High-Temperature Geothermal Utilization in the Context of European Energy Policy—Implications and Limitations

Abstract

The European Union (EU) has made climate change mitigation a high priority though a policy framework called “Clean Energy for all Europeans “. The concept of primary energy for energy resources plays a critical role in how different energy technologies appear in the context of this policy. This study shows how the calculation methodologies of primary energy content and primary energy factors pose a possible negative implication on the future development of geothermal energy when comparing against EU’s key energy policy targets for 2030. Following the current definitions of primary energy, geothermal utilization becomes the most inefficient resource in terms of primary energy use, thus contradicting key targets of increased energy efficiency in buildings and in the overall energy use of member states. We use a case study of Hellisheidi, an existing geothermal power plant in Iceland, to demonstrate how the standard primary energy factor for geothermal in EU energy policy is highly overestimated for efficient geothermal power plants. Moreover, we combine life cycle assessment and the commonly utilized combined heat and power production allocation methods to extract the non-renewable primary energy factor for geothermal and show how it is only a minimal fraction of the total primary energy factor for geothermal. The findings of the study apply to other geothermal plants within the coverage of the European Union’s energy policy, whether from high- or low-temperature geothermal resources. Geothermal has substantial potential to aid in achieving the key energy and climate targets. Still, with the current definition of the primary energy of geothermal resources, it may not reach the potential.