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The Investors Guide to Geothermal Energy

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The Investors Guide to Geothermal Energy ( the-investors-guide-geothermal-energy )

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Foreword Renewable energies are expected to provide a significant share of the future global energy mix. In the European Union, they should make up 20% of the total energy supply by the year 2020. Due to their indig- enous nature, they are also important for the security of energy supply. Advancement of renewable energies will require mas- sive investment that cannot solely rely on public funds, pri- vate sector involvement is needed. Incentives for private investor’s engagement are increasingly provided by guaran- teed feed-in tariffs and risk mitigation schemes. Developers and investors are essential for renewable energy advancement. Developers need to know their financ- ing options while investors need to have basic knowledge of and confidence in emerging technologies. In addition, a mutual understanding between developers and investors is essential. This is especially true for geothermal energy since this technology usually needs high up-front investments. “The Investor’s Guide to Geothermal Energy” is a timely contribution. The publication summarizes geother- mal technology basics, describes various financing options, and explains the various stages along the way – from the initial project evaluation to production and maintenance. It analyzes the current global market, presenting new tech- nology developments like Enhanced Geothermal Systems, which have a great potential for success worldwide. The International Geothermal Association (IGA) read- ily endorses forseo’s publication hoping that it will pave the way for a rapid increase of the private sector’s involvement in financing or co-financing new geothermal projects. Prof. Dr. Dr.h.c. Ladislaus Rybach President IGA Geowatt AG Zurich Preface The geothermal world map today shows many different and interesting sites and markets. For many investors, the ter- ritory is still relatively unknown and one might hesitate to explore the opportunities geothermal technology holds. However, the number of investors recognizing the allure of geothermal energy is growing from day to day. The geothermal journey usually starts with a query: Where is the best location? What do we need to know? What needs to be done? Will we be successful and at what cost? The journey can be long, easily 5 – 7 years, and many road blocks can obstruct the way. Investors might find themselves at the cross roads, having to decide how to advance further. But for all that, this venture can lead to a very reward- ing investment, if one is well prepared. This publication pro- vides the signposts for all those who are ready to capital- ize on the heat beneath their feet. Our roadmap will guide the reader through all project phases, demonstrating the risks and costs and providing comprehensive insight into all important aspects of geothermal development. Detailed market information and a close look at financing options add to this Investor’s Guide. Distinguished experts share their insight and many industry stakeholders give an account of their geothermal experience, making this publication the first of its kind. forseo has accompanied and supported multiple pro- ject developers and companies on their search for know how and capital. Our work at the interface between the geothermal industry and the financial sector has enabled us to get a profound picture of investors’ individual needs and perspectives. This publication reflects the different view- points and provides a close and diversified look at the art of geothermal. It will serve as a valuable tool for all those that are in or are thinking of entering the geothermal business. Volker Krauth Managing Director, forseo GmbH 4

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