Geothermal Risk Transfer Facility

The Geothermal Risk Transfer Facility is a programme funded by the FCDO (2021-2025) designed to catalyse private investment in African green energy by leveraging local insurance capital to de-risk early-stage geothermal development drilling.

• The programme aims to establish a joint underwriting facility backed by East African insurers to cover early-stage development drilling risks for geothermal projects, with the intention to eventually expand coverage to other specialty risks within Africa's renewable energy and climate mitigation and adaptation sectors.
• In Kenya, four companies—ICEA Lion (lead), Sanlam, APA, and Mayfair—have committed to be founding members of the underwriting facility. A training programme for their technical underwriting staff began on 14 June, and the Kenyan regulator is expected to be supportive of the facility and the associated reinsurance vehicle created by Parhelion.
• In Ethiopia, engagement with the insurance sector began with an event on 20 May attended by 13 of 18 insurance companies, representing 80% of the market underwriting facility. A gap analysis with the Ethiopian regulator is planned for the current quarter.

APA

FSD Africa (2022). Geothermal Risk Transfer Facility. https://fsdafrica.org/wp-content/uploads/2025/05/Risk-Resilience-Geothermal-Risk-Transfer-Facility.pdf

Chicago

FSD Africa. Geothermal Risk Transfer Facility. 2022. https://fsdafrica.org/wp-content/uploads/2025/05/Risk-Resilience-Geothermal-Risk-Transfer-Facility.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Geothermal Risk Transfer Facility |date=October 2022 |url=https://fsdafrica.org/wp-content/uploads/2025/05/Risk-Resilience-Geothermal-Risk-Transfer-Facility.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2022geothermal, author = {{FSD Africa}}, title = {{Geothermal Risk Transfer Facility}}, institution = {FSD Africa}, year = {2022}, month = oct, url = {https://fsdafrica.org/wp-content/uploads/2025/05/Risk-Resilience-Geothermal-Risk-Transfer-Facility.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }