Geothermal Power Generation and Biodiversity: the Business Case for Managing Risk and Creating Opportunity

Abstract

There is increasing recognition from global financial institutions and governments of the potential biodiversity risks posed by geothermal energy developments. Inadequate plans to manage biodiversity have a high potential to result in major project delays, lenders withholding funds, stricter regulatory requirements, or community protests. We aim to provide an understanding of the likelihood of biodiversity impacts from geothermal power development, and from these findings, highlight: (i) how poor biodiversity management or lack of consideration of biodiversity issues can lead to obstacles and pitfalls during various phases of geothermal exploration and development, and (ii) the commercial benefits that proactive management of biodiversity can provide for businesses. Through a spatial overlap analysis, we determine the extent of overlap between sensitive biodiversity areas, and active geothermal sites, and potential areas where geothermal power can be harnessed. A high level of overlap was observed between areas of biodiversity importance and current and potential future geothermal power plant locations. This was further exemplified in a focal country case study of Kenya. 71% and 59% of existing geothermal power plants are in or within 10 km of protected areas and Key Biodiversity Areas respectively. Through a literature review and drawing on our experience in geothermal power and other industries (e.g., the Oil and Gas and mining sectors), we discuss the potential impacts to biodiversity that geothermal power developments may pose. We conclude that the biodiversity impacts of geothermal projects can be managed successfully, especially if supported by advance risk screening, application of the mitigation hierarchy and stakeholder engagement.