Briefing on geothermal energy and its regulatory framework in Greece

Directorate General of Mineral Raw Materials, Ministry of Environment and Energy

1. Introduction

Greece is gifted with geologic features that promote geothermal heat flow, such as deep tectonic faults and volcanism (see par. 2 below).  Past estimates from various publications suggest that Greece may potentially produce up to 1 GWe from high temperature geothermal fields.  Geothermal energy refers to temperatures above 30^o C and is classed as a mineral resource under the Greek Mining Code and therefore geothermal exploration, production and sustainability management rights belong to the State.  

Such rights were (circa 1985) granted directly to public entities, such as the (then) state owned Public Power Corporation and a few municipalities.  Since 2003 those rights are leased exclusively through bidding processes and procedures. 

Geothermal activities in Greece show a modest utilization in the low temperature energy product for the primary sector applications (agriculture, aquaculture, balneology).  Attempts for electricity production are stalled since the mid-90s. 

The need to update the legal framework in view of past shortcomings and further developments led to the current Law 4602/2019 (GG vol. A, no. 45).  The new law introduces fresh concepts and sets a new regulatory framework which determines the roles, responsibilities and obligations towards a sustainable and rational use of geothermal potential in Greece.  The elaboration and publication of regulatory decisions that detail the provisions of the law are currently under way.

2. Geothermal energy at a glance

Geothermal energy is released from Earth’s interior in the form of heated fluids (principally water) or rocks.  It becomes the subject of economical exploitation once it reaches the surface either in the form of natural springs or pumped out from wells.

Geothermal energy cannot be found anywhere, but only where favourable geological features are present.  Those are deep tectonic faults that allow water to infiltrate deeper in the Earth’s crust and become heated, or volcanism that releases heat from rocks closer to the crust’s surface.  Greece has both types of features distributed along the mainland, along northern Greece (Central and East Macedonia, Thrace) and several islands.  High temperatures are encountered or expected in the islands of the volcanic arc but also in areas of northern Greece.  The attached map shows locations with past results of detected geothermal potential. 

3. Law 4602/2019 provisions

The law governs the terms and conditions for granting exploration, production and / or (sustainability) management licenses of the geothermal potential that either exists or is expected to be discovered.  Further, it provides a coherent terminology and determines the temperature cutoffs with which geothermal fields are classed.  Finally, it confers an enhanced role to the Greek Geological Survey (Hellenic Survey of Geology and Mineral Exploration (EAGME).  Some of the asic provisions of the law are concisely given below:  

1. Geothermal fields are characterised as of Local Interest (temperature 30° < T < 90°C) and National Interest (temperature T > 90°C), following the formal acceptance of exploration results.
2. The management for rights on Geothermal Fields of National Interest and unexplored areas lies with the Ministry of Environment and Energy.
3. The respective rights concerning Geothermal Fields of Local Interest and areas of Geothermal Interest are managed by the 7 Decentralised Administrations of the State.
4. The duration of the lease of the exploration right in unexplored areas is set to five years with a possible extension period of two additional years.
5. The duration of the lease of the exploration right in geothermal fields of local interest and Areas of Geothermal Interest is up to three years with a possible extension period of one more year.
6. The lease period for the management and exploitation (production) right of the geothermal fields of both National and Local Interest is up to thirty years, which can be extended to twenty additional years.
7. Exploration and exploitation may co-exist.
8. The new term “Areas of Geothermal Interest” relates to wider areas with indications of geothermal potential of temperatures up to 90° C.
9. The right of exploitation (production) is separated from the (sustainability management right. The definition of management right clearly indicates that it refers to a geothermal field as a whole and never in parts of it.

It should be noted that, a Geothermal Field is a three-dimensional body (reservoir) that could be overlain or underlain by another such field (reservoir) of different characteristics, as long as their exploitation will not influence one another.  

Details for most of the above issues will be determined by Ministerial Decisions and Joint Ministerial Decisions, until the geothermal legal framework is complete and ready to be implemented.  A major step was the publication of the new Regulation on Geothermal Works in the Government Gazette (volume B, issue 1960, 14.05.2021).  It provides unambiguous definitions on all important items and aspires to provide a hand in hand guide to a safe and sustainable exploration and production, via procedures in chapter B for National Interest fields and unexplored areas, as well as in chapter C for Local Interest fields and areas of geothermal interest. 

4. Opportunities for High Temperature bids

The exploration rights on four of the most promising high temperature geothermal fields of Milos and Kimolos, Nisyros, Lesvos islands and the Methana peninsula, are currently leased to Public Power Corporation Renewables S.A.  If the exploration results prove successful, the Lessee has the right to apply for production alone or in partnership.

However, there are more candidate areas with high temperature probabilities available for potential exploration, such as the basins of Evros river delta, Nestos river delta, Spercheios river, the Akropotamos area near Kavala, the islands of Chios, Ikaria and Samothrace and the extinct volcano area in Sousaki near Korinthos.  These areas were the subject of 2 bidding processes or exploration in 2011, that ended unsuccessful. 

In addition, anyone has the right to ask for the initiation of exploration bidding process at the relevant competent authority which is then examined and judge at its own merit.

It is hoped that the regulatory framework regarding bidding processes and procedures will be formally published till the end of 2021.

5. Important note on licensing

Licenses related to the exploration and exploitation of geothermal potential, are mining licenses and therefore limited to binging the heated fluids to the surface and delivering them back to the geothermal reservoir after processing.  Commercial uses such as thermal energy distribution to third parties, production of electricity and distribution to the network, require licensing issued by the Regulatory Authority fir Energy (RAE).

ΥΠΕΝ, ΓΔΟΠΥ: Το νέο κανονιστικό πλαίσιο για την ανάπτυξη της γεωθερμίας στην Ελλάδα