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III. NATIONAL ACTIVITIES SYNOPSIS 7.3.2 EuropeanCommunity The European Commission currently supports a major European EGS project at Soultz-sous- Forêts, France. This project involves France, Germany, Italy and Switzerland, in addition to groups from inside and outside Europe, including Japan and the USA. The project is coordinated by an industrial consortium, European Economic Interest Grouping (EEIG) Heat Mining. Most of the funding is provided equally by EC, France and Germany. The aim of this project is to create an EGS at about 5,000 m depth, using one central injection well and two symmetrically located production wells to generate 6 MWe of electricity. In 2004, the second production well was completed to about 5,000 m depth; and initial hydraulic stimulation was carried out. The current plan is to bring a 1.5 MWe power plant on line in late 2005, with completion of the 6 MWe plant in 2006. 7.3.3 Germany Germany inaugurated its first geothermal power plant (binary system) at Neustadt-Glewe, where a 250 kWe plant was commissioned in late 2003. There was a direct use installed capacity at the end of 2004 of about 500 MWt, with about 800 GWh used. Direct heat is mainly used for thermal spas, space heating/cooling and greenhouse heating, with geothermal heat pumps making up the bulk of the use. Germany worked on two deep EGS projects in 2004, the first its participation in the European Soultz-sous-Forêts programme; the other, at Bad Urach, where an EGS pilot plant demonstration venture was planned. At the latter, the second well experienced problems at 2,800 m, and drilling was halted. The Government has decided that continuation of the project will require financial participation by industry. In addition, Government funded research continued at four sites located in northern Germany, to develop methods for utilizing shallower hot water/steam resources, in sedimentary structures having normal temperature gradients (30 °C/km). Techniques for dealing with high salinity fluids and new stimulation methods using water gel proppants are being investigated. There were three R&D industry funded projects, with two known to be funded with “risk capital”. On 1 April 2000, the Law on Energy Supply (LES) became effective as a part of Germany’s attempt to promote renewable energy use. It guarantees a minimum payment to companies that provide electricity from renewable resources, with geothermal getting 7.16-15 €- cents/kWh. This approach provides long-term planning and control protection. In addition, Germany signed the Kyoto Protocol in 2003, which will further encourage geothermal development as a part their aim to increase electricity production through the use of renewables to 20% by 2010. 7.3.4 Iceland The renewables hydro and geothermal provide about 70 % of the primary energy supply in Iceland, with geothermal providing > 50%. In 2004, Iceland had an installed capacity of 202 MWe and produced 1,433 GWh, or 17% of Iceland’s electricity. In Iceland, geothermal is mainly employed in direct use, with about 6,600 GWh utilized in 2004. Principally used for space heating, geothermal supplies about 87% of the total. Direct IEA Geothermal R&T Annual Report 2004.doc 47PDF Image | Geothermal Energy Annual Report 2004
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