About the Project
Reducing resource risk in geothermal exploration investment in Türkiye.
Supporting private geothermal exploration.
The RSM aims to facilitate private investment in geothermal exploration in Türkiye. If an exploration well fails to meet success criteria agreed in advance and aligned with the developer’s business plan, the mechanism covers a defined portion of eligible drilling costs.
Exploration programmes seek to confirm whether a geothermal reservoir is viable for electricity generation and/or direct-use applications.
Funding and implementation
According to the archived project information, financing is based on a contingent grant from the Clean Technology Fund to the Government of Türkiye. Envisaged programme funding is USD 37 million. The implementing institution is the Development and Investment Bank of Türkiye (TKYB).
The risk-sharing framework
- Coverage of 40% or 60% of eligible unsuccessful well costs depending on location, with a USD 4 million cap per drilling programme.
- Three wells in a standard programme, with the possibility of extension to a fourth and fifth well under specific conditions.
- A success fee or bank guarantee equivalent to 5% of estimated well costs for the standard programme.
- Success criteria are agreed before drilling; the success fee is returned to the investor for an unsuccessful well.
Archived information
This framework summarises the original website’s project description. Contact the RSM Unit for current coverage, geographical eligibility and contractual conditions.
Let’s talk about the project.
Contact the RSM Unit or the RSM Consultant with your questions.