5 th Anniversary of the Global Geothermal Development Plan (GGDP) OBJECTIVES, RESULTS, WAY FORWARD Thrainn Fridriksson GGDP team leader April 26, 2018, Iceland Geothermal Conference
Why was the GGDP launched? T HE GGDP WAS C REATED TO A DDRESS A M AR KET I MPE CTION H AMPERING THE G ROWTH OF THE S ECTOR ARKE MPERFECT ~7 years Geothermal is good! Clean source of power and heat • Can be lowest-cost option • Can provide baseload power • High-risk, Traditional Is not sensitive to weather fluctuations • high-cost MDB financing barrier Why is the growth in global installed capacity so slow and still linear? High resource risk • High cost of exploration drilling • Long development time • High transaction cost • How can International Finance Institutions best support the scale-up of the sector? By providing concessional financing for exploration drilling •
Key pillars of the GGDP W ORLD B ANK H OSTED I NITIATIVE F ACILITATING S CALE - UP OF G EOTHERMAL I NVESTMENTS THROUGH D E -R ISKING , I MPROVING E NABLING E NVIRONMENT , AND S HARING B EST P RACTICES Technical Assistance Focus on Upstream Support Global Knowledge Work Grants through ESMAP´s GGDP window Dissemination of best practices to Advocacy and Awareness Raising • to support: facilitate sustainable sector growth MDBs • Preparation of geothermal IFIs • • investment project CIF • Bilateral donors Strengthening of enabling • • environment in client countries Mobilization of $235M of • Concessional Funding from CTF Strengthening capacity of • implementing agencies ESMAP donor funding to support • internal GGDP work at the World Assessment of geothermal resources • Bank Collaboration with partners Iceland, Netherlands, IFC, IGA, UNECE, IT Bandung, EBRD... Global Geothermal Roundtables •
GGDP Mobilization of CTF Funding Geothermal $235 M ILLION F ROM D EDICATED P RIVATE S ECTOR W INDOW - F UNDS M ANAGED BY D IFFERENT MDB S Turkey – $25 m, EBRD $40 m, WB Mexico – Six E-Caribbean states $20 m, IDB $20 m, IDB Indonesia, Dominica - $10 m, WB Philippines – Colombia – St Lucia - $10 m, WB $30 m, ADB $10 m, IDB Kenya – $50 m, AfDB Chile – $20 m, IDB & WB
How has the GGDP moved the needle on support to geothermal? MDB AND CIF F OCUS H AS S HIFTED D ECIDEDLY TO U PSTREAM S TAGES OF G EOTHERMAL D EVELOPMENT Multilateral Development Banks’ Financing of CIF projects and GRMF and GDFLAC Exploration Drilling and De-Risking versus Downstream 33 countries benefitting Developments over Time Cumulative MDB and CIF Financing for Geothermal Energy 4500 7% 4000 2010 US$ million 29% 3500 1978 – 2013 – 3000 2012 2017 2500 71% 2000 93% 1500 Climate Investment Funds 1000 Active geothermal projects by development stage* 500 Volume of funding in US$ million Number of projects 0 IV IV II II 1978 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 III & IV III & IV 25 1 104.9 80 2 III Single country projects 5 50 III World Bank Other MDB CIF 1 Regional support programs 701.5 16 222.3 Single country and regional support 3 219.3 II & III II & III 4 II, III & IV II, III & IV * Geothermal Development Stages: I: Surface Exploration II: Exploration Drilling; III: Production Drilling; IV SAGS and Power Plant Construction
GGDP Technical Assistance and Project Preparation ESMAP G RANTS TO C OUNTRY T EAMS AND T ECHNICAL S UPPORT Kazakhstan Resource Assessment Turkey Project Preparation and Implementation Armenia Mexico Project Preparation, Opportunities for Implementation Geothermal Development Dominica, St Lucia Djibouti Indonesia El Salvador Project preparation Well Testing Project Preparation and Assessment of Ethiopia, Uganda Nicaragua Implementation Feasibility Studies Implementation Kenya Project Support National Preparation Geothermal Strategy Tanzania Capacity Building Fiji for TGDC Resource Assessment Chile Sustainable Geothermal Development
What Lies Ahead for the GGDP? H OW C AN W E B EST S UPPORT THE S ECTOR ? S UGGESTIONS ? Focus on Upstream Support Global Knowledge Work Technical Assistance Pipeline of studies GGDP will continue to support: Upstream Support is now • Guidance on Gender and • mainstreamed in IFIs‘ and CIFs‘ Preparation of geothermal • Geothermal geothermal support investment project Barriers and Opportunities for • Is there need for concerted Strengthening of enabling • • Geothermal Development in LAC funding mobilization? environment in client countries Best Practices for: • Global assessment of Exploration Data Management • • investment-ready projects and Preparation of Feasibility Over the next two years the GGDP • upstream geothermal funding Studies will also pilot guidance on landscape planned for FY19 Gender and Geothermal • Possible Studies Classification of Resources • Barriers and Opportunities for • Exploration Data Management Direct Use of Geothermal • Other Suggestions? Best Practices in Structuring • • Exploration Drilling Contracts Suggestions? •
T FRIDRIKSSON @ WORLDBANK . ORG Thank You. The World Bank 1818 H Street, NW | Washington DC, USA www.esmap.org | esmap@worldbank.org
Global Geothermal Development Plan L AUNCHED AT IGC 2013 Objective: to scale up investments in geothermal • projects in developing countries Concerted fundraising effort to mobilize $500 • million of concessional financing to support up- stream development Effort led by World Bank/ESMAP – other MDBs • can tap into the funds raised Dedicated internal World Bank funding window • for project support and knowledge work
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