Large-scale use and exploitation of geothermal energy could be facilitated in Romania by revising the Mining Law, says the Romanian Oil and Gas Employers’ Federation (FPPG) in a recently published position paper. FPPG has launched a website dedicated to geothermal energy where it presents the benefits for communities and the favourable potential at national level, describes closed-loop geothermal energy technology and debunks some myths. At the same time, based on Romania’s geological potential, the FPPG proposes to update the legislative framework to reflect the requirements of closed-loop technology and to encourage investment.

Alongside renewable energy resources such as the sun, water, wind and biomass, geothermal energy is an environmentally friendly way of harnessing the planet’s internal heat. It also has the advantage of not varying with the weather and time of day. Geothermal energy is a reliable, abundant and clean source of energy, mentioned in the National Integrated Energy and Climate Change Plan (NEPC) and in Romania’s long-term strategy for reducing emissions.

 

Romania’s geological potential

Geothermal resources have been known and exploited in Romania since the 1960s, recalls the FPPG. “More than 250 boreholes drilled at depths between 800 and 3,500 metres have indicated the presence of low enthalpy geothermal resources (40-120°C).” Traditional exploration involves a number of limitations, the main one being that the thermal demand has to be located close to the source of the thermal water, which has to be at very high temperatures. This is why the use of geothermal energy for heating residential areas is not widespread (an example is Oradea), despite the fact that Romania is among the top five European countries with geothermal energy potential.

The equipping and experimental exploitation of more than 100 boreholes over the past 25 years has made it possible to assess the exploitable heat from these geothermal resources, says the FPPG.

“The closed-loop system involves drilling deep boreholes and inserting pipes made of a special thermally conductive material into the ground, close to the magmatic rock layer (…). Like a radiator through which water is recirculated, the pipe system captures the underground heat of the magma rock and brings it to the surface in the form of a hot liquid, which is then converted in the cogeneration plant into both electricity and heat.”

Closed-loop geothermal systems (CLGS) are a solution to universalise the use of this type of energy, according to the FPPG, which can harness not only Romania’s natural resources but also its long tradition in drilling operations and its deep expertise in this field. The advantages emphasised by the FPPG are:

• No fracturing;
• Can guarantee a permanent (24/7) base load in electricity generation;
• Competitive costs compared to renewables;
• Extremely small footprint of the technology;
• Silent operations;
• Absence of any elements subject to corrosion/erosion/deposition;
• Minimal social impact of operations

 

What’s missing from the law

Geothermal energy exploration is regulated by Mining Law No. 85/2003. According to the FPPG, the definition of geothermal heat is a key issue for the proper regulation of the sector. “In this context, it is necessary for legislators to decide whether geothermal energy falls within the definition of ‘mineral resources’ or whether it should be considered a specific characteristic of the earth. This distinction is fundamental both for determining the ownership regime and for establishing a framework for proper regulation, authorisation and monitoring of operations related to geothermal heat capture.”

Current legislation requires the National Agency for Mineral Resources (ANRM) to develop rules to regulate geothermal heat. At the same time, earth energy cannot be included in the definition of oil or oil reserves, the FPPG notes. “In addition, while in the case of crude oil, the regulated resource can be measured in quantitative terms, this is not applicable to geothermal heat. The latter cannot be determined in quantitative terms, as this resource is not extracted from underground, but only used as a recirculation system.”

 

FPPG proposals

The FPPG recommends a single legislative approach for the regulation of geothermal energy, starting from the Mining Law 85/2003, which is the main legislative framework and not from other existing legislation:

• Extending the statutory periods for drilling permits to thirty years is necessary given that closed-loop projects require at least three years from the initial stage of development before they become fully operational.
• An important factor to consider is the sizable upfront cost component that the entities developing the project are responsible for.

To help the growth of long-term geothermal energy projects in Romania, there needs to be a clear definition of geothermal energy, a streamlined/single authorisation process with clear criteria for investor applications, easy access to authorisation procedures and reasonable deadlines, and no longer having to pay for regulatory paperwork.