In El Salvador, the initial plan was that the new Energia del Pacifico power plant would begin operations in early 2022; however, it is currently projected to begin operations until July 1 of next year.
The project located in the Acajutla port area, which will have an installed capacity of 378 megawatts and began construction in 2015, will be delayed a few months.
During 2019, 80 environmental impact studies were presented to carry out work on electrical networks and to build energy generation plants in different areas of Central American countries.
The interactive platform "Construction in Central America", of the Trade Intelligence Unit of CentralAmericaData, includes an updated list of public and private construction projects that present environmental impact studies (EIS) to the respective institutions in each country.
The Costarican Institute of Electricity delivered the Las Pailas II Geothermal Plant located in Curubandé, Guanacaste province, at a $366 million cost.
According to projections, the work became more expensive and was delivered months late, since the 2016-2035 Generation Expansion Plan specifies that the plant had an initial cost of $335 million and was to begin operations in January 2019. The total final investment was $366 million.
The Congress of Costa Rica has finally approved a $500 million loan for the state electricity company to carry out electric generation and transmission works, including three geothermal plants.
Of the total amount of the loan with the Inter-American Development Bank (IDB) approved by the Legislative Assembly, close to $200 million will be used to finance the Pailas II, 50 MW, and Borinquen I, 55 MW geothermal projects, both in Liberia, Guanacaste.
One of the three companies that carried out geophysical studies to determine the possible existence of oil and natural gas in Panamanian soil, has announced that it has completed its data collection process.
The company GX Technology has completed data collection on the content of the coast and sea of the Panamanian Caribbean.From now on, the National Energy Secretariat can start to put out to tender the blocks for exploration of gas or oil fields.
According to the International Renewable Energy Agency, the geothermal power generation potential of the region is 20 times higher than the current installed capacity.
The main reason behind the low utilization of geothermal energy is the high cost incurred in the initial stages of exploration and evaluation of available resources.However, once that stage is over, it becomes a more economical source of electricity than others, such as fossil fuels, according to studies by the International Renewable Energy Agency (IRENA).
The Costa Rican Congress decided not to approve a $500 million loan that the state run power company wants to take out with the IDB to finance geothermal power generation projects in the country.
The deputies argued that they were not clear about the financial situation of the Instituto Costarricense de Electricidad (ICE), which would receive the loan, for which the State would act as guarantor.The decision to halt the loan approval comes two days after President Solis announced he is facing a liquidity crisis.
Costa Rica's state-owned power company has signed a $240 million loan with Japan to build the Borinquen I geothermal plant in Liberia, which could start operating in 2023.
The construction project for the geothermal plant will require a total investment of $374 million, of which $240 million will be covered by the loan from the Government of Japan and the remaining amount, with funds from the Inter-American Development Bank and resources from the Instituto Costarricense de Electricidad (ICE).
Finally, the Congress in Costa Rica will discuss a bill that proposes the exploration and exploitation of geothermal energy in national park lands.
Studies carried out by the Costa Rican Institute of Electricity (ICE) estimate potential geothermal energy generation in the country at 875 MW, where current installed capacity is 195 MW.
In Costa Rica current installed capacity is 195 MW, in a country whose generation potential identified in studies by the state run power company amounts to 875 MW.
Opportunities for growth in geothermal power generation in the country are reflected in these 680 MW which are available and as yet untapped, according to the 2014-2035 Expansion Plan for Electricity Generation by the Instituto Costarricense de Electricidad (ICE).
Using an IADB loan electrical substations will be built and a technical feasibility study made for exploitation of the geothermal potential in the field of Cosigüina.
From a statement issued by the Inter-American Development Bank:
Nicaragua will be expanding its levels of renewable energy generation and improving the electricity transmission system through a US $103.4 million financing project from the Inter-American Development Bank (IDB).
Through the company LaGeo the government has announced that $250 million is needed to start exploration in new areas and to change a geothermal turbine plant in Berlin.
Authorities at the HEPP Executive Commission of the Lempa River (CEL Group) explained that they have made closer ties with institutions such as the World Bank and the CABEI in order to negotiate possible financing.
A $224 million loan from the Japanese government will be used to build the Borinquen I geothermal plant, which will start operating in 2023 with an installed capacity of 55 MW.
The agreement of understanding signed between the governments of Costa Rica and Japan includes the construction program, the investment scheme and procurement plan, among other technical, legal, environmental and financial aspects.
Insurance coverage, tax incentives and drilling costs shared between private businesses and governments are some of the proposals put forward for exploiting geothermal potential in Central America.
A global study by the World Bank analyzes the reasons why it has not been possible to take full advantage of geothermal energy in Latin America, highlighting countries such as Costa Rica, Nicaragua, Argentina and Chile, whose potential to generate energy through this renewable source has still not been fully exploited, mainly because of the high risks involved in geothermal projects in their early stages.
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