Geothermal power offers firm, low-carbon baseload, but its resource risk makes it one of the harder technologies to finance. Recent transactions show how the market has adapted.
The lessons
Separate exploration risk from construction risk. Use credit enhancement to bridge offtaker concerns. Align insurance with resource performance. Plan for currency mismatch. Invest early in community and land agreements.
This publication is for general information only and does not constitute legal advice. Igweta Advocates is a fictional firm presented for demonstration.