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Nicaragua is the only country in the region that has established a specific Geothermal Law which provides a number of assurances for geothermal developers, namely the rights and obligations of concessionaires and fiscal benefits. 16. INDE, the national power company of Guatemala, has studied geothermal resources since the 1970s. Two fields have been developed: Zunil and Amatitlán. Zunil, with 28 MW installed, is operated under a build-own-operate (BOO) agreement whereby INDE operates the field and delivers steam to the power plant that is owned and operated by ORMAT. Amatitlán, with 20 MW installed, is operated entirely by ORMAT, including steam and electricity production. In both cases, ORMAT has a power purchase agreement (PPA) with INDE. 17. INDE continues to be interested in geothermal development and has built up its institutional capacity through a dedicated geothermal department that has hands-on experience through the development of the Zunil and Amatitlán fields. INDE currently holds exploration rights for several sites, including Zunil, Amatitlán, Moyuta, San Carlos, and Tecuamburro. However, the exploration concession and power development are open to the private sector, which is expected to bear all exploration risks as is the current practice in Nicaragua. 18. In Honduras, studies were conducted in the 1970s and 1980s, and six geothermal sites were identified. The potential was considered modest, with the Platanares field being the most promising. Three fields have been concessioned: the Pavana and Azacualpa fields to Geopower S.A. and the Platanares field to Geoplatanares. Geothermal activities are coordinated by the Natural Resources and Environment Secretariat (SERNA), which has conducted a complete survey of 204 surface manifestations. 19. Geothermal development in Honduras has followed a similar approach to Nicaragua, with the Government providing concessions to private companies for the development of the resource. In the case of the Platanares project, exploration had been conducted since the 1980s with public resources and international help, but is now being developed by the private sector. In 2010 the Government, through ENEE (the public utility), finalized a competitively-bid tendering process for renewable energy; 50 projects were identified with prices on the order of 10 US cents/kWh. The Platanares project is one of those that have been awarded a PPA that would ultimately make it much more attractive to the investors. 20. Geothermal exploration in Panama has taken place since the mid-1970s, with mixed results. The responsibility for geothermal development currently resides with the transmission company ETESA, which inherited these functions from IRHE (Instituto de Recursos Hidraulicos y de Electrificacion), the former state-owned utility, after the sector was reorganized in the 1990s. Currently, the most promising fields are Cerro Colorado (24 MW est.) and Valle de Antón (18 MW est.). The drillings in the latter were scheduled to take place in the late 1990s, but the development of the project was suspended due to environmental concerns from local residents (Valle de Antón is a popular tourist area). vPDF Image | Drilling Down on Geothermal Potential Central America
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