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can be used in various applications including hot water, direct heat, and steam, the focus of this report is on the use of geothermal energy for electric power generation. 5. A primary advantage of geothermal energy for power generation is that it can be used to provide base-load electricity due to the high capacity factors (>90 percent) that can be achieved. Another advantage is that the costs of geothermal power can be competitive with other renewable technologies such as hydro, as well as with fossil fuel generating plants. In addition, compared to both thermal and other renewable technologies, geothermal produces very low greenhouse gas emissions and typically has a small environmental footprint (usually limited to land and water usage). 6. Globally, geothermal resources are currently used to produce electric power in 27 countries, with the largest producers being the United States (3,093 MW), the Philippines (1,904 MW), Indonesia (1,197 MW), Mexico (958 MW), and Italy (843 MW). Approximately 38 developing countries worldwide have significant geothermal potential that could be developed to augment their current power generating capacities and thus reduce their reliance on less sustainable energy technologies, including those based on fossil fuels. 7. One of the main barriers to commercial geothermal development is the significant uncertainty and risk in the initial exploration and test drilling phases, which are required to confirm or deny the resource potential and the commercial viability of the geothermal reservoir. Although surface surveys and geophysical and geochemical studies provide some indication of the potential, it is still necessary to drill wells to determine the commercial viability of a specific geothermal site. The early phases of development, including test drilling, are required to confirm the geothermal resource and will involve tens of millions of US dollars with no guarantee of a positive outcome. Once the resource is confirmed, commercial risks decrease considerably, development costs become more predictable, project financing becomes feasible, and the private sector is usually sufficiently motivated to become involved. Geothermal development in Central America 8. Located in the "Ring of Fire" that encircles the Pacific Ocean, geothermal resources are abundant in the Central American countries of Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, and Panama. The region had an installed capacity of around 493 MW from 7 geothermal sites in 2008, equivalent to approximately 5 percent of the region’s total installed capacity. Most geothermal capacity is concentrated in El Salvador (204 MW) and Costa Rica (163 MW), followed by Nicaragua (87 MW) and Guatemala (49.5 MW). For the region as a whole, geothermal generation in 2008 accounted for 7.9 percent (3,131GWh) of total electricity production; El Salvador has one of the highest percentages of power generation from geothermal in the world at around 24 percent. iiPDF Image | Drilling Down on Geothermal Potential Central America
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