A commercially driven case for the investment in, and development of, a zeroemission sustainable energy source will attract capital and accelerate the transition to net-zero. Geothermal energy is a high reliability clean baseload energy source which is available globally. The use of tax and regulatory policy will advantage the uptake of geothermal energy while providing opportunities for quality jobs. 

Significance

The ability to transition to zero-emitting sustainable and renewable resources with a highcapacity factor is required to meet COP 26 targets as we transition to less hydrocarbons. Geothermal energy typically has capacity factors above 90%, is weather invariant, can produce heat or electricity and has ultra-low or zero on-site emissions of greenhouse gases. 

Technical aspects 

Earth’s surface heat flow averages about 42,000 gigawatts. It is currently estimated that the geothermal electricity potential ranges from 35 – 140 gigawatts, about 0.3% of the total. However, use of enhanced geothermal systems may easily double this estimate. At year-end 2020, geothermal provided 15.6 gigawatts of installed power generation and is projected to grow by more than threefold to nearly 50 gigawatts by 2050. 

Commercial implications

Pricing for geothermal energy as heat or electricity on a unit basis ($/therm, $/kwh,) is currently competitive with hydrocarbon sources provided the heat source is of high quality and existing infrastructure and wellbores can be utilised. This degree of competitiveness will be improved through technological advances which lower development costs and increase the efficiency of heat to energy conversion. 

Community implications

Access to reliable baseload energy sources enables economic activity and social welfare. Reduction of greenhouse gases through replacement of hydrocarbons as an energy source mitigates the social impacts of climate change. Geothermal developments provide quality employment opportunities. 

Policy & regulatory implications

• Tax policies can be used to advantage geothermal developments through:
• accelerated depreciation/cost recovery
• tax incentives, including lower tax and royalty rates
• carbon credits 

Way forward & solutions

• Present and publicize commercial geothermal investment cases to attract capital
• Advocate for tax policy incentives to improve profitability
• Improve understanding of geothermal cases with respect to carbon footprint and reliability 

Key takeaways 

• Geothermal energy is clean and competitive with existing high-carbon energy sources
• Large untapped resources which may be accessed with existing technology
• Applications for industrial, agricultural, and residential use
• High reliability factor (>90%) when compared against other renewable energy sources
• Utilisation of existing infrastructure and wellbores improves price competitiveness ($/therm, $/kwh) with conventional heat and power sources 

Image source: GEAA

Geothermal Energy Advancement Association (GEAA)

GEAA is a stakeholder driven Association that advocates increased investment in geothermal energy and increased awareness of this sustainable source for near zero-carbon power, heat and hot water.

The Association is a not-for-profit organisation offering leadership and a dialogue in the energy transition debate. It is open to all those interested in advancing geothermal energy and its role in transitioning to a world using less petroleum.

GEAA promotes awareness and consideration of geothermal energy as an energy and heat source, and policy and legal frameworks to accelerate the use of geothermal energy. With increased investment, and a wider understanding of how geothermal energy can be used, it can become a key part of a clean energy future used in all countries and communities. 

• The Association has a global reach and seeks to promote a global understanding of the potential for development and rapid deployment of geothermal energy, both as heat and power.
• Geothermal energy can be found in many forms and at different temperatures and depths. It has many uses as a sustainable source for near zero-carbon power, heat, and hot water.
• Geothermal energy is an abundant, constant, clean renewable energy source that is present naturally underground everywhere on planet earth. It can be accessed via boreholes to provide a reliable, stable, 24/7, zero carbon emission energy baseload for power generation and heating, both for ongrid and off-grid standalone projects.
• Geothermal energy is poised to help resolve global climate issues. It has a very small surface footprint, no direct carbon emissions, and does not consume large amounts of finite mineral resources. Geothermal can also utilize existing energy industry subsurface and engineering skills, infrastructure, technology, and boreholes.

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