According to the decision of the GRMF Oversight Committee, on 9 August 2017 new GRMF regulations entered into force. These adaptions are based on the experience from the last four application rounds and are aiming for a better use of funds and consequently for a bigger impact on the geothermal market.

The major changes in the GRMF regulations include the following:

Introduction of the “Project pipeline concept”

Due to various challenges after the signing of the grant contract, the procedure and the documents required for grant contract signing have been adapted. Therefore all projects reaching more than 70 points in the evaluation of the application are included in the project pipeline. A project developer only will be invited for grant contract signing, if all required documents are submitted.. By this only projects with a perspective for further proceeding shall be invited for grant contract signing, as long as sufficient funds are available. This approach is aiming to create further competition below the GRMF awarded projects and to reduce administrative effort. In addition it shall enhance the development of the geothermal sector in East Africa.

Funding of an additional full size well

While the objective of the project pipeline is to accelerate the process of geothermal development in Eastern Africa, GRMF increases at the same time its funding possibilities and intensities by including the funding of an additional full size well into the initial drilling program (so far only possible within the continuation premium (CP)). The new rule is open both for projects with expired grant contracts and those before grant contract signing as well as for projects applying in coming application rounds. The following drilling programmes therefore become eligible under the GRMF (d) to f) showing the new options):

a)         2 full size wells

b)         3 slim holes

c)         2 slim holes & 1 full size well

d)         3 full size wells

e)         3 slim holes & 1 full size well

f)         2 slim holes & 2 full size wells

This approach, next to the project pipeline, shall additionally enhance the development of the geothermal sector in East Africa.

The amendments of the GRMF regulations will be described in more detail in the Developer Manual for the next application round and in the upcoming GRMF meeting that will take place from 10 to 13 August 2017 in Nairobi.

Please do not hesitate to contact us for further clarifications.

Your GRMF team