Risk Management
Geothermal power plants are not venture projects. There is no market risk due to the regulations of the German Renewable Energy Sources Act (EEG); drilling and plant technology are proven and tested. The main risk of a geothermal project, remaining even after an elaborate exploration process, is the one of a dry hole analogous to oil and gas drillings. Therefore, GeoEnergy pursues a comprehensive risk management approach.
Key elements of this approach are the bundling of several projects in a portfolio, in which successful projects can bear the failure of others if necessary, as well as a multi-level insurance concept to secure the investment.
An insurance package covers:
Key elements of this approach are the bundling of several projects in a portfolio, in which successful projects can bear the failure of others if necessary, as well as a multi-level insurance concept to secure the investment.
An insurance package covers:
- risks of a dry hole and inefficiency
- drilling risks
- construction risks, business interruption and liability
(incl. transportation insurance) - general mining damage
In addition to negotiations with insurance consortia, GeoEnergy handles the respective contracts during the realization process.