Geothermal Energy initiatives
Stimulation of Sustainable Energy Production and Climate Transition (SDE++)
The Hague June 01 - Commissioned by the Ministry of Economic Affairs and Climate Policy, the SDE++ initiative supports sustainable, agricultural, innovative, and international business endeavours that aim to reduce CO2 emissions through large-scale deployment of renewable energy technologies. The 2023 round of SDE++ has been particularly successful for the geothermal sector, with all ten submitted projects receiving positive decisions.
Collectively, these projects are expected to reduce CO2 emissions by over 0.5 megatonnes annually. This round’s total subsidy for geothermal heat amounts to nearly €1.4 billion. The SDE++ operates as a subsidy covering only the operational period of projects, compensating the difference between the cost price of sustainable energy production and potential revenue. Known as the unprofitable component, this subsidy is allocated for 12 to 15 years, depending on the technology used and the CO2 reduction achieved.
Germany to expedite approval processes for geothermal plants
BERLIN, June 28 (Reuters) - Germany's economy ministry said on Friday it was drafting a law to expedite the approval processes for geothermal plants, heat pumps and heat storage systems, as Berlin aims to phase out fossil fuels in its heating system by 2045.
Germany is home to one of Europe's biggest geothermal reserves, which have been largely untapped due to local opposition and bureaucratic hurdles. Surging energy prices in 2022 triggered new interest in the renewable energy source, with big municipal utilities, and German and international fossil fuel companies exploring possible investments in the country. The geothermal energy sector in Europe's biggest economy has been calling for a law to expand the energy source's potential and remove many obstacles, including local opposition against drilling and low government subsidies.
Geothermal energy could cover more than a quarter of Germany's annual heat demand with a production potential of over 300 terawatt hours, a study by Fraunhofer Institute showed last year.
Berlin aims to expand geothermal energy generation so it could feed 10 times as much energy into the heating network as it does today by 2030, Scholz said last year, adding that the number of geothermal power stations will rise to 54 from 42 in the future.
"By 2030, 10 terawatt hours (TWh) are to be generated from geothermal energy. The law lays the foundations for this," the ministry added.