Polaris Energy has announced an investment of $43 million in drilling new wells to increase generation capacity from 50 to 72 MW.
The company Polaris Geothermal Energy is aiming to increase its production capacity in Nicaragua and go from 50-72 MW of power. The information was confirmed by the CEO of the company, Alex Orono, during an appearance before the board of the Chamber of Industries of Nicaragua (Cadin), confirmed Elnuevodiario.com.ni.
In the Legislature a bill is being introduced that gives the state a minimum holding of 10% in energy projects of over 100 MW.
With the reform of the law of Exploration and Exploitation of Geothermal Resources compulsory state participation in these projects is authorized. Companies in the sector believe that "... giving the state minimum participation will not jeopardize investments."
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.
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.
The system will be tested in October and in December steam from the plant’s wells will generate 36 MW which will be delivered to Nicaragua’s electrical system.
Executives from the company, Polaris Energy, responsible for the project, said that tests will start in October and in December the plant will be directly connected to the National Interconnected System (SIN in Spanish).
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. After expansion, the San Jacinto plant will produce enough energy to supply electricity to nearly one in twelve households in the country.
San Jacinto-Tizate, the geothermal power project by Ram Power Corporation, will cost an additional $15 to $20 million.
In a press release, the company explained they are facing complications and unforeseen cost increases, which will delay the date to begin operations for the first phase of the project, initially estimated for April 2011, until July or August of that year.
The construction of the San Jacinto Tizate project, implemented by Polaris Energy Nicaragua is making good progress.
The infrastructure where two turbines generating 72 MW will be installed, are almost ready.
"The first stage involves the drilling of water injection wells, which should produce enough steam for power generation, the construction of cooling towers, a plant to distribute power and the installation of the turbines," reported the article in Laprensa.com.ni.
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.
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).
Goethermal power plant San Jacinto-Tizate, located in Nicaragua, closed a $77 million credit facility.
The consortium of lenders includes Central American Bank for Economic Integration (CABEI), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Export Development Canada and Cordiant Capital.
Ram Power, owner of the project, "expects to boost site power capacity to 72 MW by fourth quarter 2011.