Next-generation geothermal technologies have fundamentally changed the risk profile of geothermal investment, and capital markets have not caught up. The mismatch between how investors currently price geothermal risk and current technological capabilities is creating a bottleneck to scaling the geothermal industry. This paper proposes a structure to help investors and policymakers understand and shift their risk frameworks and also provides examples of targeted, revenue-neutral public/private drilling insurance programs that can help accelerate that shift.
