GeoSmart highlights the role of geothermal in electricity market reform
Drilling rig on site of Balmatt project, Belgium (source: VITO)
Carlo Cariaga
21 Nov 2022
The GeoSmart project has published a fact sheet on the current European energy crisis and the merits of geothermal as a reliable and flexible energy source.
The EU-funded GeoSmart research project has published a fact sheet on the proposed measures to mitigate the effects on the current energy crisis in Europe and how geothermal can play a more prominent role as a reliable and flexible energy source. The fact sheet, “Electricity Market Design in a Time of Crisis: The Case for Geothermal and Renewable Flexibility Resources,” can be accessed here.
The document highlights how the current crisis has shown that the European electricity market no longer functions optimally because of its vulnerability to the volatility of gas prices. Countries like France, Spain, Portugal, and Greece have called for a “radical overhaul” of the current pricing system for electricity and a decoupling of gas and electricity markets.
With expectations that energy prices will remain high for a few more years, the only short to medium-term solution must involve a massive scale-up of renewable power and heat generation technologies. This is a key recommendation under the item “Expansion of Energy Prices Toolbox” under the list of proposals submitted to the European Commission.
In the context of an electricity market reform, the GeoSmart Project has proposed a list of key considerations that reflect the value of geothermal as a reliable and flexible power source. The key considerations include providing an adequate reward for the high capacity factor of geothermal, as well as its capacity to respond to grid balancing requirements.
Novel technologies like Underground Thermal Energy Storage (UTES) can further increase the value of geothermal by allowing it to respond to seasonal fluctuations in demand. This is one of the key research areas of GeoSmart with a demonstration site in the Insheim geothermal power plant in Germany by Natürlich Insheim GmbH.
Lastly, GeoSmart calls for legislative support to provide risk mitigations programs for geothermal projects in the EU and to establish open and fair retail markets for district heating.
The GeoSmart project is a research and innovation program funded by the EU under the Horizon 2020 program. It is made up of a partnership of 19 subjects coordinated by TWI Ltd which aims to optimize and demonstrate innovative solutions to improve the flexibility and efficiency of geothermal plants.
Source: TWI
