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.
Hidroenergy de Nicaragua has received an endorsement to build and operate four hydroelectric plants with a total generating capacity of 22.5 MW.
During the first five months of 2014 the Ministry of Energy and Mines (MEM) has granted the company Hidroenergy of Nicaragua licenses for the hydrolectric stations Santa Elisa, with generation capacity of 8.7 MW and La Esperanza which will produce 7 MW, both in Matagalpa.
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. "
Uncertainty about the beggining of the project is worrying entrepreneurs in the energy sector.
Since 2012 the hydroelectric station should have been generating 253 MW, however, uncertainty over the project "puts at risk the country's goal of changing the energy matrix, which, according to the Minister of Energy and Mines, Emilio Rappaccioli, would result in 74% of the energy generated in 2018 coming from clean sources," reported an article in Laprensa.com.ni.
Noble Energy Limited has drilled to about 700 meters at its first exploration offshore oil well in the Nicaraguan Caribbean.
"Based on the report we had yesterday (from the company), now, in total, including the layer of water which is about 350 meters, it is has reached 1,000 meters. There are almost 700 meters of drilling on the seabed," said Nicaraguan Minister of Energy and Mines, Emilio Rappaccioli.
Four awards have been made so far in the Caribbean and in the Pacific, to Noble Energy, Infinity Energy and Industrias Oklahoma Nicaragua.
According to the Minister of Energy and Mines (MEM), Emilio Rappaccioli, "the company Noble Energy, which between 2013-2015 will invest between $180 million and $670 million is at the moment making progress in drilling the first well, but in Nicaraguan waters" reported Elnuevodiario.com.ni .
The Nicaraguan Army will protect an oil rig which has started exploration operations in the subsoil of the Caribbean country.
Nacion.com reports: "The activities of "surveillance and monitoring" during the drilling and exploration phase of the platform, were agreed to be undertaken by the military and the US firm Noble Energy Nicaragua LTD, which is responsible for operations ...".
The Spanish oil company could initially invest $30 million to explore and exploit oil in the Nicaraguan Caribbean Sea.
The Spanish are interested in starting exploration studies this August by drilling a well 190 km from the port of Bluefields Bay in the South Atlantic Autonomous Region (RAAN by its initials in Spanish), located about 500 km southeast of the capital, said Emilio Rappaccioli, head of Energy and Mines.
During the VIII Petrocaribe Summit it was reported that the rate of interest on oil bills will be changed, increasing from between 2% to 4%.
The Guatemalan Vice President Roxana Baldetti, explained that Venezuela has modified the interest payment according to oil and oil supplies for more than a dozen Latin American countries. Guatemala's concern is so great that it no longer considers the agreement attractive and could move away from it.
The country could generate more than 1519 MW of renewable energy from underground heat sources.
According to the Minister of Energy and Mines, Emilio Rappaccioli, in the mountains of the Maribios, which is part of the "Ring of Fire" in the Pacific, one of the most active volcanic areas in the world, estimations are of core generation of at least 1519 megawatts energy.
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.
Spanish oil company Repsol has announced its interest in exploring oil deposits in the subsoil of the new Nicaraguan Caribbean seas.
Emilio Rappaccioli, Minister of Energy and Mines (MEM), made the announcement in a press conference where he said, "We already have a request from a new company, well known worldwide, Repsol, but the area of interest to them has not not yet been defined. '
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."
A recent ruling by the Court of the Hague, increasing the country’s maritime territory by 90 thousand square kilometers, puts Nicaragua in the sights of the oil companies.
According to experts the area where Nicaragua now has exclusive economic rights, is very rich in mineral resources and fisheries.
The Minister of Energy and Mines, Emilio Rappaccioli told media "There will probably be a few oil companies coming in earnest now, with more confidence to apply for a permit for exploration ... We believe that there is potential, but you cannot say that there is oil until it has been extracted. "