| Abstract |
The Risk Sharing Mechanism (RSM) is a grant program funded by the World Bank and Clean Technology Found (CTF), managed by the Engineering Department of the Development and Investment Bank of Türkiye (TKYB). This program provides support for exploration well drilling activities in regions where the geothermal energy potential has not been assessed. It shares the financial risk of project sponsors in case of failure, offering a safety net and encouraging investments in geothermal energy. The RSM program has pioneered in enabling resource exploration in previously unexplored areas in Türkiye, facilitating the identification of their geothermal potential. By offering risk-sharing mechanism, it provides significant assurance for early-stage projects, making it a crucial contributor to the sector's growth. Under the mechanism, 7 exploration wells have been drilled, and approximately USD 14 million has been reimbursed, while an additional USD 22 million is projected for ongoing projects with total 90MW geothermal potential unlocked. This mechanism support stimulates increased investment in geothermal energy, and it plays a key role in advancing Türkiye’s renewable energy goals by boosting the contribution of geothermal energy to the national energy mix. This grant program generates significant value added by contributing to both the local economy and the environment, positioning geothermal energy as a key player in the country’s energy future. This article provides a comprehensive clarification of the RSM program, highlighting its value-added contributions to Türkiye's geothermal sector. Combining performance-based funding with transparent risk allocation, RSM provides a replicable framework adaptable to diverse geological and institutional settings. |