Geothermal energy utilizes heat from the earth which can be used to warm buildings or generate electricity. It is one of the few renewable energy sources that can provide reliable base load power and can also be priced competitively. Although it is one of the oldest forms of renewable energy, there are only 8,000 megawatts of installed geothermal capacity worldwide because of challenges and risks associated with drilling for suitable geothermal resources and constraints in access to capital.
IFC aims to support more geothermal projects as part of a corporate effort to mainstream project finance in this sector. Opportunities exist in countries within the Pacific Rim, in Africa’s Rift Valley and along the backbone of the Andes Mountains in Central and South America.