In the face of climate change and growing electricity demand, countries in Latin America and the Caribbean (LAC) are challenged to reduce their greenhouse gas emissions while ensuring reliable, resilient, and environmentally sustainable electricity. In this context, and for those countries with available resources, geothermal energy is a valuable alternative that can provide clean, firm, and flexible power generation at a competitive cost, complementing other renewable intermittent sources. In LAC countries, there is an identified potential for geothermal generation of approximately 13.4GW, with some studies estimating a range between 11GW to 55GW. In this context, the Inter-American Development Bank (IDB) is preparing a funding proposal to the Green Climate Fund (GCF) to create a regional facility that will support geothermal energy development and its potential applications in LAC. The fund will target the following countries: Argentina, Bolivia, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Nicaragua, Peru, and Trinidad and Tobago. The objective of this consultancy is to develop a theory of change for the GeoPlus Programme that will include a cost-benefit analysis and detailed quantification of mitigation, adaptation, and co-benefit outcomes of geothermal development in LAC. This will result in a report for publication on the merits of geothermal energy development. As part of this work, the team will also prepare the documentation required for the GCF funding proposal, including a feasibility and market study and economic and financial analysis.

K&M will advise the IDB on the following activities:

• Prepare the publication on the merits of geothermal energy development in LAC, including determining the cost-benefit analysis for the geothermal reference project
• Provide a high-level estimation of the mitigation, adaptation, and co-benefit outcomes of the GeoPlus Programme at the LAC regional level
• Prepare the GCF funding proposal, including the main document and annexes of the funding proposal