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The impact of different !
regulatory/ incentive schemes
to foster development!
An overview for geothermal development
Thin...
Incentive – something that incites or
tends to incite to action or greater
effort.
Regulation - a rule or directive made
a...
Key elements of successful
geothermal development
•  Availability of sufficiently accurate geothermal
resource data and othe...
Data

Effective Institutions

Supportive Policies

Finance
ESMAP – Geothermal Handbook (2014)
5
ThinkGeoEnergy - December 2...
Supportive Policies

Effective Institutions

Data

Finance
6
ThinkGeoEnergy - December 2014
Drivers of international development last 2-3 years
Economic situation
Energy demand
Industry
•  Interest vs. Capabilities...
Policy tools
•  Renewable energy policies giving priority to development
of certain resources
•  Financial incentive schem...
Top 10 Countries – installed capacity
Source: ThinkGeoEnergy Research (2014)
1,142
410
502
597
665
812
863
967
1,339
1,968...
Growth installed capacity 2000-2014
180
59
84
116
250
390
494
530
557
756
1,214
0
 200
 400
 600
 800
 1,000
 1,200
Other
...
United States
•  Portfolio Standards – setting demand, higher prices
•  Production/ Investment Tax Credits – financing ince...
Indonesia
•  Growing economy & huge energy demand
•  Political will & legislation
•  Feed-in-tariff 
Main drivers: Energy ...
Kenya
•  Economic growth & power demand
•  Strong political will
•  Institutional set-up
•  Openness to foreign investors ...
Iceland & New Zealand
•  Political will
•  Favourable legal framework
•  Research & training
•  Power demand (now less)
Ma...
Turkey
•  Political will & legislation
•  Feed-in-tariff
•  Energy demand
•  Strong corporations
Main drivers: energy dema...
Financing
16
ThinkGeoEnergy - December 2014
Financing
•  Equity (venture, private equity, strategic equity)
•  Debt – mezzanine/ long term, availability/ steam
output...
Financing geothermal projects
Start-up
 Exploration/
Pre-Feasibility
Feasibility/
Resource
Verification

Detailed Design
& ...
0%
10%
20%
30%
40%
50%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Financing of power plants
0%
10%
20%
30%
40%
50%
...
Current market drivers
•  Growing economies & corresponding energy demand
•  Availability of financing
•  Supporting legal ...
•  Global news
•  Advisory Services
•  Geothermal
Power Plant Map
•  Social media
•  iPhone app
•  Marketing
21"ThinkGeoEn...
Follow Us
Twitter: @thinkgeoenergy
LinkedIn Group: ThinkGeoEnergy

@ThinkGeoEnergy
Flickr.com/thinkgeoenergy
YouTube.com/t...
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Impact of regulatory/ incentive schemes fostering tgeothermal development

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Presentation at the GeoPower Global Markets event in Istanbul/ Turkey, December 4, 2014. The presentation looks at the impact that the different regulatory and incentive schemes have had in fostering geothermal development internationally

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  • DOWNLOAD FULL. BOOKS INTO AVAILABLE FORMAT, ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
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Impact of regulatory/ incentive schemes fostering tgeothermal development

  1. 1. The impact of different ! regulatory/ incentive schemes to foster development! An overview for geothermal development ThinkGeoEnergy.com - @thinkgeoenergy GeoPower Global Markets, December 4, 2014
  2. 2. Incentive – something that incites or tends to incite to action or greater effort. Regulation - a rule or directive made and maintained by an authority. 3 ThinkGeoEnergy - December 2014
  3. 3. Key elements of successful geothermal development •  Availability of sufficiently accurate geothermal resource data and other relevant information •  Effective and dedicated institutions •  Supportive policies and regulations; and •  Access to suitable financing for the project developer ESMAP – Geothermal Handbook (2014) 4 ThinkGeoEnergy - December 2014
  4. 4. Data
 Effective Institutions
 Supportive Policies
 Finance ESMAP – Geothermal Handbook (2014) 5 ThinkGeoEnergy - December 2014
  5. 5. Supportive Policies
 Effective Institutions
 Data
 Finance 6 ThinkGeoEnergy - December 2014
  6. 6. Drivers of international development last 2-3 years Economic situation Energy demand Industry •  Interest vs. Capabilities •  Growth & standstill •  Growing economies •  Policy & competitiveness •  Technology, R&D •  Export initiatives •  Feed-in-tariffs, risk mitigation •  IPP vs. Public utilities Policy support •  Development Bank financing •  Export initiatives & vendor financing Availability of financing 7" TGE Presentation in 2012 ThinkGeoEnergy"/"December"2014"
  7. 7. Policy tools •  Renewable energy policies giving priority to development of certain resources •  Financial incentive schemes or government subsidies •  Risk mitigation schemes or government subsidies •  Feed-in-tariffs •  Privileges regarding connection to grid, transmission & distribution Marietta Sanders, IGA Enabling Framework Settings 8 ThinkGeoEnergy - December 2014
  8. 8. Top 10 Countries – installed capacity Source: ThinkGeoEnergy Research (2014) 1,142 410 502 597 665 812 863 967 1,339 1,968 3,386 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Other Turkey Japan Kenya Iceland Mexico Italy New Zealand Indonesia Philippines United States 9 ThinkGeoEnergy - December 2014
  9. 9. Growth installed capacity 2000-2014 180 59 84 116 250 390 494 530 557 756 1,214 0 200 400 600 800 1,000 1,200 Other Russia Nicaragua Italy Mexico Turkey Iceland New Zealand Kenya Indonesia United States 10 ThinkGeoEnergy - December 2014 Source: ThinkGeoEnergy Research (2014)
  10. 10. United States •  Portfolio Standards – setting demand, higher prices •  Production/ Investment Tax Credits – financing incentive •  Loan guarantees – financing incentive •  ARRA (Stimulus) – Research funding Main drivers: Portfolio Standards, PTC Main challenge: temporary nature PTC, competition, lack of early stage funding 11 ThinkGeoEnergy - December 2014
  11. 11. Indonesia •  Growing economy & huge energy demand •  Political will & legislation •  Feed-in-tariff Main drivers: Energy demand Main challenge: legal framework & uncertainties, pricing, guarantees, power buyer 12 ThinkGeoEnergy - December 2014
  12. 12. Kenya •  Economic growth & power demand •  Strong political will •  Institutional set-up •  Openness to foreign investors •  International funding Main drivers: energy demand, political will and foreign funding (Risk mitigation to be a driver) Main challenge: capacity building 13 ThinkGeoEnergy - December 2014
  13. 13. Iceland & New Zealand •  Political will •  Favourable legal framework •  Research & training •  Power demand (now less) Main drivers: energy demand & political will & framework, risk mitigation Main challenge: decreased energy demand 14 ThinkGeoEnergy - December 2014
  14. 14. Turkey •  Political will & legislation •  Feed-in-tariff •  Energy demand •  Strong corporations Main drivers: energy demand & feed- in-tariffs Main challenge: resource security (size of concessions) 15 ThinkGeoEnergy - December 2014
  15. 15. Financing 16 ThinkGeoEnergy - December 2014
  16. 16. Financing •  Equity (venture, private equity, strategic equity) •  Debt – mezzanine/ long term, availability/ steam output •  Tax equity •  Risk mitigation/ insurance •  Development Bank financing •  Vendor finance 17 ThinkGeoEnergy - December 2014
  17. 17. Financing geothermal projects Start-up Exploration/ Pre-Feasibility Feasibility/ Resource Verification Detailed Design & Construction Start of Operation Venture Capital Development Equity Drilling Equity Project Equity Tax Equity Mezz./ Bridge Debt, Const. Financing Project & Vendor Financing •  Developers •  IPPs (Development Pipeline) •  Resource Speculators •  Venture Capitalists •  Private Equity •  Public Markets •  Financial Partners •  Private Equity •  Strategic Partners •  Financial Players •  Large IPPs with ability to monetize PTCs Source: Islandsbanki 18"ThinkGeoEnergy"/"December"2014"
  18. 18. 0% 10% 20% 30% 40% 50% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Financing of power plants 0% 10% 20% 30% 40% 50% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $4.8bn TOTAL! Development bank ! 46%! Commercial ! lender! 22%! State-owned ! entity! 20%! Pension fund 8%! Government 4%! Annual new-build debt investment as proportion of total for past decade, 2002–2012! Source: Bloomberg New Energy Finance 19"ThinkGeoEnergy"/"December"2014"
  19. 19. Current market drivers •  Growing economies & corresponding energy demand •  Availability of financing •  Supporting legal framework 20"ThinkGeoEnergy"/"December"2014"
  20. 20. •  Global news •  Advisory Services •  Geothermal Power Plant Map •  Social media •  iPhone app •  Marketing 21"ThinkGeoEnergy"/"December"2014"
  21. 21. Follow Us Twitter: @thinkgeoenergy LinkedIn Group: ThinkGeoEnergy @ThinkGeoEnergy Flickr.com/thinkgeoenergy YouTube.com/thinkgeoenergy Slideshare.com/thinkgeoenergy Subscribe to our Weekly Newsletter at: thinkgeoenergy.com/newsletter ThinkGeoEnergy - December 2014

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