EGEC Newsletter April 2015 The voice of the Geothermal Sector in Europe EDITORIAL POLICY NEWS Dear members of EGEC, PROJECTS EVENTS challenges and opportunities that lay ahead, for countries in all stages of this process. A report from this conference is inside this newsletter. dear readers of this newsletter, EGEC staff, lead by Head of Policy and Regulation Luca Angelino, have prepared a study with the intention for an action plan for fuel switch in Europe. In the light of the process for an Energy Union, considering issues of energy security and climate protection, this study highlights the role that flexible renewable electricity production and heating and cooling from renewables need to play to make a “Resilient Energy Union” a success – and geothermal energy as a keystone in this process. The study is available on the EGEC website. In April 2015, Melbourne was the geothermal world capital, where about 1600 participants gathered for the World Geothermal Congress (WGC 2015). The WGC, held every five years, is the most important global event for the geothermal sector, and the opportunity to take stock of what has been achieved, and to learn of the latest scientific development and technological innovation. With WGC 2015 being staged on the other side of our energetic planet, I, alas, could not arrange to be there in person to listen and see. However, the proceedings of WGC 2015 are here to read, and will be the basic documentation for the next five years. And EGEC staff was in Melbourne, to represent the European geothermal industry, and to report back on what happened, what was presented, which news emerged from speeches and discussions. We have some information in this newsletter, and more to come in the members’ corner and other reports. And finally, it is of utmost pleasure for me to announce the date and venue for the next European Geothermal Congress, EGC 2016. This next edition in the series of European Geothermal Congresses, following the highly successful EGC 2013 in Pisa, will be held in Strasbourg, France, in the week 19-24 September 2016. I am extremely grateful to our main sponsor, Electricité de Strasbourg (Groupe ES), for their support enabling us to start the process of organising EGC 2016, and to our partners, traditionally the IGA European Regional Branch, plus the relevant national Geothermal Association, in this case the French AFPG. Look out for further information, as we will soon issue the official first announcement for EGC 2016! In the last week of March, I had the opportunity to attend an international energy conference a bit closer, in Berlin. The German government had invited for a conference, 10 years after “Renewables 2004” in Bonn (the first renewable energy conference on governmental level). The “Berlin Energy Transition Dialogue” was held on 2627 March 2015 in the premises of the German Federal Foreign Office, under the slogan “Towards a global Energiewende”. Representatives of 60 countries, foreign ministers and ministers of energy as well as high-level representatives from business, science, administration and civil society, discussed the experiences made in changing to a sustainable, clean energy future, based on energy efficiency and renewable energy – and the I wish you an interesting read, Burkhard Sanner 1 POLICY A resilient Energy Union: Solution lies in fuel switch to renewables in the heating and electricity sectors. regulations on heating and cooling. Beyond 2020, existing measures should be strengthened, addressing the existing building stock. EGEC publishes new action plan The EU’s energy security is at risk. Europe is hugely dependent on fossil fuel imports, in particular on the natural gas used to cover its extensive heating demand With the increasing deployment of variable renewables, the EU electrical system requires more flexible generation. Natural gas as backup must be discarded: the more it is used, the more the EU is dependent on energy imports, and the more it moves away from achieving energy security. With the new Energy Union, the only viable option to address this challenge is to improve energy efficiency and to replace fossil fuel consumption and imports with stable renewable energy sources in the heating and electricity sectors. Energy efficiency is not sufficient to solve such a long-standing structural problem. Phase-out subsidies to fossil fuels in both heating and electricity sectors. Price carbon and other emissions in non-ETS sectors. • Mobilise existing Structural and Investment Funds as well as the new European Fund for Strategic Investments to finance RES for heating and cooling and flexible RES technologies. • Implement the directives on energy efficiency and on the energy performance of buildings, and ensuring consistency with the RES directive regarding In the upcoming revision of EU Regulation on security of gas supply, Member States should be required, as part of their Preventative Action Plan, to establish a strategy to promote the switch from gas to renewable energy sources. • Develop a European strategy to replace natural gas in power plants, ensuring grid flexibility with flexible renewable power plants (geothermal, etc.), and mitigating system costs. EU Parliament backs Juncker Plan: interinstitutional negotiations on track for early adoption On 20 April, EU Parliament committees for budget and economic affairs adopted the Parliament’s position on the European Fund for Strategic Investments (EFSI), also known as the Juncker Plan. The committees, both in charge of the file, have approved a mandate to start negotiations with the Council, which started on 23 April, straight away after Parliament’s decision. Despite MEPs’ readiness to launch negotiations, this has not been an easy journey. EU Parliament’s committees on budget and economic affairs rejected plans to earmark €5bn out of the €21bn guarantee to energy efficiency projects. Nevertheless, some important amendments have been put forward by the Parliament. In order to protect existing EU investments in research, MEPs want the EU Commission to find alternative resources from the annual budget, notably to avoid using money from the EU’s Horizon 2020 programmes. They also clearly emphasised that eligible projects must have a higher risk profile than those that could be financed by the EIB. Finally, in view of ensuring transparency in project allocation, MEPs supported a greater control of the Parliament over the fund management. The EGEC Market Report 2013/2014: The only full assessment of the entire geothermal sector €250 | Free for EGEC members. Click here to find out more • Click here to read EGEC Action Plan Such a path requires political courage and structural reforms in the years to come. In order to prepare the ground, EGEC publishes today an action plan towards “Fuel switch to renewables in the heating and electricity sectors”. This paper provides case studies of how to switch fuel with different geothermal technologies and puts forward key recommendations to build a resilient Energy Union, including: • Photo: © European Union, 2015 2 If negotiating teams of the Council and the Parliament are able to keep up with the pace and find an agreement soon, the EU Parliament is expected to adopt the Juncker Plan in plenary next June, and the fund is foreseen to start by mid-2015. NEWS N Global gathering celebrates the continuing success story of global growth in both geothermal power generation and heat production The direct use of geothermal has seen a massive 45% growth since 2010, with installed capacity now reaching 70,330 MWth spread across 82 countries, up from 48,500 MWth five years ago. The utilisation of geothermal energy for direct use of heat has helped prevent emissions of 148 million tonnes of CO2 annually. The largest gathering of the global geothermal community, the World Geothermal Congress 2015, highlights the sector’s continuing growth and its important contribution to the movement towards a sustainable energy future. Slightly more than half of the direct use globally comes from Ground Source Heat Pumps (GSHP), with balneology accounting for 20%, and space heating for 15% (89% of this is used for district heating). There has been a significant increase in the number of countries making use of GSHP, from 26 in 2010 to 48 in 2014; the leading countries in terms of installed capacity are, in descending order, the USA, China, Sweden, Germany, and France. This has also helped create employment, with 34,000 person years now spent in 52 countries annually. Delegates heard that Europe has huge potential for both power and heat, is the birthplace of the technology, and is still one of the world leaders in terms of expertise. In spite of this, the market is merely growing steadily instead of booming, whilst Europe’s neighbours forge ahead. The World Geothermal Congress 2015 concluded today in Melbourne, Australia. Held every five years, the event is the largest and most important gathering of the global geothermal community. More than 1,600 participants are attending a number of short courses, technical presentations, side events, and an extensive exhibition of geothermal companies and organisations from around the world. The event is co-hosted by New Zealand, where a number of short courses and field trips to geothermal plants will take place next week. In Europe, where 50% of energy consumption is for heat, concerns about gas and security of supply are growing. The search for a local, secure, and steady supply of energy is leading to an increased interest in geothermal heating and cooling, particularly geothermal district heating, which has excellent potential in Central and Eastern Europe and is also being investigated in nontraditional areas. Barriers such as a lack of appropriate financing models and unfair competition with fossil fuels have held back development in the past, but this situation is improving. At the congress a global update on geothermal installations and development was provided both on power generation and the direct use of heat for the period of 2010 to 2015. The event would like to thank gold sponsors Energy Development Corporation, Exergy, and Ormat, its silver sponsor Contact Energy and the sponsor of the poster gallery GNS Science. The global geothermal power market continues to grow. Today, there is an installed power generation capacity of 12,635 MW, a figure that has grown by 16% over a 5-year period. It is expected that increase will continue, with installed power generation capacity reaching 21,400 MW in 2020. The main region for geothermal power is Asia & Pacific, with Indonesia, the Philippines, and New Zealand in the forefront. This is followed by North America. Download press release French Minister Ségolène Royal launches GEODEEP Fund to support the development of the deep geothermal sector Countries which have seen the most growth in recent years are Kenya, which has added up to 400 MW in capacity, followed by Turkey, adding 306 MW, and New Zealand, which has added an additional 234 MW. On Monday 30, French Minister Ségolène Royal, in charge of energy affairs, publicly announced the creation of GEODEEP, a new 50-million Euro risk insurance fund dedicated to deep geothermal energy. The fund aims to protect project operators against the geological risk faced during the exploration and exploitation phases. Jointly financed by ADEME (a public institution managed by the Ministry), La Caisse des Dépôts (a public investment bank), and by private operators, GEODEEP will compensate project operators in case they fail to find economically sustainable geothermal resource. “There is great potential right across Europe for Geothermal power production, which is baseload and flexible” Said Philippe Dumas, secretary general of the European Geothermal Energy Council (EGEC) “Often, this potential, and the role for geothermal in balancing the grid goes unrecognised. Projects have also struggled due to lack of financial support and policy measures.” 3 EGEC warmly welcomes this new support scheme for NEWS N geothermal energy in France. GEODEEP will indeed facilitate project operators’ investment decisions by significantly reducing the risk profile of deep geothermal projects. The fund is also expected to ensure the opening of ten new deep geothermal plants, and the creation of more than 800 new jobs. By launching GEODEEP, the French government clearly demonstrates its commitment to foster the development of renewables and proves the key role that geothermal plays in achieving the energy transition towards a low-carbon economy. has recently added its support to the facility, joining the German Government and the EU infrastructure fund. Press Release of the Ministry of Ecology, Sustainable Development and Energy The project (5.5 MWe), located in the Pyrénées Atlantiques Region, has a budget in excess of EUR 80 million. 5.5MW geothermal project in French Pyrenees receives funding A consortium led by FONROCHE GEOTHERMIE has been selected by the French Energy Agencies (ADEME and CGI) to receive funding for the deep, high temperature geothermal energy project called FONGEOSEC. RES supplies 80% of power in New Zealand, Geothermal sees biggest growth The first Berlin Energy Transition Dialogue, 26.-27.3.2015 The conference motto “Towards a global Energiewende” made use of the German word for energy transition – literally “energy turnaround”. This German word is becoming a universal denotation for a massive push towards a new energy system, and might become as international as “Rucksack” or “Kindergarten”. The conference was attended by representatives of 60 countries, foreign ministers and ministers of energy as well as high-level representatives from business, science, administration and civil society. In 2014, 80% of the electricity generated in New Zealand came from Renewables. Geothermal power saw the largest growth of any technology (including non-renewable), with 6,847 GWh produced over the year. For the first time in forty years more power came from geothermal than from natural gas, according to the Ministry of Business, Innovation and Employment. Geothermal for cost efficient, sustainable food production in developing countries: New report from FAO Germany has started decades ago to seek for a clean and sustainable energy future, and in recent years has intensified the change from fossil and nuclear to new forms of energy in a process called “Energiewende”; or, as Jeremy Rifkin phrased it in his speech at the conference, “Germany is embarking on a bold new journey to transform its energy regime and usher-in a new economic paradigm.“ In fact, Germany is on that journey since quite some time, seeing periods of progress and optimism, times of political slow-down and outright obstruction (old energy empires attempted to strike back), but all the The Food and Agriculture Organisation of the United Nations has published a new report “Uses of geothermal energy in Food and Agriculture” which notes that much of the food waste in developing countries is due to a lack of affordable energy for food processing. Geothermal can provide a solution which addresses both cost and environmental impacts of food production, the report states. “Geothermal energy for agriculture can be done even at small-scales and can significantly contribute to income generation, providing employment and improving food and nutrition security in developing countries,” said Divine Njie, AGS Deputy Director. Africa: Geothermal Risk Mitigation Facility (GMRF)- Results of Prequalification phase It has been announced that eleven projects have prequalified for the facility, which is implemented by KfW and the African Union Commission. Of the eleven projects, seven were surface studies and four were drilling programmes. The UK’s Department for International Development During the opening session of the Berlin Energy Transition Dialogue on 26 March 2015, in the “World Hall” of the German Federal Foreign Office. Photo: © M. Hastedt & Y. Schönberger 4 NEWS Three of the top-level speakers at the Berlin Energy Transition Dialogue on 26 March 2015 (from left): German Foreign Minister Frank-Walter Steinmeier, German Minister for Economic Affairs and Energy Sigmar Gabriel, and IRENA Secretary General Adnan Amin. Photo: © M. Hastedt & Y. Schönberger time progressing towards transformation of the whole energy regime of the country. And Jeremy Rifkin mentioned that for geothermal energy, the earth is not sending a bill… A keystone of this process was, and still is, the feedin tariff for renewable electricity as to the Renewable Energy Act, EEG. The EEG, the first version entering into force in April 2000, just had its 15th anniversary; but even before that date, legislation granting a feed-in-tariff was in place. The term “Energiewende”, however, is much younger. It was coined in the time after the Fukushima disaster in March 2011, and makes reference also to the process of change in Eastern Germany after the end of GDR, often called “Wende” in German. The first round of parallel sessions in the afternoon focussed on the: The conference discussed the experiences made in changing to a sustainable, clean energy future, based on energy efficiency and renewable energy – and the challenges and opportunities that lay ahead, for countries in all stages of this process. Of course, the German example was omnipresent, but experiences from many other countries shed light on problems and chances worldwide. The second round of parallel sessions completed the afternoon, with the topics: In the opening session in Berlin on 26.3.2015, German Foreign Minister Frank-Walter Steinmeier touted the energy transition in Germany the “German Man-to-theMoon Project”. And indeed, the shear size of the task is as big and as difficult as what J.F. Kennedy pledged in 1962. Personally I believe that creating a new and sustainable energy supply for a country, a continent, and eventually a whole planet, is more important for human wellbeing than winning the “Space Race” or exploring our companion in space. • Key Role of Political Frameworks: Defining the Right Incentive Scheme; • Market and System Integration of Variable Renewable Power Generation; • Centralized vs. Decentralized Energy Transition. • Key Role of Financing: How to attract; • Private and Public Investments Grid Integration, Grid Management and Grid Development; • Economic Value Creation, Sustainable Growth and Jobs. The second day was opened by the German Federal Minister for the Environment, Barbara Hendricks, focussing on the role of the energy transition for climate protection. Then a panel of ministers from Europe and overseas presented and discussed renewable energy flagship projects, and one of the parallel sessions thereafter focussed on Energy Efficiency and Renewable Heating and Cooling. A very well organised event, with highly interested (and highly interesting) audience, and a good opportunity to share experiences and expectations. Also in the opening session, Martin Viessmann, owner of the well-known factory for heating equipment, did put the heating sector in centre stage, and highlighted the importance of energy efficiency and renewable energy for heating and cooling. Not only in his speech geothermal energy was present, but also in many others – meanwhile it is among the accepted energy sources. 5 PROJECTS What are the 10 most wanted profiles in the Geothermal Sector? The know RES project is conducting a survey of the Geothermal industry in order to identify the sectors most sought after profiles. Whether your firm is currently recruiting, planning to do so in the future or if you are simply curious to learn what expertise are in demand in the geothermal sector, please take 5 minutes to fill out this survey and share your view on the geothermal job market. About KnowRES KnowRES is creating an online platform to provide job intelligence to industry, candidates, Kindly note that taking part in the survey will allow your firm to participate in free matchand academic and training institutions. making events and free recruitment advisory The project is also performing an analysis of the services on a voluntary basis. skills needed by the industry to ensure that the provided education and training courses are Thank you in advance for your tailor-made to the sectors’ needs. valuable input Within the framework of KnowRES EGEC will organise a Georthermal Career Day in February 2016 Click here to complete the short survey ReGeoCities now in its final semester The ReGeoCities project is now in its final semester. The next planned activities include: • the launch of a promotional campaign in May about geothermal heat pumps; • the finalisation of factsheets and other communication materials; • the conclusion of the training courses and of their training materials; • the organisation of a final workshop to be held in June 2015. The final workshop will be held during the EU Sustainable Energy Week. More information and details to follow soon. 6 EVENTS Certificate of Advanced Studies: Exploration and Development of Deep Geothermal Systems In Switzerland and Europe, the number of specialists in deep geothermal systems is very limited. This Certificate of Advanced Studies (CAS DEEGEOSYS) is dedicated to train scientists and engineers in several fields of applied geothermics. They will be capable of organising and leading exploration and development projects of deep geothermal resources (deep aquifers and Enhanced Geothermal Systems). The yearlong course, organised by the Centre for Hydrogeology and Geothermics CHYN, University of Neuchâtel includes four one week long modules separated by a two month break. Modules include Geothermics and Geophysics, Geochemistry and Hydrochemistry, Drilling and Logging, and Reservoir Evaluation and Production. The 3rd Edition of this course will begin in 2015. More information is available at http://www2.unine.ch/foco/CASDEEGEOSYS GeoPower Global Congress The 7th annual GeoPower Global Congress will take place in Istanbul, on 1-3 December 2015. It is a unique opportunity for developers, investors and other key stakeholders to share specific technical, financial and legislative expertise for optimising the development of current and future geothermal power and heat projects worldwide. Over 150 industry experts will descend on Istanbul this December to discuss overcoming the core challenges facing projects development during two full congress days including a Turkey focus stream on day one. For more details please visit www.geopowerglobal.com or email [email protected] 19 - 24 September 2016 Strasbourg, France 7 EVENTS Events Calendar Internationaler Geothermie-Kongress 2015 21 May 2015 St. Gallen, Switzerland Website Geothermal Energy Days: How to Use this Source of Clean Energy at Regional level? 21-24 May 2015 Vojvodina (SRB) Website EU Sustainable Energy Week 15-19 June 2015 Brussels, Belgium Website CAS DEEGEOSYS - Exploration & Development of Deep Geothermal Systems 7 September 2015 - 30 May 2016 Neuchâtel, Switzerland Website Brussels Sustainable Development Summit 2015 19-20 October 2015 Brussels, Belgium Website GeoPower Global Congres 1-3 December 2015 Istanbul, Turkey Website The European Geothermal Energy Council is the voice of the Geothermal Industry in Europe. To Find out more visit www.egec.org EGEC is a non-profit membership organisation whose sole aim is the promotion of the geothermal industry. It supports its members by lobbying on their behalf. More than 130 members from 28 countries (including private companies, national associations, consultants, research centres, geological surveys, and public authorities) make EGEC a strong and powerful network, uniting and representing the entire sector. 8
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