EoI Background

In the second RSM round the applicant’s EoI must demonstrate that the applicant can qualify for RSM Program participation and enter into a Beneficiary Agreement (BA). Demonstration of the applicant’s geothermal program and general qualifications will be achieved by answering the questions and providing the requested data (to the greatest extent possible) as specified in the EoI Template.    Applicants are encouraged to provide any relevant information in addition to that which is identified in the EoI Template to help assure being shortlisted.  Generally speaking, successful applicants will need to demonstrate that they will fulfil the following qualification criteria as further identified in the EoI Template.

  1. Hold a valid exploration license.
  2. Have finished surface exploration, including geological, geophysical, and geochemical exploration.
  3. Have constructed initial Conceptual Geothermal System Model (simple or extensive)
  4. Have selected drilling targets (depth, flow rate, temperatures), well types (shallow/deep and vertical/directional) and conceptual well design.
  5. Have prepared a business plan.

As environmentally sustainable geothermal utilization is one of the key objectives of future geothermal development, expected CO2 emissions from successful wells need to be below grid emission factor of 540 g CO2/kWh.[1]

The EoI should contain the following information:

  • Geothermal – technical:
    • Conceptual model (see 3. above, which is based on 2. above) and list of data behind the conceptual model.
    • Drilling plan (see 4. Above)
    • References demonstrating previous drilling experience and CVs of key experts.
    • If there are already exploration wells, provide an indication of the information from these wells.
  • Business Plan:
    • The structure of the Beneficiary’s consortium or Joint Venture: description of the Beneficiary.
      • Here submission of financial statements of the past 3-5 years are requested, namely balance sheets, profit/loss statements and income statements.
      • This should be submitted for the aimed at special purpose entity and the group this belongs to.
    • Feasibility of the drilling plan for direct use facilities or power plants, this should include the following data:
      • Target output per well in MWth for direct use and MWe for power production.
      • Proximity to other present or planned geothermal exploration wells.
      • Number of production and number of reinjection wells aimed at.
      • Number of wells under RSM aimed at.
      • Average investment cost per well.
      • Total investment cost of power plant or direct use facility.
      • Operating costs.
      • Average sales price for the first 10 years and from year 11 onwards.
      • Percentage of equity to be committed to total investment costs.
      • Expected IRR and NPV (at 8% discount rate).
    • If any pre-feasibility study or socio-economic analysis are available, applicant should provide final reports.
  • Safeguards:
    • Environmental issues:
      • Information on project status with respect to Annex II of the Turkish Environmental Impact Assessment Regulations (Official Gazette Date: 25/11/2014 No. 29186l) and classified as Category B Project under World Bank Environmental and Social Safeguard Policies.
      • Proximity to sites of cultural heritage.
      • Proximity to protected areas/sensitive habitats with respect to national and international standards.
      • Proximity to settlements (residential, commercial, and public).
      • Proximity to water bodies, irrigation structures and designated water supply zones for groundwater and surface water.
    • Social issues:
      • Land use status in relation to land based livelihoods; use for agricultural purposes etc.
      • Land acquisition needs (whether voluntary purchase or expropriation will be sought).
      • Current and recent use of the land by project affected people and communities.

[1] In the case where only very short-term flow testing (couple of days) reveals higher CO2 output, it has to be estimated how likely it is that such results are representative for the long-term emission. It is known that CO2 output can be very high initially, but often decreases rapidly. Therefore, initial CO2 estimates should be taken provisionally, unless long-term (few weeks) flow testing is possible.