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While geothermal energy, drawing on the Earth’s natural heat, is emerging as a promising renewable energy source to meet the environmental and climate challenges of the 21st century, favorable policies and regulations are essential to stimulate its development and widespread adoption. A clear, incentive-based regulatory framework can play a crucial role in attracting investment, ensuring the sustainable use of geothermal resources and promoting the integration of this technology into energy systems.
Why do we need geothermal-friendly policies and regulations?
Geothermal-friendly policies and regulations offer many advantages:
- Reduced investment risk: A stable, transparent regulatory framework reduces the risks associated with geothermal projects, encouraging private investors to enter the sector.
- Stimulating technological innovation: Incentive policies can stimulate research and development of new, more efficient and cost-effective geothermal technologies.
- Promoting sustainable use of resources: Strict regulations on geothermal exploitation ensure responsible and sustainable use of geothermal resources over the long term.
- Facilitating urban planning: Geothermal-friendly land-use policies help to integrate this technology into urban infrastructures and maximize its potential.
- Environmental protection: Strict environmental regulations ensure that geothermal projects minimize their impact on the environment and comply with water and air quality standards.
Examples of geothermal-friendly policies and regulations
Many countries have introduced policies and regulations favourable to geothermal energy:
- Germany: Germany’s Renewable Energies Act (EEG) offers guaranteed feed-in tariffs for geothermal electricity, stimulating the development of this sector.
- USA: The Geothermal Energy Tax Credit in the USA offers tax credits to geothermal project developers, reducing costs and encouraging investment.
- Kenya: Kenya has adopted a national geothermal development strategy aimed at increasing the country’s geothermal power generation capacity.
- France: France has set up a specific regulatory framework for deep geothermal energy, guaranteeing the safety and sustainability of projects.
Conclusion
Geothermal-friendly policies and regulations are key to stimulating the development of this promising renewable energy source and contributing to a sustainable energy transition. By adopting innovative approaches and leveraging international best practice, governments can create the right environment for investment, innovation and adoption of geothermal energy, contributing to a cleaner, more resilient and prosperous energy future.
Key factors for effective geothermal policies and regulations :
- Thorough understanding of geothermal potential: An accurate assessment of the geothermal potential of a country or region is essential to develop appropriate policies and regulations.
- Clear, stable regulatory framework: A clear, stable and transparent regulatory framework is crucial to attracting investors and guaranteeing legal certainty for geothermal projects.
- Financial and tax incentives: Financial incentives, such as guaranteed feed-in tariffs or tax credits, can reduce the costs of geothermal projects and make them more attractive to investors.
- Simplification of administrative procedures: Simplifying administrative procedures and obtaining permits can speed up the development of geothermal projects.
- Coordination between different levels of governance: Effective coordination between national, regional and local levels is essential to harmonize geothermal policies and regulations.
- Stakeholder engagement and public awareness: Involving stakeholders, such as local communities, investors and project developers, in the development of policies and regulations is crucial to ensuring their acceptance and effectiveness.
