Proposal on how to establish an insurance scheme

One of the main risks faced by developers of geothermal energy is the “resource risk”, linked with the uncertainties of the subsurface and geological objects. Few countries (France, Germany, Iceland, The Netherlands and Switzerland) have developed risk mitigation schemes in order to cover this type of risk. The GEORISK project will work to establish such risk mitigation scheme in Europe and in some key target third countries.

A number of key parameters (technical, economical, commercial, legal and organisational) characterize national systems that offset the developer’s resource risk in today’s markets. The present report provides a review of those parameters not already captured in task 3.1 in light of the experiences gained of such European systems, for setting the framework conditions for target countries that are currently developing such schemes in WP4&5. This report addresses the source of funding of existing schemes and casts them in terms of public, private or hybrid (i.e. public/private or PPP) partnership.

This report is still a draft and has to be reviewed by the European Commission.

Risk mitigation tools: Framework conditions for establishing a risk mitigation scheme