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the national power company, which is now a hydro company) and ENEL–Italy, the Italian national power company. 54. La Geo has benefitted from capital injections from its strategic partner (since 2002) to the extent that it is arguably the most successful geothermal enterprise in the region in terms of expertise and financial capacity. As a result, El Salvador supplies 25 percent of its energy needs from geothermal sources (around 1,450 GWh), the largest proportion in the world. The company owns a drilling subsidiary (Perforadora Santa Bárbara). La Geo inherited the Ahuachapán and Berlín geothermal fields. Exploration in the fields goes back to 1975 when reconnaissance information was developed with support from the United Nations. 55. The 95 MW Ahuachapán field was developed between 1975 and 1984 by CEL with World Bank support. During the 90s the field was rehabilitated, new wells were dug, and brine re-injection was introduced; although it had environmental issues early in its history due to its original re-injection practices, the company has learned from this experience and it is now, arguably, a showcase project in terms of environmental control. 56. The 110 MW Berlín field was explored by CEL in the 70s and 80s, and was developed by CEL in the 90s (56 MW from two 28 MW condensing units), and a further 44 MW were added in 2008, together with a 10 MW binary unit. La Geo has concessions for the San Vicente and Chinameca fields. 57. Geothermal resources supply El Salvador with approximately 24 percent of its electric energy needs, the highest in the world. Geothermal development was responsibility of CEL (Comisión Ejecutiva Hidroeléctrica del Río Lempa) until the power sector reforms of the late 90s, when CEL was broken up into a hydro generation company (still known as CEL), a transmission company (ETESAL), and La Geo; CEL’s thermal assets were sold off to private companies. La Geo incorporated ENEL, the Italian power corporation, as a strategic partner in 2002. ENEL strengthened La Geo with its knowledge of geothermal development and has been capitalizing the company, thereby acquiring a larger proportion of equity. La Geo successfully developed the Berlin geothermal field and has expanded its operations into neighboring countries, notably Nicaragua. The electricity market in El Salvador is open, and new geothermal projects must compete with other sources of electricity; there are no specific benefits for geothermal electricity. 58. La Geo is a good example of a mixed Government/ private sector development strategy. In particular, it is worth highlighting the catalytic role of ENEL in providing technical advice and injecting funds in the company. The approach in El Salvador has been successful, although project risk is still backed indirectly by the Government. It is worth noting that there have been corporate disagreements within LaGeo, between the Government and ENEL regarding the possibility of the latter acquiring a majority share in the corporation. While this has not affected LaGeo’s daily operations, these governance issues may affect the company’s long term investment for further geothermal development. Guatemala 59. In Guatemala geothermal development has been led by the national power company, INDE (Instituto Nacional de Electrificación). INDE developed two fields (Zunil and Amatitlán) which are in operation. The development model is different with respect to the other countries 30PDF Image | Drilling Down on Geothermal Potential Central America
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