Geothermal energy is a convenient and inexpensive energy source that can be easily accessible and can serve the area where a geothermal site is present. However, this industry hasn’t developed as expected due to the funding cut operated by many governments that subsidized other energy sources.
This is the case of the UK, among other countries, where the geothermal potential is high but geothermal plants are idle. The problem resides in the lack of funds and the skepticism shown by the communities. In order to deal with this problem, Ryan Law, managing director of geothermal engineering has come up with an idea that could allow you to harness geothermal energy potential: crowdfunding.
Why Crowdfunding and Why Could It Work?
Ryan Law thought a lot about a possible funding source for his own enterprise and geothermal projects. The State is moving funds to incentivise other energy resources and some alternatives need to be found. Private investors are unlikely to bring their money to these projects and individuals can’t do it neither but.. It may be possible to ask the communities to gather their forces and fund these projects. First of all, information and transparency is needed since the community needs to know about the benefits that would accrue from their donations and the fact that heat prices don’t usually fluctuate would be another major point. Nowadays, people and communities actively participate in projects and they put money on the market for projects they believe in. On the other hand, this could be a very good opportunity for geothermal operators to access capital inexpensively.
Is Crowdfunding the Right Solution?
We will see! It is actually difficult to answer this question as it is impossible to predict the effect that this tool can produce and how people will get engaged in the projects. This initiative could be pivotal in making people more aware of the technology and its advantages but it could also diminish people’s interest or attention. Ryan Law seems to be quite confident and is taking care of the small projects to be realized whose technical information will be soon shared on the market in order to raise capital. Furthermore, Law is quite confident on the RHI support that could also back up the projects. It will be interesting to see the evolution of this project, as it could represent a major breakthrough in this industry and the solution to the persistent lack of funds.