News item | 28-02-2022 | 14:30
Geothermal energy can make an important contribution to the necessary sustainability of the Dutch energy system and is a precondition for the heat transition in the Netherlands. The technology has great potential to supply sustainable heat to the built environment, greenhouse horticulture and industry
Because geothermal energy activities take place deep underground, the Mining Act applies to the permits. In order to make more appropriate regulations for geothermal energy and thus possibly accelerate the energy transition, an amendment to the mining law was presented to the House of Representatives in July 2020. The Mining Act includes all rules relating to the exploration, extraction and storage of minerals and geothermal heat.
The bill was discussed on 17 February 2022 and passed by the House of Representatives on 22 February 2022. The bill is now before the Senate for consideration. In order to implement everything regulated in the bill, the Mining Decree and the Mining Regulation must also be amended. The amendments to the Mining Decree were previously available for consultation for consultation. Following the debate in the House of Representatives, a number of adjustments will have to be made to the Mining Decree before it can be submitted to the Council of State. The attached infographic shows the process of amending the Mining Act and the associated steps schematically.
We are currently aiming for an effective date of January 1, 2023. In the near future, we will make proper agreements with the sector about changes to the permit system, so that the permit issuers, the sector and our advisors are well prepared for this in the permit granting process.
Why a law change?
The geothermal energy sector is a relatively young sector that is developing rapidly. In recent years, more and more geothermal projects have been started in the Netherlands due to the energy transition. New projects are added every year and the new geothermal installations also produce more and more heat. The application of geothermal energy will increasingly shift from greenhouse horticulture to the built environment for heating networks. But the desired developments are not achieved with the current permit system. This licensing system dates from 2002, when there was little or no geothermal heat extraction in the Netherlands. Experience with the first geothermal projects shows that the licensing system, as it applies to oil and gas extraction, is insufficiently in line with what is needed for the production of geothermal energy. With geothermal energy, for example, as soon as a well has been drilled, extraction must start almost immediately, otherwise the well will become clogged. And under the current Mining Act this is not allowed.
This requires a permit system that takes into account the specific characteristics of geothermal energy. That is why in 2020 a proposal to amend the Mining Act for geothermal energy was submitted to the House of Representatives. The proposal lays down further rules for the assessment of permit applications, contains rules to protect groundwater quality and lays a foundation for accelerating the geothermal energy sector and the safe and responsible production of geothermal energy in the Netherlands.