Feed-In Tariffs, Support Policy and Legal Framework for Geothermal Energy in Germany

Abstract

Germany’s efforts to develop renewable energy sources include the harnessing of geothermal energy. The development of both deep and shallow geothermal energy is being supported. However, geothermal energy is still in the initial stages of its development and currently lags behind the success already achieved by both wind and solar energy. For this reason, support measures have been expanded and made more sophisticated over the last few years, and this continues today, too.
The main mechanism for promoting deep geothermal energy in Germany is the legally stipulated feed-in tariff structure for electricity from geothermal energy. Since 2009, this legal framework has been supporting not only geothermal power generation, but also the combined generation of heat and electricity.
A new measure is the obligation to provide heating for buildings from renewable energy sources. This obligation can be fulfilled by shallow geothermal systems or by central heating from a geothermal heating station.
Direct state support is governed by a market incentive programme which provides state subsidies for the construction of geothermal heating stations, district heating infrastructure and for shallow geothermal systems. As a recent addition, state support is now available to cover drilling and exploration risks.