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This report by the Climate Policy Initiative (CPI) analyzes the role of public finance in accelerating geothermal energy deployment in developing countries. Based on case studies from Turkey, Kenya, and Indonesia, the report demonstrates that public risk-mitigation measures can reduce the levelized cost of electricity (LCOE) and allow governments to achieve electricity generation goals while spending only 15-35% of the resources required for sole public ownership.

The report argues that public finance for geothermal energy in developing countries must increase 7-10 fold to meet 2030 targets. Through case studies in Kenya, Indonesia, and Turkey, it demonstrates that public risk mitigation measures—such as concessional loans, guarantees, and exploration support—can reduce the levelized cost of electricity (LCOE) by 35-48%, allowing governments to achieve deployment targets while spending only 15-35% of the resources required for full public ownership.

The report analyzes the impact of raising California's Renewables Portfolio Standard (RPS) to 50 percent by 2024. It finds that while this transition reduces GHG emissions and production costs, it increases renewable curtailment, primarily driven by downward reserve and regional generation requirements. The study concludes that non-fossil flexibility—including electricity storage, advanced demand response, and allowing renewables to provide reserves—is significantly more effective at reducing curtailment and emissions than increasing the flexibility of natural gas power plants.

The Bujagali Hydropower Project in Uganda serves as a case study for the use of combined risk mitigation instruments—specifically the International Development Association's (IDA) partial risk guarantee (PRG) and the Multilateral Investment Guarantee Agency's (MIGA) political risk insurance (PRI)—to attract private capital in high-risk environments. The project mobilized nearly $300 million in commercial loans and private equity, achieving a ratio of almost one U.S. dollar of private capital for every two U.S. dollars of public financing. These instruments enabled commercial banks to offer loans with maturities of 16 years and lower interest rates, which reduced the required initial electricity tariff by between 7% and 60%. The resulting levelized cost of energy (LCOE) was approximately 107 USD/MWh, significantly lower than the cost of the emergency thermal power it replaced. While effective, such complex structures have been underutilized due to high transaction costs and restrictive DFI policies, though recent World Bank Group modernizations aim to expand these tools to smaller-scale renewable energy projects like solar and wind.

The report examines clean energy financing tools used by six U.S. states and Germany to scale up renewable energy and energy efficiency investments. It highlights the role of 'green banks' and other mechanisms in reducing financial risks for the private sector and overcoming barriers like high upfront costs and limited technical understanding among financiers. Case studies include Connecticut and New York's green banks, Pennsylvania and Kentucky's use of the Warehouse for Energy Efficiency Loans (WHEEL), Iowa's revolving loans, and Massachusetts's Mass Save HEAT Loan. The report concludes that these tools can help states achieve Clean Power Plan targets by leveraging limited public funds to attract significant private capital.

The Sarulla Geothermal Power Plant case study demonstrates how public risk mitigation, including guarantees and feed-in tariffs, can attract private investment for geothermal energy in Indonesia. The project benefited from access to proven resources, which reduced exploration risk and allowed the developer to pay USD 70 million for completed exploration. While the project is expected to increase Indonesia's geothermal capacity by 20% and save 1.3 mt of CO2 annually by 2018, its levelized cost of electricity (USD 7.8-8.2 ¢/kWh) remains 40-60% higher than coal in Indonesia when excluding emission and health costs. The study suggests that public finance should prioritize exploration and field development, as commercial lenders are more willing to fund construction once resource risks are mitigated.

The Olkaria III project, a 110 MW binary geothermal plant, is the first privately funded geothermal project in Africa. It succeeded by utilizing a phased expansion strategy and a mix of public and private financing. Key enablers included the Kenyan government's provision of exploratory data and wells, a 20-year power purchase agreement (PPA) with USD-pegged tariffs, and long-term, low-cost debt from Development Finance Institutions (DFIs). The project achieved a levelized cost of electricity (LCOE) 13% lower than the average for similar Kenyan projects, demonstrating that public-private models can be more cost-effective than purely public ones.

The document examines the challenges and opportunities for geothermal energy in Indonesia, highlighting the Sarulla Geothermal Power Plant as a model for private sector involvement. It argues that while Indonesia has the world's largest geothermal potential (29GW), utilization remains below 5% due to regulatory hurdles, funding gaps, and high exploration risks. The Sarulla project, with a planned 330MW capacity, demonstrates how proven resources, public guarantees, and long-term feed-in tariffs can attract private investment and lower costs. The report concludes that public finance should be strategically focused on the high-risk exploration and field development phases to meet Indonesia's 2025 target of 7.6GW installed capacity.

The Sarulla Geothermal Power Plant (GPP) in Indonesia serves as a model for mobilizing private finance in the geothermal sector. By utilizing a combination of public guarantees, a long-term feed-in tariff, and concessional loans, the project attracted significant private debt and equity despite the high risks associated with field development. The study highlights that access to proven resources significantly reduced developer risk, while the government's Business Viability Guarantee Letter (BVGL) addressed bankability concerns regarding the state-owned offtaker, PLN. While the project's levelized cost of electricity (LCOE) is competitive with other geothermal projects, it remains more expensive than coal in Indonesia. The report concludes that to meet Indonesia's 7.6GW target by 2025, the government may need to take a larger role in early-stage exploration to further reduce risks for private investors.

The report finds that Uganda faces a critical biomass deficit by 2020, which climate change will likely exacerbate. While the government's current electricity expansion plan can cover potential hydropower losses from reduced precipitation, it requires significant investment. Adaptation focuses on reducing biomass dependence through fuel switching and energy efficiency.

The report examines how credit-enhancement mechanisms—such as guarantees, first-loss provisions, and contingent loans—can mitigate the perceived high risks of green infrastructure to mobilize private capital. It analyzes the offerings of major MDBs (including the World Bank, ADB, and EIB) and provides case studies from India, Nigeria, and Mexico to demonstrate how targeting specific risks, such as exploratory costs or tariff volatility, makes projects bankable. The authors conclude that while MDBs have the tools to catalyze green investment, a lack of knowledge among governments and a lack of specialized approval processes for green projects hinder widespread adoption.

The report examines the potential for China to use revenues from a national emissions trading scheme (ETS), expected by 2016, to fund renewable energy. While experts agree that earmarking is feasible, they suggest that funds should target less mature technologies like tidal and geothermal power rather than established wind and solar PV, which are already well-financed. Short-term revenues from auctioning allowances are expected to be small, but long-term potential exists if political will remains constant. Governance challenges include the need for transparency, the harmonization of monitoring, reporting, and verification (MRV) rules across regions, and the decision between centralizing or localizing fund management.

This case study examines the role of public finance in mitigating early-stage exploration risks for geothermal energy, focusing on the Gümüşköy Geothermal Power Plant in Turkey as the first instance of private sector financing for an unproven field in the country.

The Gümüşköy Geothermal Power Plant (GPP) represents the first instance in Turkey where the private sector financed the exploration of an unproven geothermal field. Developed by BM Holding, the 13.2MW project utilized a combination of USD 15.1 million in private equity and USD 34.5 million in debt, including a USD 24.9 million loan from the EBRD-funded Mid-size Sustainable Energy Finance Facility (MidSEFF) channeled through Yapikredi. The project's financial viability was secured by a ten-year USD-denominated feed-in tariff (FiT) of 10.5 USD¢/kWh, which increased equity returns from 10% to 16%. The study finds that while Turkey's geothermal sector grew rapidly from 30MW in 2008 to 405MW in 2014, most projects relied on government-proven fields. Gümüşköy demonstrates that private-led exploration can be cost-competitive, with an LCOE of 10.3 USD¢/kWh, and can build local banking capacity for sustainable energy finance. However, the report warns that scaling the sector requires addressing high carbon emissions from non-condensable gases, suggesting binary systems and carbon capture for industrial use as solutions.

California is working toward supplying 33 percent of its electricity from renewables by 2020 and considering a 50 percent target by 2030. To maintain grid reliability without relying on carbon-emitting natural gas plants for ancillary services, the state must address 'overgeneration'—where renewable supply exceeds demand—which currently leads to the curtailment of clean energy. The document proposes several grid integration solutions: targeting energy efficiency during evening hours, diversifying the renewable fleet (wind, solar, bioenergy, and geothermal), increasing coordination between regional grid operators, deploying energy storage (pumped hydro, compressed air, and batteries), and using demand response technologies to shift electricity consumption to peak renewable output periods.

The Obama administration's FY 2016 budget proposal emphasizes an "all of the above" energy strategy and the Climate Action Plan, proposing significant funding increases for the Department of Energy (DOE), Department of Transportation (DOT), and Environmental Protection Agency (EPA). Key investments include $7.4 billion for clean energy technology, a proposed $4 billion Clean Power Plan Incentive Fund, and $1.29 billion for the Global Climate Change Initiative. The budget targets specific greenhouse gas emission reductions by 2020, 2025, and 2050, while funding diverse initiatives ranging from solar and wind energy to sustainable transportation and international climate finance.

The report asserts that the combined fortunes of the world's wealthiest individuals could fund a total transition to renewable energy in the Global South by 2030. It estimates that $5.15 trillion is required to meet the energy demands of Africa, Latin America, and non-OECD Asia (excluding India and China). The authors argue that the energy transition must go beyond substituting fuel sources to include democratic ownership of resources and the dismantling of corporate power to address the intersecting crises of climate change and extreme inequality.

The report by Friends of the Earth International asserts that a 100% renewable energy revolution is financially feasible, noting that the personal fortunes of the world's 782 wealthiest people (approximately $5,149 billion) could fund this transition for Africa, Latin America, and much of Asia by 2030. Using International Energy Agency (IEA) demand projections, the authors calculate that $5,148 billion in additional investment is required to meet electricity needs in these regions using renewables. The document emphasizes that the transition must be guided by principles of democratic control, energy access as a human right, and community consent to avoid further human rights violations. It concludes that the primary barrier is not finance, but a lack of political will, and recommends ending fossil fuel subsidies, repaying climate debt from developed nations, and implementing global feed-in tariffs to facilitate a just energy transition.

The document provides a comprehensive overview of 'green jobs' in the U.S. and internationally, highlighting the impact of energy efficiency and renewable energy on employment. It notes a significant gap in reliable U.S. data following the elimination of the BLS Green Careers program. Key findings include the dominance of solar and wind in global renewable energy employment, with China as the largest employer, and the high job-creation potential of energy efficiency investments in buildings and transportation.

The document compiles job statistics for clean energy sectors, noting a lack of standardized measurement in the U.S. following the end of the BLS Green Careers program. It details employment figures across energy efficiency (buildings, vehicles, smart grids) and renewable energy (solar, wind, hydro, biomass, biofuels), while providing global context with a focus on China, Brazil, and the European Union.