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as to other renewable energy technologies. However, if not managed properly, these impacts can have significant consequences and implications. For example, some of the earlier geothermal projects did not have reinjection measures, causing a precipitous drop of the hot fluid pressure and thus the production capacity as well as damage by residual fluids discharged to the surface environment. Nicaragua's Momotombo plant provides such an example, and the plant’s tarnished reputation is still not fully recovered. At the other extreme, Costa Rica has banned geothermal development in protected areas; however, such areas include most of Costa Rica's geothermal potential. Moreover, effective procedures and guidelines for following the laws and regulations will greatly facilitate the development process. All potential projects in Central America need to complete an environmental impact assessment (EIA), however, the procedures for how to do so are not clearly defined and disseminated, nor are the costs of such an assessment standardized, both of which have inhibited geothermal development. A clear legal environmental framework (e.g. within a specific geothermal law) would be helpful to spur investor interest. 40. Power Sector Planning. Governments and planning agencies can help promote the development of geothermal power by including geothermal projects in power expansion plans. Making informed decisions for power sector planning requires a thorough review of alternatives. In Central America, the two preferred renewable resources at present consist of hydro and geothermal, with wind energy rapidly becoming a competitive alternative. However, only a small number of geothermal sites are included in the expansion plan even though there are around 50 potential geothermal sites. In this regard, a prioritized catalog of resources according to the information available for each project would be helpful for decision making. Geothermal plants are notionally represented in the indicative regional expansion plan in Central America developed by the regional power planning group, CEAC (Consejo de Electrificación de América Central), however, in reality the regional expansion plan is not closely tied to country development. 41. In addition to specific legal incentives, geothermal falls within the general framework of supporting renewable development, through mechanisms such as feed-in tariffs (FITs) or Renewable Portfolio Standards (RPSs), which have yet to be put in place in Central American countries. Conclusions and recommendations 42. Based on indicative resources, production costs, and country experience in the region, the potential for geothermal power development in Central America appears to be very good. Given the relatively high costs of other power generation technologies in the region, geothermal is one of the lowest-cost sources of electric power in Central America. Despite this potential, the region xiiPDF Image | Drilling Down on Geothermal Potential Central America
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