Turkey Geothermal Development Project

The development objective of Geothermal Development Project for Turkey is to scale up private sector investment in geothermal energy development. This project has two components. The fist component, Risk Sharing Mechanism (RSM) for Resource Validation, aims to promote private sector development of renewable geothermal energy projects in the early stage geothermal exploratory and confirmation drilling stages by sharing the risk of failing to validate a geothermal resource among two parties: the administrator of an RSM, capitalized by a Clean Technology Fund (CTF) contingent recovery grant, and the geothermal developer (that is, the beneficiary). The second component, Loan Facility for Resource Development, aims to address the financing gap that license holders face today in the resource development stages of geothermal projects by providing debt financing to encourage and support both license holders and financiers investing in (a) the capacity or production drilling stage and (b) the steam gathering and power plant construction stage.