Renewable Energy Disputes: The Geothermal Power Example
Article from: OGEL 1 (2024), in Climate Change
Abstract
Based on a recent geothermal power production arbitration where I was involved, it is my contention that due to the upfront investment risks specific to renewable power plants, 'off-the-rack' templates and assumptions used in gauging a power plant's risk profile, such as those typical to fossil fuel based power, should not be relied upon. In this paper I intend to highlight the pitfalls of applying fossil-fuel frameworks such as feasibility studies, optimistic turbine input values and unenforceable production guarantees etc., to renewable power plants. In support of this theory, I give ...