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versus other thermal and renewable technologies. It would also help to estimate the relative risks in the different countries in order to design such a fund. 112. At the country level, geothermal development will require varying priority and degrees of effort in different countries of the region. The following is a recommended path for each country to developing geothermal resources, taking into consideration the particular characteristics of its energy sector and country conditions. Costa Rica 113. ICE has an established capacity for gauging the renewable resource potential, including hydro and geothermal, of the country. ICE’s technical strength would allow it to develop an inventory for renewable resources and to execute it, with or without private sector participation. So far, ICE has been solely responsible for geothermal development and taken on all the risks, although the power sector is open to the private sector in generation. This approach is utilized largely due to the existing sector structure rather than by choice; nonetheless, it seems to be working well in the Costa Rican context. Geothermal plans are taken into account in the country’s development plan, and substantial information regarding the potential of identified sources exists. 114. The main obstacle to geothermal development by ICE is the strict environmental policy of the country. There are now seven categories of protected areas: National Parks, Forest Reserves, Protected Zones, Biological Reserves, National Wildlife Refuges, Wetlands, National Monuments, and Non-Governmental Properties (NGOs). National Parks are the most highly protected, but there are limitations on all lands under these protected categories. Most of the rich geothermal fields are located in protected areas. 115. Although ICE has performed an inventory of its known geothermal resources, further quantification has been impeded by the environmental limitations to explore in protected areas. As a result, future geothermal plants are incorporated in the expansion plan as generic additions. The plan includes four such plants (35 MW each, to be put into service in 2015, 2018, 2019, and 2021); together with the existing capacity (159 MW) and plants underway (Pailas, 35 MW), this would exceed the identified potential of 257 MW, thereby indicating the need to solve the protected areas limitation very soon. 116. A new bill entitled, “Regulation Law for Geothermal Production in National Parks” (File No. 16,137) has been written and presented to the Costa Rican Congress to authorize ICE to develop the geothermal resources in National Parks, but the bill will need to be reviewed by the newly elected members of Congress, who began their four-year term on May 1, 2010. ICE is understandably reluctant to invest in the costly process for gathering resource information of potential projects if these projects cannot ultimately be developed. Costa Rica needs a concerted Government/ICE policy decision to demonstrate the feasibility of developing the geothermal resource with appropriate safeguards. 117. Regarding risk mitigation, given that ICE is responsible for geothermal development, risk is being allocated entirely to the company. Although ICE is Government-owned, it would be desirable if it were protected from taking on all of the risk by suitable Government backing. 45PDF Image | Drilling Down on Geothermal Potential Central America
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