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Geothermal power production in future electricity markets--A scenario analysis for Germany

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  • Purkus, Alexandra
  • Barth, Volker

Abstract

Development and diffusion of new renewable energy technologies play a central role in mitigating climate change. In this context, small-scale deep geothermal power has seen growing interest in recent years as an environmentally friendly, non-intermittent energy source with large technical potential. Following the first successful demonstration projects, the German geothermal industry is currently experiencing an internationally unparalleled growth. In this study we explore the factors driving this development, and the role geothermal power production could play in the future of the German electricity market. For this, we apply the scenario technique, based on literature analysis and interviews with companies operating actively in the field. Our findings highlight the importance of political support and framework conditions in the electricity market, with the best prospects in a decentralised energy system based on renewable energy sources, where high investment costs and the risk of discovery failure are balanced by the benefits of low-carbon base load power.

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  • Purkus, Alexandra & Barth, Volker, 2011. "Geothermal power production in future electricity markets--A scenario analysis for Germany," Energy Policy, Elsevier, vol. 39(1), pages 349-357, January.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:1:p:349-357
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    References listed on IDEAS

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    1. Frick, Stephanie & Kaltschmitt, Martin & Schröder, Gerd, 2010. "Life cycle assessment of geothermal binary power plants using enhanced low-temperature reservoirs," Energy, Elsevier, vol. 35(5), pages 2281-2294.
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    2. Wang, Yuqing & Liu, Yingxin & Dou, Jinyue & Li, Mingzhu & Zeng, Ming, 2020. "Geothermal energy in China: Status, challenges, and policy recommendations," Utilities Policy, Elsevier, vol. 64(C).
    3. Abolhosseini, Shahrouz & Heshmati, Almas & Altmann, Jörn, 2014. "A Review of Renewable Energy Supply and Energy Efficiency Technologies," IZA Discussion Papers 8145, Institute of Labor Economics (IZA).
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    10. Yue, Ting & Long, Ruyin & Chen, Hong & Zhao, Xin, 2013. "The optimal CO2 emissions reduction path in Jiangsu province: An expanded IPAT approach," Applied Energy, Elsevier, vol. 112(C), pages 1510-1517.
    11. Knoblauch, Theresa A.K. & Trutnevyte, Evelina & Stauffacher, Michael, 2019. "Siting deep geothermal energy: Acceptance of various risk and benefit scenarios in a Swiss-German cross-national study," Energy Policy, Elsevier, vol. 128(C), pages 807-816.
    12. Hasan, M.H. & Mahlia, T.M.I. & Nur, Hadi, 2012. "A review on energy scenario and sustainable energy in Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2316-2328.

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