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Deep Geothermal Sends Insurers on the drawing board

Insurers Planning Solutions for Deep Geothermal Energy


By Robert Buluma

In the pursuit of sustainable energy sources, deep geothermal energy has emerged as a promising avenue. However, challenges such as drilling risks and lack of insurance coverage have hindered its widespread adoption. Addressing these concerns, the Federal Ministry of Economics is deliberating solutions in collaboration with KfW, the federally owned development bank, to ensure the viability of deep geothermal energy projects.

The Need for Insurance Coverage:

One of the major obstacles faced by utilities and municipal utilities in implementing deep geothermal projects is the absence of insurance coverage. The uncertainty surrounding drilling success and the potential shortfall in expected heat production deter stakeholders from investing in such ventures.

Proposed Solution:

To mitigate these concerns, the proposed solution involves insuring the drilling success through KfW. Under this arrangement, if the projected heat production is not achieved, the entire insured amount will be paid out. In cases where the actual output falls short of expectations, a reduced payout will be made, with results verified by an assessor. This initiative aims to instill confidence among investors and facilitate progress in the transition to sustainable energy.

Industry and Government Support:

The idea of insuring drilling success has garnered support from both the energy industry and governmental bodies. While some drilling companies offer similar insurance options, they primarily target projects with a high likelihood of success. The endorsement of this measure underscores its importance in fostering innovation and investment in the geothermal energy sector.

Integration with Existing Initiatives:

Our very own  Robert Buluma  took his precious time to offer insights to this having encountered such a scenario on duty, here is what he had to say with original response in Germany.


This initiative aligns with the broader objectives outlined in the "Geothermal Energy Campaign" introduced by the ministry in 2022. By extending KfW loans to cover drilling risks, the campaign aims to incentivize the development of deep geothermal energy projects. This holistic approach underscores the government's commitment to advancing sustainable energy solutions.


The proposed insurance solution for deep geothermal energy projects represents a significant step towards overcoming barriers to implementation. By providing financial security and risk mitigation measures, stakeholders are encouraged to explore the potential of geothermal energy as a sustainable alternative. 

This article contains the The latest Geothermal business that we find captivating and ofcouse nerve shredding on how the business was conducted

With industry and government backing, initiatives like these pave the way for a greener and more resilient energy future.

Source Bundersverband Geothermie


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