UK Government Sets Subsidy for Nascent Deep Geothermal Energy Industry

The U.K. Department for Business, Energy and Industrial Strategy (DBEIS) this month set a subsidy rate for geothermal development in the country.

According to the department’s response to its call for evidence on geothermal in the contracts for difference scheme, the government has decided to set the administrative strike price for geothermal power at 140 pounds/MWh (US$170/MWh). The price is for delivery years 2021/2022 and 2022/2023. Projects can be standalone energy generation facilities or combined heat and power.

To date, there have been no deployments of deep geothermal power projects in the U.K.

The department also set the strike price for other “less established” technologies, including wave (310 pounds/MWh) and tidal stream (300 pounds/MWh).

Comments submitted by stakeholders to the department in response to its call for evidence included suggestions for additional ways to support the U.K.’s deep geothermal industry, such as targeted funding for a demonstrator project and supporting demonstration-stage projects with a feed-in-tariff independently of a competitive process. 

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