1. FINANCING OF PRIVATE GEOTHERMAL POWER GENERATION
REIA2000 Conference
Renewable Energy in the Americas
Organization of American States
Washington DC, USA
December 4, 2000
FINANCING OF PRIVATE GEOTHERMAL POWER GENERATION
Lucien Y. BRONICKI
ORMAT International Inc.
P17a (spl)
0012
1962

2. Installed Geothermal Capacity (~8,000 MWe)(**) and
Worldwide Potential* (~60,000 MWe)(*)
COUNTRY INSTALLED ELECTRICAL POTENTIAL FOR
GENERATION CAPACITY ELECTRICAL GENERATION
MWe MWe
USA 2, ,000
The Philippines 1, ,000
Mexico ,500
Canada
South & Central America ,000
Western Europe, incl. Iceland ,200
Other European countries
Indonesia ,000
Japan ,400
P. R. China ,700
New Zealand ,200
Africa, incl. Kenya ,500
Others ,700
* Hot Fractured Rock Excluded
* * As of August 2000
SOURCE: US DOE and World Geothermal Congress 2000
1396

3. 1. RESOURCE DISTRIBUTION Worldwide Geothermal Energy Distribution
Areas where Geothermal Projects are in Operation or Planned
Geothermal areas where ORMAT plants are in operation
Geothermal areas where ORMAT plants are planned
1949

4. Average Capital and Delivered Costs
22000
Capital Cost
(US$/kW)
Solar Photovoltaic
4000
Solar Thermal Power
3000
Biomass - Energy
Forestry Energy Crops
Geothermal
Land-based Wind Energy
2000
Nuclear
Hydro Power
Coal
This data comes from the International Energy Agency, Key issues in developing renewables, published by OECD (Organisation for Economic Co-operation and Development). Published in 1997.
Gas, Coal, Wind and Nuclear data at 1998 prices.
Costs are AVERAGES - and can cover a wide spread depending on size.
Waste Heat
Wind
1000
Biomass - Landfill
Gas from Wastes
Active Solar Air
& Water Heating
Cost of delivered
energy (US$/kWh)
Gas
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
0.20
0.86
0.88
ל'/חשון/תשע"ט
1587
SOURCE: SHELL and DOE

5. Conventional Geothermal Steam Power Plant ORMAT Geothermal Power Plant
2. TECHNOLOGY
Conventional Geothermal Steam Power Plant
ORMAT Geothermal Power Plant
Consumes Water:
Aquifer Depletion, Power reduction
Effluents or Expensive Abatement
Plume
Visual Impact
Water Treatment Needed:
Use and Disposal of Chemicals
All Fluids Reinjected:
Sustainable, No Power Reduction
No Emissions (No Abatement Needed)
No Plume (Air Cooled Condensers)
Low Profile
Not Sensitive to Quality of Brine & Steam
1391

6. 5. ORMAT EXPERIENCE: A MATURE TECHNOLOGY
Distributed Renewable Energy and Resource Recovery
700 MW of ORMAT Power Plants in operation in 20 countries
During the last decade, ORMAT’s power plants have already avoided the emission of 12 million tons of CO2 and saved 4 million tons of fuel
THAILAND, since 1989
Geothermal, Heat Recovery, Biomass, and Solar
1470

7. ORMAT Energy Conversion Technology
Applications of
ORMAT Energy Conversion Technology
GEOTHERMAL
SOLAR
Wabuska, USA
1987
Ein Boqeq, ISRAEL
1979
WASTE HEAT
BIOMASS
Lengfurt, GERMANY
1999
Minakami, JAPAN
1998
1953

8. ORMAT Geothermal Power Plants
In Developed Countries
USA
1984
Azores Islands
600 kW
New Zealand
Wabuska Power Plant
1989
Iceland
Phase I: 5.5 MW
Phase II: 8.5 MW
1989
Sao Miguel Power Plant
2.6 MW
Bay of Plenty Power Plant
3.9 MW
Svartsengi Power Plant
1955

9. Private Geothermal Power Generation Makes Good Business Sense:
Large Scale Projects are supplying commercial electricity to national power grids.
The technology is Field Proven in industrial and less developed countries
Geothermal is competitive with fossil fuels
The projects work economically with private financing in the industrial countries
Private/Public partnership in developing countries
Work with governmental and multilateral agency support
Smaller scale plants are providing power to national and local, as well as to rural “mini-Grids
1759

10. ORMAT Modular Geothermal Power Plants
In Developing Countries
Leyte Optimization,
The Philippines
1997
Olkaria, KENYA
2000
49 MW
1st phase: 8 MW
Financing: Equity ORMAT 80% ,
EPDCI (Japan) 10% & Itochu 10%
Term Loan: US Exim Bank
Financing: all equity by ORMAT
Insurance: MIGA
1957

11. Financial Structure of the ZUNIL Project
CASE HISTORY:
Financial Structure of the ZUNIL Project
24 MW
1999
1933

12. LESSONS FROM PUBLIC-PRIVATE PARNERSHIP PROJECTS In Developing Countries
Project Hurdles
Commercial and financial barriers
Credit issue barriers
Institutional barriers
Power legislation barriers: changes after contract signature such as
dispatchability
Standards, specifications and lengthy and costly reviews:
Fixed soft costs disproportionate to small project size
Micro-management of the project rather than
enforcement of specifications
1959

13. Project Opportunities
Accelerating renewable energy deployment by public-private partnership
Public Sector Role:
Now: Subscribe to political risks, streamline and unify procedures
2. Assure correct and stable institutional framework
3. Assist developing countries in assessing local & rural needs
4. Provide performance specification
Future:
1. Reduce subsidies for fuel and unnecessary grid
2. Level the playing field: internalize renewable external
benefits or use market mechanism for carbon trading
Private Sector Role:
1. Provide all or part of equity investment
2. Provide the construction loans
3. Guaranty specifications performance and electricity prices
4. Provide technology transfer, O&M training and supervision
1960