Geothermal Power
With the implementation and amendments of the German Renewable Energy Sources Act (EEG), the latest one in 2008, geothermal power has become an economically viable field of business activity in Germany.
The EEG stipulates the right to feed-in electricity generated from renewable energy sources into the local power grids at a fixed price level for a period of 20 years. For geothermal power this price is 20 c/kWh and applies to plants with an electrical output below 10 MW which are commissioned until the end of 2015. In addition, a bonus of 3 c/kWh for thermal use is granted, if the project’s heat extraction is at least one-fifth of the available heat capacity.
Besides the EEG, other recent developments have been crucial for the economic feasibility of geothermal projects. The knowledge of the geology in the Upper Rhine Valley and the Molasse Basin has been clearly expanded due to, inter alia, advanced exploration methods (e.g. 3D-seismics). A proven drilling technology allows for directional exact drilling into depths of up to 4,000 meters with the necessary diameters and, moreover, enhanced low temperature power plants provide a high availability and efficiency.