Germany proposes a law to accelerate geothermal and renewable heat expansion

The German economy ministry released a draft bill on Friday, which would speed up the expansion of geothermal projects. Berlin is aiming to eliminate the use of fossil-fuels for heating systems by the year 2045.

A Fraunhofer Institute study from 2023 showed that Germany has some of Europe's biggest geothermal resources, which could provide more than a quarter its annual heating needs. Local resistance and red tape have long slowed down development.

The new bill simplifies approval procedures for geothermal, heat pump, heat storage and heating pipelines.

The government would designate the projects as "of overriding public importance", similar to what is done with wind and solar power, and encourage accelerated permits through changes to mining, water and environmental laws.

The government would also set deadlines for the approval of projects and relax restrictions on geothermal exploration.

The bill would allow mining authorities to waive the requirement for a detailed operational plan in certain circumstances. They would also be required to respond to drilling notifications within a set time frame.

They can also require that geothermal companies provide financial guarantees against possible mining damage related to their projects.

After the energy price spike that resulted from Russia's invasion of Ukraine in 2022, major German municipal utilities and fossil fuel companies explored new investment opportunities in this sector.

Geothermal energy has been boosted by Germany's ambitions in reducing greenhouse gas emissions, especially in the building industry, where heating is a major contributor.

Germany's lower and upper chambers of parliament must now approve the new bill that the Economy Ministry hopes will come into effect at the beginning of next year. (Reporting and editing by Joe Bavier; Riham Alkousaa)

(source: Reuters)