European Geothermal Congress 2016, Strasbourg GLOBAL GEOTHERMAL ALLIANCE: A GLOBAL PARTNERSHIP FOR GEOTHERMAL ENERGY

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1 European Geothermal Congress 2016, Strasbourg GGA Meeting on Risk Mitigation and Project Financing GLOBAL GEOTHERMAL ALLIANCE: A GLOBAL PARTNERSHIP FOR GEOTHERMAL ENERGY Gurbuz Gonul Senior Programme Officer Head of Regions 20 September 2016

2 Today, only 6% of geothermal technical potential deployed! Geothermal Power: ~25 countries with a total installed capacity of 12,6 GW Geothermal Heat: ~80 countries with a total installed capacity of 20.4 GW Source: Bertani,

3 Why the modest growth? HIGH UPFRONT COSTS AND RISKS ASSOCIATED WITH RESOURCE ASSESSMENT LACK OF INSTITUTIONAL CAPACITY POLICY UNCERTAINTY SHORTAGE OF SKILLED PROFESSIONAL ENVIRONMENTAL CONCERNS AND LICENSING LOW AWARENESS AND LIMITED INFORMATION IN DECISION MAKERS Can international cooperation and partnerships help overcome key geothermal challenges?

4 Launched at COP21 in Paris as a global platform for improved dialogue, cooperation and coordinated action to scale up geothermal deployment MW 70,000 60,000 50,000 40,000 Geothermal Power Installed Capacity Worldwide Up to 5x geothermal power More than 2x geothermal heat ,000 20,000 10,000 12,635 10,897 6,832 7,972 8, Source: IRENA Remap 2030

5 Who are GGA Members and Partners? GGA MEMBER COUNTRIES - 41 COUNTRIES ACCROS THE GLOBE AMERICAS / CARIBBEAN Bolivia Chile Colombia Costa Rica Ecuador El Salvador Guatemala Honduras Mexico Nicaragua Peru Saint Vincent & Grenadines USA IDB OAS US Geothermal Association Canadian Geothermal Association EUROPE France Iceland Italy Netherlands Poland Romania Switzerland Turkey GLOBAL IRENA International Geothermal Association IsDB UNEP WB ESMAP Nordic Fund European Geothermal Energy Council German Geothermal Cluster Iceland Geothermal Cluster AFRICA Burundi Comoros Djibouti Egypt Kenya Tanzania Uganda Zambia Zimbabwe AfDB AUC EAPP NEPAD RCREEE SAPP ASIA India Indonesia Malaysia Pakistan Philippines PACIFIC / OCEANIA Fiji New Zealand Papua New Guinea Solomon Islands Tonga Vanuatu SPC GGA PARTNER INSTITUTIONS - 14 REGIONAL & DEVELOPMENT PARTNERS, 7 INDUSTRY PARTNERS, AND 9 RESEARCH INSTITUTIONS AND ACADEMIA 5

6 GGA Action Plan endorsed in May 2016 Resource and Market Assessment Needs and Obstacles Assessment Enabling Frameworks Global Geothermal Network

7 Resource & Market Assessment Needs & Obstacles Assessment GGA Action Areas Identify and map: * Resources for development * Existing and potential geothermal market status and near term projects in the pipeline Scope the needs for assistance w/ focus on: * Countries with transformative potential, including, where pilot projects have been identified * Removal of obstacles of policy, regulatory, funding or capacity building nature 7

8 Enabling Frameworks Global Geothermal Network GGA Action Areas * Assist with creation of enabling frameworks * Enhance awareness on and improve risk mitigation funds / financing mechanisms * Facilitate access to financing & risk mitigation instruments and support project development tools * Capacity building * Establish a global network of geothermal experts building upon existing networks * Promote geothermal energy s key role in supporting decarbonisation strategies and support implementation of countries climate plans (INDCs) 8

9 Operationalizing the GGA Action Plan Call for proposals for implementation under Action Plan Test proposals against selection criteria Short list qualified proposals First Call for Proposals Launched in June applications received from governments and industry Invite Members and Partners to support and fund Selection Criteria National commitments Near-term impacts Long-term sustainability Complementarity Replicability Team 1 Team 2 Team X Establish Task Teams per Activity 9

10 Unlocking RE Investment Cost-effective doubling of RE share in global energy mix feasible by 2030 RE investments to double over next few years and triple in the 2020s. Most investment from the private sector institutional investors Need to address underlying market barriers and high risk perception Access to effective risk mitigation instruments critical for private investment Five action areas identified to scale up RE investments 10

11 IRENA s Finance Tools relevant to Geothermal Access to financing and risk mitigation instruments Project development tools (geothermal energy component) IRENA-ADFD RE Project Financing Facility

12 THANK YOU. Gurbuz Gonul Senior Programme Officer Head of Regions Unit