The Inter-American Development Bank (IDB) announced the approval of a $40 million loan to finance the second phase expansion of the San Jacinto-Tizate geothermal power project, which is being developed by a private sector company, Polaris Energy Nicaragua S.A. (PENSA).

Once completed, the combined first phase and second phase expansion will produce 72 MW (net), increasing Nicaragua’s overall electricity generating capacity by 7 percent through renewable sources, thus providing a stable and low-cost supply of electricity.

San Jacinto-Tizate is considered one of the highest quality geothermal resources under development worldwide.

As the second operating geothermal power plant in Nicaragua, the project will help demonstrate the viability of this renewable source, and is expected to stimulate more private sector investment in electricity generation.

The project supports Nicaragua’s efforts to change its energy matrix, bringing the total contribution from the country’s abundant geothermal resources to 15 percent of its total installed capacity, as well as to reach its target of 86 percent of electricity generation from renewable sources by 2014.

Completion of the second phase expansion is scheduled for December 2011 at an estimated cost of $177 million, which will be co-financed by a group of multilateral lenders, including the IDB.

Source: Inter-American Development Bank

More on this topic

$ 30 million IDB Loan for Geothermal Plant in Nicaragua

March 2011

The loan to Polaris Energy Nicaragua, builder and operator of the San Jacinto-Tizate geothermal plant, will allow increased electricity generation.

The initiative aims to expand the existing generating unit of 10 MW to a total of 72 MW by leveraging additional resources and the installation of two new turbines of higher capacity.

$ 190 Million for Geothermal Power Plant in Nicaragua

November 2010

The IFC will provide $ 50 million and mobilize an additional $ 140 million to support the construction of a new geothermal power plant.

This plant is the largest project in Nicaragua in over 25 years in this sector. This initiative will foster the generation of renewable energy, expand electrification and help reduce the country's dependence on imported fuels.

Nicaraguan Geothermal Power Plant Secures Funding for Expansion

September 2010

For the end of the month, Ram Power will have secured the funding for the second phase of the San Jacinto Tizate geothermal power plant.

With the construction of the second phase, power generation will be increased to 72MW.

"The amount financed will be around $160 million and will be mostly provided by the Inter-American Development Bank (IDB) and the World Bank, reported Hezy Ram, CEO of the company".

Nicaraguan Geothermal Project After IDB Funding

April 2010

Ram Power, developer of Geothermal Power Plant San Jacinto Tizate, asked the IDB for $40 million in funding.

The Inter-American Development Bank would loan $40 million for constructing the second phase of the plant, that would take the project’s total generation capacity to 72 MW.