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Nicaragua extends geothermal operating licenses to 30 years

Nicaragua extends geothermal operating licenses to 30 years Plant in San Jacinto Tizate, Nicaragua (source: PowerEngineers)
Francisco Rojas 13 Oct 2014

Amendments to Nicaraguan law extend the operating licenses from 25 to 30 years and prolong the extensions from 10 to 30 years; however, the State will have a 10% stake in exploration and exploitation concessions.

The new law that reforms the exploration and exploitation of geothermal resources in the country has been ratified. Amendments extend the operating licenses from 25 to 30 years and prolong the extensions from 10 to 30 years. The State will have a 10% stake in exploration and exploitation concessions.

Nicaragua has plentiful geothermal resources, yet it only exploits 7% of the estimated potential. This law reforms are trying to promote investment from the private sector for power generation.

‘we are exploiting only 140 megawatts and only 80 are in current operation, said Ernesto Martínez, President of Enel

The State through Enel will have 10% stake in exploration and exploitation concessions for private companies in the country, and for some, this might repel foreign investment.

‘This can cause serious problems in attracting investors, the executive branch should think better about this step that will give’ PLI pointed deputy, Carlos Langrand.

In this regard the Minister of Energy and Mines, Emilio Rapacciolli, said there is no problem with the state owned 10% since a similar system is in place for hydroelectric projects and is currently quite successful.

During the consultation representatives from Polaris Energy, that generates 59 megawatts of geothermal energy through the San Jacinto Tizate Project were invited to comment in the process. Said company representatives were in favor of these reforms.

It is worth mentioning that over 50% of the power generated in Nicaragua comes from renewable sources.

Source: Canal 15 via Piensa Geotermia