Geothermal Energy Barriers, Policies and Economics in East Asia

Abstract

The global focus on finding practical solutions to climate change has added prominence to the geothermal sector in East Asian countries. Despite having a number of advantages over other forms of renewable energy production, geothermal still comprises a relatively small part of today’s energy supply portfolio in Southeast and East Asian countries. With its vast resources, geothermal has the potential to provide an indefinite base load of energy produced sustainably and at low cost. It can thus pave the way for intermittent or variable renewable power sources (e.g. solar and wind) to be accommodated by the grid. Support to geothermal enabling policy frameworks, legislation and standards and quality infrastructure is required even as geothermal’s use increases in countries like Japan, Korea, the Philippines and Indonesia. This paper analyses the sustainability aspect of geothermal development from the following requirements in these countries: (1) long-term commitment to creation of system that is resilient and to technology absorption; (2) a system-level approach to geothermal energy deployment that considers the market and non-market barriers as well as the interests of different stakeholders in the energy sector; (3) creation of enabling environment by addressing other aspects such as awareness creation and regulatory environment and energy pricing structures; and (4) support through targeted measures such as RD&D on understanding reservoir characteristics, timely planning and introduction of new technologies such as heat pumps and close coordination with different ministries and stakeholders. Based on meta-analysis method, it proposes a policy tool box for addressing the challenges being faced by the countries.