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