On Monday 30, French Minister Ségolène Royal, in charge of energy affairs, publicly announced the creation of GEODEEP, a new 50-million Euro risk insurance fund dedicated to deep geothermal energy. The fund aims to protect project operators against the geological risk faced during the exploration and exploitation phases. Jointly financed by ADEME (a public institution managed by the Ministry), La Caisse des Dépôts (a public investment bank), and by private operators, GEODEEP will compensate project operators in case they fail to find economically sustainable geothermal resource.
EGEC warmly welcomes this new support scheme for geothermal energy in France. GEODEEP will indeed facilitate project operators’ investment decisions by significantly reducing the risk profile of deep geothermal projects. The fund is also expected to ensure the opening of ten new deep geothermal plants, and the creation of more than 800 new jobs. By launching GEODEEP, the French government clearly demonstrates its commitment to foster the development of renewables and proves the key role that geothermal plays in achieving the energy transition towards a low-carbon economy.
Press Release of the Ministry of Ecology, Sustainable Development and Energy : Link
EGEC Policy Paper on “Financing Geothermal Energy” calling for the establishment a European Geothermal Risk Insurance Fund (EGRIF): Link