Gheorghe Calburean, the Medias-based businessman owning Dafora group, a business of around EUR50 million operating in the constructions and drilling sector, holds 90% of the exploration rights of Romania’s geothermal water reserves, according to the data of the country’s Mineral Resources Agency (ANRM). Through a company he owns, Transgex, Calburean already heats up and provides house water for several districts in Oradea and Bihor. The businessman has recently decided to use these resources to produce electricity.
Transgex already invested EUR227,000 in a small electric power plant but it needs support to continue its development on this segment, the same as other forms of green energy production.
“Being the first in southeastern Europe, ANRE has not yet notified this activity to the EU, so we cannot qualify to assign green certificates. This renders it difficult to recover the investment and we have difficulties in expanding this activity until regulating the green certificates status we are entitled to according to the law,” company’s representatives said.
On the other hand, ANRE vice-president Emil Calota said the institution has received by now accreditation requests from two companies, one of which being Transgex, which plans to develop geothermal power plants. The problem is the interest for this field is still too low and ANRE does not have the available data to convince the European Union to approve the state aid for the production of electricity from geothermal water in the form of green certificates.
“We haven’t enough data yet. The statistic basis of information according to which we make the notification is not enough,” said Calota. “When we have at least five to six investors with data sent to us, we could draw up the notification request to the EC.”
Calota added there isn’t necessary a definite investment in an electric plant but only a feasibility survey of the project. The law on the promotion system through green certificates stipulates the geothermal energy producers receive as gift certificates for each supplied megawatt-hour (MWh), the same as all the wind power producers. In fact, this is still impossible as the state has not notified the EC on granting the state aid for the geothermal energy.
Where is the potential
According to available data, the area with underground waters used for heating are mainly is the northwestern Romania, while the areas with good outlooks are very close to Bucharest.
The data about the geothermal energy are rather few, though this energy is mentioned as development opportunity in Romania’s Energy Strategy. A survey made by the Economy Ministry read that a number of over 200 drillings for hydrocarbons sources have encountered geothermal water resources at depths between 800 to 3,500 meters.
In Romania, the geothermal energy is 37% used for heating, 30% for agriculture (greenhouses) and 23% used for industrial processes. According to a survey made by Romania’s Geological Institute in 2006, the nominal power of the electric power production units based on geothermal waters, which might be installed in Romania, sets at 375 MW and require over EUR1.5 billion investments.
“These were the data evaluated at that moment. We haven’t been asked to reevaluate since then,” according to Marcel Maruntiu, scientific director with the Geological Institute of Romania. The National Action Plan in the Renewable Energy, the geothermal energy field, hasn’t arisen much interest either. According to forecasts, it won’t be a significant production from these resources until 2020, but maybe afterwards.
Since geothermal water is a renewable resource, the issue of finishing the underground resources is out of the question, the same as in the natural gas case, for example. Hence, it is required to resupply the “reservoir,” either naturally or through an injection procedure. “In the town of Oradea as well as the areas with exploited deposits, they are opened, namely they benefit from natural resupply ensuring continuity. Oradea, for example, has been having exploited drillings since 1964, which are at the same parameters as now. We haven’t reached the threshold a resupply is required, but we use a re-injection drilling at Oradea to gain experience,” also said Transgex representatives.
Slow start
Transgex currently produces electric power from geothermal water through a 50 kW plant in Oradea, built following a RON1 million investment (EUR227,000). These data show that an over EUR4 million investment is needed to install one megawatt (MW). The company forecasts that in 2013, the unit will produce 400 MWh of electric power, ensuring the necessary electric power for around 200 households. Should it be eligible for the support scheme, Transgex would receive 800 green certificates in 2013, worth a total of EUR44,000.
The size of the investment in this plant fades out compared with the billions of euros invested in wind or solar parks. Hence, the company aims to expand the unit in Oradea up to a capacity of at least 1 MW and to develop new energy production units from geothermal water in similar area. “The capacity could be certainly lifted up to an installed power of 1-1.5 MW.”
In lack of a green certificates support, these plans are impossible to be accomplished economically speaking, as initial drillings and equipments are very expensive. “The sale price of electric power doesn’t ensure the return of investment, which renders us cautious, said Transgex representatives. The future of energy from geothermal water is even more uncertain nowadays, the Government aiming to reduce the support scheme for the renewable energy.
On the other hand, the authorities’ explanation that such investments are overcompensated is not enforced to the geothermal segment. When the support for the energy production of geothermal water is regulated, Transgex project could start up, the company’s official added.
Iceland produces a quarter of its energy from geothermal water
Other countries have been using for a longer time the geothermal energy on large scale to produce electric power. Iceland is the country with the best potential compared with the size of its territory, due to the volcanic geological structure. Around a quarter of the energy production of Iceland comes from geothermal water plants, while 90% of the buildings are heated through these resources.
(English version by Manuela Panescu)