In the European Union, the objective of decarbonisation of the economy 2050 laid out by the European Green Deal leads to rapid and profound changes in the structure of the electricity market. Transitioning away from a centralised system dominated by suppliers with high operational costs, the electricity network in increasingly dominated by renewable sources which are defined by low marginal costs. Because of a sharp increase in variable generation, flexibility and dispatchability is now more valuable, though the old market structure is not fit to reward them. This new structure of the electricity market represents an opportunity for the application of ORC turbine technologies to geothermal energy, and to thermal renewable energy sources overall. New regulatory instruments and business models are therefore emerging to allow the deployment of renewable technologies that meet the new needs of the electricity market. Geothermal ORC plants, whose potential remains mostly untapped across Europe, can benefit from this evolving regulatory framework and the apparition of new business models. Capacity Remuneration Mechanisms in the 2018 European electricity market regulation can become an opportunity for geothermal power plants if they are implemented to incentivize new investments. Power Purchase Agreement, an increasingly prevalent business models for private and public entities to secure a long-term supply of renewable energy, value the stability provided by geothermal plant and can be driver in new investments. The GEOSMART project is exploring the policy, regulatory and financing framework that can allow the deployment of flexible geothermal electricity generation at scale. This paper will present the findings of the GEOSMART project, looking first at the electricity market structure in Europe and flexibility needs. The paper will also present how geothermal power plants can meet the arising needs of the electricity market, and what new models for pricing and tariffication within the markets are suited to build the business case of geothermal ORC plants in Europe. The paper will also explore how business models, notably Power Purchasing Agreement can complement the regulatory framework in accelerating the deployment of geothermal power plants as a flexibility and security of supply provider.     «

In the European Union, the objective of decarbonisation of the economy 2050 laid out by the European Green Deal leads to rapid and profound changes in the structure of the electricity market. Transitioning away from a centralised system dominated by suppliers with high operational costs, the electricity network in increasingly dominated by renewable sources which are defined by low marginal costs. Because of a sharp increase in variable generation, flexibility and dispatchability is now more val...     »