The role of public finance in deploying geothermal

The role of public finance in deploying geothermal [1]

This report is part of a project carried out by Climate Policy Initiative (CPI) for the Climate Investment Funds (CIFs) which will focus on the effective use of public finance to scale up geothermal deployment in developing countries. The public sector plays a significant role in financing geothermal with 76-90% of project investments utilizing some aspect of public debt or equity support. Much of the current support targets the operational phase of the project but these public resources might be better used to address the risk in the exploration and field development phases. The private sector has demonstrated willingness to invest in geothermal technologies but little appetite for investment in the early exploration and drilling phases of the project. This is a significant barrier to further geothermal expansion in many markets. Furthermore, public-private partnerships still play a limited role despite their potential for attracting additional private capital.

Publication Date:

01/10/2014

Author(s): Valerio Micale [2], Padraig Oliver [3], Fiona Messent [4]

Source: Climate Policy Initiative [5]

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