Policy Implementation to Enable Accelarated Geothermal Development

Abstract

Policy implementation can be a very strong tool when it comes to encouraging the development and financing of geothermal energy projects. Developers and especially financiers are unwilling to invest large amounts of money in projects that carry undo legal, institutional, regulatory and environmental risks. In order to facilitate and accelerate geothermal development countries should look carefully at policies related to the granting of and terms of concessions or leases, market policies including such things as long term power purchase agreements and feed in tariffs, incentive programs and last but not least policies relative to foreign investment. Creating a very positive climate that encourages development is essential if geothermal development is to realize its potential.