Ombuds Association created in Germany to resolve disputes on geothermal-related damage
Geothermal companies and associations in Germany have created a new Ombuds Association to resolve disputes related to damages caused by deep geothermal.
A group of five deep geothermal energy companies active in the state of Baden-Württemberg in Germany and industry associations have come together to form the Ombuds Association for Geothermal Energy e. V. (Ombudsverein Erdwärme e. V.). The association’s goal is to resolve disputes regarding potential damages caused by geothermal projects quickly, easily, and impartially.
The following companies and organizations comprise the newly formed association:
- Badenova
- Deutsche Erdwärme
- EnBW
- MVV
- Vulcan Energy
- Platform Erneuerbare Energien Baden-Württemberg
- Bundesverband Geothermie
“The ombud’s association provides citizens with an easily accessible, fast, and independent instrument that those affected can use in the event of a dispute,” says Dr. Hansjörg Roll, the first chairman of the Ombuds Association for Geothermal Energy and board member for technology at MVV.
The association lays the foundation for the establishment of a conciliation body for the out-of-court settlement of disputes concerning claims related to geothermal energy projects. The ombudsman, who is yet to be selected, will be independent of the association members in their actions, case assessments, and decisions. In the future, those affected will be able to contact them easily via an online form. Dispute resolution can be significantly faster than in formal legal proceedings and is generally free of charge for those affected.
Damage from deep geothermal energy is very rare, but it cannot be completely ruled out. Some of the more notable examples in Germany include incidents of seismicity in Staufen and Landau.
In 2024, a study commissioned by the state and prepared by Dr Oliver Brand from the University of Mannheim examined the currently existing liability and insurance frameworks to cover damages from deep geothermal projects. Although the framework exists, the study recommends procedural improvement that will speed up dispute resolution to improve public trust.
Ensuring public trust in geothermal
The state of Baden-Württemberg supported the development of the regulatory framework and, through the signing of a cooperation agreement, has committed to its future support of the association. Dr. Andre Baumann, State Secretary in the Baden-Württemberg Ministry of the Environment, emphasized that the concerns of citizens regarding geothermal projects must be taken seriously, as this will also help the growth of the sector.
“Last year, binding safety standards were established for Baden-Württemberg, virtually eliminating the possibility of damage. With the creation of the Geothermal Energy Ombudsman, citizens in Baden-Württemberg will now have the opportunity to reach a swift resolution with the help of the ombudsman should any disputes arise and damage occur. The ombudsman procedure guarantees an independent and rapid decision. Furthermore, it was a particular priority for the state that damages up to €10,000 be fully compensated,” said Baumann.
“By institutionalizing the ombudsperson, we are placing dispute resolution procedures in Baden-Württemberg on a uniform and comparable foundation. This creates greater transparency for all parties involved. This is good news for the citizens and for the future energy supply through hydrothermal geothermal energy in the state,” concluded Roll.
Source: Baden-Württemberg