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(ETESAL), and a geothermal company (La Geo). La Geo is a mixed capital enterprise partnership between the Government and a strategic investor (the Italian power company ENEL became a partner in 2002), and has been successful in developing and operating the country’s two main geothermal fields, Berlín and Ahuachapan. The 110 MW Berlín field was explored by CEL in the 1970s and 1980s, and was developed by La Geo in the 1990s (56 MW from two 28 MW condensing units), and a further 44 MW were added in 2008, together with a 10 MW binary unit. ENEL strengthened La Geo through its knowledge of geothermal development and has been capitalizing the company, thereby acquiring a larger proportion of the company’s equity. Recently, La Geo has expanded its operations into neighboring countries, notably Nicaragua. 13. The electricity market in El Salvador is fully competitive, and geothermal projects must compete with other sources of electricity; there are no specific incentives for geothermal electricity. However, most of the existing geothermal plants were developed a long time ago and have recovered their initial investments; moreover, their O&M costs are relatively low with no fuel requirements. As a result, geothermal electricity has enjoyed a comparative advantage in the competitive market. 14. In Costa Rica, the government-owned power company, ICE, is responsible for all aspects of geothermal development. At the end of the 1980s, following the development of the Miravalles geothermal field, ICE carried out a nationwide reconnaissance study of potential geothermal resources. Today, five plants are in operation in Costa Rica with a combined capacity of 165 MW. Through strong Government support and good management, ICE has built up considerable expertise in geothermal development, and has established a dedicated geothermal department with its own drilling capabilities and facilities. Although geothermal power is among the least-cost generation choices in Costa Rica, it is currently under-utilized and does not figure more prominently in future power expansion plans as it should be due to restrictions on developing geothermal wells in National Parks and Protected Areas, which hold the largest potential of geothermal resources. 15. Based on current knowledge, Nicaragua is believed to have the largest geothermal potential in Central America and there is considerable interest on the part of the Government to develop the resources. Geothermal development in Nicaragua initially took place under the auspices of the Government-owned power company, ENEL. However, with the electricity sector reforms of the 1990s, the private sector has been tasked with geothermal development. The Government has awarded seven concessions for resource exploration to the private companies and plans to award another five. Some of the concessions are under active development but it is unclear if the country’s private sector driven approach will be successful. Since 1999, the Israeli- based company ORMAT has operated the Momotombo geothermal field and the power plant under a contract that expires in 2014, with ENEL owning the assets. A new geothermal plant (San Jacinto) is under development by Ram Power and the first 10 MW of the project entered into operation in 2007; recently (June 2011) the developer announced successful test results for a production well which will enable it to achieve its target production capacity of 82 MW. ivPDF Image | Drilling Down on Geothermal Potential Central America
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