KfW Launches Geothermal Facility for Latin America at COP 20
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KfW Development Bank launched the Geothermal Development Facility (GDF) for Latin America on the margins of the Lima Climate Change Conference.

The GDF, the first multi-donor climate initiative to promote geothermal resources on a continental scale, will provide at least US$75 million in grant-based risk mitigation instruments and US$1 billion in financing to geothermal projects in 10 Latin American countries.

limacop208 December 2014: KfW Development Bank launched the Geothermal Development Facility (GDF) for Latin America on the margins of the Lima Climate Change Conference. The GDF, the first multi-donor climate initiative to promote geothermal resources on a continental scale, will provide at least US$75 million in grant-based risk mitigation instruments and US$1 billion in financing to geothermal projects in 10 Latin American countries.

The GDF aims to catalyze the development of at least 350 MW of geothermal generation capacity and provide clean electricity to two million people. The GDF will also provide significant capacity-building, technological expertise and infrastructure to Latin America.

At the launch, Jens Wirth, KfW, presented the benefits of geothermal energy as a proven clean technology which provides stable base-load power at affordable prices. Stephan Opitz, KfW, said concerted effort from all partners to launch the initiative resulted in an innovative concept with instruments that will prove to be effective and efficient, and will leverage substantial funding for investing in the facilities.

Barbara Buchner, Climate Policy Initiative, lamented the slow rate of geothermal energy deployment and said introducing geothermal into the energy mix could be a “game changer.”

Edwin Quintanilla, Vice-Minister for Energy, Peru, noted the potential of geothermal energy to change the dynamics of global energy demand, particularly for countries in a rapid growth phase such as Peru.

Representatives from the partner organizations involved in the project also spoke at the event. They underscored geothermal’s potential and risks, the need to attract private sector investment and ensure regulatory certainty, the power of such a large collaborative coalition and their own financial and technical commitments to the GDF.

In addition to KfW, GDF partners include the African Development Bank (AfDB), Agence Française de Développement (French Development Agency, AfD), Central American Bank for Economic Integration (CABEI), Climate Investment Fund (CIF), Development Bank of Latin America (CAF), the European Union (EU), European Investment Bank (EIB), German Federal Institute for Geosciences and Natural Resources (BGR), German International Cooperation Agency (GIZ), Government of Germany, Inter-American Development Bank (IDB), Japan International Cooperation Agency (JICA), Nordic Development Fund (NDF) and World Bank. [IISD RS ENBOTS Coverage] [IISD RS ENBOTS Video Coverage of Side Event] [IISD RS Coverage of Lima Climate Change Conference] [CPI Event Announcement] [KfW Website]


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