The World Bank launched a fund in Reykjavik on Wednesday to come up with $500 million for developing geothermal energy in developing countries.
"Geothermal energy could be a triple win for developing countries: clean, reliable, locally produced power," Managing Director Sri Mulyani Indrawati said in a statement.
"At least forty countries have enough geothermal potential to meet a significant proportion of their electricity demand," the bank said, citing Kenya and Indonesia as pioneers in developing geothermal resources.
Donors could participate in the Global Geothermal Development Plan by helping to identify viable projects and providing assistance, it said.
The World Bank said it would convene a donors conference on the plan later this year.
Explore further: Indonesia passes law to tap volcano power