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

late Stage | Power Plant
. Once the resource has been well-established, the risks can be finally 
considered roughly comparable to other thermal generation investments. At this stage, the 
construction of the power plant and associated infrastructure can be financed through a construction 
debt facility or term debt, combined with a partial risk guarantee from IFIs, as appropriate. Term debt 
is employed upon project commissioning to refinance any existing debt and to establish a long-term 
financing structure. Provided that adequate cash flow from electricity sales is guaranteed through a 
long-term PPA, long-term debt may be available.

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G e o t h e r m a l H a n d b o o k : P l a n n i n g a n d F i n a n c i n g P o w e r G e n e r a t i o n 
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provided by development banks was a major factor in bringing geothermal project financing to a 
record-high level of US$ 1.9 billion invested in 2010 (BNEF 2011).