GEOELEC: Présentation du Projet
L’électricité géothermique française
Philippe DUMAS
European Geothermal Energy Council Paris, 17/10/2013
Objective of GEOELEC project is to
• convince decision-makers about the potential of geothermal electricity in Europe: Create awareness and improve perception among policy makers
Objective of GEOELEC project is to…
• stimulate banks and investors in financing geothermal power installations.
• Geothermal project development has high upfront costs and can take several years: 3-6 years, need innovative mechanisms for funding
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Exploration
Early drilling
Drilling & Confirmation
Engineering & Construction
Operation & maintenance
Exploration
Pre-prod
Drilling
Engineering & construction
O & M
Seed capital
Venture capital
Private equity
Mezzanine debt
Bridge debt
Construction financing
Project financing Tax equity
Objective of GEOELEC project is to…
• attract key potential investors such as oil and gas companies and electrical utilities to invest in the geothermal power.
• Geothermal projects are capital intensive
Results
• GEOELEC will result in an action plan towards more geothermal electricity generation in Europe, with the objective to double installed geothermal power capacity in Europe by 2020.
• GEOELEC will also result in setting concrete actions to reach these objectives:
conditions for financial feasibility,
a regulatory framework, and
public acceptance.
List of Participants
European Geothermal Energy Council EGEC BE
Bureau De Recherches Géologiques Et Minières BRGM FR
Centre For Renewable Energy Sources And Saving CRES EL
Consiglio Nazionale Delle Ricerche
Istituto Di Geoscienze e Georisorse
CNR-IGG IT
Asociacion De Productores De Energias Renovables
APPA ES
Gaßner, Groth, Siederer & Coll. GGSC DE
EnBW Energie Baden-Württemberg AG EnBW DE
Mannvit Mannvit IS
Helmhotz Zentrum Postdam - Deutsches Geoforschungszentrum
GFZ DE
Nederlandse Organisatie Voor Toegepast-Natuurwetenschappelijk Onderzoek - TNO
TNO NL
Work Flow Chart (June 2011 – November 2013)
Work Programme
Prospective for geothermal electricity in Europe
Resource assessment
• Methodology: Geoelec Resource Assessment Protocol
• Data compilation with 7 regional workshops (London, Valencia, Milano, Athens, Utrecht, Offenburg, Vilnius)
Work Programme
Prospective for geothermal electricity in Europe
Resource assessment
• Methodology: Geoelec Resource Assessment Protocol
• Data compilation with 7 regional workshops (London, Valencia, Milano, Athens, Utrecht, Offenburg, Vilnius)
• An online web GIS on EGS potential in the EU-27
Work Programme
Prospective for geothermal electricity in Europe
Electricity demand and grid infrastructures
• Technical conditions for grid access
• Match the demand: site selection
No technical barrier to the integration of geothermal power;
Transparency to grid access conditions;
Geothermal is dispatchable and will play a role in
stabilising the grid.
Grid development process (Binda, et al .,2012)
Work Programme
Prospective for geothermal electricity in Europe Resource assessment • Methodology: Geoelec Resource Assessment Protocol • Data compilation with 7 regional workshops (London, Valencia, Milano, Athens,
Utrecht, Offenburg, Vilnius) • An online web GIS on EGS potential in the EU-27
Electricity demand and grid infrastructures • Technical conditions for grid access • Match the demand: site selection
Forecasts and prospective • A prospective study 2020/2030/2050 on the geothermal potential in Europe
(October 2013)
Work Programme
Financing geothermal power projects
Project financing & estimating of costs • A software to evaluate financial viability of geothermal projects • LCOE Risk insurance • Promote the creation of risk insurance schemes Drilling costs & rigs • A European database on drilling companies • Market conditions Guide to boost investment in the geothermal sector • Practical reference tool for banks, developers and investors
Work Programme
Financing geothermal power projects
Drilling costs & rigs
• A European database on drilling companies
• Market conditions
Drilling represents from 30% to 50% of the cost of a hydrothermal geothermal electricity project and
more than half of the total cost of Enhanced Geothermal Systems (EGS).
0 2 4 6 8 10
Dry Steam
Flash steam
Binary
EGS
capital costs for geothermal, 2010: Mio € / MWe
% Drilling Costs
70
50
30
Work Programme
Regulatory, social and environmental conditions
Regulatory barriers
• Licensing procedures, legal conditions for grid access
• Geothermal reporting code review
Many European Countries are still in the process of
setting up unique geothermal licensing authorities.
There are still regulatory barriers which can cause
delays and increase cost within geothermal Electricity
projects.
Work Programme
Regulatory, social and environmental conditions
Regulatory barriers
• Licensing procedures, legal conditions for grid access
• Geothermal reporting code review
An advised licensing process was developed within GEOELEC:
Work Programme
Regulatory, social and environmental conditions
Environmental issues
• Small footprint that leaves little permanent scarring;
• Normal construction site disturbance and waste;
• Buildings, cooling towers and pipelines create minimal
visual impact;
• Reinjection of geothermal fluid into the aquifer of origin
does not contaminate groundwater;
• Hydraulic stimulation uses 99% water, harmless chemicals
and no proppants, following environmental rules;
• Induced micro-seismicity can occur due to re-injection but
is monitored and can be controlled.
Work Programme
Regulatory, social and environmental conditions
Public acceptance
Social acceptance is an important factor in site selection due to
o environmental issues,
o missing involvement issues,
o financial issues (in case of e.g. municipal grants),
o NIMBY (Not In My Back Yard) acceptance issues, and
o local energy production.
Work Programme
Education and employment in the geothermal sector
Employment survey
2500-3000 jobs directly related to geothermal electricity in the EU-28. Geothermal energy jobs can
be broken down into different types, from engineers, drillers and workers in equipment factories
to project managers.
Geothermal power also generates indirect jobs, for example with suppliers of raw materials and
induced jobs. The estimated total number of geothermal power jobs in 2013 is 10.000 jobs.
By 2030, more than 100 000 people should be employed in the sector (a real boom in labour-
intensive activities such as exploration, drilling, construction and manufacturing)
Work Programme
Education and employment in the geothermal sector
Employment survey
Training activities
• 3 Training courses in France, Italy and Germany (2012/2013)
Work Programme
Communication
Website: www.geoelec.eu
Publication
• Geoelec Final Report
• Geoelec Factsheets
• Newsletter
Events
• 7 promotional workshops (FR,DE,EL,ES,IT,HU,NL)
• 1 Final Conference
Thank You!
Visit www.geoelec.eu