Geothermal power plant
The CIF is driving global investments in geothermal power, supporting countries like Indonesia, Kenya, and Mexico among others. Photo: TRF

Geothermal power holds tremendous promise as one of the most plentiful and cheapest renewable energy options available. Expansion is limited, however, by high costs and high risks of development, particularly in the early exploration phase. Private sector participation is restrained and up to 90 percent of geothermal project investments utilize some aspect of public debt or equity support.

The CIF is a leader in driving global investments in geothermal. To better understand the impact of the CIF in geothermal development, the CIF partnered with the Climate Policy Initiative (CPI) to undertake in-depth analytical work leading to recommendations on how to effectively target public finance and public policy to scale up geothermal deployment.

  • A series of three stakeholder dialogues that brought together key industry leaders and financiers in the developing world, including CTF and SREP countries investing in geothermal expansion
  • Comparative analysis of various financing and policy models being used around the world, including three case studies on geothermal power development in Turkey, Kenya, and Indonesia
  • Webinar on Driving geothermal deployment in developing countries

Research indicates public finance and public policy can work together to increase private investor confidence and participation by focusing efforts in five key areas:

  1. Provide early public exploration and tendering of proven fields
  2. Ensure revenue certainty over a project’s lifetime encouraged by supportive regulatory frameworks and clear deployment targets, as well as feed-in tariffs designed to shift operational risks and align to the project‘s lifetime and financing liabilities
  3. Offer differentiated support in the exploration phase to incentivize private sector participation where possible
  4. Provide long-term, low-cost debt to free equity resources, decrease financing costs, and, in certain cases, ensure projects’ financial viability
  5. Provide risk mitigation to unlock financing, including:
    • Government guarantees for off-takers
    • International financing institutions’ provision of political risk mitigation tools
    • International financing institutions’ support in acquiring technical capacity to bridge lenders’ knowledge gaps


First CIF/CPI Geothermal Power Dialogue

Copenhagen, October 24, 2014

Second CIF/CPI Geothermal Power Dialogue

Munich, March 2, 2015

Third CIF/CPI Geothermal Power Dialogue

Vienna, June 16, 2015