Multilateral Development Bank Support for Upstream Geothermal Development
- Key words
- public finance, upstream development, Multilateral Development Banks, World Bank
- Conference
- World Geothermal Congress
- Year
- 2020
- Session
- Economics and Financing
- Language
- English
- Paper number
- 04037
Full text
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Abstract
This paper shows how the Global Geothermal Development Plan (GGDP), a World Bank initiative led by the Energy Sector Management Assistance Program (ESMAP), mobilized $235 million through the Clean Technology Fund (CTF) to shift Multilateral Development Bank (MDB) support from downstream to upstream investments – from the power plant to the exploratory well. By using concessional financing to overcome the primary obstacle to geothermal expansion, the cost and risk of exploratory drilling, the GGDP has been effective at scaling up geothermal investments across the globe. To maximize value of concessional financing and leverage private sector financing, the support that is provided through MDBs is tailor-made to country and client’s needs. The evolution and customization of MDB support is illustrated in the context of Indonesia, Turkey and Dominica.
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