From January to June 2019, 52 environmental impact studies were presented to carry out works on electricity networks and build power generation plants in different areas of Central American countries.
The interactive platform "Construction in Central America", compiled by the Business Intelligence Unit at CentralAmericaData, includes an up to date list of public and private construction projects for which environmental impact studies (EIA) were submitted to the respective institutions of each country.
Last year, 87 environmental impact studies were submitted in the countries in the region, for the construction of power generation plants and works on electricity networks.
Panama is the country in the region where the largest investment is concentrated, with an approximate $1.29 billion in energy projects, corresponding to 32 environmental impact studies submitted to the Ministry of the Environment between January and December 2017.
In 2016, the average cost of 1 kWh in Central America was 13.48 cents, while in Costa Rica, it was 18.47 cents.
A report from the CEPAL indicates that in 2016, the average cost of one kilowatt hour (kWh) in Central America was 13.48 cents, while in Costa Rica it was 18.47 cents; 37% more for industrial consumption of 100,000 kWh.In El Salvador and Guatemala, it was 11.03 and 11.54 cents respectively. In Panama, 10.92 cents.
Employers claim that the country has the potential to exploit this energy, but the processes for obtaining environmental permits is being held up, in some cases by up to three years.
At the moment, geothermal energy makes up 25% of the country's energy mix, but experts in the field say the exploitation potential is even greater. However, the cumbersome and lengthy procedures to be followed to obtain operating permits is discouraging private investment.
So far this year the Central American countries have sold 120 GW/h, equivalent to $20 million.
An analysis piece on Eleconomista.net shows the levels of energy consumption of the Central American countries and the ability of each of them to trade their surpluses, with generation depending, among other things, on variables such as the weather.
"Hugo Ventura, Head of the Energy and Natural Resources at the Economic Commission for Latin America and the Caribbean (ECLAC), said that energy imports for some countries "is a lifesaver" and could be kept up in the future if the conditions are not met to encourage more investment in energy or there are delays in some major projects. "
Countries may submit projects to the Inter-American Development Bank and the Japanase International Cooperation Agency in order to apply for funding.
From this week the International Cooperation Agency of Japan (JICA) and the Inter- American Development Bank (IDB ) will be looking at various opportunities to fund renewable energy and energy efficiency in the region.
The European Investment Bank will support investment in hydropower, wind, geothermal and photovoltaic systems in Central America.
The program is being conducted in partnership with the Central American Bank for Economic Integration (BCIE) and seeks to free up more than $500 million for investments in public and private projects using clean energy in Honduras, Nicaragua, El Salvador, Guatemala, Costa Rica and Panama.
After an initial phase of exploration in Chinameca, San Miguel, LaGeo is to start feasibility studies for a 50 MW plant.
"The whole project takes four years from drilling up until it is exploited, depending on the soil type you have. We believe that it will be functioning by 2016 or 2017," said the president of the geothermal power generation company (LaGeo), Julio Valdivieso.
The World Bank is calling for a Global Geothermal Energy Development Plan in order to take advantage of subsurface heat available in many countries, including those in Central America.
From an article by the World Bank:
"Geothermal energy could be a triple benefit to developing countries: it is clean, reliable and locally produced. And once it is in operation, it is inexpensive and virtually inexhaustible." Sri Mulyani Indrawati, Managing Director, World Bank.
The Congress of El Salvador is evaluating implementing a tax which would in principle would apply only to LaGeo, a subsidiary of the Italian company Enel.
Against the backdrop of the dispute between the Government and the Italian company Enel over the capitalization of the geothermal LaGeo, "...an ad-hoc committee of the Legislature which is studying the LaGeo concession, the only cmpany with state permission to exploit subterranean heat sources, has proposed a series of amendments to the Electricity Law, including a tax that would be incurred by the activity of the geothermal company. "
New models of renewable energy developments led by SMEs are providing electricity to low-income rural households.
Elperiodico.com.gt reports that "The lack of oil reserves and rising prices has meant that the energy issue has gained a lot of interest in recent years in Central America. Installed capacity increased from 4129 MW in 1990, to 11,865 MW to in 2011, while net generation increased from 14,175 GWh to 42,115 GWh. "
The concept is part of the "Master Plan for the development of renewable energies" which sets out a strategy in power generation for the next 15years.
A study by the National Energy Council (CNE) in conjunction with the Japanese International Cooperation Agency (JICA) outlines a strategy for the next 15 years in the development of technologies using renewable resources.
Two Salvadoran government agencies are insisting on not giving the majority shares in the La Geo generator to Italy's Enel, despite a court of international arbitration ruling against them.
Inversiones Energéticas (INE) and Comisión Ejecutiva Hidroeléctrica del Río Lempa (CEL) have again refused to give the Italian company Enel Green Power a majority stake in the geothermal company La Geo, despite a ruling by an international body against them.
The mixed ownership company for geothermal power generation has failed to deliver the power levels cited in the concession contract for the past 3 years.
LaGeo is jointly owned by Italy's Enel and the Salvadoran state through the Executive Hydroelectric Commission of the Lempa River (CEL), and is the subject of litigation between the parties with respect to the Italian’s shareholding.
From 7th to 11th February 2012 , the International Trade Fair for Renewable Energy, ‘Expoenergy 2012’, will be held in San Pedro Sula .
The aim of the event is to provide a platform for those involved in the renewable energy sector in the Mesoamerican region, where they can meet in a dynamic environment, doing business and being informed about existing projects.