Geothermal receives nearly 10% of all World Bank renewable energy loans in 2012
The World Bank reports that nearly 10% of all the loans to renewable energy projects the bank financed went to geothermal projects in 2012.
As part of her recent speech at the Iceland Geothermal Conference in Reykjavik, Iceland, World Bank Managing Director Sri Mulyani Indrawati said that “Geothermal energy could be a triple-win for developing countries: clean, reliable, locally-produced power .. and once it is up and running, it is cheap and virtually endless.”
A recent article on the website of the World Bank provides a better view on the current status of geothermal within the bank…. and an interesting fact comes to light. In 2012 about 10% of all loans to renewable energy projects of the World Bank, or $336 million went to geothermal. While in general this number could (and definitely should) be higher, it shows that geothermal is seen as a key renewable energy source for the bank in its activities.
The article also highlights a few details on the different programs available for geothermal within the World Bank.
“The Global Geothermal Development Plan expands on previous efforts by its global scope, and its focus on test drilling. It will identify promising sites and leverage financing for exploratory drilling, to develop commercially viable projects. The Plan’s initial target is to mobilize US$500 million. Donors can participate by identifying viable projects, and through bilateral assistance, as well as by contributing to existing channels such as the Climate Investment Funds (CIFs) or the Global Environment Facility (GEF). The GGDP will be managed by the World Bank’s longstanding Energy Sector Management Assistance Program (ESMAP).
The World Bank will convene donors later this year to discuss financing of specific geothermal projects under the plan. The Bank Group’s financing for geothermal development began in the 1970s and has increased from $73 million in 2007 to $336 million in 2012. It now represents almost 10 percent of the Bank’s total renewable energy lending.”, so Sri Mulyani Indrawati in her speech.
Source: World Bank