Mexico’s CFE announces $75m geothermal investment program
Los Azufres III, Phase 1 (Unit 17) geothermal power plant, Mexico (source: ThinkGeoEnergy, creative commons)
Alexander Richter
14 Sep 2022
Comisión Federal de Electridad (CFE) has been granted MXN 1.5 billion (USD 75.2m) for investments into geothermal activities in Mexico.
As reported from Mexico, 2023 investment plans have been announced for the country’s national power company CFE. In 2023, CFE will push investment projects for renewable energy, with geothermal as key technology as it to receive around MXN 1.5 billion (Mexican peso, around USD 75.2 million). Solar and wind energy will only receive around MXN 16.7 million.
For the development of geothermal energy , the CFE has planned at least 9 investment projects , while in solar and wind energy it only has 3 plans , according to the Federal Expenditure Budget Project (PEF) 2023.
The by far largest investment is for “Preinvestment Studies for the development of Geothermal areas assigned by Sener to the CFE”, for MXN 343.4 million pesos (ca $17m).
These are studies on exploration, drilling of wells in different geothermal areas, in order to verify the existence of resources for the generation of electrical energy.
“After carrying out these pre-investment studies, the company will be able to analyze whether it is technically and economically feasible to develop generation projects in the evaluated sites,” as highlighted by CFE.
The company also plans to carry out other “Pre-investment studies for the development of 7 geothermal areas located in the Mexican Republic”, which has been earmarked MXN 170.4 million ($8.5m).
It consists of carrying out 22 pre-investment studies that allow maintaining ownership of the exploration permits for 7 geothermal areas assigned by Sener to the CFE.
The power company also plans to invest MXN 23 million pesos for the purchase of 225.4 hectares of land with geothermal potential in Puebla and Michoacán.
In the Humeros II power plant, the CFE proposes to invest MXN 13.9 million pesos to develop, design and build a geothermal power plant with a guaranteed net capacity of 50 MW.
In turn, the Azufres III plant (Phase I), will have MXN 33.9 million pesos to install 50 net MW to increase the installed capacity of the geothermal field.
The company’s plan also includes pre-investment studies in the Cerritos Colorados geothermal field, Jalisco, for MXN 9.3 million pesos.
Source: Energy21
