The EU Legal Framework for Geothermal Energy

Abstract

Article 194 of the Treaty on the Functioning of the European Union (EU) provides that in the context of the establishment and functioning of the internal market and with regard for the need to preserve and improve the environment, Union policy on energy shall aim, in a spirit of solidarity between Member States, to: (a) ensure the functioning of the energy market; (b) ensure security of energy supply in the Union; (c) promote energy efficiency and energy saving and the development of new and renewable forms of energy; Such a provision entitles the EU to legislate on a number of issues which directly or indirectly affect both the shallow and deep geothermal energy sectors. An outstanding example is no doubt the legislative climate and energy package adopted in 2008 together with the so-called 20-20-20 targets i.e. at least 20% in greenhouse gas emissions reduction compared to 1990 levels, 20% of the final energy consumption to come from renewable sources; an improvement of energy efficiency by 20%. Along with EU-wide and binding national targets, a number of accompanying measures have been put in place so as to deliver the expected results by 2020. In this regard, the Renewable Energy (2009/28/EC) and the Recast Energy Performance of Buildings (2010/31/EU) directives as well as the new Energy Efficiency Directive are key pieces of EU legislation for the promotion of geothermal energy in the EU. In fact, these Directives set a stable regulatory framework with a range of measures designed, inter alia, to overcome non-technical barriers and other market distortions. Finally, a series of directives aiming to preserve and improve the environment the way they are implemented at national level may also have a relevant impact on geothermal energy. This paper presents an overview of the current legal framework in force in the EU and elucidates about the expected impact for geothermal energy within the context of the EU 2020 targets.