Nicaragua plans longer permits for geothermal plants
Official sources from Nicaragua state that a proposal to amend current legislation to extend the term of the concession for geothermal plants to operate 25 to 30 years has been submitted, aiming at increasing investment.
According to local news, the government of Nicaragua is currently considering lengthening concession periods for geothermal plants in order to attract more businesses and investment into the country.
President Daniel Ortega Saavedra has submitted a proposal to amend the law/Act 433 of the Exploration and Exploitation of Geothermal Resources in the country, pursued by the Nicaraguan State to have a higher stake in future generation projects in this sector.
The initiative aims to amend Article 2, paragraph 6 of Article 6, and Articles 27 and 28 of Act 443, to consign a model of state participation through Enel, in new exploration concessions and exploitation requested the Ministry of Energy and Mines.
The deputy and coordinator of the FSLN, Edwin Castro, explained that they are proposing to extend the term of the concession to operate 25 to 30 years, to align it with the term of the license generation.
The initiative adds that developers of generation projects, concessions may be up to 30 years, which will allow them to use the earth’s resources to generate steam and electricity for a similar period of years, all in accordance with the provisions of the law of the electricity industry.
Likewise, it is intended to modify the terms regarding an extension to be for a period equal to the initially granted for ten years, as currently established. The approval of this renewal will depend on the grantee that the obligations of the original contract have been fulfilled.
“It is important to note that these changes do not have a budgetary impact, but if they bring an economic impact by encouraging foreign direct investment, employment generation and the resources to get the country through the corresponding taxes and duties, and fees to be be paid “reflects the proposal.
Castro noted that the importance of these reforms is that the people of Nicaragua will become a partner, through Enel. Current law does not provide any income to the state of Nicaragua, therefore it is necessary to adopt these reforms for the state to recover what generates our mother nature.
Source: El 19 Digital via Piensa Geotermia