21.12.2020 Vulcan Energy: German legislation embraces geothermal energy Positive changes encourage long term geothermal electricity generation

21.12.2020 Vulcan Energy: German legislation embraces geothermal energy Positive changes encourage long term geothermal electricity generation

Highlights

  • The German Parliament and Federal Council (Bundesrat) has voted in favour of a positive Act amendment related to geothermal electricity production.
  • The existing Feed-in Tariff for geothermal electricity in Germany is set at €0.252/kWh, one of the most favourable in the world, and was expected to start declining 5% per year from 2021 onwards.
  • The Amended Renewable Energy Sources Act reduces the expected decrease of the Feed-in Tariff from 5% per year to 0.5% per year.
  • The start of decrease was delayed from 2021 to 2024.
  • Once a geothermal project starts operating, the Feed-in Tariff of the year it enters production is fixed for 20 years.
  • Vulcan’s Zero Carbon Lithium® project is expected to generate dual revenue, from geothermal renewable electricity and lithium sales.

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