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Throughout human history, technical improvements have brought about changes for the better in people's lives. In the current 'green industrial revolution', geothermal energy - which converts the Earth's internal heat into thermal energy and electricity - can provide comfort and energy for citizens and growth opportunities for businesses, without environmental compromises. There is one "however": in Romania we still do not have a law, i.e. a set of rules under which all types of geothermal systems can operate.

TECHNOLOGIES MUST BE EQUAL BEFORE THE LAW

One of the principles promoted in the European Union is "technology neutrality". This means that, for the green transition, as many technologies as possible are supported in order to enable all producers to generate clean energy by means specific to their activity. In this way, many types of renewable energy are being deployed, which are proving their benefits, and the last word is left to society and the market, which will organically select the most convenient solutions. But implementing technologies sometimes requires legislation to be adapted and enriched to include new technical realities. Technologies can only effectively exist if appropriate legislation is in place to enable them to operate in the conditions accepted by society.

For those unfamiliar with the need to bring energy technologies under the legislative umbrella, each country sets its own regulatory framework, which establishes, for example:

  • What approvals are needed;
  • Authorities able to issue operating permits;
  • The framing of the exploited resource, including taxes, royalties, etc. paid to the state;
  • Duration of operation, mode of decommissioning, depending on technology, etc.

IT'S TIME WE ALL KNEW MORE ABOUT GEOTHERMAL ENERGY

The Oil and Gas Employers' Federation supports the development of geothermal energy, through the closed loop system, because it can provide Romanians with clean, reliable, continuous energy. This new technology was also the subject of the most recent informal meetings between energy journalists and representatives of our Federation.

FPPG experts, presented the technology itself, the precision drilling used (which can be realized in Romania thanks to the experience in the oil and gas sector), the low environmental impact (small footprint, no risk of induced seismicity, no contact with the water table). The two experts also emphasized that, unlike traditional geothermal energy exploitation, the closed-loop system does not need underground thermal water deposits (hot water aquifers), so it can produce energy anywhere because it uses the heat of the magmatic rock strata.

On this occasion, the FPPG brought to the attention of the press a rich resource of information, geotermal.fppg.ro, where materials on geothermal energy, the closed loop system (CLGS), projects in other countries and its use worldwide and, we hope, nationally are made available.

One of the questions that recurred throughout our dialog was: "And what can Romania do to have this technology?". The answer is: first of all, it needs to bring the legislation up to date. Thus, the legal framework to initiate the implementation of closed-loop geothermal energy projects will boost potential investors.

THE LAW EXISTS, IT JUST NEEDS TO BE UPDATED

Currently, the exploration and exploitation of mineral resources, including geothermal energy, is regulated by Mining Law no. 85/2003. This includes geothermal waters and associated gases as well as therapeutic mineral waters and residual mineral waste.

-Lawmakers need 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 for both establishing the system of property ownershipand for establishing a regulatory, authorization and monitoring framework adequate geothermal heat capture operations.

Any new attempt to regulate the definition of geothermal heat will require the development of rules falling within the definition used by the Mining Law No 85/2003.

-In addition, the National Agency for Mineral Resources (ANRM) is authority with in-depth experience in regulating the exploitation of geothermal energy and, in particular, in regulating the underground drilling operations involved.

-At the same time, earth energy cannot be included in the definition of oil or oil reserves. Furthermore, 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.

GEOTHERMAL ENERGY - TOPIC OF THE MOMENT IN EUROPE

It is very important for Romania to act now, as soon as possible, to catch the wave of opinion in favor of geothermal energy that is currently building in the EU:

  • In 2024, the European Parliament voted in favor of Resolution 2023/2111, calling for establishing a European strategy on geothermal energy.
  • Hungary holds the EU presidency, a country interested in geothermal energywhich is likely to take steps to support the technology.
  • There are currently funds available at EU level that our country could absorb to exploit the Earth's internal heat. If we miss the moment, these funds may not be available.

Beyond these external factors, we mention that Romania, through the member companies of the Oil and Gas Employers' Federation, as well as other players in our field of activity, has technical capacity and specialists that can develop geothermal energy technologies.

Folklore teaches us to "strike while the iron is hot", so we need to take advantage of the growing popularity, attention and support for this technology to create yet another source of clean energy for our country.

The green transition needs the right technology at the right time. And for closed-loop geothermal the right time is now!

ENERGY FOR ALL ROMANIANS. INFORMATION FOR ALL ROMANIANS geotermal.fppg.ro

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