CPI PowerPoint Theme and Template - Climate Policy Initiative

Driving Geothermal Deployment in Developing Countries September 2015 More public finance needed to reach deployment target Deploying 23GW by 2030 will require estimated total investment of USD 133 bn This requires

public finance to increase from the current USD 7.4 bn to USD 5673 bn Most promising country markets require a strong role for governments and DFIs Early Stage Development

Operation 0 10 20 30 Public Finance 40

50 Private Finance 60 70 80 Public loans and equity are most in-demand but grants and guarantees play an important role

Public Finance Supply Public Finance Demand Early stage 838m 12.5bn 5.9bn 54bn

727m 6.3bn Development Operations 0% 20% 40% 60% 80% 100% Public Grants Public Equity

Public Loans Public Guarantees 0% 20% 40% 60% 80% 100% More public finance should target early-stage risks Achieving maximum impact is country specific Countries where geothermal will: Reduce most emissions

Play large role in the electricity mix Increase energy access Have minimum impact on electricity tariffs Attracting private investment and managing costs Case studies attracted significant private investment

Gmsky, Turkey: The first time the private sector financed exploration of an unproven geothermal field in the country Olkaria III, Kenya: The first privately-funded and developed geothermal project in Africa Sarulla, Indonesia: The largest single contract geothermal power plant in the world Tariff increases needed to incentivize private

investment can be offset by public measures + 60% 1: Provide stable and sufficient revenues Supportive regulatory frameworks are a basic condition for growth. FiT design can help attract private investment provided: It is aligned with the projects lifetime or loan conditions available in the local debt market.

It shifts revenue risks considered most critical by the private sector to the public sector. 2: Provide exploration phase support that is appropriate to the country context Public exploration and tendering of proven fields can be critical for attracting private investment. Private exploration should be incentivized if: The private sector can manage risks at the lowest cost Survey data can be provided

to support the exploration phase Tariffs can be increased to reflect the developers exploration costs Cost of exploration 10 3: Provide longer-term, lower-cost debt to bring down the cost of capital Favorable loan conditions can be

critical to ensure projects financial viability Access to debt is critical to free equity resources for further development 4: Use risk mitigation tools and capacity building to unlock debt and de-risk investment Government guarantees for contractual off-take

obligations seem to be crucial in contexts with significant off-taker risk. DFIs political risk mitigation tools can further lower the cost of capital, and unlock additional capital. DFIs can increase the technical capacity of private lenders and enable additional finance. Lessons for policymakers and DFIs Lessons for policy makers Set ambitious deployment targets to send a

strong signal to private developers Feed-in tariffs need to reduce private sector risks while minimizing costs to the public sector Facilitate centralized data-sharing on geothermal resources between public agencies and private developers Lessons for development finance institutions Increase concessional finance Continue to rebalance support towards earlier

riskier stages of project development Facilitate access to risk guarantees where guarantees from host-country governments are not available. Prioritize countries where geothermal has the greatest potential to increase low cost energy supply and achieve emissions reductions. Thank you! Further questions? Get in touch: [email protected] [email protected]

Recently Viewed Presentations

  • Geant4, EPS-HEP 2001

    Geant4, EPS-HEP 2001

    Workers Henrique Araujo (UCL, London) Riccardo Giannitrapani (Udine) Elena Guardincerri (Genova, student) Susanna Guatelli (Genova, student) Alex Howard (IC, London) Francesco Longo (Ferrara) Ramon Nartallo (ESA) Andreas Pfeiffer (CERN) MG Pia (Genova) Giovanni Santin (Trieste) Everybody is welcome to join...
  • PowerPoint Template

    PowerPoint Template

    案例 连接802c数控机床的主轴电气系统。 分析 主轴电气系统连接图 plc控制图 相关知识点 变频器的配线 主要电路端子 主要电路端子 电压、电流或两者同时设定 模型名称不同,端子构造不同。
  • Hosted Productivity Apps for Students

    Hosted Productivity Apps for Students

    Office 365 for Education. Matt Williams. Systems Analyst. IT Services. School District No. 42. Maple Ridge/Pitt Meadows. Introduction to Office 365 in School District #42 for Teachers
  • Exploratory Data Analysis Overview of TBW Data

    Exploratory Data Analysis Overview of TBW Data

    The modeling process Conceptual model of system to guide analysis Conceptual Model Bear River Basin Macro-Hydrology Annual Evaporation Loss E/A Evaporation vs Salinity Evaporation vs Temperature (Annual) Conclusions Considerations in Model Selection Model Selection Choices Example Complexity, Generality, Transferability Interpolation...
  • ENTREPRENEURIAL ECONOMICS Market Processes and Competition Prof. Dr.

    ENTREPRENEURIAL ECONOMICS Market Processes and Competition Prof. Dr.

    Market structure scheme (v. Stackelberg) ... Homogenous duopoly. Outline. Introduction and Overview. The Market System as an Economic Order. Equilibrium Analysis: "Imperfect Competition" ...
  • Welcome to Chemistry GT - Ms. Ose's Chemistry Website

    Welcome to Chemistry GT - Ms. Ose's Chemistry Website

    Welcome to Chemistry GT Administrivia Teacher: Ms. Ose Room: 203 ... Classroom Expectations Classroom Expectations Materials Grades Late Work Absence Lab Safety Extra Help Consequence Ladder Redo Policy A word about academic integrity … Don't Cheat, Don't Cheat, Don't Cheat...
  • B1 Revision - You and Your Genes - Science Department

    B1 Revision - You and Your Genes - Science Department

    B1 Revision - You and Your Genes You and Your Genes (B1) Revision for Exam
  • CompTIA Network

    CompTIA Network

    MAN: A MAN is between a LAN and a WAN, typically covering a metropolitan area such as three office branches in the same city. PAN: A PAN is created from the interconnection of personal devices such as a phone, headset,...