Non-Technical Barriers of Geothermal Projects

Abstract

This paper will deal with the question of analysis and comparison of countries with respect to their investment environment for geothermal projects. For the World Bank and the German Federal Ministry for Environment Rödl & Partner developed a benchmark system, that allows for the evaluation and analysis of the economic, legal, administrative (and geo-technical) conditions of countries for the implementation of geothermal energy projects. The benchmark matrix was developed based on a country analysis between Germany and Hungary. Possible barriers for any geothermal project are similar in all countries world-wide. The analytical approach in the mentioned fields yielded non-technical (and non-geological) barriers that substantially inhibit the further development of the geothermal market and, correspondingly, the investment volume in Hungary. As a result, recommendations have been passed on to the Hungarian Government concerning how investment security and, in a wider sense, the investment environment, can be improved substantially in Hungary. A wider approach usually leads to the question of possible subsidy systems and a possible nation-wide geological risk insurance as was already implemented in Germany or any further public fund system to be applied for geotechnical risk coverage. As R&P is also assigned for the fund management of GRMF (Geothermal risk mitigation facility – East Africa), the insight into particular aspects of Mining law or water regulation is given.