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Country Regulatory Framework Institutional Capacity and Knowledge Incentive Policies explore and develop the fields, but lacks resources to do so. INDE has a geothermal department with appropriate capacity. The law does not mention specific incentives for RE, but the law does promote the installation of RE. It is not sufficient to incentivize geothermal development. Honduras Issued a renewable energy law that provides incentives to RE development, including a 10 percent premium for RE-based electricity over the short-term marginal costs. SERNA was involved in geothermal resource mapping in the 1980s’. Since then, geothermal development has been in the hands of the private sector. The institutional capacity regarding geothermal resources is very limited. 10 percent premium over the short-run marginal costs; sales tax exemption on materials, equipment, and services. Import and custom duties exemption, rent tax exemption for 10 years for projects up to 50 MW, etc. Nicaragua Two-stage concessioning process. Exploration concessions awarded on "beauty contest" basis for 2 yrs. If successful, developer can obtain a development concession (not automatic). Government has convened bids for three fields (Granada, Apoyo, Ometepe). Requires PPA with the DisCos and approval by the regulator (INE). Geothermal law, Renewables Law, and Electricity Law. Fiscal incentives, but difficult to materialize due to bureaucratic process. Govt requires 10% upfront participation. Govt can conduct direct negotiations (seen as danger by some developers, not so by IDB) Environmental law was amended to allow development in protected areas. Need for more knowledge. MEM has substantial capacity in its geothermal dept (2 geologists, geothermal engineers). Lab with Iceland support. Need for geophysics equipment. Rent tax exemption for 7 years; distributors are obliged to make tendering taking into account the time of constructing projects; establishes contracts of 10 years; portfolio standard for RE and punishes thermal Panama Secretary of Energy has a geothermal unit with limited capacity. Some surface surveys have been carried out. Fiscal incentives up to 25 percent of the investments of projects that reduce CO2 to pay for rent tax (<10 MW 100 percent, >10 MW 50 percent) 23PDF Image | Drilling Down on Geothermal Potential Central America
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