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Figure 11.6 Avoided greenhouse gas emissions through the use of renewable energies in Germany 2010. 11.4 Market Development and Stimulation In addition to the combined heat and power bonus under the Renewable Energy Sources Act, the more widespread use of waste heat from geothermal energy generation will now also be encouraged through the Act on the Promotion of Renewable Energies in the Heat Sector (Renewable Energies Heat Act), which was adopted by the Bundestag (Lower House) on 6 June 2008, and entered into force on 1 January 2009. Under the Act, all owners of new buildings are obliged to purchase part of their heat demand from renewable energy sources. BMU‘s market incentive programme for renewable energies is another tool to stimulate the market for deep geothermal energy. The funding focuses on technologies that generate heat from renewable energies. Since 2008, the funding incentives that are aimed specifically at heat-generating deep geothermal systems have been considerably more attractive. The programme offers subsidies for the installation of the power or heating plant and for manufacturing costs for deep boreholes. Unforeseen additional costs incurred due to the technical risks associated with deep boreholes are also eligible for subsidies. The market incentive programme also supports district heating networks that run on regenerative resources. As part of the market incentive programme and in collaboration with the KfW banking group, BMU has created a new loan programme to provide long-term financing for deep geothermal drilling. Munich Re is backing KfW as a cooperation partner. The loan programme helps to hedge the discovery risk for hydrothermal projects, i.e., the risk of failing to find sufficient temperatures or water volumes when drilling. Special loans from KfW will finance up to 80% of the drilling costs of a project, including stimulation measures. In the event of failure to find adequate heat or water, this loan need not be repaid. If heat or water is found, the funds become available for use in another project. In order to ensure that the largest possible number of drilling projects can be financed through the loan programme, the risk of failure is limited by strict application requirements and screening procedures. In this way, one of the main barriers to the faster market development of deep geothermal projects is minimized. 118PDF Image | Geothermal Research and Tech IEA
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