Tuesday, October 9, 2012 1:00 PM - 2:00 PM EDT
The National Renewable Energy Laboratory will hold a webinar to discuss research, analysis and results from a new report: “Geothermal FIT Design: International Experience and U.S. Considerations.” (PDF)
Feed-in tariff (FIT) policies can be designed to address certain risks of geothermal power plant development, and specifics will be explored in the presentation. The guarantee of a stable revenue stream over the life of the generation plant lowers the risk that large investments in exploration and development will not yield an off-take agreement.
The combination of a guaranteed purchase, a pre-determined payment price, and a standardized off-take agreement can relieve some of the cost, risk, and pressure associated with overall project development since the project does not need to compete for or negotiate a contract before final project costs are known.
Overall, FIT policies can include risk-mitigating elements and can be tailored to support a few key financial risks of geothermal development (exploration risks were not included in detail).
