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Different development models hinderance in scaling up geothermal development

Screenshot form the CPI Website
Alexander Richter 13 Kas 2014

CPI reflects that public funds are a key aspect in financing geothermal projects and also act as catalysts for bringing in private investment as a way to leverage risk, therefore CPI & CIF are collaborating to identify the best way forward.

In a very interesting article published in Climate Policy Initiative’s website revisits the issues with geothermal markets and financing models currently being used worldwide.

The article states that “risks in the early exploration and drilling phases, combined with high investment costs, have slowed the scale up of the technology and limited the private investment that is needed if geothermal is to play a bigger role in the energy system. Climate Policy Initiative’s (CPI) recently published analysis of global geothermal markets and financing models finds that public finance plays the most prominent role in financing geothermal. 76-90% of all project investments utilize some aspect of public debt or equity support, as well as support instruments.”

According to CPI, public funds are a key aspect in financing geothermal projects and also act as catalysts for bringing in private investment as a way to leverage risk. This is particularly relevant for developing economies. In order to identify the best route forward, “CPI and the Climate Investment Funds (CIF) are embarking on a joint project that aims to identify the best way public funds can mobilize private sector participation in geothermal, particularly for developing countries.”

To read the full article, please follow the link below:

Source: Climate Policy Initiative