Representatives from the two governments signed an agreement for exploration of investments in Nicaraguan geothermal energy.
The agreement was signed by Minister of Industry and Innovation in Iceland Elin Ragnheidur Arnadottir and the Minister of Energy and Mines, Emilio Rappaccioli from Nicaragua.
Elnuevodiario.com.ni reports that "... The Icelandic delegation also included an expert in geothermal parks, Albert Albertson, who visited volcanic areas and power generation projects being developed by Nicaragua in the geothermal sector."
As part of the Geothermal Energy Master Plan a delegation of experts will be arriving from the volcanic country where 100% of the energy matrix is renewable.
Nicaragua's Geothermal Master Plan has identified 10 potential sites for geothermal generation of about 1,700 MW, located along the Pacific volcanic range.
Currently there are two geothermal fields in operation, Momotombo and San Jacinto Tizate, while El Hoyo-Monte Galan and Managua-Chiltepe and Casita-San Cristóbal Volcano have been given in concession to private companies for studies of geo-scientific exploration.
Conditions of the agreement between the Nicaraguan government and the consortium of Brazilian companies are unknown.
In regards to the agreement for the construction of the hydroelectric station only the price of the energy generated is known, which will be between $118 and $125 per megawatt.
However Emilio Rappaccioli, Minister of Energy and Mines, "made no mention of the energy rate that was negotiated and would only say that "we are signing the document ensuring that the project will become a reality, and construction will be starting, I would say, in three or four months time, concluding at the end of 2018. "
An announcement has been made that the Nicaraguan subsidiary of Gas Natural Fenosa will probably sell its shares in the electricity distributors Dissnorte and Dissur.
Three companies are interested in marketing power in Nicaragua, and if an agreement is reached, the energy companies Disnorte-Dissur will have new owners.
According to the Energy Minister Emilio Rappaccioli among the companies interested are AEI, one of the largest generators in Nicaragua and the English company, ACTIS, owner of Aeolus in Nicaragua.
The crisis of the distributor Gas Natural could lead to Albanisa’s entry into the business, controlled by pro-government interests.
Laprensa.com.ni reports that "the Minister of Energy and Mines, Emilio Rappaccioli, announced that they are close to reaching an agreement in the negotiations which the government and the power distribution company, Natural Gas have been holding over the last few months."