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Mexico planning geothermal risk mitigation programme to encourage development

Cerro Prieto plant (source: flickr/ Gobierno de Baja California, creative commons)
Alexander Richter 21 May 2015

Mexico developing a risk mitigation programme involving guarantee and insurance schemes to reduce uncertainty linked to geothermal exploration and encourage private investments.

According to SeeNews Renewables, Mexico expects to launch its first auction of geothermal power concessions in August after reserving some fields for national utility Comisión Federal de Electricidad (CFE), deputy electricity minister Cesar Hernandez said Tuesday.

In July, the government will take a decision on CFE’s request to retain several geothermal sites. In the same month, the state will publish rules for the electricity market in line with the energy reform, providing legal security to investors in the power sector.

Apart from the auctions, the government will be ready to consider private requests for other geothermal fields, depending on the investor’s financial capacity, Hernandez added.

As part of incentives, Mexico will develop a risk mitigation programme involving guarantee and insurance schemes to reduce uncertainty linked to geothermal exploration and encourage private investments. The programme is expected to generate 300 MW in a six-year period.

Source: SeeNews Renewables