Interplay Between Different Regulatory and Policy Instruments for the Building Sector Relevant to Geothermal Technologies

Abstract

This paper will provide an overview of the new European Union’s framework for energy and climate policy after 2020 relevant to geothermal energy projects for heating and cooling, notably in the buildings sector. Furthermore, it will provide an analysis of the opportunities and threats that this framework represents, and what developments can be expected in the geothermal sector. The 2030 framework is composed of a set of Directives and regulations proposed jointly in November 2016 and including the Renewable Energy Directive, the Energy Performance of Building Directive, the Energy Efficiency Directive, the Electricity Directive and the Electricity regulation. The review of the ecodesign and eco-labelling regulations will also set a new framework for shallow geothermal systems. Besides, a regulation on the Governance of the Energy Union was introduced to ensure the objectives laid out in the other texts are reached. This framework will affect the European geothermal energy sector in several ways, and this paper aims to provide an assessment of upcoming changes and their effect on the building sector. While many existing provisions remain in force after 2020, and existing plants will not see their obligations change significantly, the set of legislative proposals introduces many changes that will affect new geothermal projects. Moreover, the introduction of specific provisions for the penetration of renewables in heating and cooling will lead an increased focus on renewable heat solutions such as geothermal.