Johannes Scholl, Head of Division Energy and Financial Sector Latin America and the Caribbean, KFW. Iceland Geothermal Conference 2018 - Breaking the Barriers 24 - 27 April, 2018, Harpa, Reykjavík

1. De-Risking Geothermal Development
Presentation at the Iceland Geothermal Conference
25 April 2018
Johannes Scholl
Head of Division
Energy and Financial Sector
Latin America and the Caribbean

2. Index
1 KfW Development Bank – Who we are
2 Geothermal Development – Potential and barriers for growth
3 KfW Development Bank Portfolio Geothermal Development
4 On the spot: The GDF Risk Mitigation Fund
De-Risking Geothermal Development – April 2018

3. KfW Development Bank
Who we are

4. 70 years of KfW
Financing with a public mission
› Promotional bank of the Federal Republic of
Germany
› Established in 1948 as Kreditanstalt für
Wiederaufbau
› Shareholders: 80% Federal Republic,
20% federal states
› Headquarters: Frankfurt am Main
Branches: Berlin, Bonn and Cologne
› Representative offices: about 80 offices and
representations worldwide
› Balance sheet total 2017: EUR 472.3 billion
› Financing volume 2017: EUR 76.5 billion
› 6,113 employees (2017) 1
› Best long-term rating: Aaa/AAA/AAA
1) The average number of employees including temporary staff but
without members of the Executive Board and trainees
De-Risking Geothermal Development – April 2018De-Risking Geothermal Development – April 2018

5. KfW Development Bank as part of the KfW Group
We promote
development
Developing countries
&
emerging economies
International financing
We promote Germany
Private clientsSMEs Municipalities
Domestic promotion
We support
internationalisation
Export & project
finance
Support for climate and environmental protection
De-Risking Geothermal Development – April 2018

6. Geothermal Development
Potential and Barriers for Growth

7. Potential for Geothermal Development worldwide
De-Risking Geothermal Development – April 2018

8. Drillings
Bridge Financing
0 1 2 6 7 8
Investment
Financing
Grant
Financing
3 4 5 10 11 129
Capacity Drillings
The Core Challenge: Exploration Risk
Preparation ConstructionExploration Drillings
Exploration
Risk
Financing requirements to promote Geothermal Development
De-Risking Geothermal Development – April 2018

9. KfW Development Bank Portfolio
Geothermal Development

10. Portfolio Overview Geothermal Development
EUR 350 million signed / currently 22 eligible countries
Africa
[In million EUR] Signed Under
Preparation
Exploration (GRMF) 95.00 0.00
Plant Infrastructure 140.00 60.00
Latin America and the Caribbean
[In million EUR] Signed Under
Preparation
Exploration (GDF) 55.00 up to 100.00
Plant Infrastructure 0.00 350.00
Asia
[In million EUR] Signed Under
Preparation
Exploration 0.00 up to 100.00
Plant Infrastructure 60.00 up to 350.00
De-Risking Geothermal Development – April 2018

11. On the spot: The GDF Risk Mitigation Fund

12. Geothermal Development Facility (GDF) Latin America
An award-winning approach
De-Risking Geothermal Development – April 2018
Conception: High-level launch by Germany, EU Commission, KfW, CAF, CABEI, WB, ESMAP,
IDB, AfD, EIB, JICA, NDF, BGR and GIZ at COP 20 in Lima, Peru (8 December 2014).
Initiation: Announced on April 25, 2016 at the World Bank/ESMAP GGDP Roundtable,
Reykjavik, Iceland.
Start of the Risk Mitigation Fund: 7 December 2016.
2-stage process for Call for Proposals (CfPs):
1st call for Expression if Interest (EoI) on 15 January 2017
Grant Awards (1st call) on 27 September 2017
Expected Signature of Grant Agreements (1st call) in April/May 2018
2nd call for EoI started on 1 December 2017
Grant Providers: German Government (BMZ) and European Union (EU LAIF) through KfW.
GDF Stakeholders: BMZ, EU-LAIF, KfW, CAF, CABEI, WB, ESMAP, IDB, AfD, EIB, JICA, NDF,
BGR, GIZ.
Initial Capitalization: €55M.
Duration of the Facility: 10 years.
Fund Manager: IDA Fund Management, LLC. (IDA is a consortium of: Interlink Capital
Strategies LLC, Ambata Capital LLC and Dewhurst Group LLC.).

13. Geothermal Development Facility – Overview
Stakeholder Group
Risk Mitigation Fund
Grants for Surface Studies /
Contingency Grants for
Exploratory Drilling
Technical
Assistance Forum
Policy Dialogue &
Coordination of TA Programs
Follow – Up
Financing Lines
provided by GDF
Stakeholders
De-Risking Geothermal Development – April 2018

14. Drillings
GDF
Bridge Financing Lines
0 1 2 6 7 8
GDF
Investment
Financing Lines
GDF
Risk
Mitigation
Fund
–
Contingency
Grant
3 4 5 10 11 129
Capacity Drillings
Geothermal Development Facility
Preparation ConstructionExploration Drillings
GDFGrants-surfacestudies
Exploration
Risk
A tailored approach to promote Geothermal Development
De-Risking Geothermal Development – April 2018

15. Geothermal Development Facility
Risk Mitigation Fund – Grant for Surface Studies
EoI /
Application
GDF
Risk Mitigation Fund –
Grant for Surface Studies
Successful
Evaluation
Surface Studies /
Identification & Preparation
Activities
Project Developers
(Public/Private/PPP)
Grant for Surface Study
Financing of 40% of the cost of
respective activities up to a
maximum of EUR 0,6 Mio.
De-Risking Geothermal Development – April 2018

16. Geothermal Development Facility
Risk Mitigation Fund – Contingency Grant
EoI /
Application
GDF
Risk Mitigation Fund –
Contingency Grant
Exploration
successful
Repayment of 80% of the funds
received – refinancing through
Bridge / Investment Financing Lines
Successful
Evaluation
Exploration
Drillings
Exploration
unsuccessful – no
financial commitment
Project Developers
(Public/Private/PPP)
Contingency Grant
Financing of up to 40% of the
cost of exploration drilling of up
to 3 wells up to a maximum of
approx. EUR 5,8 Mio.
De-Risking Geothermal Development – April 2018

17. Geothermal Development Facility
Results – EoI Stage - First Call for Proposals
De-Risking Geothermal Development – April 2018

18. Geothermal Development Facility
Results – EoI Stage – Second Call for Proposals
De-Risking Geothermal Development – April 2018

19. Geothermal Development Facility
Bridge & Investment Financing Lines are available!
http://gdflac.com
De-Risking Geothermal Development – April 2018

20. Bank aus Verantwortung
Thank you for your attention!
Johannes Scholl
Head of Division
Energy and Financial Sector
Latin America and the Caribbean
KfW Entwicklungsbank
+49 69 7431 – 8935
johannes.scholl@kfw.de