| Tapping the Potential of Geothermal |
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Energy has significant potential to deliver a “triple win” for many developing countries—clean, reliable, locally produced baseload power. But as of 2012, only 1.5 percent of the world’s total power generation came from geothermal sources. It is estimated that around 40 countries worldwide have geothermal endowments that could meet a sizeable proportion of their electricity demand. With sufficient investment in drilling and improved knowledge about resource endowments, geothermal energy could play a much larger role in Latin America, the Caribbean, East Africa, and Southeast Asia, as well as areas of Eastern Europe and Central Asia.
In recognition of this opportunity and in response to client demand, ESMAP has substantially stepped up its support to geothermal development in recent years through analytical and technical assistance activities.
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| Global Geothermal Development Plan |
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In March 2013, ESMAP launched a Global Geothermal Development Plan (GGDP) in collaboration with bilateral and multilateral development agencies and banks and client countries. The GGDP is expected to be transformational by creating global momentum in geothermal energy investments through a concerted focus on exploratory test drilling, the largest financial obstacle to geothermal energy scale-up.
The main objective of the GGDP is to mobilize substantial new concessional funding for the risky and capital intensive upstream phases of geothermal development in order to catalyze investment in all other stages of the geothermal value chain in low- and middle-income countries. The GGDP has led the effort to ensure $235 financing from the Clean Technology Fund approved, which have been earmarked for programs and projects that facilitate private sector engagement in geothermal resource validation through test drilling.
Another main goal of the GGDP is to identify a portfolio of projects large enough that it generates learning effects that will reduce the risk of geothermal development globally. To this end, ESMAP is deploying about $5 million in coordination with the WB regional units over 2013-2015 to help identify and develop a number of resource validation projects. Additionally, the GGDP’s knowledge dissemination component supports South-South exchange among client countries on geothermal science, project development and international best practices.
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| Global Geothermal Development Plan Roundtable Events |
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GGDP Roundtable 1
From November 19 - 20, 2013 about 70 participants from developing countries, as well as investors, technical experts, and multilateral and bilateral development partners came together in The Hague, Netherlands to share knowledge, best practices, and information on scaling-up geothermal energy investments. The roundtable event took stock of potential and ongoing projects to prioritize next steps for implementing the Global Geothermal Development Plan (GGDP). Presentations on undergoing and planned geothermal exploration drilling activities were grouped by region. Sessions were also held on financing, and design and supervision, of drilling programs. Read more.
GGDP Roundtable 2 Following-up on the First GGDP Roundtable held in The Hague in November 2013, this Second GGDP Roundtable provided a platform for representatives of governments, development institutions, industry, public and private developers, and sector experts to discuss challenges and solutions for developing geothermal projects, with a focus on the exploration phase. The GGDP Roundtable 2 explored specific topics such as best practices in geothermal exploration data management and discussed lessons learnt from various geothermal risk mitigation options. The Roundtable 2 hosted the Geothermal Energy Dialogue, a one-day session organized by the Climate Investment Funds with the Climate Policy Initiative to explore financing options for geothermal investments, through specific case studies. Read more.
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| Geothermal Support around the World |
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Djibouti
As a pilot project for the GGDP, ESMAP has agreed to provide analytical and grant support to the Djibouti Geothermal Power Generation Program. Through ESMAP’s US$1.1 million funding (3.5% of total project cost), the Djibouti Geothermal Power Generation Program is the first project of the GGDP that has been appraised. By providing significant support, ESMAP will draw a number of lessons from implementation of this project to help other similar efforts.
Indonesia
Previously, in Indonesia, ESMAP supported a lessons-learned study of the World Bank’s multi-year collaboration with national geothermal developer PGE on two projects. These projects, as well as having the potential to power up to 1 million new electricity connections, also hold important lessons for other developing countries just starting to tap their geothermal resources.
Geothermal Potential in Central America
ESMAP has also published Drilling Down on Geothermal: An Assessment for Central America that showed the region has total geothermal potential of between 3,000 and 15,000 MW (current installed capacity is less than 500 MW). Moreover, geothermal power is also cost-competitive in Central America when compared to thermal and hydropower generation. |
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Contact: Almudena Mateos Merino
ESMAP | Clean Energy | RE Project Resource Center (REPRC) | Publications | News | Blogs | Events | Global Geothermal Development Plan (GGDP)