The geothermal sector suffered a big fall in financing last year, but a host of initiatives spearheaded by development banks are aiming to open investors' eyes to the technology's potential, especially in emerging markets. Gloria Gonzalez reports Many renewables investors have shied away from the geothermal sector because of the risk of their investments going south if the wells come up empty.
“I’m bullish on geothermal,” said Sid Sinha, senior vice-president for investment bank Marathon Capital, which has served as financial advisor for several major geothermal transactions. “I think it’s a great resource when it’s understood correctly. The sector is ripe for investment.”But development banks are responsible for about 47% of the investment in geothermal projects over the last decade, although “they really didn’t start getting into the game” until 2008-09, Taylor said.