News

$73 bn public finance required to meet geothermal development targets

The cooling tower for the West Ford Flat power plant, Geysers/ California (source: commons/ wikimedia, Rtracey)
Francisco Rojas 25 Aug 2015

A dramatic step up from current spending levels is needed and a bigger effort and commitment from governments is needed to attract more private investment and geothermal development.

Geothermal energy is one of the best bets for many developing economies, but according to the recently released CPI report on public finance and in an article in Bloomberg, “the geothermal industry may need as much as $73 billion in public financing, almost 10 times current spending levels, to meet developing countries’ electricity targets”.

This is a dramatic step up from current spending levels but a bigger effort and commitment is needed to attract more private investment and reduce risk that’s inherent to the industry. The possibilities are there yet a larger commitment is needed by development banks and public entities.

Great development is expected in the near future in Africa and Asia and more interest is being shown by local governments. Let’s hope the expectations meet the demand.

Source: Bloomberg via Renewable Energy World