Geothermal Resource Risk Mitigation (GREM)
Geothermal Resource Risk Mitigation (GREM) is a financing facility intended to finance the geothermal exploration process, with the main feature of a derisking scheme to help mitigate resource risk at the exploration stage. GREM funding comes from multilateral loans managed by the World Bank (IBRD, CTF, GCF) totaling USD 197.5 million. The funding for the derisking component of SOE developers comes from a commitment from the PISP Fund of USD 150 million, while for private developers it comes from the GCF and CTF reimbursable grants managed by the World Bank for a total of USD 122.5 million. In addition, there are also grants intended for technical assistance, capacity building, and assistance related to the operation of GREM with a planned maximum commitment of USD 10 million from CTF, GCF, GIF, and ESMAP according to their respective terms and conditions.
In the future, this facility is expected to be utilized by geothermal developers and help carry out geothermal exploration activities in Indonesia. With this facility, the exploration risk becomes more measurable, opening a step towards developing electricity production that is sourced from new, renewable and environmentally friendly energy.