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places a prioritization on including geothermal and other renewables in the country’s energy mix. Lastly, El Salvador’s regulatory institution, SIGET, has the ability to enforce power purchase agreements (PPA) that are financially favorable to private developers. Nicaragua The development of geothermal resource in Nicaragua would help to address a number of energy issues facing the county. With approximately 55 percent of its population connected to the grid (92 percent of which reside in urban areas), Nicaragua has the lowest electricity coverage of any country in Central America.48 Additionally, Nicaragua has become heavily dependent on fossil fuels for electricity generation. Thermal generation using fuel oil supplies over 60 percent of Nicaragua’s electricity, making the country economically vulnerable to fossil fuel price volatility.49 In an effort to address these issues, the Nicaraguan government has set a goal to produce 94 percent of its electricity from renewable resources by 2017, and 100 percent by 2025. Figure 3: Installed Generation Capacity in Nicaragua (MW) 105 40 88 230 251 Diesel HFO Hydro Geothermal Gas Turbine Source: World Bank As part of its effort to increase renewable energy generation, Nicaragua is eager to support the development of its geothermal resources. In 2002 Nicaragua instituted Geothermal Law 443, which regulates the exploration and development of geothermal resources by private companies. While, significant geothermal potential still remains to be exploited in Nicaragua, recent development in the country has occurred. In December 2011, Ram Power Corp., a Reno, Nevada based geothermal developer, completed the first phase of its expansion to the San Jacinto geothermal resource, bringing 36 MW of geothermal capacity online. Ram Power expects to bring an additional 36 MW online at San Jacinto in December 2012. Ram Power is also conducting exploration of the Casita San Cristobal geothermal resource in northwest Nicaragua. It is believed that the geothermal resource, if found to be commercially viable, could support 85 MW of geothermal generation.50 11PDF Image | Geothermal International Market Report
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