World Bank calls for expansion of geothermal in developing countries

The World Bank has called for an international effort to tap into underutilised sources of geothermal energy in developing nations.

Sri Mulyani Indrawati, the World Bank's Managing Director, called for a Global Geothermal Development Plan (GGDP) that donors, multilateral banks, governments and the private sector can join to bring what is currently a marginal renewable energy source into the mainstream.

The World Bank and Iceland are working together under a “Geothermal Compact” to support surface exploration studies and technical assistance for countries in Africa’s Rift Valley and Sri Mulyani launched the GGDP plan n Reykjavík at the Iceland Geothermal Conference.

The Bank has reported that countries including Kenya and Indonesia are developing their geothermal resources, but a global scale-up has yet to happen.

The GGDP expands on previous efforts by its global scope, and its focus on test drilling. The GGDP will identify promising sites and leverage financing for exploratory drilling, to develop commercially viable projects.  It will build on regional efforts such as the Iceland-World Bank Geothermal Compact.

The Global Geothermal Development Plan’s initial target is to mobilize US$500 million and donors can participate in the GGDP by helping to identify viable projects as well as existing channels such as the Climate Investment Funds (CIFs) or the Global Environment Facility (GEF).

The Bank will convene donors later this year to discuss financing of specific geothermal projects under the plan.

The Bank Group’s financing for geothermal development has increased from $73 million in 2007 to $336 million in 2012, and now represents almost 10 percent of the Bank’s total renewable energy lending.