ThinkGeoEnergy – Geothermal Energy News

GeoRisk project report – Existing insurance schemes for geothermal energy

A report by the European GEORISK research project, introduces and compares 21 different risk mitigation schemes, 11 funds taking on risk and 3 private funds, all covering exploration drilling campaigns.

The European GEORISK project funded by the EU’s Horizon2020 programme started in October 2018 with a duration of 30 months.

The coordinator has been the European Geothermal Energy Council (EGEC) with 15 partners in total representing countries with various level of maturity regarding their deep geothermal energy market. One of the main risks faced by developers of geothermal energy is the “resource risk”, linked with the uncertainties of the subsurface and geological objects.

Few countries (France, Germany, Iceland, The Netherlands and Switzerland) have developed risk mitigation funds in order to cover this type of risk. The GEORISK project will work to establish such risk insurance in Europe and in some key target third countries. The report presents one dedicated table summarizing the existing national and regional insurance systems dealing with the geothermal resource and technical risks in Europe and worldwide.

The result is to delineate their specific features and the relevant parameters that could be taken into account for the establishment of an insurance scheme dealing with the geothermal risk which is the objective of the Work Package 4 of the project. 21 major schemes have been inventoried 7 are terminated and sometimes proved not efficient, 12 are ongoing at world level and 3 have been proposed in Europe (EGRIF), for Africa (GeoFutures) and for EGS in France mainland devoted to EGS. Many existing scheme have been established at national level in the past in general managed by the geological surveys in Iceland, Japan, Indonesia, Turkey, USA, Philippines, European Commission there are not listed neither studied because they were focusing to acquire first geological knowledge.

Earlier this year the project published a “Report reviewing existing insurance schemes for geothermal” authored by Christian Boissavy of AFPG/ GEODEEP.

The report observed four levels of success across the 21 funds assessed. 

Recently launched public funds such as Turkish RSM and Swiss 2018 look promising. 8 projects are already engaged in the application process for the Turkish RSM. Swiss 2018 has officially accepted their first project a few months after its launch.

Check out the full report that shares details on all the schemes in existence today and those that are planned.

Source: GEORISK

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