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Geothermal Resources in the Caribbean and Latin America

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Geothermal Resources in the Caribbean and Latin America ( geothermal-resources-the-caribbean-and-latin-america )

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paymentsdeficit. DebtrelieffollowingHurricaneMitch, plus ENEL’s efforts to cut losses and increase tariffs, may promote additional foreign investment. Nicaragua’s long-term plans focus on developing its significant geothermal resources. Also in the long-term, Nicaragua anticipates being a net exporter of energy to SIEPAC, the Central American interconnected grid. Although not to the extent in Honduras, Hurricane Mitch caused substantial damage in Nicaragua. The country estimatesitseconomicdamagefromthehurricaneat$1 billion, 47% of its annual GDP. Mud slides caused by excessive rain killed more than 1,500 people near the Casita Volcano and completely destroyed the towns of El Porvenir and Rolando Rodríguez. In the power sector, Hurricane Mitch brought down more than 500 electricity poles, 150 transformers, and 37,000 meters of transmission lines mainly in the Matagalpa, Jinotega,MadrizandSomotilloDepartments. Thedamage causedENEL’sgenerationcapacityinManaguatodrop from 57.4MWe to 37.4MWe at the Santa Barbara Hydropower Plant (50 MWe) where some of the reservoirs were filled. The IDB estimates that $6m will be needed to repair the electricity sector in Nicaragua. The GON launched an economic reform, pro-business and pro-trade program in 1990 following elections held after theSandinista’s12-yeardictatorship. TheChamorro Administration privatized 351 state enterprises, lowered inflation from 13,500% to 12%, and cut foreign debt in half. President Aleman was elected in 1994. Government / Legislation Empresa Nicaragüense de Electricidad (ENEL) ENEL, the state utility, handles the exploitation, transport, and distribution of the electricity produced by any type of plant. TheGONplanstosell-offthegenerationand distribution assets of ENEL in 1999 but retain the company’s transmission divisions in state hands. Pricewaterhouse Coopers is conducting a study of ENEL in the lead-up to privatization. Instituto Nicaragüense de Energía (INE) The energy sector of Nicaragua was nationalized by the Sandanistasin1979andallmunicipalpowercompaniesand ruralelectriccooperativeswereabsorbedbyINE. Inearly 1995, INE’s business functions of supplying electricity to the public were transferred to ENEL. INE is responsible for regulating, supervising, and controlling Nicaragua’s energy sector and for applying the energy policies set by the Comisión Nacional de Energía Geothermal Resources in Latin America & the Caribbean 73

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