieces fitting 1 puzzle:(3) Awareness International Organizations take care of

promoting Green Energies, amongst which Geothermal (World Bank, African Dev. Bank, ,Asian Dev. Bank, European Inv. Bank and Interamerican Dev. Bank) and financing projects

Central Governments subsidizes renewable energies with decreasing resources and private banking proposes low-interest rates for green investments under very tight criteria.

WHAT DO WE HAVE TODAY

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Geothermal Energy - Electricity production – World Bank panacea for developing countries. WB calls for a Global Geothermal Development Plan (GGDP) to bring geothermal power,

what is now a marginal renewable energy source into the mainstream, to deliver power to millions in developing countries.

GGDP aims at putting together donors and multilateral lenders around an investment plan to scale up geothermal power in the developing world. The Plan focuses on exploratory test drilling, with the goal of developing a pipeline of commercially-viable projects that are ready for private investment.

Once it’s running it’s clean, reliable, locally-produced power, it is cheap and virtually endless. Goals are universal access to modern energy services, and doubling the share of renewable energy in the global energy mix. 

The Plan will identify promising sites. Initial target is to mobilize US$500 million, in 2013. Donors can participate by identifying viable projects, and through bilateral assistance, as well as by contributing to existing channels such as the Climate Investment Funds (CIFs) or the Global Environment Facility (GEF).  The GGDP will be managed by the World Bank’s longstanding Energy Sector Management Assistance Program (ESMAP).

The Bank Group’s financing for geothermal development began in the 1970s and has increased from $73 million in 2007 to $336 million in 2012. It now represents almost 10 percent of the Bank’s total renewable energy lending.

Geothermal is the energy source with the smallest land footprint per kilowatt hour, making it especially attractive in developing countries where population densities are high and land is at a premium.

Marisa Gil Lapetra

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Geothermal Ground Source Heat Pump History Heat Pump technology was developed by Lord Kelvin 1852, who

first proposed a practical heat pump system, he also indicated that a refrigerating machine could be used for heating. Heat pump used air as its working fluid, being able to produce heat by using only 3% of the energy required for direct heating.

Late 1940’s Robert C. Weber got burnt while experimenting with his cellar freezer. He noticed the colder the setting, the hotter the outlet pipe. He soon started using that excess heat for his family’s hot water, and since he had more of it than he needed, he also started blowing fans across heated pipes to heat the home. Mr. Weber also conceptualized using the constant temperature of the ground to do the same , using freon gaz pipes, through buried copper pipes.

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Marisa Gil Lapetra

Ground source heat pumps (GSHPs) are electrically powered systems that tap the stored energy of the

greatest solar collector in existence: the earth. These systems use the

earth's relatively constant temperature to

provide heating, cooling, and hot water

for homes and commercial buildings.

What is a ground source heat pump?

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How do ground source heat pumps work?

GSHP’s are closed or open loops, and loops can be installed: horizontally, vertically, or in a pond/lake, depending on the available land areas and the soil and rock type at the installation site.

Closed loop systems: water or antifreeze solution is circulated through plastic pipes buried beneath the earth's surface. During the winter, the fluid collects heat from the earth and carries it through the system and into the building. During the summer, the system reverses itself to cool the building by pulling heat from the building, carrying it through the system and placing it in the ground. This process creates free hot water in the summer and delivers substantial hot water savings in the winter.

Open loop systems operate on the same principle as closed loop systems and can be installed where an adequate supply of suitable water is available and open discharge is feasible. Benefits similar to the closed loop system are obtained.

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Application uses of GSHP’s Residential GSHP distribute uniform and

gentle heat using any kind of heating system: under floor, radiators, fan coil units. Technology can be reversed during the summer and be used as a cooling system.

A GSHP system can be installed in a residential structure of any size, anywhere, whether it is single-family or multi-family. GSHPs can be installed on almost any size lot: under lawns, landscaped areas, driveways, or the house itself. An existing house can be retrofitted with a GSHP using the ductwork that is already there.

Commercial Cost effective, energy efficient,

and environmentally friendly. GSHPs are appropriate for new construction as well as retrofits of older buildings.

Their flexible design requirements make them a good choice for schools, high-rises, government buildings, apartments, and restaurants--almost any commercial property. Lower operating and maintenance costs, durability, and energy conservation make GSHP’s the smart choice for commercial applications.

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GSHP and its application to local economies. Exemple Beynes, a small municipality 40km away

from Paris. 8% total charges local

subsidies 15% population aged > 65 years 50% all subsidies reserved to helping

elderly low resource population pay energy bills for heating purposes.

Marisa Gil LapetraSource: Mairie de Beynes, 2012

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North-of-Loire France, rural areas 80% heating equipment: old, inefficient,

polluting fuel-oil furnaces From 2009 to 2012 fuel-oil prices went

up by 65% Alternatives to fuel-oil are gaz or

electric furnaces, whose primary energy prices will keep rising in the coming years.

Marisa Gil Lapetra

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Public Subsidies to Environmental friendly household/firms retrofit investments

From central government agencies and European Union, managed through diverse government levels (national, regional, local..)

December 2011 Financial Act: ceiling to cumulated subsidies/grants to 80% total investment costs for over 65 years recipients!

Still big barrier: RED TAPE

Marisa Gil Lapetra

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SOLUTIONS Technical assistance to public local

governments and grants’ recipients. Private banks have also accommodated to

this new demand by providing low interest rates to green projects, even when amortization periods are over 15 years. Yet eligibility criteria are so tight that prospects quit before even completing investment plans. Soften conditions.

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SOLUTIONS cont’d Re-evaluate the distributions of public

subsidies to environmental-friendly investments taking into account long-term sustainability rather than pay-back period.

Implementing and encouraging Public-Private-Partnerships with the SME: constructors, installers, contractors..