$ 190 Million for Geothermal Power Plant in Nicaragua

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

Monday, November 8, 2010

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.

The funds will be invested in Polaris Energy Nicaragua SA, a company responsible for building the 72-megawatt power plant in San Jacinto, northwestern Nicaragua. This is the first time that IFC invests in a project which combines exploration of geothermal resources for power generation.

Central San Jacinto is expected to cost nearly $ 370 million; it will cover almost 20% of Nicaragua's energy needs and support the government's strategy of creating renewable energy sources in the country.

Currently, 70% of Nicaragua's energy is generated from fossil fuels, which are expensive and pollute the environment. The new plant will decrease to 50% the country's dependence on power generation from imported fuels, cut high energy costs and encourage the expansion of electrification.

Hezy Ram, President of Ram Power Corporation, which will develop and operate the project, said the investment "represents another milestone in the goal of Ram Power to provide clean geothermal energy to Nicaragua."

"The proposed San Jacinto project is the first IFC investment in a geothermal energy project including exploration and exploitation of the resource and strengthens our strategy of sustainable regional development," said Bernie Sheahan, Director of IFC Infrastructure Department for Latin America. "The success of this project is extremely important for Central America, since the region could increase renewable energy generation significantly from the development of geothermal resources, which are cleaner and less expensive than existing alternatives."

Geothermal energy is one of the few sources of renewable energy capable of providing continuous and reliable basis at competitive costs. As such, geothermal energy has the potential to play an important role in many regions of the world searching for cleaner and sustainable energy. Geothermal resources are abundant in Central America and could satisfy a large percentage of the needs of the region's electricity.

More on this topic

Geothermal Energy in Nicaragua

March 2012

The volcanic mountain range of los Maribios could potentially generate more than 1,500 megawatts for the country.

Studies by the Ministry of Energy and Mines (MEM) estimate that the volcanoes of the Los Maribios range, along the Pacific area, could give the country a generation potential of more than the 1,500 megawatts in 12 areas or geothermal fields, a capability that could liberate Nicaragua from dependence on oil as a source of electricity.

Geothermal Project Receives $160 Million Financing

September 2011

The San Jacinto Tizate geothermal project in Nicaragua, has received an initial installment of $104 million in financing, from a total loan of $160 million, which will be used to complete work on the second phase.

Antonio Rodriguez, CEO of San Jacinto Tizate, told El Nuevo Diario that part of the work is completing the installation of a second turbine.

$ 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.

Nicaragua to expand geothermal energy with IDB help

August 2010

A $40 million loan will support the expansion of the San Jacinto-Tizate project, boosting power generation capacity

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).

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