1. Identifying,
defining and characterizing various risks associated with
geothermal energy development for each phase from testing to operation.
2. Assessment of
the magnitude of each risk arising and its impact on the project's
financial viability in generic term to illustrate the nature of
geothermal energy development and the estimated cost of various
risk management instruments currently adopted.
3.
Highlighting the reservoir-related risks, conducting a
survey of the geothermal risk management and mitigation instruments
which have been utilized in several countries including France,
Germany, Iceland, Italy, U.S. and Africa. Particular attention
will be placed on the type of risk covered, coverage ratio, triggering
mechanism, risk parameters, quantification of parameters, risk
premium, application and processing procedures, depth and extent
of commercial and technical due diligence work required, funding
source (public subsidy or market-based funding), payment performance
record, design of legal contract, etc. Supporting documents (program
brochure, application form, term sheet, model contract, and other
legal documents) will be collected as extensively as possible.
4.
Reviewing and assessing each existing instrument in terms
of its strengths and weakness, if necessary, through interviews
of the providers, and drawing key lessons and offering recommendations
for further development of these instruments based on both public
sector and private sector resources.
