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SICA sees large geothermal development potential in Central America

SICA sees large geothermal development potential in Central America Central America, an opportunity to innovate with direct-use geothermal projects (source: SICA, GIZ)
Alexander Richter 9 Mar 2021

The geothermal potential in the member countries of the Central American Integration System (SICA) is estimated at 3,000 to 5,000 MW and with large development potential.

In a recent article shared by the General Secretariat of the Central American Integration System (SICA), the largely untapped geothermal utlization potential for the region is described as with more than 1,300 sources of thermal water.

With more than 1,343 sources of thermal water, 75 volcanoes and located in the Pacific Ring of Fire, Central America is positioned worldwide as one of the main developers of geothermal energy, with which its direct uses can be further exploited.

In Central America, 8% of the annual electricity needs are covered by the use of geothermal energy, which sustains a growing demand and an investment climate to promote projects related to this clean and climate-resilient source of energy.

The economic geothermal potential in the member countries of the Central American Integration System (SICA) is estimated between 3 to 5 gigawatts (GW), of which about 650 MW are currently used to generate electricity and only 7 MW for thermal energy.

This is an opportunity that offers countries to recognize the potential of geothermal energy in the current and future energy matrix, in order to take advantage of the direct use of heat from the subsoil for applications in industry such as, for example: dehydration of fruits and drying of seeds, air conditioning of greenhouses or cooling of cold rooms and buildings.

Through SICA, the Regional Program for the Promotion of Geothermal Energy in Central America has been developed , with the purpose of improving the investment climate in geothermal energy projects, in addition to the goals and objectives established in the Sustainable Energy Strategy 2030, adopted by the Council of Ministers of Energy of SICA.

In the first phase of the program, the Project for the Promotion of Geothermal in Central America (FoGeo I) and from this the second phase was proposed with the Project “Use of Geothermal Heat in Industrial Processes in SICA Member Countries (GEO II)” with emphasis on the direct uses of the geothermal energy to develop or strengthen projects that provide local development with a sustainable approach.

The use of geothermal energy in the region can satisfy 70% of energy needs, and its use reduces greenhouse gas emissions and dependence on fossil fuels. In addition, it creates new business opportunities, research development and jobs in the region.

GEO II’s contribution focuses on four priority areas:

  1. Support for the adaptation of the regulatory frameworks for the regulation of the direct use of geothermal energy in the member countries of SICA;
  2. Development of productive demonstration projects to lay the foundations that companies need in making investment decisions in plants and facilities for the direct use of geothermal energy;
  3. The development of methodological tools for the management of geothermal projects for direct use that make available instruments, tools, methods or guides on the use of geothermal energy; and
  4. Exchange of experiences in the SICA member states, with the involvement of existing networks of national and international experts.

The project is run by the German Ministry for Economic Cooperation and Development (BMZ), and implemented through the German Agency for International Cooperation (GIZ).

The work is carried out in close coordination with two other projects in the program: the Geothermal Development Fund (GDF), of the German Development Bank (KfW); and the Project Identification of Geothermal Reservoirs in Central America, of the Federal Institute of Geosciences and Natural Resources (BGR).

The SICA General Secretariat participates in the project, through the Energy Coordination Unit (UCE-SICA) and the link with the Ministries and Secretaries of Energy and Environment of the Central American region, with the collaboration of regional organizations and their platforms , industrial groups and associations, private companies and academic organizations, and internationally with the International Geothermal Association (IGA), the German Bundesverband Geothermie (BVG), as well as with the International Renewable Energy Agency (IRENA), the Global Geothermal Alliance (GGA) and the World Bank (WB).

Source: SICA