Press Release

Navigant Co-Authors New Guidebook to Geothermal Power Finance for
U.S. Department of Energy's National Renewable Energy Laboratory

May 18, 2011 at 11:01 AM EDT

WASHINGTON, May 18, 2011 (BUSINESS WIRE) --

Navigant announced today that the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) made available the Guidebook to Geothermal Power Finance, co-authored by Navigant.

"Investment in conventional geothermal power projects on the utility side of the meter has evolved dramatically since the economic downturn began in 2008," said Jane Pater Salmon, Associate Director with Navigant. "As a result, developers and investors identified new, innovative ways to address the capital constraints in the marketplace and to take advantage of the new policy incentives that emerged."

The NREL report, Guidebook to Geothermal Power Finance, co-authored by Navigant, is intended to facilitate further investment in conventional geothermal projects in the United States. It includes a brief primer on geothermal project development. The trends in geothermal project finance are the focus of this tool, relying heavily on interviews with leaders in the field of geothermal project finance. Using the information provided, developers and investors may innovate in new ways of developing partnerships that match investors' risk tolerance with the capital requirements of geothermal projects in the dynamic and evolving marketplace.

The guidebook identifies several positive developments in the market for financing conventional geothermal power projects in recent months, including:

  • Improved access to capital and financing terms. This is evident in the anticipated return of a specific type of bridge finance to the U.S. geothermal project finance market and in the loosening of construction financing.
  • Innovative structures to facilitate deals. Groups of investors are pooling resources to create risk profiles in line with their objectives. Construction and term loans are being bundled, reducing transaction costs and streamlining investment.
  • Anticipated return to the tax appetite needed to facilitate tax equity transactions. A return to profitability for many institutional investors is a critical input to successfully monetizing the federal tax credits that complement the Treasury Cash Grant program.

The Guidebook will be of interest to developers of conventional geothermal power, investors interested in geothermal projects, and regulators in areas where geothermal resources may contribute to the achievement of renewable energy portfolio standards.

Download the Guidebook to Geothermal Power Financeor contact Jane Pater Salmon at 303.728.2522 for more information.

About Navigant

Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.

About NREL

NREL is the U.S. Department of Energy's primary national laboratory for renewable energy and energy efficiency research and development. NREL is operated for DOE by the Alliance for Sustainable Energy, LLC.

SOURCE: Navigant

Navigant
Laverne Gosling, 202.481.7336
laverne.gosling@navigant.com

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