Social License to Operate in Geothermal Energy

Abstract

Geothermal energy is a resource that has the potential for development in many countries around the world. Despite its versatility and economic viability, this resource faces numerous obstacles that hinder its deployment and capacity for achieving a similar market share as other renewable and clean energy sources. Both technical and non-technical barriers can be highly detrimental to the implementation of geothermal projects. A social license to operate (SLO) is a tool that can help the deployment of geothermal energy. As a new concept, SLO is little developed in the business literature but is still being adopted in many industries. Its main challenges reside in its context-dependence and the lack of clear frameworks to utilize it. This paper introduces, in a first known attempt, through a qualitative approach, a conceptual model of the social license to operate in the geothermal energy sector. For its development, three case studies, working group discussion and surveying were conducted in the framework of the H2020 funded CROWDTHERMAL project, which aims to empower EU citizens for direct participation in geothermal projects through crowdfunding. Findings of this paper also drew on existing general conceptual models of the SLO, and experiences from other sectors that have developed their own SLO models. The paper contributes to a more contextualized understanding of the social license within the geothermal sector and sheds the light on practices and challenges that influence the acquisition and maintenance of SLO in geothermal energy projects and initiatives.

Geothermal Energy: Definition and Its Applications

“…Any environmental substances are not disturbed to produce several types of geothermal energy. Sustainability and environmental factors are also maintained properly with help of these geothermal energy sources [12] several types of structures like: buildings, sidewalks and parking lots are heated by this geothermal energy. In order to create a stream, water is accessed by injecting and drilling this geothermal heat.…”

Differences in Direct Geothermal Energy Utilization for Heating and Cooling in Central and Northern European Countries

“…The SEL method has some similarities to the Social License to Operate (SLO), which has also been applied to geothermal energy [34]. However, SLO is related to specific projects, while SEL relates to the status of technology within a country or region.…”

A Decision Support Tool for Social Engagement, Alternative Financing and Risk Mitigation of Geothermal Energy Projects

“…Further, communication of positive aspects, such as the yielded renewable energy production (e.g., how many kilowatt hours or megawatt hours of energy were produced per day) and CO 2 savings, should be planned to enhance the perceived added value of the project after commissioning. Finally, early and transparent information about the decommissioning to stakeholders and citizens according to the legal framework should be planned in a timely manner [14,41].…”

“…Starting from planning permits, developers should provide access to required information/hearings of stakeholders and the public according to the legal framework. Provisions for drilling permits and construction permits should be required and include information/hearings of stakeholders and the public focusing on the construction works according to the legal framework [41,42]. Finally, the necessary decommissioning steps according to the legal framework should be put in place, even from the early stages of the project, ensuring sustainability at the end of the project.…”

“…A social engagement strategy plan should follow a proactive approach, and as such should include provisions for the management of unfavourable events [14,41].…”