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Geothermal Energy Resources
Geothermal energy is an emerging ‘green’ energy industry that has the potential to provide clean, reliable and renewable electricity.
Literally meaning ‘heat from the earth’, geothermal energy is generated from naturally occurring heat within ‘hot rocks’ and water reservoirs deep beneath the earth’s surface. This heat may be extracted and converted to electricity and then added to the national electricity grid.
The latest report on Victoria’s geothermal energy resources shows significant potential, with some local ‘hot spots’ present. In spite of this, Victoria’s geothermal energy resources have scarcely been tapped. There is, however, growing awareness of their potential value. With further exploration and improved technology, a better picture of Victoria’s geothermal resource potential will emerge.
In 2005, the Victorian Government passed the Geothermal Energy Resources Act, which provides a new framework for large-scale commercial exploration and extraction of geothermal energy at depths greater than 1,000 m and at temperatures greater than 70°C. The Act provides secure title and a clear and consistent approvals process for companies that want to explore or extract geothermal energy in Victoria.
Small-scale geothermal projects, such as ground heat pumps used for aquaculture and some spa resorts, are excluded from the Act. These will continue to be regulated by existing planning, environmental and water legislation.
The Victorian Government supports the development of geothermal energy. The Victorian Renewable Energy Target (VRET) scheme aims to increase the amount of energy generated from renewable sources to 10 per cent by 2016. This is supported by the Federal Government target of 20 per cent by 2020. Geothermal energy has the potential to contribute to these targets.
On 4 April 2008, the Premier announced a $72 million fund to help finance proposals for large-scale, renewable energy demonstration projects across the state. It is expected that some of that money will go towards supporting geothermal. The Victorian Government would seek to leverage its investment through projects also getting funding from the Commonwealth's $500 million Renewable Energy Fund.
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