Geothermal Energy Systems Assessment - A Strategic Assessment of Technical, Environmental, Institutional and Economic Potentials in Central and Eastern European Countries

3. Foreword

Despite considerable and admirable effort, the Central and Eastern European Countries (CEECs) still face serious environmental problems related to their heating sectors. This is mainly due to the fact that most CEECs continue to rely heavily on conventional and polluting energy sources such as lignite, coal and heavy fuel-oil for heating purposes. However, an increasing awareness and interest in converting to renewable and non-traditional energy sources are emerging in the region, strongly encouraged by the international community; e.g. in the negotiations on EU accession and through related international financial support programmes.

Within the CEECs, geothermal energy is considered to be one of the most promising local energy sources. Geothermal water is found in significant quantity under ground in the CEECs, where it for decades has been used for recreational purposes. Presently, geothermal energy also aspires to become an important future energy source for heating purposes. Since geothermal energy is an environmentally friendly energy source, conversion to geothermal energy systems may contribute significantly to reduce current negative environmental effects from the heating sector.

In view of this, the Danish Environmental Protection Agency (DEPA) commissioned Kvistgaard Consult (KC) to prepare a strategic assessment of economic, environmental, technical and institutional potentials of geothermal energy systems in the CEECs. The study was carried out by KC from April to December 2001 and included desk research as well as visits to geothermal project sites in the CEECs. An International Workshop on "The Future of Geothermal Energy in the CEECs" held on 8-9 October 2001 in Copenhagen, was also part of the study. The workshop was attended by important geothermal stakeholders from the CEECs, as well as by delegates from main international financial institutions and from Danish companies and institutions.

An important conclusion from the workshop as well as from this study, is that the CEECs possess highly promising environmental and technical potentials for further development of geothermal energy systems for heating purposes. However, the study also emphasises that in future, more attention should be paid to institutional and policy issues, when selecting geothermal projects for financing. These latter issues are deemed of crucial importance in order to ensure project sustainability and to make geothermal projects more attractive to potential investors. The geothermal workshop in Copenhagen indeed confirmed that geothermal energy represents an encouraging emerging market within the CEECs, when the right framework and conditions come into place.

DEPA, through the DANCEE programme, has throughout the 1990's initiated and/or co-funded 6 geothermal projects in the CEECs. It appears from this study that the experiences generated by these projects generally are positive. Danish know-how and technologies transferred to the geothermal projects have been a crucial factor in obtaining good results. In this regard, the Danish low-temperature district heating system has been demonstrated to be unique and relevant for export to the CEECs in relation to geothermal projects. Low-temperature systems represent an integrated and efficient utilization of energy resources in all stages from production, via distribution, to the end-user. Furthermore, lower network temperatures than historically applied in Central and Eastern European DH-systems is a basic prerequisite for economic exploitation of the relatively low-temperature geothermal resources in the CEECs.

I believe, that with this study DEPA moves forward to present a coherent strategic approach for future development of geothermal energy potentials within the CEECs using the lessons learned through the first years of investments. The study points out concrete action proposals to be considered by DEPA, but also invites broader, international concerted actions. The study represents an important first step on the path to a more focused and integrated development of geothermal energy potentials in the CEECs, involving national as well as international players. It is, however, also obvious that more steps will need to be taken in order to create conditions for a real and sustainable "take-off" of the development of the geothermal energy potentials. This, in turn, will contribute to produce larger environmental impacts and benefits in return for the invested funds.

It is my hope that this DEPA-initiated study will be used, and that it will be a source of inspiration in the CEECs. Furthermore, I hope that it will mark the beginning of a new era of enhanced development of geothermal energy in the CEECs to the benefit of the environment.

 

Mr. Karsten Skov
Deputy Director General
Danish Environmental Protection Agency (DEPA)