Geothermal handbook: PlanninG and Financing power Generation t e c h n I c a L r e p o r t 2 / 2

Financing Options for different Project Phases
As the previous discussion indicates, mobilizing capital for geothermal development projects from 
commercial sources is more complicated than for conventional power and for most other renewable 
energy technologies. This is especially true for early stages of project development—particularly the 
test and initial production drilling,
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when the risk is still high and the costs involved run into millions of 
dollars. However, the conditions for financing are rather different at various phases of the project, each 
phase calling for a different menu of financing options. Table 3.1 summarizes these options, breaking 
the geothermal development process into three distinct stages: (a) early stage (high risk); (b) middle 
stage (medium risk); and (c) late stage (low risk).