Ormat Olkaria III Geothermal Power Development

The project will use GEF funds to provide a partial risk guarantee facility to address incremental risks and costs of exploration and development of the Olkaria III geothermal field in Kenya. Such risks and costs have been identified as one of the major barriers for the growth and development of this type of renewable energy. The project provides a partial guarantee to cover, on a cost sharing basis with the private developer, unforeseen costs overruns that may occur during the exploration and developemnt phase of the geothermal field. This financing mechanisms represents a novel use of GEF funds to assist geothermal resource development and may serve as a template for future applications in other similar situations in the developing world.