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Economy of Geothermal Energy in Europe / in EU: 

Economy of Geothermal Energy in Europe / in EU Dr. Burkhard Sanner Geothermische Vereinigung e.V., Geeste European Geothermal Energy Council, Brussel Workshop on Regulatory and Economic Tools Governing the Enhanced Exploitation of Geothermal Energy in the European Union Kistelek, Hungary, April 7-8, 2005

The Economic Situation of Geothermal Energy in EU: 

The situation is very different in the various countries and geothermal technologies, according to natural resources and political issues. The Economic Situation of Geothermal Energy in EU

Shallow Geothermal Energy: 

For shallow geothermal systems, in several countries a market-driven economy exists. This will be further boosted by the expected oil price development These countries comprise Sweden, Switzerland, Germany, Austria, and to a lesser extend Norway, Netherlands, etc. Shallow Geothermal Energy

Shallow Geothermal Energy: 

For shallow geothermal systems, in several countries a market-driven economy exists. This will be further boosted by the expected oil price development These countries comprise Sweden, Switzerland, Germany, Austria, and to a lesser extend Norway, Netherlands, etc. Shallow Geothermal Energy

Shallow Geothermal Energy: 

A transition is underway of GSHP technology into two new areas: Southern Europe and Mediterranean, with an emphasis on cooling and heating Shallow Geothermal Energy

Shallow Geothermal Energy: 

Shallow Geothermal Energy Heating and cooling of the guesthouse of the European Centre for public law „Meduca“ in Legraina, Greece 2 groundwater heat pumps GSHP for cooling ( and heating) with ground-water wells, for a supermarket in Mersin, Turkey

Shallow Geothermal Energy: 

A transition is underway of GSHP technology into two new areas: Southern Europe and Mediterranean, with an emphasis on cooling and heating Eastern and Southeastern Europe, where slowly a demand for more comfort in houses is growing, and a group of people who can afford it. Countries are in particular Czech Republic and Poland, with others following Shallow Geothermal Energy

Shallow Geothermal Energy: 

Example: These days a Thermal Response Test (for BHE design) was done in Italy with a German tool, and another one will be done in Czech Republic by a Swedish consultant. Shallow Geothermal Energy

Shallow Geothermal Energy: 

A transition is underway of GSHP technology into two new areas: Southern Europe and Mediterranean, with an emphasis on cooling and heating Eastern and Southeastern Europe, where slowly a demand for more comfort in houses is growing, and a group of people who can afford it. Countries are in particular Czech Republic and Poland, with others following A difficult situation is in UK and Ireland, where interest exists, some prestigeous plants have been built, but the US-influence is greater. Shallow Geothermal Energy

Some statistics for the shallow geothermal sector: 

Some statistics for the shallow geothermal sector Annual heat pump sales in Germany, according to heat sources (after data from IZW, Hannover and BWP, Munich) Heat pumps used for hot tap water only are not included Data for 2004 preliminary

Some statistics for the shallow geothermal sector: 

Annual heat pump sales in Germany, according to heat sources (after data from IZW, Hannover and BWP, Munich) Heat pumps used for hot tap water only are not included Data for 2004 preliminary Cumulative number of installations, 1995 = 0 Some statistics for the shallow geothermal sector

Some statistics for the shallow geothermal sector: 

Development of GSHP installations in Switzerland, in MWth (from Kohl et al., 2002) Number of installations according to size Some statistics for the shallow geothermal sector

Some statistics for the shallow geothermal sector: 

Heat Pump installations in Sweden (from SVEP) Some statistics for the shallow geothermal sector

Deep Geothermal Energy: 

In most countries, geothermal district heating needs some investment support, reduced interest loans, etc. to become economic. Cascade uses (district heating, industry, agri-culture, and other) improves economy, but usually are very difficult to achieve due to business obstacles, distances, etc. The main financial obstacle is the heat distribution network (example: Bruchsal, D) For heat distribution, Eastern European countries may have an advantage due to existing networks Deep Geothermal Energy

Deep Geothermal Energy: 

In countries with high enthalpy resources, geothermal energy production can be quite economic: Italy (since 1904!), Iceland, but also Greece and Turkey Islands like Acores, Antilles, etc. In other countries, support measures like feed-in tariffs are required; these are backed by the relevant EU directive on Electricity generation from Renewable Energy Sources Deep Geothermal Energy

Deep Geothermal Energy: 

Deep Geothermal Energy The German Renewable Energy Act (EEG) Feed-in tariffs give the economic basis to geothermal power revised August 2004

Remarks from various countries: 

In France, heat from geothermal district heating carries the full VAT, natural gas only a reduced value Competition from conventional sources (in particular natural gas) even uses dumping prices to keep costumers Cost for electric power from coal and/or nuclear in many countries is subsidised more or less obviously Even with existing feed-in tariffs, cost for grid connection and other obstacles are prohibitive to geothermal power use Remarks from various countries

Example: Remarks from Poland on geothermal energy use: 

Projects are affected by not adequate mining law, many taxes, fees and royalties These expenses are too high compared to the annual heat sales, even in the biggest plant Expenses comprise: Concession fee Mining royalty Fee for geological information Tax for surface installations New parliamentary initiative for tax on geothermal water From Beata Kepinska, compiled by Burkhard Sanner Example: Remarks from Poland on geothermal energy use

Some statistics on geothermal energy use: 

Geothermal energy use in the EU 2002 (after data from BMU, 2004) Some statistics on geothermal energy use

Some statistics on geothermal energy use: 

Geothermal energy use in the enlarged EU 2004 (18 of 25 member countries, new members are shown in black). The values are mainly valid for 1999 and are taken from the country update reports of WGC 2000 Some statistics on geothermal energy use

Activities of the Renewable Energy Lobby in Brussels: 

The EU Directive on Electricity from Renewable Sources will be evaluated and maybe changed The goal must be kept to secure at least a level playing field for the renewable energies with the fossil competition It is too early for a forced harmonisation of tools and mechanisms The targets should be set as mandatory targets, not just indicative (so what…) Grid access priority!!! Position of EREC on the future of RES Electricity support mechanisms Activities of the Renewable Energy Lobby in Brussels

Activities of the Renewable Energy Lobby in Brussels: 

The EU Directive on Electricity from Renewable Sources will be evaluated and maybe changed The goal must be kept to secure at least a level playing field for the renewable energies with the fossil competition It is too early for a forced harmonisation of tools and mechanisms The targets should be set as mandatory targets, not just indicative (so what…) Grid access priority!!! Position of EREC on the future of RES Electricity support mechanisms Activities of the Renewable Energy Lobby in Brussels

Activities of the Renewable Energy Lobby in Brussels: 

A EU Directive on Heating from Renewable Sources is required to reach the overall targets of the EU On the RES heating sector, EU is lagging behind targets “The shortfall compared to the 12 % target is caused by sluggish growth of renewable energy markets for heating and cooling…” European Commission, Communication to the Council and Parliament 26.5.04 COM(2004) 366 final Activities of the Renewable Energy Lobby in Brussels

Activities of the Renewable Energy Lobby in Brussels: 

A EU Directive on Heating from Renewable Sources is required to reach the overall targets of the EU On the RES heating sector, EU is lagging behind targets “The shortfall compared to the 12 % target is caused by sluggish growth of renewable energy markets for heating and cooling…” European Commission, Communication to the Council and Parliament 26.5.04 COM(2004) 366 final Activities of the Renewable Energy Lobby in Brussels

Activities of the Renewable Energy Lobby in Brussels: 

A EU Directive on Heating from Renewable Sources is required to reach the overall targets of the EU On the RES heating sector, EU is lagging behind targets “An EU Directive on renewable heating and cooling is absolutely crucial for building a sustainable future” Mechthild Rothe, MEP Activities of the Renewable Energy Lobby in Brussels

Activities of the Renewable Energy Lobby in Brussels: 

A EU Directive on Heating from Renewable Sources is required to reach the overall targets of the EU On the RES heating sector, EU is lagging behind targets Position of EREC and Joint Declaration for a European Directive to promote renewable heating and cooling 25 % of EU heating and cooling by RES in 2020! Activities of the Renewable Energy Lobby in Brussels

Slide27: 

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