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Integrated power sector planning with geothermal energy included 106. Governments and planning agencies can help promote the development of geothermal power by including geothermal projects in power expansion plans. Geothermal plants are currently schematically represented in the indicative regional expansion plan in Central America developed by a regional power planning group, CEAC (Consejo de Electrificación de América Central). The current estimated cost of $2,500/kW for geothermal development could be a gross underestimate of the actual capital cost (which is likely to be above US$3,500/kW). In addition, the development cost varies widely from site to site; a single value used in the current power sector planning models does not capture this complexity. This can only be accomplished by a determined effort to obtain more information in order to quantify the geothermal resources at selected sites. 107. Making informed decisions for power sector planning requires a thorough review of alternatives. In the case of the Central American countries the two preferred resources at present consist of hydro and geothermal. Only a small number of geothermal sites are included in the expansion plan even though there are around 50 geothermal sites which should be considered. In this regard, a prioritized catalog of resources according to the information available for each project would be helpful for decision making. The priorities would be given to the most economic ones, i.e. low cost projects should be advanced first, thereby creating a pyramid of potential projects through successive screening. Geothermal projects would fit in this concept and would likely have to be advanced according to their merits relative to other projects in the catalog. This would help to better organize the expansion plan, with a balanced consideration regarding the support for different energy sources (i.e. it would not make sense to consider geothermal in isolation, nor does it make sense to rely entirely on hydro). 43PDF Image | Drilling Down on Geothermal Potential Central America
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