| Title | Policy, Legal and Regulatory Aspects |
|---|---|
| Authors | Anna Nakaayi, Ralph K. B. Nyakabwa-Atwoki |
| Year | 2023 |
| Conference | World Geothermal Congress |
| Keywords | EGRIF, GDF, GRMF, HDI. KfW Bank, UNFC, Legal, Policy and Regulation |
| Abstract | ANALYSIS OF POLICY, LEGAL AND REGULATORY ASPECTS AND RISK MITIGATION FACILITIES FOR GEOTHERMAL RESOURCE DEVELOPMENT Communities worldwide have over decades past used geothermal as a source for heating, cooking and for its healing properties. Geothermal electric power generation was invented in Italy in 1904 following modernization and advances in science and technology. Challenges in the form of financing, resource existence and size, sustainability, wayleaves, as well as absence of or inadequate policy, legal and regulatory framework including absence of worldwide standards and codes encompass the development of the resource at all stages. The challenges namely large upfront investment costs that engender the capital cost of investment, substantial resource risks regarding conditions of the reservoir the inadequate or absent policy, legal and regulatory framework. Geothermal energy regulation is intricately linked to the capital investment associated with its exploration. Absence or ambiguity in the law causes potential investors investing in other countries with profitable legal frameworks and stable government policies. The inherent resource potential is huge if appropriately exploited but the fallout from inadequate regulation can also be equally daunting. The location of this resource in areas that are primarily remote yet with important natural features creates a double edged sword. The mitigation of the resource development and investment climate, is heavily dependent on whether the project field is de-risked to demonstrate the technical and commercial viability of the field. Two programs the United Nations Framework Classification (UNFC) and Geothermal Risk Mitigation Facility in place to develop specifications and guidelines in geothermal resource countries and accelerate development through provision of costs share grants for exploration and reservoir confirmation drilling. Other programs in place include the Geothermal Risk Mitigation Facility (GRMF) for Africa, the Geothermal Development Facility (GDF) for Latin America and the European Geothermal Risk Insurance Fund (EGRIF). This paper discusses the policy, and regulatory issues around the development of the geothermal resource and attendant risk mitigation in especially developing nations such as Kenya, Indonesia and Philippines, which have taken part in some of the mentioned risk mitigation facilities programs and are among the world’s top ten geo thermal generating nations. |