In November 2023, Seoul announced the "Comprehensive Plan to Boost Geothermal Energy Deployment," which aims to shift its renewable energy policy to focus on geothermal energy. This transition is intended to reduce greenhouse gas emissions and enhance resilience against climate change. The plan outlines mandates and milestones for expanding geothermal energy in public projects, as well as incentives for private sector involvement, technical support, and professional consulting. This study offers detailed policy recommendations to ensure the effective implementation of the plan.
Notable geothermal policies in Europe include Germany’s Renewable Heat Obligation (RHO), the UK’s Renewable Heat Incentive (RHI), and France's Heat Fund. In March 2022, the UK transitioned from the RHI to the Boiler Upgrade Scheme(BUS) to directly support low-carbon heating systems. This change aligns with the International Energy Agency(IEA)'s recommendation to phase out gas and oil boilers by 2025, as major European countries ban new gas boiler installations. These developments are expected to accelerate the adoption of geothermal systems, particularly those using heat pumps.
In South Korea, the focus has primarily been on electricity-based renewables, such as solar power, resulting in limited support for thermal renewables. Efforts to establish a Renewable Heat Obligation from 2013 to 2016 were unsuccessful, which hindered geothermal deployment and technical research. Moreover, funding for geothermal research and development has declined since the 2017 Pohang earthquake.
Geothermal heating and cooling systems are utilized in various facilities, including airports, universities, public buildings, and residential complexes, contributing to energy independence and lower greenhouse gas emissions. In the U.S., subsidies can cover up to 60% of project costs, fostering private sector participation. According to the IEA, economic viability can be achieved within 10 to 12 years with government support.
To examine the factors hindering private sector adoption of geothermal heating and cooling systems and to develop a prioritized improvement plan, we conducted an Analytic Hierarchy Process (AHP) analysis among professionals in the geothermal industry. The results indicate that the following measures should be prioritized for support: (1) revising energy independence conversion coefficients, (2) implementing installation cost support programs, (3) supporting retrofit projects to improve efficiency in existing buildings, (4) providing consulting support at all stages from planning to operation, (5) promoting pilot and demonstration projects, (6) mandating renewable heat installations, and (7) introducing operational cost support systems.