Geothermal Development Facility Update - Developer Survey and Response
KfW Development Bank Allegra Seipp GDF Technical Assistance Forum GEOLAC 2020, 8th of October 2020
Outline
1
KfW Development Bank
2
The Geothermal Development Facility (GDF)
3
Activities through 4 Calls for Proposals
4
Developer Survey
5
What comes next
Geothermal Development Facility for Latin America (GDF)
KfW Development Bank
KfW Development Bank as part of the KfW Group Three business sectors
Domestic promotion
International business
We promote Germany
SME Bank & Private Clients
Customised Finance & Public Clients
Digital mass business
Individual financing solutions and municipal finance
Venture capital fund investments
EUR 36 billion
EUR 7.2 billion
EUR 156 million
Geothermal Development Facility for Latin America (GDF)
KfW Capital
We support internationalisation
We promote development
KfW IPEX-Bank
KfW Development Bank DEG
International export and project finance
Promotion of developing countries and emerging economies
EUR 22.1 billion
EUR 10.6 billion
4
Portfolio Overview Geothermal Development EUR 520 million signed / currently 23 eligible countries
Latin America [In million EUR]
Signed
Under Preparation
Exploration (GDF)
55.00
up to 20.00
Plant Infrastructure
0.00
up to 100.00
Asia [In million EUR]
Exploration Plant Infrastructure
Africa [In million EUR]
Geothermal Development Facility for Latin America (GDF)
Signed
Under Preparation
Exploration (GRMF)
95.00
0.00
Plant Infrastructure
160.00
60.00
Signed
Under Preparation
150.00
up to 100.00
60.00
up to 200.00
The Geothermal Development Facility (GDF)
Geothermal Development Facility Key Facts
Grant Providers: Initial capitalization, EUR 55 million
Fund Manager: IDA Fund Management, LLC 11 eligible countries Price awarded scheme
Geothermal Development Facility for Latin America (GDF)
Geothermal Development Facility Overview
Follow – Up Financing Lines provided by GDF Stakeholders
Risk Mitigation Fund
GDF Grants - surface studies
Grants for Surface Studies Contingency Grants for Exploratory Drillings
0
Preparation
Technical Assistance Forum Policy Dialogue & Coordination of TA Programs
Exploration Risk GDF Risk Mitigation Fund
GDF Bridge Financing Lines
Contingency Grant 1
2
3
4
Exploration Drillings
Geothermal Development Facility for Latin America (GDF)
5
6
7
8
9
Capacity Drillings
GDF Investment Financing Lines 10
11
12
Drillings Construction
Activities through 4 Calls for Proposals
Geothermal Development Facility GDF Application Summary
30
Number of Applications
25 25
20 16 15 11 11
10
8
8
8
7
7 5
5
3
2 0 EOI CFP Awards Grant Agreement Signed by Grantee
Call 1 25 8 8 2
Geothermal Development Facility for Latin America (GDF)
Call 2 16 8 7 7
3
Call 3 5 3 3 3
3
3
Call 4 3
Call 5 11 11
Geothermal Development Facility Implementation Process
7 Active GDF Projects 1 Confirmation Drilling Grant and 6 Surface Study Grants
Region
South America
Central America
Country
# of selected Projects
# Active GDF projects
Bolivia
2
2
Chile
4
3
Colombia
3
0
Ecuador
1
0
Peru
1
1
Guatemala
5
1
Honduras
1
0
Nicaragua
1
0
18
7
Total
Geothermal Development Facility for Latin America (GDF)
Developer Survey
Geothermal Development Facility Feedback from project developers active in the region
Not Very Relevant
Very Relevant
Not Very Relevant
Geothermal Development Facility for Latin America (GDF)
Very Relevant
Geothermal Development Facility Obstacles to geothermal development in the region
„Lack of long term energy policies and political support“ „Negotiations with landowners and local communities are crucial“ „Long term projects are difficult to sell“ „Risk associated with the development of the field“ „Holistic plan, doing geosciences in the whole country, using trained personnel, developing the laws, and developing specific projects.“ „PPA tarrifs“ „Lobbies of fossil industry against renewable energy projects“ „Future energy prices“
Geothermal Development Facility for Latin America (GDF)
14
Results of Call 5
Geothermal Development Facility Round 5 CFP – Just completed!
11 Projects are moving to the evaluation stage
Grant Type
5 6
Confirmation Drilling
Surface Studies
Project potential of 185 MW Funding volume of EUR 30 million
Geothermal Development Facility for Latin America (GDF)
What comes next?
Geothermal Development Facility Increased Funding Intensity
Increased Funding Intensity for confirmation drilling grants 70% of eligible costs up to a maximum of EUR 9,8m
Geothermal Development Facility for Latin America (GDF)
Geothermal Development Facility Announcement of Call 6
Geothermal Development Facility for Latin America (GDF)
Contact Allegra Seipp Senior Project Manager Energy and Financial Sector Latin America and the Caribbean KfW Development Bank Allegra.Seipp@kfw.de