Climate Investment Funding Could Leverage 2.9 GW of Geothermal Power (Fierce Energy)
Geothermal power harnesses the earth's heat to generate electricity, offering a reliable energy source that is universally available, as it does not depend on a steady supply of sun or wind. Geothermal energy is one of the lowest-cost sources of renewable electricity, and can provide both "baseload" and backup power for other renewable energy sources. Though a recent study showed that private investors are increasingly taking the geothermal plunge, most investors are still reluctant to invest in the technology because of the perceived high risk of early-stage exploration, which includes drilling and development.
"This is one of several areas in which
Climate Investment Funds (CIF) investments can be game changing," said CIF Manager Mafalda Duarte. "We estimate that the CIF's concessional $746 million of financing, which leverages much more from other sources, in geothermal energy could add 2.9 gigawatts (GW) of geothermal power, equivalent to 25 percent of current global installed capacity, simply by reducing the risk to investors associated with geothermal exploration."
CIF funding is supporting some of the first large-scale geothermal development projects in Armenia, Chile, Dominica, Ethiopia, and Tanzania.
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