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developing the resource through public private partnerships similar to those outlined above. An additional institutional possibility would be to engage ANAM, the environmental agency of Panama, which is also promoting renewables, to participate in geothermal development. Conclusions 141. Among the Central American countries, El Salvador appears to have the most favorable conditions while Honduras and Panama have least favorable conditions overall for geothermal development (Table 19). Given the different stages of geothermal development and the country and sector conditions, the recommended actions for each country are also different, as summarized in Table 20. El Salvador has accumulated extensive in-country experience and expertise and appears to be in the readiest position to further scale up geothermal capacity while Honduras and Panama have least experience overall. Still, El Salvador needs to clarify the role of LaGeo, the sole geothermal developer in the country. Costa Rica, which maintains a vertically integrated sector structure, has the lowest country risk in the region, but needs to improve its regulation to promote further geothermal development. Nicaragua needs to update its geothermal inventory. In addition, the government should take a larger responsibility in exploration and drilling activities through creation of a risk-sharing mechanism. The government of Nicaragua could help to attract the private sector by providing political and credit guarantees. The Guatemalan government could usefully strengthen in-house capacity for geothermal development, develop its geothermal resource inventory, and explore other risk-sharing mechanisms besides the separation of steam and power production that are now in use. Honduras and Panama need to decide if geothermal will play a role in their power expansion, and if so, a first step would be to undertake an inventory of geothermal resources. Table 19: Assessment of General Conditions for Geothermal Development Ranking Upfront risk mitigation Legal and regulatory framewor k Resource inventory Environment al and social impacts Integrated power sector planning CostaRica 2 El Salvador 1 Guatemala 4 Honduras 5 Nicaragua 3 Panama 5 H M M HSM M M M L L L M H S L L L L H MH M M M L M S L L H= high (favorable); S= substantial; M= medium; and L= low (unfavorable) 50PDF Image | Drilling Down on Geothermal Potential Central America
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