Geothermal Regulatory Framework and Environment Impact Assessment in Papua New Guinea

Abstract

Geothermal energy resources are abundant and can be utilised in many different ways to benefit society and the people living in it. However, legal environment has placed legal and regulatory challenges on the progress of geothermal utilisation in many countries. Permitting processes and Environment Impact Assessments of geothermal projects are parts of the important regulatory framework that all developers should be subject to before carrying out preparatory work. Well-defined and stable legal and regulatory frameworks are important to geothermal developers to ensure that planning stages of the geothermal developments are carried out stepwise for the benefit of a country and to motivate the promotion of geothermal projects. Definition of geothermal resource at the national level is varied in terms of legislation it covered. Iceland and Papua New Guinea are countries that distinguish legal and regulatory frameworks in relation to geothermal development. Both countries have regulations, similar yet different as regards, regulatory framework, permitting, legislation and EIA processes for geothermal development. Interestingly, Papua New Guinea is new to the geothermal arena and additional geothermal development is likely to take place. Iceland is one of the top geothermal producing countries with several major geothermal power plants. A comparison of legal and regulatory frameworks between the two countries indicates both similarities and differences. While the geoscientific and geothermal engineering work may be similar in nature, their regulatory frameworks and preparation of geothermal projects may be compared on the basis of EIA, legislation, exploration, permit policy and utilisation. These factors, in turn, provide practical experience and obstacles for Papua New Guinea that is emerging to become a promising country with a geothermal potential of about 3000 MW. Papua New Guinea does not have a regulatory framework for the exploration and development of geothermal energy. Hence a set-up of a geothermal regulatory framework including EIA and permitting processes is proposed.