Exploration Risk for Geothermal Power Investments - Approaches across the globe
Generating electric power based on geothermal energy is attractive (i) because of the low CO2 emissions and (ii) because electricity can be produced constantly, independent of the availability of wind or sunlight. These characteristics make geothermal energy an important option for safe, cost-effective and climate friendly power production. The main caveats are that geothermal energy is not available everywhere and that it is uncertain whether the resource will actually be found at a given site. The latter being a main reason why investment does not materialize according to the resource potential.
Our study looks at this geothermal resource risk and provides an overview of risk mitigation mechanisms. It shows how governments and commercial actors across the globe are dealing with these risks.
A related blog post is available here.The full report is available in German.