Geothermal District Heating and Renewables in Iceland

Transcription

1 Geothermal District Heating and Renewables in Iceland Baldur Pétursson, Manager International Projects and PR National Energy Authority, Iceland, Romania, 9 November 2017

2 Our EEA Grant Team Jónas Ketilsson, Senior Manager - Deputy Director General Baldur Pétursson, Manager - International Projects/Public Relations María Guðmundsdóttir, Specialist - Geothermal Energy Economics Jón Ragnar Guðmundsson, Specialist - Engineering Management of DH Jón Ásgeir H. Þorvaldsson, Specialist-Geothermal Information Analyst Hanna B. Konráðsdóttir, Specialist-Geothermal Law + additional experts

3 Role and tasks of Orkustofnun 1. Energy Policy Recommendation 2. Licensing resources 3. Monitoring resources 4. National Regulatory Authority 5. United Nations University (UNU-GTP) 6. International cooperation, EEA Grants, WEC, IGA, IEA, etc. 7. Energy Fund 8. The Energy Agency 9. Initiatives for geothermal exploration 10. Dissemination of information 11. Data, energy efficiency, research

4 Thanks to Thanks for constructive cooperation during the program period to: FMO in Brussels The Ministry of Environment in Romania The Environmental Fund Rondine and Paul SERBANESCU and all the staff and looking forward for next period and cooperation with Innovation Norway and all others

5 % Share of Renewables in Total Primary Energy use 2014 Sources: OECD, IEA, Samorka

6 Primary Energy Use in Iceland

7 Installed hydropower capacity 2015 Source: Orkustofnun 7

8 Geothermal Electricity Generation

9 The Oil Crises War Iran - Iraq Revolution Iran Embargo OPEC

10 Expansion of GeoDH Space Heating by Source Biggest steps in GeoDH were taken during the oil & war crises External conditions raised the need of evaluation and GeoDH Planning Policy goals to increase geothermal both national and within main cities It took only 12 years to increase GeoDH from 40% to 80% of total space heating It took only 12 years to decrease oil for heating from 50% to 5% in 12 years GeoDH from 40% to 80%

11 The Geothermal ERA- Opportunities

12 Comparison of Energy Prices for Residential Heating Sept. 2016

13

14 Utilisation of Geothermal Energy Companies within the Resources Park at Reykjanes Geothermal Power and Heat Generation Geothermal Power and Heat Distribution Blue Lagoon Health Spa Blue Lagoon R&D Centre Blue Lagoon Clinic Fish Drying 14

15 Utilisation of Geothermal Energy Companies within the Resources Park at Reykjanes ORF Genetics Hotel Stolt Sea Farm Carbon Recycling 15

16 16 Utilisation of Geothermal Energy District heating, swimming pools, spas, greenhouses, various industrial applications.

17 The Geothermal Cluster in Iceland

18 Project Risk Cumulative Cost Risk Mitigation Lessons learned from Iceland Important to recognize the importance of GeoDH for economy (savings), energy security and mitigate climate change Important to lower the risk of projects in the beginning e.g. by supporting exploration and test drilling Importance for Financial Institutions to recognise opportunities within GeoDH Bankability Validation geothermal resources through test drilling is capital intensive and risky Commercial financing for test drilling is hard to find Private equity and governmental support are the only capital to undertake test drilling Sources: ESMAP, Report 2012

19 Lessons learned from Icelandic GeoDH Policy 1. World wars and oil crises ( ) highlighted the need for GeoDH Policy These global crisis highlighted the necessity for GeoDH Policy in Iceland 2. Political, Public, Sectoral and Financial - recognition for the GeoDH Policy For energy security, economic and environmental reasons (oil crises), the GeoDH policy was recognised at national level and within main cities This political and sectoral recognition was base for the policy and implementations 3. Risk loans - for exploration drilling to lower the risk barriers for GeoDH operation 4. Financial support to homeowners for transformation to GeoDH 5. Finance / loans for drilling and building Geothermal District Heating (GeoDH) 6. Importance for Financial Institutions to recognise opportunities within GeoDH 7. Renewables for heating in Iceland is already saving up to 7% of GDP or equivalent 3000 US $ per capita per year 8. Favourable / neutral Legal Framework

20 Reykjavik biggest District Heating network in the World Renewable Energy mitigates Global Warming Reduction in CO 2 emissions in Reykjavík due to space heating 21 Source: Reykjavik Energy

21 Environmental Benefits of Geothermal Utilisation Reykjavík 1933 Reykjavík today Source: Reykjavik Energy 22

22 Awareness Renewable Raising Energy mitigates linked to Global Climate Warming Contribution of Geothermal to lower CO2 Accumulative CO2 Savings using Renewables instead of oil in Iceland Annual CO2 Saving by Renewables in Iceland - equal to 18 million tons of CO2 - equal to 9 billion trees in bindings of CO2 - equal to 43 thousand square km of woods - equal to 41% of the size of Iceland - equal to 6 million tons of oil annually Items for consideration - Important to show important results of renewables in fighting with CO2 - in visible terms that can be understood - trees - growth of renewables are going too slow - global temp. are increasing faster than expected - the climate risk is growing - renewables / geothermal have a great potential in fighting against rising climate risk Million tons CO2 350 Geothermal Power Plants Geothermal District Heating Hydropower Orkustofnun Data Repository: OS-2015-T

23 Renewable Energy mitigates Global Warming

24 International Cooperation - Geothermal The United Nations University Geothermal Training Programme in Iceland UNU-GTP Fellows in Iceland from 58 countries. The Geothermal Training Programme of the United Nations University (UNU-GTP) is a postgraduate training programme, aiming at assisting developing countries in capacity building within geothermal exploration and development. The programme consists of six months annual training for practicing professionals from developing and transitional countries with significant geothermal potential. Priority is given to countries where geothermal development is under way, in order to maximize technology transfer.

25 ERA NET three important Geothermal EU Pillars More cooperation and communication necessary at European level, National level and Company level Industry, RD&D, Banks, etc - Cooperation Practical information Using existing information Highlight barriers Financial - opportunities Awareness building Policy - recommendation

26 The follow up GEOTHERMICA ERA NET Cofund Environmental, social and economical sustainability Identification & assessment of geothermal resources Geothermal resource development (drilling, completion materials and equipment) Supply & smart integration into the energy system and Operations Data/statistics, knowledge sharing Public awareness, education & strengthening the sector Innovation and development Integration in the energy system New approaches New concepts Demonstrations and validations Policy, economy & risk mitigation, regulatory framework National commitment ~24M EC top up ~8M Estimated industry commitment ~30M

27 Renewable Energy mitigates Global Warming Sources: ESMAP Report, 2012

28 International Cooperation EEA Grants Orkustofnun is Donor Program Partner (DPP) for Renewables in some Countries

29 Hungary Renewable Energy Programme in Hungary (7,7 M ) Focus on geothermal areas where a market for heat is in place (GeoDH) Higher education in geothermal and specialized courses Increase awareness and public acceptance Icelandic expertise UNU Program - education, training capacity building Drilling in Kiskunhalas 30

30 Portugal GAia Programme in Portugal (4 M ) Build 3 MW geothermal power plant in Terceira, Azores Use existing high temperature production wells Icelandic expertise Six months training at UNU-GTP and short courses organized by the school 31

31 Romania RONDINE Programme in Romania (12,3 M ) Small hydro power plants across Romania and geothermal projects. Icelandic experts participated in both portions, with good results. Feasibility studies in Oradea and Beius. Four fellows attended the 6 month UNU-Geothermal Training Programme in Iceland in UNU-GTP short courses and workshops in Romania. Several trips organized for experts from both countries to visit each other. 32

32 Romania Ilfov County project geothermal district heating (1,45 M ) Geothermal heating using an existing well for a hospital in Balotesti in Ilfov county, north of Bucharest, was successfully implemented in 2016 with the support of the EEA grants, and has replaced the gas heating system, producing great savings for the hospital. Geothermal heating potential in the Bucharest area has now been proven. Ilfov county is planning to move ahead with the development of at least two more geothermal heating systems, following the success of the EEA grants project in Balotesti. Plans to further utilise the geothermal fluid for pools for the patients in the hospital. 33

33 Romania Oradea project geothermal district heating(3 M ) When geothermal energy replaces fossil fuels it reduces emissions, increases energy security by shifting to local resources and prices remain stable, giving a long term benefit to consumers In n Oradea in Romania, coal is replaced by geothermal energy from water in district heating. 34

34 Romania Various meetings and conferences in Romania and Iceland 35

35 Romania Old coal power plant in Oradea is (500 MW) closing and replaced by gas and geothermal resources reducing emission, mitigating climate change and improve quality of life. 36

36 Romania Pre-Feasibility Studies on geothermal possibilities in cities in Romania 37

37 Bilateral Projects in Poland Poddebice 38

38 Bilateral Projects in Poland in 4 cities 39

39 District Heating Prices in Europe in 2013

40 Important Factors

41 Important Factors

42 Important Factors

43 Important Factors

44 Important Factors

45 Important Factors

46 Important Factors

47 Geothermal District Heating Options and Possibilities in Europe Geothermal cities in Europe with district heating systems Geothermal heat at 2000 meters

48 Global Warming More and more weather extremes? Global Land and Ocean Temperature Anomalies, June

49 Global Warming Five-year Global Temperature Anomalies from (NASA) Once CO2 is in the air it will say for very long time > 44 years? 2002 (ppm 370) > 14 years 14% increase > 2016 (ppm 420) > 44 years? > 35 years - >

50 Global Warming Five-year Global Temperature Anomalies from (NASA) How will the future look like?? > 44 years > > 44 years >

51 Global Warming Recent satellite observations have detected a thinning of parts of the Greenland ice sheet at lower elevations. A partial melting of this ice sheet would cause a 1-meter (3-foot) rise. If melted completely, the Greenland ice sheet contains enough water to raise sea level by 5-7 meters (16-23 feet). This visualization shows the effect on coastal regions for each meter of sea level rise, up to 6 meters (19.7 feet). Land that would be covered in water is shaded red. 3 meter rise 3 meter rise

52 Global Warming More and more weather extremes Floods in Germany June 2013, damage 3 billion - insurance claims Floods in Paris 2016 Long Islands, New York Frankenstorm Hurricane Sandy 2012 Philippines 2013

53 Global Warming More and more weather extremes Hurricane Harvey, Houston 2017 Hurricane Irma, streets in central Miami 2017

54 Global Warming More and more weather extremes Storm in Poland August 2017, square km broken trees and destroyed forest

55 Global Warming More and more weather extremes

56 Global Warming More and more weather extremes

57 Global Warming More and more weather extremes

58 Global Warming Ban Ki-moon: There is no plan B, because we have no planet B

59 International Geothermal Projects with Icelandic Participation

60 Competitiveness of the Geothermal Sector Success of Geothermal District Heating is based on 8 Key Factors 8 Key Elements of Success in the Geothermal Sector and District Heating 1. Authorities and regulation, 2. Geothermal resources, 3. Scientific & technical factors, 4. Education & human factors, 5. Access to capital, 6. Infrastructure and access to markets, sectors and other clusters, 7. Access to international markets and services, 8. The company, management, expertise & industry, clusters assessment In cooperation with international and domestic experts, on geothermal resources, finance, legal, management and other expertise.

61 Some General Recommendations Geothermal Options, Opportunities and Benefits The geothermal heat generation has several advantages, such as: 1. Economic opportunity and savings. 2. Improvement of energy security. 3. Reducing greenhouse gas emissions. 4. Harnessing local resources. 5. Improve and simplify financial support. 6. Reducing dependency on fossil fuels for energy use. 7. Improving industrial and economic activity. 8. Develop low carbon and geothermal technology industry, and create employment opportunities. 9. Local payback in exchange for local support for geothermal drilling. 10. Improving quality of life based on economic and environmental / climate benefits.

62 But on other related notes. To be good at football you need lot of practice from young age

63 Iceland vs the Netherlands Iceland won both matches

64 Iceland vs Portugal EM : 1

65 Iceland vs Hungary EM : 1

66 Iceland vs Austria EM : 1

67 Iceland Success in Football What is the reason for this? But the main reason!!

68 Geothermal of course! Geothermally heated outdoor and indoor football fields are the key to success

69 Renewable Energy - is a Powerful Tool to Fight Against Global Warming Thank You