Geothermal Development Facility Latin America

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The project subsidizes the risk hedging fund within the framework of the Geothermal Development Facility (GDF) in the amount of EUR 35.0 million (EUR 15.0 million grant from FZ-R 2014; EUR 10.0 million grant from FZ-R 2015; EUR 10.0 million grant from FZ-R 2016). On the basis of the FZ-R grant, an EU-LAIF grant and, if necessary, further grants from third-party donors, the risk hedging fund provides risk hedging instruments for the preparation of exploration drilling and for hedging the discovery risk in the exploration phase of geothermal projects in Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua) and the Andean countries (Bolivia, Chile, Ecuador, Colombia, Peru). This is intended to eliminate the discovery risk as a key obstacle to the use of geothermal energy as a low-emission, baseload and renewable energy source.