ABSTRACT
This chapter investigates how various barriers, risks, and a wide range of policy, market, and firm-level factors are incorporated into geothermal investment decision-making processes for financiers and project developers. This investigation is based on detailed new information on the geothermal industry from interviews in Indonesia and New Zealand, two key geothermal countries. Information yielded from these interviews provides a more accurate description of the processes by which financiers and developers allocate capital to geothermal projects. The Indonesian case study provides an example of a state-run power sector monopoly. BY contrast, New Zealand provides an example of a power sector that relies heavily on market mechanisms with minimal government intervention. In the context of energy transitions, addressing how financiers and project developers allocate capital to geothermal investment provides an important perspective for devising more strategic policy interventions for geothermal power expansion.
