Country Update for the Spanish Geothermal Sector

Abstract

Spanish geothermal sector is showing an unequal behaviour during the last years, while shallow geothermal continues experiencing a steady growth, as it becomes more popular and increasingly applied in the building refurbishment subsector, geothermal for power generation is completely blocked due to the situation of the Spanish electricity sector, -- with a moratorium on new renewable energy developments still in force -- and the ongoing discussions around a new regulatory framework. Spain has been one of the last European countries where geothermal energy started; this explains why our country is behind most EU nations in practically all areas of the sector. However, there are expectations for a future development on shallow geothermal for HVAC as well as for power generation, given the existing potential and resources. At present, there is no geothermal power generation in Spain. However, Business initiatives have shown a growing interest in developing this type of projects in the short and medium term. Spanish geological setting is very favourable for the development of EGS type projects but projects development is subject to an improvement of the regulatory and market conditions With regard to low-temperature geothermal energy, Spain’s current installed capacity (built during the 80’s) is associated with direct heat applications, mainly in SPA and greenhouse appliance. Current estimates foresee that this type of applications will only experience little additional increases. In addition, it is estimated that from 2015 onwards, several heating and cooling network projects (geothermal district cooling and heating) may be launched. Furthermore, shallow or very low temperature geothermal energy used for cooling and heating is already a reality in our country. Although no definite data are available on the installed capacity of geothermal energy in Spain, estimates of 150 MWt have been reported, allowing the parallel development of a new industry in this sector.