Wednesday, March 9, 2016

Finance: Public Risk Mitigation Can Boost Investment in Geothermal Projects

What is the role of public finance in deploying geothermal energy in developing countries? (Climate Policy Initiative)

The major barrier to geothermal energy development is securing early-stage project finance given the scarce public resources available to invest in exploration and development. While some countries are pursuing policies to liberalize energy and electricity markets to attract private investment, significant difficulties remain.

Our case studies show that the increase in tariffs needed to provide sufficient returns to incentivize private investment can be entirely offset by public measures addressing specific risks.

More information in Lessons on the Role of Public Finance in Deploying Geothermal Energy in Developing Countries

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