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Success factors above-ground for medium-depth geothermal projects Working paper of the BMWK project “Warm-Up – Geothermal energy for the heat transition: Flanking the rollout of medium-depth geothermal energy in Germany”

In Germany, medium-depth hydrothermal geothermal energy has the potential to make a significant contribution to the heating transition. This involves tapping into hot thermal water deposits at a depth of up to 2000 meters. However, hydrothermal geothermal energy currently covers less than 0.5 percent of heating requirements. In order to promote the use of this technology, the Federal Ministry for Economic Affairs and Climate Protection is supporting the “Warm-Up” research project, which is dedicated to providing scientific support for the rollout of medium-depth geothermal energy. This working paper analyses the decisive above-ground influencing factors for the successful integration of medium-depth geothermal energy into the existing heat supply.

A central aspect is the heating network infrastructure, which is crucial for the efficient distribution of geothermal heat. The availability of suitable heating networks, their characteristics – such as size and temperature level – as well as the structure of the grid-bound heat supply, particularly with regard to competing or complementary heat generation technologies, are important here. The off-take conditions, including the structure and characteristics of the off-takers, are also important. These include the temperatures demanded, seasonal fluctuations and the willingness of consumers to connect to the heating network.

Socio-political framework conditions also have a considerable influence on the probability of success of geothermal projects. Political requirements, in particular the German government's targets for climate-neutral heat supply, are crucial. The Gebäudeenergiegesetz and the so called Wärmeplanungsgesetz as well as CO2 pricing play an important role here, as does mining law, which is relevant for authorization processes for medium-deep geothermal energy. While the local acceptance of hydrothermal geothermal projects has already been investigated, the working paper expands the discourse by analyzing the demand side and its economic implications in order to shed more light on the aspect of market acceptance.