Geothermal FAQs

In Victoria, geothermal energy is owned by the Crown on behalf of Victorians. The Victorian Government regulates geothermal exploration and extraction under the Geothermal Energy Resources Act 2005 (Vic).

The Act applies to commercial geothermal activities. These projects generally involve resources:

• more than one kilometre below the surface
• hotter than 70°C.

The Act sets rules for:

• land access
• consultation
• environmental management
• public safety
• rehabilitation
• compensation.

Resources Victoria administers the Act. Resources Victoria also grants geothermal authorities and regulates geothermal activities.

Once extracted, geothermal energy becomes the property of the company extracting it.

Yes. The permit or licence holder must get your consent before starting any activity on your land. This may involve a compensation agreement.

If you consent, you must give notice of consent within 28 days after it is sought.

Compensation may be payable if geothermal activities cause loss or damage to a landholder’s interest in the land. Compensation is not paid for the value of geothermal energy beneath the land.

Compensation may cover things such as:

• loss of access to land
• loss of use of land
• damage to land or improvements
• loss of amenity
• reduced land value
• loss of development opportunities
• reasonable relocation costs
• some intangible impacts.

Access and compensation arrangements are usually negotiated between you and the operator. You should seek independent legal advice before entering into any access or compensation agreement.

If there is no compensation agreement, claims must generally be made within 3 years of the loss or damage occurring. They can also be made within 3 years of the permit or licence ending, whichever happens first. Compensation obligations continue if ownership or occupancy of the land changes.

If the parties cannot agree on compensation, either party may apply to the Victorian Civil and Administrative Tribunal (VCAT). VCAT can decide the amount of compensation. It does not decide whether access to land can occur. VCAT should generally be used after negotiation and/or conciliation have failed.

Exploration is the process of finding geothermal energy. It also checks whether the resource is commercially viable.

Exploration may include:

• data review
• gravity and magnetic surveys
• seismic surveys
• drilling

Extraction is the process of accessing geothermal energy and using its heat.

Exploration does not always lead to extraction.

Current geothermal permits and licences are displayed in GeoVic. This register shows where geothermal exploration and extraction have been approved.

Contact Resources Victoria for more information.

Geothermal exploration is usually temporary and localised. Operators must minimise disruption to normal land use. If exploration causes loss or damage, compensation may be payable.

If a geothermal resource is found, the explorer may apply for:

• a retention lease, if the resource is not yet commercially viable (for up to 15 years)
• an extraction licence, if the resource is commercially viable.

Yes. You must generally be given at least 21 days’ written notice before exploration or extraction activities start. A shorter notice period can apply if you agree to it.

Before works can begin, the operator must also have an approved operation plan. This operation plan must include measures for:

• public safety
• environmental management
• rehabilitation.

The operator must consult with affected landholders.

Extraction operations may also need planning approval or an assessment under the Environment Effects Act 1978.

Victoria’s Aboriginal cultural heritage is protected under the Aboriginal Heritage Act 2006.

If an exploration permit is granted, permit holders should engage a cultural heritage advisor. The advisor needs to prepare a desktop study of known Aboriginal cultural heritage and areas likely to hold heritage values.

Permit holders should engage early and meaningfully with Traditional Owners.

Environmental impacts are managed through:

• scientific research
• geoscience data collection
• regulatory approvals.

Before geothermal activities can start, the operator must submit an operation plan to Resources Victoria. Resources Victoria must approve this plan before any work can begin.

Geothermal projects must comply with Victoria’s Native Vegetation Management rules. Operators must provide a rehabilitation bond. This helps ensure rehabilitation, clean-up or pollution prevention works can be done if needed.

Other approvals may also be needed under the Environment Protection Act 2017 and the Water Act 1989.

Water use and groundwater impacts are regulated under Victoria’s existing laws, including the Water Act 1989 and the Environment Protection Act 2017.

Geothermal operators must access water through the same allocation and approval processes as other water users. They must also meet the same rules for water use, pricing and discharge.

You can contact Resources Victoria and make a complaint.

You should contact Resources Victoria if you think a company is not meeting its obligations to remove or reduce risks to:

• people
• property
• the environment
• the geothermal energy resource.