The Database of Geothermal Resources in Latin American & the Caribbean was compiled and built by Liz

Battocletti of Bob Lawrence & Associates, Inc. for Sandia National Laboratories under Contract No. AS-0989. 

Special appreciation goes to John Finger of Sandia National Laboratories and Dr. Marshall Reed of the U.S.

Department of Energy Office of Geothermal Technologies for their support. The author also wishes to thank

Manlio F. Coviello—United Nations-Economic Commission for Latin America & the Caribbean; Fraser and Sue

Goff—Los Alamos National Laboratory; Gerald W. Huttrer—U.S. Geothermal Industry Corporation; Marcelo J.

Lippmann—E.O. Lawrence Berkeley National Laboratory; Ann McKinney—Geothermal Energy Association;

Brenda Sturdivant—California Energy Commission; and the numerous other individuals, companies, and

organizations who provided assistance and information. All mistakes which remain are solely the author’s.

The photographs on the cover and title pages feature Nicaragua. The background photo is William Teplow,

Vice President for Exploration of Trans-Pacific Geothermal Corp. standing beside a large steam vent at the El

Hoyo Volcano in the El Hoyo-Monte Galán region (Photo credit: Trans-Pacific Geothermal Corporation

courtesy of the National Renewable Energy Laboratory’s Online Photo Library). From left to right, the smaller

photos are the Momotombo Geothermal Power Plant and the Momotombo Volcano (Photo credit: Liz

Battocletti).

— February 1999

Acknowledgment
Geothermal Resources in Latin America & the Caribbean February 1999

INTRODUCTION ...................... 1

CENTRAL AMERICA .................. 5

Costa Rica ........................ 5

El Salvador ...................... 17

Guatemala ....................... 29

Honduras ........................ 43

México .......................... 52

Nicaragua ........................ 72

Panamá .......................... 88

THE CARIBBEAN .................... 95

Dominica ........................ 98

Grenada ........................ 102

Guadeloupe ..................... 103

Jamaica ......................... 106

Martinique ...................... 107

Montserrat ...................... 108

Netherlands Antilles .............. 109

Saint Kitts & Nevis ............... 110

Saint Lucia ...................... 113

Saint Vincent & the Grenadines .... 117

SOUTH AMERICA ................... 121

Argentina ....................... 122

Bolivia ......................... 130

Chile ........................... 141

Colombia ....................... 153

Ecuador ........................ 160

Perú ........................... 167

Venezuela ...................... 180

CONCLUSION ....................... 187

INDEX OF SITES .................... 189

BIBLIOGRAPHY .................... 192

Table of Contents
Geothermal Resources in Latin America & the Caribbean 1

Latin America and the Caribbean, from México to

Argentina to the islands of Saba and Statia south to Saint

Vincent, have approximately 50,770 MWe of geothermal

power generation potential (see table on pages 3 and 4). 

Currently, however, for many reasons, only 1,169 MWe, a

mere 2% of the region’s enormous geothermal resources

has been developed.

The Database of Geothermal Resources in Latin

America and the Caribbean details geothermal resources

suitable for power generation in the countries of Central

America, the Caribbean, and South America. This report is

a two-dimensional representation of a three-dimensional

Database. 

The Database includes information on 152 specific

geothermal sites, representing at least 5,000 MWe in

potential (potential is not known for all sites). Information

is not included for those countries and sites which do not

have high-enthalpy resources suitable for power generation

(defined here as temperatures over 100EC). Data thus is

not included for the numerous sites across the region which

are suitable for direct use applications. 

The Database includes:

• Power Profile - basic information on the country,

e.g., population, installed capacity, power generation

breakdown, electricity prices, etc.;

• Power Summary - brief description of the county’s

power sector and privatization; 

• Government / Legislation - relevant government

agencies and laws; and 

• Geothermal Sites / Projects - includes a Site

Summary for each:

1. Name

2. Location

3. Status

4. Installed Capacity (MWe)

5. Potential (MWe)

6. Temperature (EC)

7. Chronology

8. Notes

General data contained in the Database comes from several

sources including the CIA World Factbook 1998, the

Economic Commission for Latin America and the

Introduction
Geothermal Resources in Latin America & the Caribbean 2

Caribbean (ECLAC) of the United Nations1, and La

Organización Latinoamericana de Energía (OLADE)’s

Sistema de Información Económica-Energética (SIEE®).

Site- or project-specific data comes from publically

available sources which are listed in the Bibliography. 

Dynamic Database

The Database was designed to be dynamic rather than static. 

Created using Microsoft® Access 97, it can be easily

updated or modified to include specific data which the

industry would find most useful. In addition, the Database

can be made more comprehensive by adding pertinent data,

e.g., local population and market data, location of

transmission lines and roads, etc., using the Geographic

Information System (GIS) to the present structure. Finally,

the Database can be adapted for the World Wide Web and

searched using a variety of variables such as country,

desired temperature of resource, estimated power potential,

and other parameters.

For immediate dissemination to the industry, the Database

has been converted to a PDF file for posting on the WWW

(site to be determined).2

1 La Comisión Económica para América Latina

(CEPAL)

2 PDF files can be read and printed using the free

Adobe® Acrobat® Reader which can be

downloaded at http://www.adobe.com/prodindex/

acrobat/readstep.html).
3 Data on estimated geothermal potential electrical capacity in megawatts (MWe), with the exception of Jamaica, comes from the

Preliminary Report: Geothermal Energy, The Potential for Clean Power from the Earth, Geothermal Energy Association,

April 1999. The figure used is an estimate of annual electricity production using the Enhanced Technology High estimate. Data

on Jamaica is from Vimmerstedt, 1998.

Geothermal Resources in Latin America & the Caribbean 3

GEOTHERMAL POTENTIAL IN CENTRAL AMERICA, THE CARIBBEAN,

AND SOUTH AMERICA3

 Country Geothermal Installed

Capacity (MWe)

 Geothermal Potential

(MWe)

Number of

Sites

 Argentina 0.67 2,010 4

 Bolivia 0 2,490 10

 Chile 0 2,350 13

 Colombia 0 2,210 5

 Costa Rica 152.5 2,900 15

 Dominica 0 1,390 5

 Ecuador 0 1,700 5

 El Salvador 160 2,210 7

 Grenada 0 1,110 8

 Guadeloupe 4.5 3,500 1

 Guatemala 29 3,320 16

 Honduras 0 990 7
 Country Geothermal Installed

Capacity (MWe)

 Geothermal Potential

(MWe)

Number of

Sites

Geothermal Resources in Latin America & the Caribbean 4

 Jamaica 0 100 0

Martinique 0 3,500 0

 México 751.88 6,510 20

 Montserrat 0 940 1

 Netherlands Antilles 0 3,000 0

 Nicaragua 70 3,340 13

 Panamá 0 450 2

 Perú 0 2,990 12

 Saint Kitts & Nevis 0 1,280 3

 Saint Lucia 0 680 1

 Saint Vincent & the Grenadines 0 890 1

 Venezuela 0 910 3

 TOTALS 1,168.55 50,770 152
Geothermal Resources in Latin America & the Caribbean 5

Costa Rica

Population (millions) - July 1998 3.6

Overall Electrification (% of population) 93%

GDP (billion US$) - 1997 est. $19.6

Real GDP Growth Rate - 1997 est. 3.0%

Inflation Rate (CPI) - 1997 11.2%

Total Installed Capacity (MWe) - 1997 1370

Electricity Consumption per Capita (kWh) - 1997 1267

Energy Demand Growth Rate 4.0%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

5.04

8.97

7.47

Estimated Geothermal Potential (MWe) 2,900

Power Summary

Costa Rica’s total installed capacity as of December 1997

was 1,370 MWe of which Instituto Costarricense de

Electricidad (ICE), the public utility company, owned 88%. 

The remaining 12% is owned by four cooperatives, two

municipal companies, over 20 private generators, and the

Costa Rican Petroleum Refinery. The majority of the

energy sector remains under state control.

Costa Rica has vast hydropower resources (9,155 MWe) of

which only 8% (754 MWe) are currently being utilized. 

The country produces approximately two-thirds of the

power it consumes and imports the remainder, mostly crude

oil and petroleum products (Lawrence, 1998).

Hydroelectric power dominates the country’s power

production accounting for over 90% of Costa Rica’s total

power. Thermal energy production relies on fossil fuel

imports. Geothermal power produced at Miravalles

supplies about 11% of Costa Rica’s electrical demand. 

The market for power in Costa Rica peaked in 1993 as a

result of the construction of the Sandillal, Toro, and

Miravalles projects. The market decreased in 1994 partly

Central America
Geothermal Resources in Latin America & the Caribbean 6

because of the Government of Costa Rica’s (GOCR) fiscal

problems. The GOCR froze almost every large

infrastructure project in 1996 in order to cut public

spending as required by the World Bank, International

Monetary Fund (IMF), and IDB.

Costa Rica needs at least an additional 4,211 MWe by

2016, excluding current capacity scheduled for retirement. 

Of this amount, 137.5 MWe will come from geothermal

sources, specifically Miravalles II (55 MWe), Miravalles

III (27.5 MWe), and Tenorio (55 MWe). 

Major future projects include the 177 MWe Angostura

hydroelectric project expected online in 2000, Piris - 128

MWe - 2003, Los Llanos - 85 MWe - 2007, Pacuare - 156

MWe - 2008, and Boruca - 1500 MWe - 2010. 

Government / Legislation

Instituto Costarricense de Electricidad (ICE)

Originally, ICE, the public electric utility which was created

in 1949, was responsible for exploring and developing the

country’s geothermal resources. This changed in 1990 with

the passage of Law 7200, the Independent Power

Generation Act. 

The investigation and development of geothermal fields

falls exclusively to ICE. The private sector is only allowed

to generate electricity. 

Laws 7200 (1990) and 7508 (1995) - Independent Power

Generation Act

Laws 7200 and 7508 allow private developers to build and

operate geothermal power plants within the following

parameters:

• 35% of the company’s ownership must be

Costa Rican; 

• the procedure is public bidding; 

• the maximum power installable per

concession or public bidding is 50 MWe;

• the maximum term is 20 years; 

• up to 15% of the country’s total installable

power can come from private sources;

• environmental impact studies are required;

and

• the rate is competitively set.
Geothermal Resources in Latin America & the Caribbean 7

No Specific Law for Geothermal

Like mineral resources, geothermal is considered the

property of the State whose exploitation ICE seeks to

maintain as a monopoly. All geothermal concessions

belong to ICE. 

The new law, which is currently under consideration by the

Costa Rican Congress, is more broad minded, allowing a

wider range of use for resources, but still retains ownership

by the State.

Geothermal Sites / Projects

Costa Rica has an estimated 1,000-3,500 MWe of

geothermal power potential.

Due to its over-reliance on hydroelectric power, Costa Rica

is developing its significant geothermal resources. In 15

years, geothermal will account for 10% of Costa Rica’s

total installed capacity, primarily baseload. The GOCR’s

policy is to have 100% renewable energy production in

Costa Rica by 2010 (Lawrence, 1998).

Costa Rica began exploring its geothermal resources for

electrical generation in 1963. It was not until the 1973

OPEC oil embargo, however, that a major interest in

developing the country’s indigenous energy source

materialized. Systematic studies began in 1975 at

Miravalles. 

ICE is interested in further developing Costa Rica’s

geothermal resources as an important component of its

electrical generation plan. ICE’s objective is to sell

geothermal steam to the private sector to be used in power

plants built under Build-Operate-Transfer (BOT) or similar

contracts. ICE would then buy the electricity generated for

the Interconnected National System.

Electricity generation using geothermal energy began at

Miravalles in 1994, which in 1998 continues to be the only

exploited

geothermal area

in Costa Rica. 

By the year

2000,

Miravalles will

produce

approximately

167.5 MWe. 

On the basis of

available data, it

is probable that

the development

of Miravalles

will reach its

limit in the near
Geothermal Resources in Latin America & the Caribbean 8

future. Consequently, ICE plans to develop other

geothermal areas for electricity generation. These are

Rincón de la Vieja, Tenorio, and Poco Sol Caldera. 

Areas of less interest but also promising are Barva, IrazuTurrialba, Poás, and Porvenir-Platanar, each with potential

of 100-115 MWe. The least favorable areas of the country

are Fortuna and Orosi-Cacao with a potential of 70 and 35

MWe respectively. 

ICE defines “reserves” as the fraction of the earth’s heat

stored up to 2.5 km in depth, which can be commercially

exploited within 10 years. “Resources” are the fraction of

the earth’s heat stored up to 3 km in depth, which can be

commercially exploited within 25 years. Using this

methodology, ICE estimates Costa Rica’s reserves at 1,000

MWe; its resources at 2,250 MWe. 

1. Barva

2. Fortuna-Poco Sol Caldera

3. Irazú-Turrialba

4. Miravalles Boca Pozo I

5. Miravalles Boca Pozo II

6. Miravalles I

7. Miravalles II

8. Miravalles III

9. Miravalles IV

10. Miravalles V

11. Orosí-Cacao

12. Poás

13. Porvenir-Platanar

14. Rincón de la Vieja

15. Tenorio

Barva

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 97-214

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

Potential capacity (MWe) represents average values that

can be fed by the “reserves” to that which can be fed by

the “resources” (Cataldi, 1995).
Geothermal Resources in Latin America & the Caribbean 9

Fortuna-Poco Sol Caldera

LOCATION

On the Atlantic slope of the province, in the NW-SE

trending Tilarán Volcanic Range where no recent

volcanic activity has occurred (Alajuela Province).

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 69-159

TEMPERATURE (EC) 150-240

CHRONOLOGY

1989 - Identified within the Fortuna area in the

reconnaissance study.

1999 - ICE planning additional work.

NOTES

Based on boiling hot springs (98oC) found in the area, a

geothermal evaluation was included in the feasibility

studies of the Peñas Blancas hydroelectric plant.

Very high geothermal gradients were observed near one

of the proposed dam sites (151oC was measured 42m

below the river bed), which was interpreted to correspond

to an upflow zone along calderic fractures. According to

geochemical data, the hot springs arise from a 240oC

geothermal reservoir at a depth of about 1 km inside the

Poco Sol Caldera (Robles, 1998).

Potential capacity (MWe) represents average values that

can be fed by the “reserves” to that which can be fed by

the “resources” (Cataldi, 1995).

Irazú-Turrialba

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 115-257

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

Potential capacity (MWe) represents average values that

can be fed by the “reserves” to that which can be fed by

the “resources” (Cataldi, 1995).

Miravalles Boca Pozo I
Geothermal Resources in Latin America & the Caribbean 10

LOCATION

The Miravalles geothermal field is located in

northwestern Costa Rica, SW of the Volcán Miravalles

(Guanacaste Province).

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 5

POTENTIAL (MWE) 5

TEMPERATURE (EC) -

CHRONOLOGY

1979 to 1980 - First three exploratory wells drilled. 

1994 - 5 MWe backpressure wellhead unit installed. 

Plant factor of 80%; 80.58% in 1997.

NOTES

Includes one production and one reinjection well. Owned

and operated by ICE.

Miravalles Boca Pozo II

LOCATION

The Miravalles geothermal field is located in

northwestern Costa Rica, SW of the Volcán Miravalles

(Guanacaste Province).

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 10

POTENTIAL (MWE) 10

TEMPERATURE (EC) -

CHRONOLOGY

1996 and 1997 - Under a renewable 18-month

cooperative agreement between ICE and México’s CFE,

two 5 MWe backpressure units were put online.

NOTES

Includes one production and one reinjection well. Owned

by ICE; operated by Comisión Federal de Electricidad

(CFE).

Only one of the CFE units is operating. One was shut

down to supply steam to the Miravalles II plant.

Miravalles I
Geothermal Resources in Latin America & the Caribbean 11

LOCATION

The Miravalles geothermal field is located in

northwestern Costa Rica, SW of the Volcán Miravalles

(Guanacaste Province).

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 55

POTENTIAL (MWE) 55

TEMPERATURE (EC) -

CHRONOLOGY

1976 - Prefeasibility study completed.

1985 - Feasibility study completed funded by the InterAmerican Development Bank (IDB).

1994 - Start-up of first 55 MWe condensing plant. The

unit has been in continuous operation since then with a

plant factor of about 90%; 94.43% in 1997. This takes

into account that the plant has been generating 60 MWe

continuously, a level which is considered feasible and

within the unit’s design parameters.

NOTES

Includes 11 production and 5 reinjection wells.

Miravalles I was supplied by Fuji of Japan with 4.5%

financing. Well field financed by the IDB. An Italian

firm provided reservoir engineering and management;

U.S. firms provided drilling services (Nabors), cementing

services (Halliburton), and supply well-head equipment

(A/Z Grant). Electroconsult of Italy designed the power

plant.

Miravalles II

LOCATION

The Miravalles geothermal field is located in

northwestern Costa Rica, SW of the Volcán Miravalles

(Guanacaste Province).

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 55

POTENTIAL (MWE) 55

TEMPERATURE (EC) -

CHRONOLOGY

1988 - Feasibility study completed funded by the IDB.

August 1998 - 55 MWe condensing plant expected to

come online (Robles, 1998). Developed and operated by

ICE. Like Miravalles I, the expected generation capacity
Geothermal Resources in Latin America & the Caribbean 12

of II is 60 MWe.

NOTES

Includes 6 production and 6 reinjection wells. 

Financed with a US$ 72.4 million IDB loan. Under

international bidding, the contract was awarded to

Ansaldo.

The specific cost of investment is US$2,279.50/kWe for

Miravalles II.

Miravalles III

LOCATION

The Miravalles geothermal field is located in

northwestern Costa Rica, SW of the Volcán Miravalles

(Guanacaste Province).

STATUS

Construction underway

INSTALLED CAPACITY (MWE) 27.5

POTENTIAL (MWE) 27.5-55

TEMPERATURE (EC) -

CHRONOLOGY

1996 - 27.5 MWe BOT plant at Miravalles III put out to

bid.

Spring 1997 - Competitively bid contract awarded by ICE

to Oxbow/Marubeni consortium. The consortium is

composed of affiliates of Oxbow Power Corporation of

West Palm Beach, Florida; Tokyo-based Marubeni

Corporation; Oxbow Power Services, Inc. of Reno,

Nevada; and José Altmann & Compania, Ltda. of San

José, Costa Rica.

Under the terms of the original tender, a second 27.5

MW unit can be awarded by ICE to the Oxbow/Marubeni

consortium any time before November 18, 2000.

September 1998 - Project closed financing and began

site preparation.

February 1999 - Formal ground breaking. 

Spring 2000 - 27.5 MWe condensing plant expected to

be online.

NOTES

A 27.5 MWe condensing plant is under construction. 

Builder and operator is Geoenergía de Guanacaste Ltda.,

a consortium of Oxbow Power Corp. and Marubeni Corp.

of Japan. 

Miravalles III will be Costa Rica’s first BOT power
Geothermal Resources in Latin America & the Caribbean 13

project. It will sell all its electricity to ICE, the state

utility, under a 15-year PPA after which ICE will assume

ownership of the plant.

Estimated total cost: $70 million; $49.5 million to be

financed by the IDB. The financing involves a $16.5 m

loan from IDB’s ordinary capital (A loan) as well as a

syndicated loan of $33 m (B loan), co-arranged and

underwritten by the Fuji Bank of Japan. Dresdner Bank

and Credit Local de France also subscribed the

syndicated loan. Geoenergía de Guanacaste Ltda, the

borrower, is contributing $16.5 m in equity.

Miravalles IV

LOCATION

The Miravalles geothermal field is located in

northwestern Costa Rica, SW of the Volcán Miravalles

(Guanacaste Province).

STATUS

Feasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 27.5

TEMPERATURE (EC) 160

CHRONOLOGY

NOTES

27.5 MWe condensing plant in evaluation stage. 

ICE is considering calling an international competitive

bid for a BOT contract for the construction of a binary

cycle plant to extract energy from Miravalles’s waste

water which is currently being injected into the reservoir. 

Interested companies will be able to define the binary

cycle technology to be used and design a plant layout that

will efficiently exploit the energy of these 160oC waters

(Robles, 1998).

Miravalles V

LOCATION

The Miravalles geothermal field is located in

northwestern Costa Rica, SW of the Volcán Miravalles

(Guanacaste Province).

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 20

TEMPERATURE (EC) 160
Geothermal Resources in Latin America & the Caribbean 14

CHRONOLOGY

NOTES

A 20 MWe binary or condensing plant is in the evaluation

stage.

Orosí-Cacao

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 37-81

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

Potential capacity (MWe) represents average values that

can be fed by the “reserves” to that which can be fed by

the “resources” (Cataldi, 1995).

Poás

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 103-219

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

Potential capacity (MWe) represents average values that

can be fed by the “reserves” to that which can be fed by

the “resources” (Cataldi, 1995).

Porvenir-Platanar

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 109-241

TEMPERATURE (EC) -

CHRONOLOGY

NOTES
Geothermal Resources in Latin America & the Caribbean 15

Potential capacity (MWe) represents average values that

can be fed by the “reserves” to that which can be fed by

the “resources” (Cataldi, 1995).

Rincón de la Vieja

LOCATION

In northwestern Costa Rica near the active Rincón de la

Vieja Volcano, 17 km northwest of the Miravalles

geothermal field (Guanacaste Province). 

Surface manifestations include fumaroles, mud pots,

thermal springs, and hydrothermally altered rocks.

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 157-330

TEMPERATURE (EC) 230-240

CHRONOLOGY

1975-1976 and 1994-1995 - 17 gradient holes with

depths between 52 and 379 m drilled; temperature logs

are available.

1997 - ICE allocated funding from the IDB for a

prefeasibility study of this area.

NOTES

The major limitation to development is that part of the

geothermal system is located in the Rincón de la Vieja

National Park. There is worry about possible

environmental restrictions that may impede the

development of the project. 

The development scheme will be similar to Miravalles III

and IV, e.g., BOT awarded through international public

bidding.

Potential capacity (MWe) represents average values that

can be fed by the “reserves” to that which can be fed by

the “resources” (Cataldi, 1995).

Tenorio

LOCATION

South of the Tenorio Volcano, approximately 14 km

northwest of Lake Arenal, 25 km southeast of the

Miravalles geothermal field (Guanacaste Province). 

The Arenal Volcano is one of Central America’s most

active, averaging ten minor eruptions a day. It has spewed

lava down its sides only ten times since 1968.

STATUS

Well(s) or hole(s) drilled
Geothermal Resources in Latin America & the Caribbean 16

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 110-247

TEMPERATURE (EC) 230-240

CHRONOLOGY

1989 to 1995 - Prefeasibility study covering an area of

550 km2, done with support of the Italian Government and

the United Nations Development Program (UNDP). 

Indicated the presence of a geothermal reservoir at a

depth of 1200-2000 m, with a temperature of 230-

240oC, and medium to low salinity fluids.

1997 to 1998 - Feasibility study started and funded by

ICE. The study will include drilling three wells with

support from the IDB. The field, liquid-dominated with

temperatures over 230°C, is estimated to have potential

of 110 MWe. The objective of this stage is to prove

geothermal resources sufficient to supply steam to one

or two power plants with a total capacity of 50-60 MWe.

ICE has drilled 12 gradient wells. In addition, the

construction of access roads, water supply systems, and

drilling pads for 4 deep exploratory-production wells has

begun.

2005 - First 55 MWe plant should be online.

NOTES

Tenorio will be the next field after Miravalles, to be

developed probably as a BOT. ICE will supply the steam

and buy kWh from the plant.

The specific cost of investment is US$2,279.50/kWe for

Tenorio.

Potential capacity (MWe) represents average values that

can be fed by the “reserves” to that which can be fed by

the “resources” (Cataldi, 1995).
Geothermal Resources in Latin America & the Caribbean 17

Population (millions) - July 1998 5.75

Overall Electrification (% of population) 65%

GDP (billion US$) - 1997 est. $17.8

Real GDP Growth Rate - 1997 est. 4.0%

Inflation Rate (CPI) - 1997 2.0%

Total Installed Capacity (MWe) - 1995 833

Electricity Consumption per Capita (kWh) - 1997 538

Energy Demand Growth Rate 7.0%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

8.19

10.70

11.10

Estimated Geothermal Potential (MWe) 2,210

Power Summary

The generation system of El Salvador is composed of

hydroelectric (49%), geothermal (13%), and thermal

(38%) power plants, for a total installed capacity of 900

MWe in 1996.

Large factories and industrial parks in El Salvador generally

have their own backup power generating facilities. 

Infrastructure problems and weather conditions still

interrupt service on a regular basis. Electrical generation

is highly dependent on seasonal rains, because

hydroelectric plants provide more than 40% of the

country’s generating capacity. The state-owned electric

company, Comisión Ejecutiva Hidroeléctrica Del Río

Lempa (CEL), aided by international financial sources, is

developing additional geothermal and fuel-powered

electrical plants. In addition, privately-owned generating

plants, will likely reduce the number of electricity

shortages in the future.

The Government of El Salvador (GOES) is moving ahead

with the privatization of CEL. Four distribution companies

were sold to U.S., Venezuelan, Chilean, and Central

American investors in early 1998. To sell the rest of CEL

will require a reorganization of the agency which is

currently underway and expected to be complete by the end

of 1999. It is still unknown how this privatization will take

place. Some plants, i.e. geothermal and thermal may be

sold, while others, i.e., hydroelectric, may be contracted

under concession due to the complexity of dividing up

water rights. The breakup of CEL should lead to a dramatic

increase in investment in the sector over the next ten years. 

El Salvador
Geothermal Resources in Latin America & the Caribbean 18

There is speculation that CEL will seek to shed its

generating plants in the future but that will depend on the

new government which will be elected in March 1999.

After years of civil war, the resurgence of industrial output

has greatly increased El Salvador’s power needs following

the 1992 Peace Accords. El Salvador’s average annual 

growth of electricity demand for the last five years has been

7%. CEL is implementing a ten-year electricity generation

expansion plan based on a projected 7% average annual

increase in demand, as well as on meeting future demand

from Guatemala and Honduras. The plan aims to increase

the country’s total generating capacity to 2015 MWe by the

year 2010, and will require investment of more than $1

billion. 

The $332 million Electric Power Sector Program, Stage II,

approved in 1994 by the IDB, will provide the infrastructure

needed to accommodate El Salvador’s growing demand for

electricity. Of the total, $215 million is coming from the

IDB, $55 million from the Overseas Economic

Cooperation Fund (OECF) of Japan, and $62 million from

local sources. 

The specific components include: (a) construction of the

Berlín 55 MWe geothermal generation plant; (b)

stabilization and rehabilitation of the Ahuachapán

geothermal plant; (c) construction of three new 115 kV

transmission lines and two 115-46 kV substations,

rehabilitation of twenty 115 kV lines, and expansion of the

capacity of eight existing substations; (d) an energy

conservation program; and (e) institutional strengthening

and staff training of CEL.

Government / Legislation

Superintendencia de Electricidad y Telecomunicaciones

(SIGET)

Created in 1996, SIGET is an independent agency which

regulates the transmission and distribution of electricity in

El Salvador. SIGET will:

• authorize the sale of concessions for

exploration and exploitation of geothermal

resources;

• appoint a transactions office known as the

Unidad de Transacciones (UT) which will

operate the transmission system, maintain the

security of the system, and assure a minimum

acceptable standard for service and delivery;

and 

• be the point of resolution for conflicts

between operators, and between operators

and final consumers, but only if its services

are formally requested.
Geothermal Resources in Latin America & the Caribbean 19

Comisión Ejecutiva Hidroeléctrica del Río Lempa (CEL)

CEL, the National Electric Utility Company of El Salvador,

is in the process of being privatized following the General

Law of Electricity passed in 1996. 

CEL’s geothermal division, renamed Geothermia

Salvadorena S.A., is looking for a “strategic partner” to help

Geo-CEL run the geothermal plants in Berlín and

Ahuachapan as well as exploit new projects. Partners

currently are AES, Unocal, Calpine, Oxbow, Enron,

Constellation Power, Caithness Corp., and Florida Power &

Light. 

CEL has evaluated future options for developing and

exploiting geothermal resources, according to three

schemes:

1. CEL retains ownership and management of

the resource and sells the steam to an IPP,

following the model set in the Philippines,

Indonesia, and Costa Rica;

2. Total concession to the IPP who will

completely manage the resource and the

plant; and

3. A variant of 2 in which CEL participates in

the capital of the local company created by

the IPP.

General Law of Electricity (Decree No. 843)

The General Law of Electricity, passed October 10, 1996,

established the legal framework for privatizing all aspects

of electricity production, transmission, and distribution

currently owned by the state organization, CEL. The time

frame for complete privatization of CEL is three years. The

Law also created SIGET as an independent agency to

regulate the industry.

The price of electricity at generation will be market driven

but the GOES will regulate the prices charged for

transmission and distribution. The Wholesale Market will

have two components: the Contracts Market (MC) or fixed

market, and the System Regulating Market (MRS) or spot

market. To participate in any phase of the fixed market

(MC), valid contracts are necessary. Contracts are not

necessary to participate in the spot market (MRS). 

Charges for use of the transmission and distribution system

will be determined by the UT based upon the costs of

investment, operation and maintenance associated with each

component of the system. The UT will assess 
Geothermal Resources in Latin America & the Caribbean 20

penalties on companies which do not meet their contractual

obligations. 

There are no restrictions on foreign ownership in the

electricity sector. Transmitters and distributors will be

obliged to permit use of their installation for international

interconnections.

No Specific Law for Geothermal

According to the Salvadorean Constitution, all the country’s

subsurface is State property.

El Salvador has no specific law for geothermal. Companies

interested in obtaining concessions for geothermal

exploitation must present a written request to the SIGET

which includes the following: 

• Information about the company relative to its

incorporation and legal capacity;

• A feasibility study which includes a

descriptive narrative and blue prints;

• An environmental impact study which

addresses the effects on the environment of

the current project as well as any future

expansions, and includes a section on all

phases of the project (construction,

operation, and termination). It should also

include several options for dealing with any

adverse effects that may result from the

project. 

SIGET granted its first license to a company to begin

exploitation in San Vicente.

All geothermal project proposals are subject to a public

offering which will be administered by SIGET. All bids

must be accompanied by a guarantee equivalent to 10% of

the value of the project. 

Concessions will be awarded to the highest bidder except if

the original bidder loses. The original bidder will be

awarded the concession if they are willing to pay 85% of

the price offered by the winner.
Geothermal Resources in Latin America & the Caribbean 21

Once a concession is granted, if a company wishes to

increase its capacity, it will be required to pay to the State a

sum related to the real value of the original acquisition and

comparable to the amount it would have paid at the time of

the original acquisition had this increased capacity been

included.

Upon request, SIGET will authorize for one time only,

temporary permission to conduct feasibility studies for

projects utilizing geothermal energy. The permission will

be granted for a two-year period with one option to renew. 

The permission is not exclusive and merely facilitates

studies conducted on state-owned property. For studies on

private property, permission from the owner or

administrator of that property must be obtained.

Geothermal Sites / Projects

El Salvador has an estimated 2,210-4,140 MWe of

geothermal power potential.

Geothermal power represents the least cost generating

source for base load energy for El Salvador. Each MW of

geothermal power saves approximately $1,100 per day,

depending on fuel cost. Consequently, geothermal power

projects have a high priority. 

Geothermal power currently supplies 13% of the country’s

total electricity demand. Ahuachapán has an installed

capacity of 95 MWe; Berlín Boca Pozo I, 10 MWe. An

additional 60 MWe of capacity is under construction. 

By 2000, geothermal will supply about 20% of El

Salvador’s power. By 2010, it is estimated that there will

be 380 MWe of geothermal installed capacity. To date, the

GOES has invested over US$100 million in geothermal

exploration and development but plans to be completely out

of the geothermal development business by 2000.

El Salvador began exploring its geothermal potential in the

mid 1960s. The southern Plio-Quaternary Volcanic Belt

represents the principal target of exploration, with major

geothermal zones, hot springs, hot wells, fumaroles, and

exposures of hydrothermal activities. Most activities were

halted during the Civil War (1980-1992). 

Six priority areas in terms of generating power potential

have been identified. Stretching across the country from

west to east, they are Ahuachapán, Chipilapa, Coatepeque,

San Vicente, Berlín, and Chinameca. All except Chinameca

are high enthalpy, liquid-dominated fields. There is no

inventory of lower enthalpy resources. 
Geothermal Resources in Latin America & the Caribbean 22

1. Ahuachapán

2. Berlín Boca Pozo I

3. Berlín II

4. Chinameca

5. Chipilapa

6. Coatepeque

7. San Vicente

Ahuachapán

LOCATION

In western El Salvador approximately 80 km west of San

Salvador, 18 km east of Río Paz, and 15 km from the

Guatemalan border. Studied zone in the AhuachapánChipilapa geothermal field covers an area of 200 km2 and

is located in the counties of Santa Ana, Ahuachapán, and

Sonsonate.

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 95

POTENTIAL (MWE) 95-150

TEMPERATURE (EC) 230

CHRONOLOGY

1953 - First geothermal studies conducted by the

National Geologic Service and CEL.

1966 - The GOES with assistance from the UNDP

assessed a good part of the country and identified

Ahuachapán as an area of priority; drilled AH-1 to 1200

m.

1970 - Feasibility study concluded funded by the World

Bank.

1971 - Development of the field and construction of the

complex began. Plants were installed by Mitsubishi

Heavy Industries, Ltd., and developed and are operated by

CEL. Total of 32 wells drilled of which 11 are

connected to the complex. 

1975 - Single-flash unit of 30 MWe came online.

1976 - Single-flash unit of 30 MWe came online.

1981 - Double-flash unit of 35 MWe came online.

1980s - Field was over-exploited for many reasons; at

one point it generated over 40% of the country’s

electricity causing reservoir pressure to drop quickly.

1994 - Generation stabilized at 48 MWe to maintain

pressure above 19 bar.
Geothermal Resources in Latin America & the Caribbean 23

1995 - CEL closed financing with the IDB for the

Ahuachapán Rehabilitation & Stabilization Project. 

Through international bidding, Forasal was awarded the

drilling contract while the consortium of SAI

Engineering and Marubeni won the plant rehabilitation.

Eight of the ten wells have been drilled with an additional

33 MWe found in seven. One well now connected has 53

MWe of capacity.

NOTES

The IDB-funded Ahuachapán Rehabilitation &

Stabilization Project is part of the $332 million Electric

Power Sector Program, Stage II Program. It has five key

components:

(1) drilling of 10 new wells to the south of the producing

area; 

(2) rehabilitation of the electro-mechanical equipment in

the power plant;

(3) construction of a reinjection line to existing

reinjection wells located in Chipilapa, 7 km away

(currently the brine is dumped into the ocean via an 80-

km-long canal);

(4) construction of a gathering system to connect the

new wells to the plant; and

(5) rehabilitation of the canal that channels the brine to

the ocean for emergency use.

Ahuachapán has 95 MWe of installed capacity (2 x 30

MWe + 1 x 35 MWe) but, as a result of over-exploitation

for several reasons, is currently generating only 40-45

MWe. The purpose of the project is to increase

production to at least 80 MWe.

Berlín Boca Pozo I

LOCATION

In eastern El Salvador approximately 90 km from San

Salvador.

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 10

POTENTIAL (MWE) -

TEMPERATURE (EC) 240-300

CHRONOLOGY

1966 - The GOES, with assistance from the UN,

identified Berlín as an area of priority; drilled two

gradient wells and one deep exploratory well.
Geothermal Resources in Latin America & the Caribbean 24

1980 and 1981 - With funds from the World Bank,

conducted a feasibility study which included drilling

three slimhole wells and five deep exploratory wells. 

Identified a minimal area of production of 6.8 km2 (a

deep reserve at approximately 1,800 m with temperatures

higher than 300oC) and a the feasibility of a first unit of

55 MWe. Field work halted by the Civil War.

1987 - Production testing of wells completed.

1991 - Berlín Boca Pozo I, two 5 MWe units, came

online using two existing production wells and drilling

three reinjection wells. Units installed by ACEC, a

Belgian company since bought by ABB.

1992 - Planta Geotérmica El Tronador, composed of two

5 MWe plants, began commercial operation. Developed

and operated by CEL. Currently generation is stable at 8

MWe.

NOTES

Berlín II

LOCATION

In eastern El Salvador approximately 90 km from San

Salvador.

STATUS

Construction underway

INSTALLED CAPACITY (MWE) 55

POTENTIAL (MWE) 55-150

TEMPERATURE (EC) 240-300

CHRONOLOGY

1966 - The Government of El Salvador, with assistance

from the UN, identified Berlín as an area of priority;

drilled two gradient wells and one deep exploratory well.

1980 and 1981 - With funds from the World Bank,

conducted a feasibility study which included drilling

three slimhole wells and five deep exploratory wells. 

Identified a minimal area of production of 6.8 km2 (a

deep reserve at approximately 1,800 m with temperatures

higher than 300oC) and the feasibility of a first unit of 55

MWe. Field work halted by the Civil War.

1987 - Production testing of wells completed.

1992 - With an IDB loan, conducted a study of the

feasibility of two 25 MWe plants. 

1993 - Completed geoscientific, engineering, and

chemical studies with support from the World Bank.

November 1998 - First 25 MWe should be online.
Geothermal Resources in Latin America & the Caribbean 25

January 1999 - Second 25 MWe unit should be online. 

Drilling and other activities will continue after the

second unit is installed.

NOTES

The $113 million Berlín First Condensation Project is

funded by a loan from the IDB and is part of the $332

million Electric Power Sector Program, Stage II

Program.

Under the Berlín first condensation development, two 25

MWe plants are planned with 12 new wells -- 7

production and 5 reinjection. Six new wells have been

drilled with a capacity of 30 MWe. In addition, a 6 km

115 kV transmission line will be built. 

Under international bidding, contracts were awarded to

the Forasal-Foraky Group (El Salvador-Belgium) for

drilling and to the Sumitomo Corporation for the

modular condensation units. 

Construction of the steam and brine gathering system

will be done by MONELCA; construction of a permanent

camp by OMNI, both Salvadorean companies. 

It is estimated that Berlin II will save $56,000 in fuel

costs per day, including operating and financial costs.

Chinameca

LOCATION

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 5-55

TEMPERATURE (EC) 300

CHRONOLOGY

1966 - The GOES, with assistance from the UN,

identified Chinameca as an area of priority. 

Six deep exploratory wells were drilled, five had

promising results. Of the five, three have a potential of

30 MWe; the other two, 18 MWe.

1980 - Prefeasibility study began with funding from the

World Bank; study not completed.

NOTES

Prefeasibility study currently underway by CEL including

additional geochemical and geophysical studies. The

studies will prepare the project for field development in

a private framework, possibly as a concession or an IPP.
Geothermal Resources in Latin America & the Caribbean 26

Chipilapa

LOCATION

In western El Salvador on the northern slope of the

Laguna Verde and Las Ninfas volcanoes, east of the town

of Ahuachapán.

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 220-230

CHRONOLOGY

1965 to 1968 - The GOES, with assistance from the UN,

identified Chipilapa as an area of priority. Drilled CH-1

to a depth of 985 m with a maximum temperature of

220oC at 300 m.

1989 to 1991 - With funds from the Central American

Bank of Economic Integration (BCIE), geovolcanic,

hydrological, geochemical, and geophysical studies were

done. Five deep exploratory wells (from 985 to 2700 m)

and one shallow thermal gradient well (450 m) were

drilled in the northern slope of the Cerro Cuyanausil on a

SE-NW trending line. The feasibility study was

interrupted as a consequence of the results obtained by

the Accelerated Development Program. 

1988 to 1992 - Accelerated Development Program -

Objective was to put into service two backpressure units

of 5 MWe with funds received under a French-Salvadoran

financial agreement. Geoscientific studies were done;

and two turbine generators supplied. The project did not

achieve its objective due to limited permeability and

moderate temperatures (around 200-210oC).

1990 - Instituto de Investigaciones Eléctricas of México

(IIE) and CEL carried out an extensive geochemical

survey of the area as well as a reservoir engineering

assessment. Concluded that the explored area contains a

relatively shallow (~ from +400 to -400 masl) outflow

of the Ahuachapán hydrothermal system; in the past the

temperatures were typically 20-40oC higher than they are

now; and below the outflow the thermal structure of the

Chipilapa field reveals the presence of a deep heat

source, presumably the magmatic chamber inferred by

previous geovolcanological studies (Iglesias, 1995).

NOTES

Chipilapa is a high enthalpy, liquid-dominated resource.

Two alternatives for the project have arisen:

(1) Developing a pilot project with a medium-scale

binary plant and utilizing the waste from the water for
Geothermal Resources in Latin America & the Caribbean 27

other agro-industrial applications, or

(2) Using the area for reinjection to stabilize

Ahuachapán.

Coatepeque

LOCATION

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1991 to 1993 - Prefeasibility study completed with

Italian cooperation and funds; included geovolcanic,

geochemical, and geophysical studies. The project was

interrupted prior to drilling an exploratory well by critics

who raised issues related to the tourist interest of the

area. An environmental impact study has not been done.

NOTES

High enthalpy, liquid-dominated resource

San Vicente

LOCATION

Approximately 50 km southeast of San Salvador on the

slopes of the Chichontepeque Volcano.

STATUS

Feasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 27.5-115

TEMPERATURE (EC) 230

CHRONOLOGY

1966 - The GOES, with assistance from the UN,

identified San Vicente as an area of priority. One 1300

m deep well was drilled with a maximum recorded

temperature of 230oC. 

1980 - Prefeasibility study funded by the World Bank.

1995 to 1998 - Feasibility study funded by a $14.6

million loan from the IDB. Project was suspended due to

legal reasons. Geophysical studies, the drilling of three

exploratory wells, and a feasibility study of the field

remain to be completed.

SIGET granted first license to begin exploitation to a
Geothermal Resources in Latin America & the Caribbean 28

U.S. company.

2005 - 27.5 MWe plant hoped to be online.

NOTES

San Vicente is a high enthalpy, liquid-dominated

resource.
Geothermal Resources in Latin America & the Caribbean 29

Population (millions) - July 1998 12.01

Overall Electrification (% of population) 68%

GDP (billion US$) - 1997 est. $45.8

Real GDP Growth Rate - 1997 est. 4.1%

Inflation Rate (CPI) - 1997 9.0%

Total Installed Capacity (MWe) - 1995 1005

Electricity Consumption per Capita (kWh) - 1997 312

Energy Demand Growth Rate 10.0%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

6.87

7.86

9.30

Estimated Geothermal Potential (MWe) 3,320

Power Summary

The key energy issues in Guatemala are electricity and oil. 

The country’s consumption of energy is currently among

the lowest in the world. Approximately 68% of

Guatemalans have access to electricity. Outside of the

capital, access falls to 30%, and in rural areas there is

virtually no access. The Government of Guatemala’s

(GOG) goal is to increase rural electrification to 70% by

2000.

Of Guatemala’s total 1005 MWe installed capacity in

1995, electricity production is almost evenly split between

hydroelectric and thermal power (24% steam turbines, 49%

gas turbines, and 28% diesel). In 1990, hydropower

accounted for over 90% of the country’s generation

capacity—an over-reliance on hydropower. Guatemala

estimates that it must add about 1400 MWe of new and

replacement capacity by 2012 to satisfy increasing demand. 

Guatemala is the only oil-producing country in Central

America. However, oil reserves are concentrated in remote

and inaccessible regions in the Peten basin in northeast

Guatemala. With the formal end of the 36-year Civil War in

1996, however, Guatemala is pushing to develop its oil

resources and granting concession for development. 

Guatemala has an increasingly open power market. The

country’s privatization program has accelerated with the

sale of Empresa de Energía de Guatemala S.A. (EEGSA),

the country’s largest power utility, and the proposed sale of

Instituto Nacional de Electrificación (INDE), the rural

power distributor in 1998-1999.

Guatemala
Geothermal Resources in Latin America & the Caribbean 30

INDE has 75% of Guatemala’s capacity, EEGSA 17%, and

municipalities and private companies, 13%. Of the private

companies’ 128 MWe, Enron has 110 MWe or 86% of the

total supplied by its diesel “floating generation barges.”

As in the rest of Central America, Guatemala’s electric

sector is presently occupied with two events: the

completion on schedule by 2005 of the “Sistema de

interconexión eléctrica para América Central” (SIEPAC)4

which would create a regional electricity market in Central

America; and the possibility of Guatemala obtaining natural

gas from México in ten years or more.

México and Guatemala have signed an accord on closer

energy cooperation which, in addition to allowing Pemex to

set up gas stations in Guatemala, also deals with building a

natural gas pipeline between México and Guatemala.

Government / Legislation

Instituto Nacional De Electrificación (INDE)

The regulatory framework for the development of

Guatemala’s geothermal resources is the responsibility of

INDE. INDE also channels state funds to supporting rural

electrification, supplying electricity to 19 of the country’s

22 provinces. 

INDE will be divided into two separate entities and sold. 

Bidders must be recognized power company operators with

bidding expected to begin in November 1998.

General Law of Electricity (Decree No. 93-96)

The General Law of Electricity (Decree No. 93-96),

adopted in November 1996, ended INDE’s monopoly by

privatizing electricity generation and distribution in

Guatemala. As a result of the Law, INDE created three

distinct state companies for generation, transmission, and

distribution. 

The Law also created the Comisión Nacional de Energía

Eléctrica (CNEE) and established the conditions for the

formation of a free market-based wholesale market, the

4 SIEPAC would create a regional electricity market

in Central America by building a 230 kV

transmission line connecting Guatemala, Honduras,

and Panamá. (Lines currently exist between several

of the countries.) The target date for completion is

2003. The IDB is providing $186.6m, over half the

$346m estimated cost of the project. 

IDB estimates that integrating the six electricity

systems , taking into account factors like private

sector involvement in building the grid, use of bigger

plants, sharing plants and reserves, and optimizing

water use, may save the countries as much as

$10m-$20m a year. 
Geothermal Resources in Latin America & the Caribbean 31

Mercado Mayorista (MM) which was inaugurated in

October 1998. 

The MM will buy and sell electricity power and energy in

short and long term markets, and will be headed by Energy

and Mining minister Leonel Lopez Rodas. Power

producers and electricity distributors with a minimum of

20,000 users will participate in the MM, as well as

distribution companies handling more than 10MWe,

marketers with more than 10MWe and users with a

consumption of more than 100 kWh.

No Specific Law for Geothermal

The General Law of Electricity (Decree No. 93-96)

revoked the existing Geothermal Law (Decree No. 126-

85). According to the new Law, geothermal investment

should obtain authorization (concession) from the Ministry

of Energy and Mines. Renewable energy projects qualify

for duty-free imports of goods that are not produced

locally.

A grid-connected geothermal project in Guatemala must

compete directly on the basis of price with other forms of

power. According to a Hagler Bailly study, the baseload

marginal cost for generation in Guatemala is 4¢/kWh

(Germain, 1998). 

Geothermal Sites / Projects

Guatemala has an estimated 3,320-4,000 MWe of

geothermal power potential.

INDE began geothermal exploration in Guatemala in 1972

with assistance from several sources including the IDB, the

Japanese Government; OPEC; OLADE; the U.S. Agency for

International Development (USAID) through Los Alamos

National Lab (LANL) and the U.S. Geological Survey

(USGS); the

International

Atomic Energy

Agency (IAEA);

and the

European

Economic

Community

(EC). 

From 1975 to

1994, the GOG

spent close to

$25 million in

geothermal

research and

development,

surface exploration, and exploratory drilling; $13 million in

field development; and $38 million in electrical utilization,

for a total of $76 million.
Geothermal Resources in Latin America & the Caribbean 32

Guatemala has 25 volcanoes and intense volcanic activity. 

The volcanic highlands, where most of the geothermal

resources are located, lie in the southern and southwestern

parts of the country. In the 23 areas studied, estimated

reservoir temperatures range from 14oC to 300oC. In

addition to high enthalpy resources, Guatemala has

significant opportunities for geothermal development in

small-scale, direct use applications (Lawrence, 1998).

To date, 14 geothermal fields have been identified in

Guatemala. The five most promising, with temperatures

ranging from 230-300oC, listed in order of decreasing

priority, are: Amatitlán, Tecuamburro, Zúnil II, San Marcos,

and Moyuta. 

Second priority areas with temperatures of 130-180oC are

Los Achiotes, Totonicapán, and Ixtepeque. Palencia,

Retana, Ayarza, Atitlán, and Motagua are ranked as third

priority sites.

Geothermal resources currently under development include

Zúnil I and Amatitlán. Orzúnil is currently building a 24

MWe BOT geothermal plant at Zúnil. It will be the

country’s first private geothermal plant and is expected

online after 2000. A 5 MWe backpressure unit was put

online in Amatitlán in 1998.

1. Amatitlán

2. Amatitlán (Geoteca)

3. Atitlán

4. Ayarza

5. Cordon and Medida, La Laguna

6. Ixtepeque-Ipala

7. Los Achiotes

8. Motagua

9. Moyuta

10. Palencia

11. Retana

12. San Marcos

13. Tecuamburro

14. Totonicapán

15. Zúnil I (Orzúnil)

16. Zúnil II

Amatitlán

LOCATION

28 km south of Guatemala City along Laguna Amatitlán

(San Marcos Department).

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 5

POTENTIAL (MWE) 5-200

TEMPERATURE (EC) 180-300
Geothermal Resources in Latin America & the Caribbean 33

CHRONOLOGY

1972 - Preliminary exploration done by INDE with funds

from the Japan International Cooperation Agency (JICA). 

1977 - First investigations begun by INDE with its own

funds. 

1979 - Study suspended to focus on Zúnil.

1980 to 1984 - Prefeasibility study conducted covering

an area of 170 km2. With funding from OPEC/OLADE,

INDE contracted with Electroconsult to complete the

prefeasibility study including drilling two slimhole wells. 

1987 - INDE and LANL began a cooperative study of

field. 

1989 - Electroconsult recommended a feasibility study

to confirm the existence of a commercial resource.

1993 and 1994 - Resource feasibility study funded by the

IDB and conducted by West Japan Engineering Inc. (West

Jec). Of the four full-sized wells drilled, AMF-1 and 2

are production, AMF-3 for reinjection, and AMF-4 dry. 

AMF-1 and 2 showed a capacity of 12 MWe with a total

resource potential estimated at 200 MWe. The

temperature in the reservoir is 230-300oC. 

AMF-1 - 1581 m, 280oC max. temp., 11 kg/cm WHP, 6

MWe estimated potential.

AMF-2 - 1502 m, 295oC max. temp., 8 kg/cm WHP, 7

MWe estimated potential

AMF-3 - 1500 m, 231oC max. temp., dry well.

AMF-4 - 2058 m, 240oC temp. (at 1750 m), 35 kg/cm

WHP (static wellhead pressure).

According to West Jec’s mathematical model, three new

production wells would amount to a potential of 25 MWe

for 30 years. 

1997 - Three-year contract signed for the installation of

a 5 MWe plant between INDE and Ingenieros Civiles

Asociados (ICA) of México; CFE will provide advice. 

Under the contract, INDE will supply steam to the plant

and buy the electricity it generates for 3.75¢/kWh. After

three years, a request for bids will be issued for the

development of a 30-55 MWe plant.

ICA will install and maintain the plant, monitor the field

and production wells, evaluate their capacity, and

disassemble the plant after three years. 

1998 - 5 MWe backpressure unit began operation.
Geothermal Resources in Latin America & the Caribbean 34

NOTES

Beginning operation in June 1998, Amatitlán became the

first geothermal power plant in Guatemala.

Initially the project was to be implemented in association

with INDE and the state electric companies of

neighboring countries. The project was structured as a

concession in which INDE would guarantee the

production of fluid and the foreign member (CEL or

CFE) the supply, engineering, and construction of the

plant as a Build-Lease-Transfer (BLT). Recently,

however, this process was modified into an international

bid in the short-term as a concession for an IPP.

Amatitlán has a probable potential of 30 MWe and an

estimated of 200 MWe.

Amatitlán (Geoteca)

LOCATION

Planta Geotermoelectrica Geoteca is located in

Amatitlán, 30 km from Guatemala City (Guatemala

Department), 1.5 km from the national grid.

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 5-12

TEMPERATURE (EC) 190-200

CHRONOLOGY

1980s - Geothermal resource discovered; well B-1

drilled; supplied industrial and potable water to Bloteca

S.A. (fruit dehydration) and Tubeca S.A. (concrete block

drying).

1992 - Tubeca began project with a preliminary

evaluation; slimhole well (B-2) intercepted a geothermal

aquifer at 130 m with temperatures up to 200oC. 

1995 - With assistance from Fundación Solar (supported

by USAID through Winrock International), Tubeca

conducted a geologic and geophysical study of the area to

locate additional sites for drilling. Concluded that the
Geothermal Resources in Latin America & the Caribbean 35

geothermal resource had a potential of 5 MWe for 25

years.

NOTES

Geoteca S.A., formerly known as Tubeca S.A., is the sole

owner of the generation project with the rights to develop

the geothermal resource. The company will contract for

the engineering, construction, and equipment supply

necessary for the plant.

Geoteca has the option to sell electricity from the

project to the Empresa Eléctrica de Guatemala S.A.

(EEGSA) or use it for industrial purposes. 

Geoteca, has a technical assistance loan from E&Co. to

support the completion of phase II of a 5 or 6 MWe

geothermal project. Phase II of the project consists of

drilling three new production wells, testing the

productivity of the wells and making a reservoir

assessment before preparing a final pre-investment

report. To date, two of the three wells have been drilled.

Investment required for the construction and installation

of a 5 MWe binary plant is approximately $9 million. 

E&Co is helping Geoteca complete the pre-investment

package needed to secure project financing.

Atitlán

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1981 - Reconnaissance at the regional level. Surface

geologic mapping and geochemistry conducted by INDE.

NOTES

Third priority area.

Ayarza

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -
Geothermal Resources in Latin America & the Caribbean 36

CHRONOLOGY

1981 - Reconnaissance at the regional level. Surface

geologic mapping and geochemistry conducted by INDE.

NOTES

Third priority area.

Cordon and Medida, La Laguna

LOCATION

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 12

TEMPERATURE (EC) -

CHRONOLOGY

1997- Winrock Fundacion Solar - drilling complete;

received $20,000 in funding from USAID, $80,000 from

private sources.

NOTES

Ixtepeque-Ipala

LOCATION

Chiquimula Department.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1981 - Reconnaissance at the regional level.

NOTES

Second priority area.

Los Achiotes

LOCATION

Santa Rosa Department.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -
Geothermal Resources in Latin America & the Caribbean 37

CHRONOLOGY

1981 - Reconnaissance at the regional level. Surface

geologic mapping and geochemistry conducted by INDE.

NOTES

Second priority area.

Motagua

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1981 - Reconnaissance at the regional level.

NOTES

Third priority area.

Moyuta

LOCATION

In the eastern part of the country (Jutiapa Department);

closest to the producing Ahuachapán geothermal field in

El Salvador.

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 30

TEMPERATURE (EC) 114-210

CHRONOLOGY

1972 - Geothermal investigation began by INDE covering

an area of 1000 km2.

1974 - Prefeasibility study of an area of 330 km2 began.

1975 - Electroconsult (Italy) contracted to evaluate and

complete preliminary feasibility study; 12 gradient and 2

large-diameter wells (INDE-1 and INDE-2) were drilled

over an area of 10 km2. The highest temperature found

was 114oC at maximum depths of 797 and 1000 m. 

Concluded that the area did not offer good prospects for

power generation and suggested relocation for additional

studies.
Geothermal Resources in Latin America & the Caribbean 38

1976 - Activities suspended to study more promising

Zúnil field. 

1987 - INDE and LANL began a cooperative study of

field. 

1990 and 1991 - LANL re-evaluated the resource with

geochemical studies and isotopic data. Geothermal

model indicated the existence of two sub-systems: one in

the fault north of Moyuta Volcano with geothermometer

temperatures of 210oC; the other in the south fault with

170oC.

NOTES

Moyuta was the first geothermal area to be explored in

Guatemala. Geochemistry indicates temperatures up to

210oC.

Moyuta will be developed as a concession for an IPP.

Palencia

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1981 - Reconnaissance at the regional level. Surface

geologic mapping and geochemistry conducted by INDE.

NOTES

Third priority area.

Retana

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1981 - Reconnaissance at the regional level. Surface

geologic mapping and geochemistry conducted by INDE.

NOTES

Third priority area.
Geothermal Resources in Latin America & the Caribbean 39

San Marcos

LOCATION

250 km west of Guatemala City.

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 24-50

TEMPERATURE (EC) 225-300

CHRONOLOGY

1981 - Reconnaissance at the regional level. 

1993 - INDE and the European Economic Community

began prefeasibility study; study conducted by

Geotérmica Italian.

1995 - Prefeasibility study, including geology,

geochemics, and geophysics indicated the possibility of a

resource temperature of 300oC. The continuation of the

study is pending the approval of financial and technical

assistance from the EC.

NOTES

Suitable for binary power generation. San Marcos will be

developed as a concession for an IPP.

Tecuamburro

LOCATION

In southeastern Guatemala, 60 km southwest of

Guatemala City (Santa Rosa Department). Tecuamburro

Volcano has no record of historic eruptions.

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 50

TEMPERATURE (EC) 165-300

CHRONOLOGY

1980 - First studies done by INDE with OLADE.

1984 to 1986 - Prefeasibility study conducted by LANL

with funding from USAID. Slimhole well drilled 1 km

south of Laguna Ixpaco (808 m) encountered a maximum

temperature of 235oC. Geochemistry indicates up to

300oC. Test wells indicated two fields; one with

temperature of 300oC centered below Laguna Ixpaco, the

other with a temperature of 165oC. Estimated minimum

potential of 50 MWe.

NOTES

Will be developed as a concession for an IPP.
Geothermal Resources in Latin America & the Caribbean 40

Totonicapán

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 265

CHRONOLOGY

1993 - Identified as a priority area with the cooperation

of IAEA. 

1996 and 1997 - Geochemical study conducted; isotopes

analyzed in Vienna by IAEA.

NOTES

Estimated potential capacity pending further study with

support from IAEA.

Zúnil I (Orzúnil)

LOCATION

200 km west of Guatemala City; west of the Samalá

River (San Marcos Department).

STATUS

Construction underway

INSTALLED CAPACITY (MWE) 24

POTENTIAL (MWE) 24-50

TEMPERATURE (EC) 250-300

CHRONOLOGY

1973 to 1977 - Preliminary exploration done by INDE

with funds from JICA. 

1977 - INDE conducted a prefeasibility study which

included drilling 18 slimhole wells in an area covering

310 km2; discovered a high enthalpy reservoir (287oC) at

1130 m.

1979 - Selected an area of 4 km2 for feasibility study.

1980 and 1981 - INDE funded drilling of six deep

exploratory wells, four of which were productive. 

Contracted with Electroconsult for feasibility study of a

15 MWe plant.

1983 - Electroconsult feasibility study concluded that

the resource could support a 15 MWe plant for 20 years;

suggested drilling three additional wells to maintain

steam flow. Study did not estimate resource’s total

potential.
Geothermal Resources in Latin America & the Caribbean 41

1987 - INDE and LANL began a cooperative study of

field. 

1987 to 1991 - MK-Ferguson drilled three directional

wells (1500 to 2000 m) to evaluate the deep reservoir;

funded by the IDB. High enthalpy liquid-dominated

resource with a maximum measured temperature of

300oC demonstrated a capacity of 24 MWe. 

1988 to 1990 - Geoscientific studies conducted, e.g.,

geotectonics, gravity and SEV interpretation, fluid

inclusions, and mercury soil samples.

1992 - INDE invited interested companies to submit bids

for the construction and operation of a geothermal plant. 

1993 - INDE reached a contractual agreement with

Orzúnil S.A. (Ormat) to exploit the field through the

construction of a 24 MWe binary plant. INDE will

produce the steam; Orzúnil will generate electricity. 

April 1999 - Hybrid plant (flash steam and binary) to be

online.

NOTES

Orzúnil (Zúnil I) will be Guatemala’s first private

geothermal power plant, serving as a model for the future

development of private geothermal power in the country. 

Ormat International is the project developer. Orzúnil

will buy steam from INDE and sell electricity to INDE.

Initially, the plant was to be put into service in 1995. 

Construction was delayed, however, due to financing and

bureaucratic problems which have since been overcome. 

Financing was arranged by Ormat with assistance from

the International Finance Corporation (IFC). IFC will

invest $14.3 million in the project ($12 million debt and

$2.3 million in equity). In addition, IFC also arranged a

$15-million syndicated loan for the project.

Zúnil II

LOCATION

198 km west of Guatemala City; 2 km east of Zúnil I;

east of the Samalá River; 5 km from the grid (San Marcos

Department).

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 40-50

TEMPERATURE (EC) 244-280

CHRONOLOGY

1992 - Prefeasibility studies covering an area of 16 km2
Geothermal Resources in Latin America & the Caribbean 42

and funded by the IDB were finished by West Jec. 

Included drilling three slimhole wells and two wells with

larger diameters (6.5"). 

Large diameter well Z-21A (757 m) had a measured

temperature of 244oC and produced dry steam at a rate of

35 t/h with 6 bar abs. separation pressure. The well found

a “steam cap” which is probably associated with the deep

geothermal system. The potential estimated by the study

is 40 to 50 MWe. Production cannot be tested until the

exploration and development drilling is completed.

NOTES

Resource similar to Zúnil I but shallower and cooler. 

Will be developed as a concession for an IPP.
Geothermal Resources in Latin America & the Caribbean 43

Population (millions) - July 1998 5.86

Overall Electrification (% of population) 50%

GDP (billion US$) - 1997 est. $12.7

Real GDP Growth Rate - 1997 est. 4.5%

Inflation Rate (CPI) - 1997 15.0%

Total Installed Capacity (MWe) - 1995 721

Electricity Consumption per Capita (kWh) - 1997 403

Energy Demand Growth Rate 16.0%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

6.93

10.82

9.09

Estimated Geothermal Potential (MWe) 990

Power Summary

Honduras’s current installed electric power generation

capacity is approximately 720 MWe, out of which 430

MWe is hydroelectric and 290 MWe is thermal. The

country’s main hydroelectric facility is the Francisco

Morazan Dam, which was commissioned in 1985. The plant

has an installed capacity of 300 MW, which represents 70%

of the country’s total hydroelectric power generation

capacity. The country’s electrical power system is

composed of four hydroelectric plants, five thermal plants,

and two private power generators. Demand for electricity

has increased significantly over the past few years. 

Honduras imports 25% of its primary energy. 

With Honduras’s energy demand growing 16%, the country

is considering incentives to increase energy generation with

renewable resources, decrease high fuel consumption in

thermoelectric plants, and diversify energy production. 

Hurricane Mitch hit Honduras hard in October 1998. Over

9,000 people died; over 9,000 were missing; nearly 13,000

wounded; there were over 456,000 people in shelters; and 1

million people were evacuated within Honduras. Four out

of every six Hondurans were affected by Hurricane Mitch. 

The economic cost of the disaster has yet to be calculated. 

According to President Carlos Flores, Hurricane Mitch

destroyed two generations of efforts to build infrastructure,

and robbed hundreds of thousands of Honduran families of

their possessions. In the short-term, the storm wiped out

about 67% of Honduras’s GNP. Officials in Honduras

calculate the long-term damage caused by the hurricane at

$4 billion, twice the government estimate and more than

Honduras
Geothermal Resources in Latin America & the Caribbean 44

the country’s annual gross domestic product. GDP could

witness zero growth or even contract in 1999 according to

IMF officials. 

Preliminary assessments conducted by the IDB found that

the damage to the electricity sector in the region has been

minor compared to the damage to roads, schools, bridges

and homes. Some parts of the grid are destroyed as well as

the road to the Cajon Dam. The cost of fixing the damage is

estimated to be $6-10 million.

Extra funds will be released for the Government of

Honduras (GOH) to invest in reconstruction, and debt

repayment has been suspended for three years. The Paris

Club also offered to write off 67% of Honduras’s total debt

once an IMF-backed reform plan is in place. In addition,

the World Bank announced an interest-free US$1 billion

loan for both Honduras and Nicaragua, and the IMF

approved a US$67 million emergency loan for Honduras at

0.5%, repayable over 10 years with a 5.5 year grace period

(Latin American Monitor, January 1999).

IDB officials believe Hurricane Mitch could spur SIEPAC,

asserting that the need for economic integration in Central

America is now more urgent than ever as countries have to

work together to overcome the disaster (Power in Latin

America, January 1999).

Government / Legislation

Empresa Nacional de Energía Eléctrica (ENEE)

ENEE has suffered from technical and financial

shortcomings which have diminished its operating

potential. The enactment of a framework law on the

electrical subsector created the National Electrical Energy

Commission, allowed the generation of energy by the

private sector and permitted the adjustment of electricity

tariffs in accord with costs. Nevertheless, energy

distribution continues to be inefficient, with losses of 25%

in the distribution system. 

ENEE has a favorable legal framework in place for the 

development of resources with a public bidding process for

a PPA or Build-Own-Operate (BOO) contracts likely. In

1999, the GOH plans to allow participation of the private

sector in the distribution of electricity throughout the

country. No date has been set for the privatization of

ENEE.

Ministerio de Energía y Minas

The new function of the Ministry of Energy and Mines’

Electricity Subsector, is to plan and normalize the sector.

Energy Subsector Framework Law (1994)
Geothermal Resources in Latin America & the Caribbean 45

Approved on November 3, 1994, the Energy Subsector

Framework Law regulates the generation, transmission,

distribution, and commercialization of electric power in

Honduras, allowing the private

sector to participate in the

generation and distribution of

electric power.

Framework Law of the Electricity

Sub-Sector (1996)

Honduras approved legislation to

encourage investors into raising

the country’s renewable energy

generation. Firms coming into the

sector will be able to build a plant

without paying sales tax on any of

their materials for 15 years. 

Another 10-year tax break frees

them from income tax.

The new law covers energy

produced from biomass or alcohol, solar, tidal or wave

power, as well as geothermal and hydro energy. 

A development fund of $11m will be set up and used by

ENEE, the state electricity company, for such renewable

energy projects. The law passed by the national assembly at

the end of March 1998 is also aimed at creating rural jobs.

No Specific Law for Geothermal

The specific incentives which benefit

generation activities by renewable

energy for private investment consist of

the exemption of the rights of the duty

for the import of generation equipment

(Power in Latin America, April 1998). 

Geothermal Sites / Projects

Honduras has an estimated 990 MWe of

geothermal power potential.

ENEE began exploring Honduras’s

geothermal resources in the 1970s with

a field survey of Pavana undertaken by

Geonomics. The survey was terminated

early due to financial problems. In

1979, a nationwide reconnaissance program identified 128

thermal manifestations and took water and gas samples at

111 and 11 sites respectively.

In 1980, GeothermEx, funded by the UN, identified six

sites of interest: Pavana, Sambo Creek, El Olivar, San
Geothermal Resources in Latin America & the Caribbean 46

Ignacio, Azacualpa, and Platanares. The World Bank

provided $900,000 for geothermal exploration in 1982.

In the mid-1980s, the UNDP and the Italian Government

funded two Italian companies at $3 million, Geotermica

Italiana srl and Dal, to assess the potential of central

Honduras (Comayagua, Santa Bárbara-Sula, San Ignacio, and

Azacualpa). 

Working in cooperation with the UNDP, in 1985 and 1986

LANL and the U.S. Geological Survey, funded by USAID

and the U.S. Department of Energy (DOE) under the

“Central American Energy Resources Project,” helped

ENEE evaluate the country’s geothermal power generation

potential, and prioritize the previously identified six sites. 

(The $10.2 million-Central American Energy Resources

Project also covered Costa Rica, El Salvador, Guatemala,

and Panama.)

Platanares, San Ignacio, and Azacualpa (in that order) were

selected as the three best geothermal sites for power

generation using binary cycle plants. Platanares has

potential of 10-110 MWe. Several firms from the U.S. and

Italy have approached ENEE regarding development of this

site (Lawrence, 1998).

Honduras’s geothermal resources are located in off-grid,

rural areas, and geothermal could contribute to the

country’s rural electrification program. Geothermal

development in Honduras has stagnated, however, due to a

lack of adequate financing, technical capability, and

institutional inertia.

1. Azacualpa

2. El Olivar

3. Isla del Tigre

4. Pavana

5. Platanares

6. Sambo Creek

7. San Ignacio

Azacualpa

LOCATION

In central Honduras; part of the Central Geothermal

Zone; on the Río Jaitique along the east side of the northtrending Santa Barbara graden; approximately 100 km

northwest of Tegucigalpa (Departamento de Comayagua).

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 13-36

TEMPERATURE (EC) 129-190
Geothermal Resources in Latin America & the Caribbean 47

CHRONOLOGY

1985 - Geology and hydrogeochemistry investigated by

LANL, Tennessee Technological University, and ENEE

as part of the Central American Energy and Resource

Project.

1985 to 1987 - Studies done by Geotérmica Italiana and

Dal Intexa through the UNDP Fund. Included

geochemical exploration, geology, geophysics, and

drilling slimhole exploratory wells. The two wells found

a temperature of 115oC at depths of 650 and 500 m. 

Maximum measured temperature is 129oC. Suitable for

binary cycle generation.

NOTES

Azacualpa has good potential, less than Platanares but

equal to San Ignacio, for development as an electrical

power source (Eppler et al, 1987). 

The site, which consists of several hot springs, is heavily

forested and has canyons up to 100 m deep. Access is by

rough dirt roads from Zacapa to the village of Azacualpa. 

The earth’s crust appears to be highly fractured and

thinned making it similar to sites in the western United

States (Eppler et al, 1987).

Calculated base temperature of 180-190oC (Goff et al,

1988). Suitable for binary cycle generation.

El Olivar

LOCATION

Approximately 20 km north of Lago de Yojoa in northern

Honduras; 50 km south of San Pedro Sula; thermal

springs are located in Sula Valley which is one of the

most productive agricultural areas in Honduras

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 1.3

TEMPERATURE (EC) 120

CHRONOLOGY

1985 to 1986 - Geology and hydrogeochemistry

investigated by LANL, Tennessee Technological

University, and ENEE as part of the Central American

Energy and Resource Project.

NOTES

Due to low temperature (120oC) and flow rate (200

l/min), compared to other sites, El Olivar is the least

promising for geothermal power generation. The total

power output for both hot spring systems is only 1.3

MWe.
Geothermal Resources in Latin America & the Caribbean 48

Isla del Tigre

LOCATION

On a small island in the Gulf of Fonseca.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

The GOH through the Ministry of Energy and Mines has

expressed an interest in evaluating the resource with the

aim to small-scale power generation. 

El Tigre has the potential to replace diesel in supplying

the population of Amapala with electricity. Pollution

caused by the diesel power is a serious environmental

problem. Converting the diesel to geothermal would also

allow direct use applications related to the local fishing

industry. 

The data does not yet exist to evaluate the geothermal

resource’s assets.

Pavana

LOCATION

In the southwestern part of the country, near the Gulf of

Fonseca; 3 km southeast of Pavana; ~200 km from the

intersection of the Río Agua Caliente and the PanAmerican Highway (Departamento de Choluteca).

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 11

TEMPERATURE (EC) 150

CHRONOLOGY

1970s - Site studied by Geonomics, Inc. including

photogeologic mapping and limited follow-up field

checking. Preliminary report suggested three calderas;

due to bankruptcy, company was unable to complete the

project.

Mid 1970s - Geologic mapping by the UNDP and stream

sampling by GeothermEx, Inc.. 

1985 to 1986 - Studied by LANL and the U.S. Geological

Survey as part of the Central American Energy and

Resource Project. Main thermal area has a minimum
Geothermal Resources in Latin America & the Caribbean 49

natural outflow of about 3000 l/min of 60oC. 

Geothermometry suggests a reservoir base temperature

of 150oC.

NOTES

Superficial studies of preliminary geochemical and

geology have been done. Calculated base temperature of

150oC (Goff et al, 1988), substantially lower than other

fields in Honduras. May be suitable for binary power

generation. 

Pavana is located near power lines, a major paved

highway, and agricultural projects where its water could

be used for processing. 

Oxbow has expressed an interest in obtaining a

concession for power generation. The geographic

situation of Pavana, which is near the border with

Nicaragua and closer in relation to the Active Central

American Volcanic Cadera where several high enthalpy

geothermal fields are located, is of great interest and

potential.

Platanares

LOCATION

In west-central Honduras in the Quebrada Agua Caliente;

30 km east of the Guatemalan border, 16 km west of

Santa Rosa de Copán; 2 km east of the San Andrés gold

mine; 710-740 masl (Departamento de Copán).

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 10-110

TEMPERATURE (EC) 225-240

CHRONOLOGY

1985 to 1986 - Studied by LANL, the U.S. Geological

Survey, and ENEE; included extensive geologic

exploration, geochemistry, and geophysics studies.

1986 and 1987 - LANL drilled three slim core holes to

depths of 650 m (PLTG-1), 401 m (PLTG-2), and 679 m

(PLTG-3). PLTG-1 and -3 intercepted fractures. 

Bottom hole temperatures of 160 to 165oC, initial flow

rates of 356 l/min and 563 l/min for, and maximum

power of 3.12 MW(t) and 5.12 MW(t) for core holes

PLTG-1 and -3 respectively. The downhole fluids are

relatively dilute (< 1200 mg/kh TDS) and slightly
Geothermal Resources in Latin America & the Caribbean 50

alkaline and are not expected to be corrosive in any

geothermal applications (Goff et al, 1991).

Sulfate isotope and geothermometers indicate

temperatures of 225-240oC at depths of 1200-1500 m. 

Preliminary evaluations indicate the possibility of

obtaining 10 MWe from the shallow reservoir. LANL

recommended six wells, five production and one

reinjection, approximately 600-700 m deep.

NOTES

The Platanares geothermal site was determined by LANL

to be the best geothermal prospect in the country due to

its high geothermometric temperatures (225oC), high

discharge volume (>3000 l/min), and large estimated

reservoir volume (assuming porosity of 10%, estimated

maximum is 16 km3) (Goff et al, 1986). 

Preliminary evaluations done by LANL and USGS

indicate the possibility of obtaining 10 MWe from the

shallow reservoir using six wells, five production and one

reinjection, approximately 600-700 m deep, and a binary

cycle. 

Platanares could be a good pilot project for cascading

use, e.g., power generation as well as industrial and

agricultural direct applications. 

The San Andrés gold mine is a potential buyer of power

produced at Platanares.

Sambo Creek

LOCATION

In northern Honduras; approximately 1.5 km south of the

village of Sambo Creek (Departamento de La Ceiba).

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 15-17.6

TEMPERATURE (EC) 155

CHRONOLOGY

1977 - Geonomics investigated.

1980 - GeothermEx investigated.

1985 to 1986 - Studied by LANL and the U.S. Geological

Survey as part of the Central American Energy and

Resource Project.

NOTES

Since no geophysical studies of Sambo Creek exist to

assess the reservoir, it would cost more to develop than
Geothermal Resources in Latin America & the Caribbean 51

the Pavana field (which has an equivalent temperature(. 

Power output is 17.6 MWe assuming a reservoir

temperature of 155oC, an ambient temperature of 30oC,

and an estimated discharge rate of 2000 l/min.

San Ignacio

LOCATION

In central Honduras; part of the Central Geothermal

Zone; 3 km northwest of Barrosa village; 8 km northwest

of the town of San Ignacio; hot springs issue from the

northern side of the broad Valle de Siria at the southern

edge of a ridge of the Montañas de la Flor; ; ~100 km

north of Tegucigalpa; 750-1000 masl (Departamento de

Francisco Morazán).

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 14

TEMPERATURE (EC) 160-230

CHRONOLOGY

1977 - Geonomics investigated.

1980 - GeothermEx investigated.

1985 to 1986 - Studied by LANL and the U.S. Geological

Survey as part of the Central American Energy and

Resource Project; mapped four spring areas.

1985 to 1987 - Geotermica Italiana srl and Dal under the

UNDP surveyed site; studies included geochemical

exploration, geology, geophysics, and drilling a slimhole

exploratory well to 500 m.

NOTES

After Platanares, San Ignacio (La Tembladera) is

considered the second most promising site for power

generation by binary cycle. This conclusion is based on

chemical and isotopic geothermometry (185-230oC),

natural discharge volume (600-1200 l/min), and

widespread sinter (> 1km2).

Access to the site is excellent; it is located near a main

road. The site has moderate relief with little vegetation

and has around 50 hot springs (Goff et al, 1986).
Geothermal Resources in Latin America & the Caribbean 52

Population (millions) - July 1998 98.55

Overall Electrification (% of population) 95%

GDP (billion US$) - 1997 est. $694.3

Real GDP Growth Rate - 1997 est. 7.3%

Inflation Rate (CPI) - 1997 15.7%

Total Installed Capacity (MWe) - 1995 41071

Electricity Consumption per Capita (kWh) - 1997 1247

Energy Demand Growth Rate 6.0%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

4.87

11.06

4.20

Estimated Geothermal Potential (MWe) 6,510

Power Summary

Mexican power output reportedly increased 6.5% in 1997.

In 1996, México generated 154,000 gigawatt-hours of

electricity from 36 gigawatts (GW) of electric generating

capacity. According to México’s Energy Minister Tellez,

the country will require 6 GW more capacity over the next

six years. México is a major non-OPEC oil producer and

has the world’s sixth largest oil company (Pemex). Of the

country’s current installed capacity, hydrocarbons account

for 54%, hydropower 28.8%, coal 6%, geothermal 2.4%,

and nuclear power 2.1%. Under the country’s industrial

energy policy, a significant percentage of México’s

thermoelectric plants are slated for conversion to natural

gas by 2005. 

The Comisión Federal de Electricidad (CFE) owns most of

México’s installed electric generating capacity, however,

this is beginning to change as CFE lacks the funds needed to

meet México’s soaring electric power demand.

In August 1998, México’s energy secretariat published a

seven-year plan for its energy sector. It must meet a

projected increase in electricity demand of 3.9% to 6% a

year until 2006. This will require more than 12-13 GW of

additional generating capacity representing $25 billion in

investment. Private investors are expected to provide the

extra capacity to meet the increase in demand by funding

51% of the $25 billion investment.

Low oil prices have also led to increasing privatization of

México’s power sector; oil revenues account for about

40% of government income. The price of Mexican crude

oil dropped to a record low of US$6.95 a barrel in

México
Geothermal Resources in Latin America & the Caribbean 53

December 1998. For every dollar it drops, the Government

of México (GOM) loses 1% of total revenue. In late March

1998, the GOM was forced to slash federal spending by

$1.1 billion due to lower-than-expected oil prices. Recent

budget cuts may force CFE to loosen its grip on the

country’s power sector and allow more privatizations. The

GOM’s inability to disengage itself from dependency on oil

revenue has left the country vulnerable as oil prices drop. 

The most common form of participation in the construction

of independent power producers (IPP) has been through

Build-Lease-Transfer (BLT) contracts. In the IPP process,

the CFE generally picks the lowest bid per kilowatt-hour to

provide electricity. 

Under a BLT structure, private companies finance the

construction of the power plant based on turnkey contracts

with respectable contractors. The plant is then leased to

CFE for operation for a term sufficient to provide return on

investment. At the end of the term, CFE takes ownership of

the plant. 

Ambitious plans are underway to develop México’s power

industry under a Build-Own-Operate (BOO) structure but

BLT arrangements continue to dominate the development

the power projects. The 100 MWe Cerro Prieto

geothermal plant awarded to Mitsubishi in October 1997 is

a BLT. Project structures are assessed on a case-by-case

basis.

CFE opened the bidding for three IPPs totaling 1,350 MWe

in October 1998, including a 10 MWe geothermal plant at

Las Tres Vírgenes and Monterey III, a planned geothermal

and combined-cycle plant.

Private firms are already allowed to build and operate IPPs

but opening up the distribution and sale of energy requires a

change in the Mexican constitution. 

In February 1999, Mexican President Ernesto Zedillo sent 

bill to Congress which would allow private investment in

electricity generation, distribution, and sales. The Energy 

Ministry proposed selling off generation plant clusters,

tendering concessions for regional distribution and control

of a national transmission grid, and establishing a free

electricity commodity market. The proposal specifies that 
Geothermal Resources in Latin America & the Caribbean 54

nothing would be implemented until after the 2000

elections, thereby taking it out of the political arena. The

Mexican Congress is scheduled to begin debate on CFE’s

privatization in March 1999.

While the government fiercely denied any immediate plans

to invite greater private participation in the oil sector,

analysts said the electricity overhaul could be a litmus test

to see how Mexican society would accept a similar process

for Pemex.

Government / Legislation

Comisión Federal de Electricidad (CFE)

CFE controls the generation, distribution, and transmission

system of México. Pressure to privatize the country’s

power sector stems from the CFE’s financial constraints

following recent budget cuts. Despite the pressure, the

country’s switch to privatized power is still uncertain.

Secretariat of Energy

Article 27 of the Constitution gives exclusivity to the state

in electricity and petrochemical markets on the basis that

they are of strategic importance. Amendments to the

Constitution state that generation of electricity less than 30

MWe can be private; over 30 MWe remains the State’s

responsibility but concessions are allowed. Also, the

Mexican Government slowly but steadily is removing its

tariff subsidies, the co-generation and other self-supply

projects (generally of up to 30 MW) which have been

allowed since 1992 will become more attractive, creating

an additional source of demand. 

México operates under Roman Law which prohibits what it

does not permit.

Electric Power Law of 1975 — 1992 Amendment

In 1992, an amendment to the Electric Power Law of 1975

was adopted, allowing domestic and foreign private sector

investment in generation in areas not related to the supply

of power to the public in general. These areas are selfgeneration, co-generation, independent power production,

and small production. Small-scale production is defined as

projects with a capacity less than 30 MWe, self-supply for

rural or off-grid communities up to 1 MWe, or exportation

up to 30 MWe. 

Independent production is the generation of electric power

provided by a plant with a capacity of more than 30 MWe

intended exclusively for sale to the CFE or for export. 
Geothermal Resources in Latin America & the Caribbean 55

Geothermal is under Water Laws

The geothermal division of CFE, the Gerencia de Proyectos

Geotermoeléctricos (GPG), was transferred in October

1997 to the Generation area (Subdirección de Generación). 

This transfer included the fields of Cerro Prieto, Los

Azufres, and Los Humeros, all which are part of GPG.

CFE is directly responsible for the exploration,

development, and commercial use of geothermal energy to

produce electricity, although development, construction,

and operation of geothermal projects by private companies

are already permitted. 

CFE retains control of all geothermal projects. The

development of geothermal resources currently comes

under Mexican water law. 

Geothermal Sites / Projects

México has an estimated 6,510-8,000 MWe of geothermal

power potential.

Geothermal energy accounts for 2.6% of México’s power

generation with an installed capacity of 753 MW, five

plants and 28 units and the potential to grow to 2,000 MW

by the year 2010. México is the world’s third largest

producer of geothermal electricity. 

México is estimated to have 8,000 MWe of geothermal

resources, second in the world only to Indonesia. The

country’s first geothermal well was drilled at Pathé El

Grande in Tzipathé, Hidalgo in 1954, and the National

Commission of Geothermal Energy created the following

year. The first commercial geothermal plant in Latin

America, a 3.5 MWe unit, began its 14 years of operation at

Pathé in 1959.

By 1987, 545 thermal localities had been identified which

grouped around 1380 individual hot points including hot

springs, hot water shallow wells, hot soils, fumaroles, etc.

The GOM will stop investing in geothermal development

which accounted for $70 million in 1997. Five

plants—Cerro Prieto IV, Tres Vírgenes I, Los Azufres II,

Los Humeros II, and La Primavera I—will be developed as

BLTs or BOTs. Several U.S. geothermal companies, e.g.,

CalEnergy, Caithness Energy, Calpine Corporation, and

Ormat International, are active in México.

CFE categorizes geothermal applications as the following:

• Large central plants (100 MW, 300oC) -

compete with thermoelectric, oil, and gas

plants, 2 to 4 ¢ US/kWh;

• Medium central plants (5 MW, 200oC) -

compete with diesel, 7 to 10 ¢ US/kWh;
Geothermal Resources in Latin America & the Caribbean 56

• Small plants (0.5 MW, 150oC) - isolated

areas; and

• Micro plants (20 kW, 80oC) - individual use.

México plans to increase it base of geothermal energy in

one of three ways depending on the resource: 

1. For projects > 10 MWe — CFE will call for

open bids from EPC contractors to develop

under BLTs. CFE will have two contracts: 

one for steam production and one for power

generation. These will be six-year

agreements. CFE expects to develop 100

MWe this way.

2. For projects of 300 kW in remote areas —

CFE will purchase and install equipment

using its own funds. A plant of this size can

supply a population of 2,000 and can be used

for domestic use, water wells, and small

industrial applications. 

Approximately 150 t/h of water at 120oC can

produce 1 MWe. The plant costs

approximately $750,000; the economics

depend primarily on the well (Le Bert, 1997). 

CFE has to date installed four 300 kW units.

3. For extremely remote areas — CFE will

initiate a program of installing 20 kW

turbines to use warm surface water from

rivers. CFE currently has a patent pending on

this technology. 

1. Acoculco Caldera

2. Araró

3. Bahía Concepción

4. Cerro Prieto

5. Cerro Prieto Biphase Turbine Project

6. Domos de Zitácuaro

7. El Ceboruco-San Pedro

8. El Centavito

9. La Primavera

10. La Soledad

11. Laguna Salada

12. Las Derrumbadas

13. Las Tres Vírgenes

14. Los Azufres

15. Los Humeros

16. Maguarichic

17. Ojinaga

18. Pathé
Geothermal Resources in Latin America & the Caribbean 57

19. Puertecitos

20. Santa Rita

Acoculco Caldera

LOCATION

In Central México at the extreme eastern part of the

Transmexican Volcanic Belt (CVT); 110 km NE of

México City (between the States of Puebla and Hidalgo).

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 274-307

CHRONOLOGY

1981 - Regional reconnaissance study carried out

(Romero).

1982 - Geothermal interest confirmed when high ratios

of magmatic significance were measured (Polak et al).

1986 - Geological exploration continued; described

extensive zones of hydrothermal alteration accompanied

by cold acid springs and observed dead animals around

gas emissions similar to “Kaipohans” features found in

the Philippines (Castillo and De la Cruz). 

1995 - CFE drilled well EAC-1 to 2000 m; temperature

of 274oC measured at the bottom of the well; no

permeable productive zones were found. 

1998 - IIE conducted environmental studies;

investigation included mapping of hydrothermal

alteration zones using remote sensing (Rodríguez, 1998).

NOTES

“Low permeability seems to be the general condition at

production depths in this zone, so it is advisable to

schedule the next exploratory phase based on directional

wells, to have a better chance to target permeable zones. 

Attempts to define the geometry of the thermal

anomalous area and the feasibility of its commercial

exploitation will be done simultaneously” (LopezHernandez and Castillo-Hernandez, 1997).

Araró

LOCATION

Michoacán State

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0
Geothermal Resources in Latin America & the Caribbean 58

POTENTIAL (MWE) -

TEMPERATURE (EC) 26-118

CHRONOLOGY

1990 to 1994 - Detailed stratigraphy and geophysical

studies conducted.

1991 - Six exploratory and thermal gradient wells drilled;

123 m to 1350 m; found temperatures of 26oC to 118oC.

NOTES

Exploration stopped because Araró seems to be a fossil

hydrothermal system, now extinct, as shown by its

present low temperatures and its intense high

temperature hydrothermal alteration at depth (QuijanoLeón and Gutierrez-Negrín, 1995).

Bahía Concepción

LOCATION

27.0 Lat., 112.0 Long. (Baja California Sur State).

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1990 to 1994 - Detailed mapping done.

NOTES

Cerro Prieto

LOCATION

In the northwestern part of the country in the Mexicali

Valley between the southeast end of the Imperial Fault

and the northern end of the Cerro Prieto Fault; 30 km SE

of Mexicali, close to the mouth of the Colorado River;

between 115o12' and 115o18' longitude west and 32o22'

and 32o26' latitude north (Baja California México State).

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 620

POTENTIAL (MWE) 620-1000

TEMPERATURE (EC) 305-350

CHRONOLOGY

1958 - First reconnaissance studies began. 

1964 - Four deep exploratory wells drilled; found

temperatures up to 300oC.
Geothermal Resources in Latin America & the Caribbean 59

1967 - 14 more wells drilled. 

1973 - First two 37.5 MWe units of CP-I came online.

1979 - Second two 37.5 MWe units of CP-I came online.

1981 - 30 MWe unit of CP-I came online.

1981 to 1987 - CP-II and CP-III installed; each with two

110-MWe units.

1989 - Reinjection of waste brine began; up to 40% of

waste fluid is now being injected.

GeothermEx estimated energy stored at the reservoir’s

present exploitation area at 2E16 kJ, representing an

energy stock of 1,800 MWe/year (figure includes the

subtraction of the energy that had been extracted to date). 

1990 - CFE signed a contract with CP Latina (now

Latina-Calpine) for their steam supply for a period of

approximately 10 years at 800 t/h. 

1996 and 1997 - Workovers performed showed that

wells produce from zones deeper than average traditional

feeding zones. Results showed that recovery can be

greater than 100% in some cases using an appropriate

workover technique (Ocampo et al, 1997).

February 1997 - Workshop held at Cerro Prieto to

discuss drilling a 6 km deep well in the eastern part of the

field to test the economic potential of deeper production

zones as well as conflicting ideas about what lies beneath

the Cerro Prieto geothermal field.

October 1997 - CFE selected Mitsubishi to build and

operate the 100 MWe (four 25 MWe condensing units

housed in a single power house) CP-IV project under a

BLT. 

Mitsubishi offered a $797/per installed kW and a

levelized generating cost of 2.81¢/kWh. 

Once the plant is built, CFE will take possession of it,

have the right to operate it, and pay a quarterly rent for 15

years to meet credit amortizations. When the leasing

period ends, CFE will own the plant. 

1998 - CP-IV reached financial closing in April. Issued

call for bids to supply 1,000 t/h of steam for CP-IV

project; steam will be supplied by 20 wells drilled in the

Ejido Nuevo León area to an average depth of 2800-3000

m. 

2000 - CP-IV expected to be online by July 30.

NOTES

Cerro Prieto, the second largest geothermal field in the
Geothermal Resources in Latin America & the Caribbean 60

world, has nine units operating in three geothermal power

plants (CP-I, CP-II, and CP-III). The total installed

capacity of the field is 620 MWe—180 MWe from CP-I

and 220 MWe from both CP-II and CP-III. All three are

part of the Baja California Electrical System of CFE. 

Theoretically, CP-I, II, and III can supply a maximum

capacity of 906 MWe (Oropeza, 1998). More than 240

wells have been drilled in the field which covers an area

of 15 km2.

Cerro Prieto’s 1996 capacity factor was 83.4%. In

1997, CFE and CP Latina (Constructora y Perforada

Latina) operated an average of 129 wells, 101 and 28

respectively with an average production per well of 36.5

t/h. Since late 1995 Calpine Corporation has been a

partner with Latina (Beall et al, 1997).

Four additional 25-MWe units are under construction as

part of CP-IV. CP-IV is the first geothermal project to

be constructed in México since 1994. It will increase

Cerro Prieto’s installed capacity 16% and the country’s

capacity 13% (Hiriart-Le Bert, 1998).

CP-V, to supply an additional 100 MWe, is under

assessment. 

On of CFE’s main efforts for 1998 is to improve steam

production in the Cerro Prieto field, e.g., the repowering

of CP-I which is designed to save 115 t/h of steam. 

Additionally, a geothermal-gas combined cycle plant

project is being studied. The project would have a 14

MWe gas turbine and 25 MWe geothermal turbine. The

latter would be designed to operate with saturated or

superheated steam created by heat extracted from the gas

turbine exhaust and could thus generate 30 MWe at peak

hours. 

Finally, a geothermal-combined cycle plant with

geothermal pre-heating project is in the prefeasibility

stage. This would consist of the construction and

installation of a 440 MWe combined cycle plant. To

lower the summer temperature peaks, a thermal inertia

pond could complement the cooling tower.

Cerro Prieto Biphase Turbine Project

LOCATION

In the northwestern part of the country in the Mexicali

Valley between the southeast end of the Imperial Fault

and the northern end of the Cerro Prieto Fault; 30 km SE

of Mexicali, close to the mouth of the Colorado River;

between 115o12' and 115o18' longitude west and 32o22'

and 32o26' latitude north (Baja California México State).

STATUS
Geothermal Resources in Latin America & the Caribbean 61

Construction underway

INSTALLED CAPACITY (MWE) 4.178

POTENTIAL (MWE) 4.178-60

TEMPERATURE (EC) -

CHRONOLOGY

1996 - E&Co. lent $125,000 to Douglas Energy Co.

(DECO) and Biphase de México (BIMEX).

1997 - Biphase power plant installed; minor

modifications needed to address a problem of chemical

scaling. Flow from Well No. E-15 added to increase

power output to 4060 kW. 

Well survey indicated the potential for three additional

20 MWe installations.

1998 - Turbine expected to be installed; full operation of

plant.

NOTES

DECO and BIMEX designed project to generate power

from wasted steam and brine flow energy. 

The turbine project will generate 4.178 MWe of power.

Roughly one-quarter of this will derive from the

centrifugal separation of the steam and brine (geothermal

water) mixture that flows from Well No. 103, while the

balance of over 3 MWe will be produced by passing the

separated steam through a small turbine attached to the

biphase unit before it flows to the existing main steam

turbine in the power plant. The biphase thus capitalizes on

the steam and brine that would otherwise be lost in a

conventional cyclone separator. The increase in energy

produced from the well under consideration will be of

the order of 45%.

This system has been tested on earlier geothermal fields

with positive results. The Cerro Prieto biphase will

further showcase its commercial capacity by generating

power for CFE. With success, the project is due to

precipitate duplicate initiatives in the Cerro Prieto field

and in other geothermal areas, and to confirm that

geothermal is both clean and profitable energy.

E&Co’s investment played a critical “but for” role in the

biphase project’s evolution, enabling Douglas Energy to

advance its negotiations with other financing sources and

present itself as bankable to investors in future projects. 

The biphase power plant was installed in late 1997 and

has undergone minor modifications to address a problem

of chemical scaling. The steam turbine unit has been

fabricated and is expected to be installed in the next few

months and be in full operation by the end of 1998. 

The project is jointly supported by DOE and the
Geothermal Resources in Latin America & the Caribbean 62

California Energy Commission (CEC) under the

geothermal loan program. Additional support was

received from E&Co. 

CFE will purchase the power generated by the plant. The

revenue will be used to pay O&M and repay the CEC and

E&Co. loans.

CFE has stated its intention to install additional biphase

power plants when the first unit is successfully

demonstrated. The optimal installation increment

appears to be 20 MWe. 

The installed cost, including electrical transmission

lines, is estimated to be $11 million or $523/kWh. The

effective steam rate is 51 lb/kW (Cerini et al, 1997).

Domos de Zitácuaro

LOCATION

19.5 Lat., 100.0 Long. (Michoacán State).

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1990 to 1994 - Detailed mapping done.

NOTES

Exploration stopped due to existence of an outcropping

metamorphic basement whose fracturing and probable

permeability seem to be very low (Quijano-León and

Gutierrez-Negrín, 1995).

El Ceboruco-San Pedro

LOCATION

21.0 Lat., 105.0 Long. (Nayarit State).

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 23-180

CHRONOLOGY

1990 to 1994 - Hydrology, tectonics, volcanology, and

geophysical studies conducted.

1992 to 1994 - 10 exploratory and thermal gradient

wells drilled; 124 m to 2801 m; temperatures 23oC to
Geothermal Resources in Latin America & the Caribbean 63

180oC.

NOTES

El Centavito

LOCATION

Baja California Sur State

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 0.3

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

300 kW plant used for irrigation.

La Primavera

LOCATION

Jalisco State.

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 95

TEMPERATURE (EC) 305

CHRONOLOGY

1980s - Eight wells drilled in La Primavera, detecting a

reservoir in fractured igneous rocks with temperatures up

to 305oC (Hernandez-Galán, 1988).

1989 - CFE planned to install 5 MWe wellhead unit. 

1998 - Primavera I obtaining licenses.

December 2000 - 75 MWe Primavera I expected online.

NOTES

Primavera II - 20 MWe under assessment.

La Soledad

LOCATION

Jalisco State.

STATUS

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -
Geothermal Resources in Latin America & the Caribbean 64

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

Laguna Salada

LOCATION

32.5 Lat., 113.5 Long. (Baja California State).

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 112-125

CHRONOLOGY

1990 to 1994 - Geophysical studies conducted.

1994 - Three exploratory wells drilled from 1777 to

2396 m; temperatures of 112oC to 125oC.

NOTES

Las Derrumbadas

LOCATION

Puebla State

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1994 - Exploratory well drilled.

NOTES

Las Tres Vírgenes

LOCATION

In the Ecological Reserve of Desierto de Vizcaino, home

to the bighorn sheep and other unique endemic species;

35 km NE of Santa Rosalía; area for development is

limited to 7,500 m2; access to the area is by an 18-km

long gravel road; 720 masl (Baja California Sur State).

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0
Geothermal Resources in Latin America & the Caribbean 65

POTENTIAL (MWE) 25

TEMPERATURE (EC) 245-280

CHRONOLOGY

1984 to 1993 - Geological, geohydrology, geophysics,

geochemistry, and petrography studies conducted by

CFE; exploratory boreholes drilled.

1997 - Drilled seven wells to depths of 1291 to 2500 m;

four wells are producing at 25-30 t/h steam and 50-80 t/h

water, three are injection. The water is alkali chloride

(sodium-chloride); geothermometer temperatures have

reached 280oC.

1997 - International bidding opened for 10 (2 x 5) MWe

Las Tres Vírgenes I as a BLT.

1998 - Las Tres Vírgenes I due for award at end of year.

2000 - First Stage (Tres Vírgenes I); Two 5 MWe plants

expected to be online. The first unit will be built near

wells LV-1 and 5, the second near LV-3 and 4. Steam

consumption required is 24 kg/s. 

2001- Second Stage (Tres Virgenes II); an additional 15

MWe expected to be online.

NOTES

The Las Tres Vírgenes field has different characteristics

compared to México’s other geothermal resources, e.g.,

reservoir located in the basement, low permeability, low

pressure, and located in an ecological preservation area.

Present knowledge indicates that the geothermal

reservoir is of small size with limited fluid recharge

(Lopez et al, 1995).

Due to the location of the field in an ecological preserve,

CFE has decided that 5 MWe condensing units are

appropriate. A binary cycle would also be possible but

only if it uses steam (CFE has already bought small

capacity plants to use the separated water). The

estimated useful life of the resource is 25 years. 

Las Tres Vírgenes will supply electricity to the small,

isolated Santa Rosalía grid where the maximum present

demand is 6 MWe supplied by diesel generators at high

cost. A large increase in demand is expected.

The approximate cost of a 5MWe plant with two wells

including exploration is $13 million or 4¢ US/kWh (Le

Bert, 1997).

Los Azufres

LOCATION

In central México in the Sierra de San Andrés, 220 km
Geothermal Resources in Latin America & the Caribbean 66

NW of México City; covers approximately 11,100

hectares in a national forest protection zone; located in

the Mexican Volcanic Belt (MVB) between the

19o45'30"-19o50'30" north latitude parallels and the

100o38'30"-100o43'00" west longitude meridians; 2800

masl (Michoacán State).

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 88

POTENTIAL (MWE) 88-610

TEMPERATURE (EC) 280-340

CHRONOLOGY

1950s - CFE initiated geophysical, geological, and

geochemical exploratory studies. 

1972 - Exploration renewed.

1977 - First production wells drilled.

1982 - First five 5-MWe backpressure units (25 MWe)

went online.

1988 - 50 MWe condensing unit began commercial

operation at Tejamaniles. 

1989 - 5 MWe backpressure unit (U-8) began operation.

1990 - 5 MWe backpressure unit (U-9) began operation.

1991 - Marítaro project, to install two 20 MWe

condensing units, was bid on but not signed.

1993 - 5 MWe backpressure unit (U-10) and two 1.5

MWe binary Ormat units began operation.

1996 - Two 5-MWe backpressure units transferred to

Miravalles in Costa Rica.

March 1997 - CFE held a seminar in Morelia to discuss

possible geothermal projects. 

1997 to early 1998 - Unit 7 (50 MWe) down due for

generator repair. Marítaro project canceled. 

1998 - Encouraged by contract received on Cerro PrietoIV, CFE prepared bid for 100 MWe Los Azufres II

project as a BLT. Estimated total project costs is $116

million for field and plant investment. O&M costs of

Field and Plants is 13¢/kWh and 45¢/kWh respectively. 

Additional assumptions: 8% interest for 12 years. Cost

of generated energy is 2.4¢/kWh and the IRR is 12.7%

(Taboada, 1998). 

1999 - Bid expected from CFE for four 25-MWe units

(100 MWe) at Los Azufres III.
Geothermal Resources in Latin America & the Caribbean 67

2000 - 100 MWe of Los Azufres II expected online by

July.

2003 - Bid expected from CFE for two 25-MWe units at

Los Azufres IV.

NOTES

After Cerro Prieto, Los Azufres (“The Sulphurs”) is the

second most important geothermal power project in

México. The field has ten plants with an installed

capacity of 88 MWe—seven 5-MWe backpressure units,

one 50-MWe condensing unit, and two 1.5-MWe binary

units. Of the total, 63 MWe are located in the field’s

southern zone (Tejamaniles), 25 in the northern

(Marítaro). 

An average of 19 wells (out of a total of 67) were in

production in 1997, all operated by CFE. Average annual

flow rate was 830 t/h. Los Azufres’s capacity factor is

93.6%.

The development strategy is to install condensing units

on sites where there is more knowledge of the reservoir

and move the backpressure units to sites where more

information is needed. 

CFE is increasing the generation capacity of the field to

188 MWe with the installation of four 25 MWe

condensing units under the Los Azufres II project (El

Chino I and II). 

An additional 100 MWe at Los Azufres III and 50 MWe

at Los Azufres IV are also under assessment.

According to CFE, recent mathematical studies

concluded that the water table has a potential of 470

MWe—350 in the northern sector and 120 in the

southern. Volumetric assessments of the resource

indicate that the Tejamaniles sector can sustain an energy

production capacity of 230 MWe and the Marítano

sector a capacity of 480 MWe (Taboada, 1998). 

Environmental effects due to geothermal production

were observed...Leaking evaporation ponds, discharging

pipelines and overflowing reinjection wells represent the

principal contamination sources in Los Azufres (Birkle

and Merkel, 1998).

After 16 years of continuous operation, the reservoir

pressure has decreased due to the large amount of

geothermal fluids extracted...The average pressure drop

in the south is 0.71 bar/year, and 0.33 bar/year in the

north...The steam production has been stable or in some

cases increased, while the brine production has decreased

considerably (Torres-Rodriguez, 1998). 

In addition, Los Azufres has been the site of the

Geothermal Training Center since 1995 where CFE
Geothermal Resources in Latin America & the Caribbean 68

trains personnel from throughout Latin America in

geothermal exploration, engineering, operations, smallscale plants (10-400 kW), and small-scale direct uses.

CFE is pursuing the development of several direct use

projects at Los Azufres including, in order of priority,

wood drying, fruit dehydration, and aquaculture.

Los Humeros

LOCATION

Within the Los Humeros Caldera (a Quaternary Caldera)

in the eastern portion of the Mexican Volcanic Belt, 200

km east of México City (between Puebla and Veracruz

States).

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 35

POTENTIAL (MWE) 35-80

TEMPERATURE (EC) 300-400

CHRONOLOGY

1968 - CFE carried out exploration studies.

1981 - H-1 well drilled to 1458 m confirmed the

existence of a geothermal reservoir. 

1990 - Unit 1 began operation.

1993 - Unit 7, last of seven 5 MWe backpressure units,

began operation.

1993 - The Geothermal Energy New Zealand Limited

(GENZL) completed assessment using the MULKOM

reservoir simulator; estimated that the reservoir has an

electrical generation capacity of 80 MWe for 25 years,

using a single porosity model.

1995 - Field studied to find out the possibility of

incorporating new turbo-generators in strategic

locations. 

2001 - 15 MWe at Humeros II expected online by

December.

NOTES

Wells in Los Humeros boast the highest recorded

temperatures in México—400oC. Los Humeros has

seven 5 MWe backpressure units for a total installed

capacity of 35 MWe. In 1997, an average of 20 wells

were in production with an average production of 27 t/h. 

Los Humeros’s capacity factor is 112%. CFE operates

all the wells. 

There are plans to increase the field’s production to 50

MWe with the installation of 15 MWe under Los
Geothermal Resources in Latin America & the Caribbean 69

Humeros II. In addition, 25 MWe under Los Humeros III

is under assessment.

In addition, an edible mushroom growing plant, using heat

from well H-1, has operated at Los Humeros since 1992. 

The replacement of fossil fuels and/or electricity by

geothermal steam has lowered production, incubation,

and pasteurization costs.

Maguarichic

LOCATION

Chihuaria State

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 0.3

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

Maguarichic has 600 inhabitants and 150 houses. The

power produced by the 300 kW plant is used for

domestic uses.

Ojinaga

LOCATION

Chihuaria State

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 0.3

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

300 kW plant used for domestic uses.

Pathé

LOCATION

Hidalgo State

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 3.5

POTENTIAL (MWE) -
Geothermal Resources in Latin America & the Caribbean 70

TEMPERATURE (EC) -

CHRONOLOGY

1954 - First geothermal production well drilled in

México.

1959 - First commercial geothermal plant in Latin

America, a noncondensing 3.5 MWe unit, began

operation.

1973 - Unit taken offline due to steam supply problems.

1990 to 1994 - Tectonics studies conducted.

1994 - Exploratory well drilled.

NOTES

Puertecitos

LOCATION

Baja California State

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 0.3

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

300 kW plant used for tourism.

Santa Rita

LOCATION

20.5 Lat., 102.5 Long. (Jalisco State).

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 160

CHRONOLOGY

1990 to 1994 - Detailed mapping done.

NOTES

Exploration stopped because all rhyolitic domes were

much older than anticipated (Quijano-León and

Gutierrez-Negrín, 1995).
Geothermal Resources in Latin America & the Caribbean 72

Population (millions) - July 1998 4.58

Overall Electrification (% of population) 48%

GDP (billion US$) - 1997 est. $9.3

Real GDP Growth Rate - 1997 est. 6.0%

Inflation Rate (CPI) - 1997 11.6%

Total Installed Capacity (MWe) - 1995 430

Electricity Consumption per Capita (kWh) - 1997 313

Energy Demand Growth Rate 6.1%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

14.19

15.85

12.45

Estimated Geothermal Potential (MWe) 3,340

Power Summary

Nicaragua has the lowest per capita electricity consumption

and the least efficient energy production in Central

America. Only 48% of the population has access to

electricity. Nicaragua currently has nine power plants on

the national grid: two thermal, two gas, one geothermal,

two hydro, and two mini-hydro. Many of the plants are well

over 20 years old and little maintenance has been done

since 1979. 

Nicaragua is a net importer of petroleum, spending US$44

million per year; 60% of the country’s installed capacity is

thermal power. The balance of Nicaragua’s installed

capacity is 5% gas, 11.5% geothermal, and 22.5%

hydroelectric.

In order to satisfy the growing demand for electricity under

the Plan of Expansion, 1997-2015, projections indicate the

necessity of putting into operation an additional 1,159

MWe which includes retiring 280 MWe. Of this total, 185

MWe would be from geothermal power, specifically: 20

MWe from Momotombo, 50 MWe at San Jacinto-Tizate,

and 70 MWe at El Hoyo-Monte Galán. Rural

electrification is another priority of the Government of

Nicaragua (GON).

The GON hopes to attract private investment over the next

few years to help fill its immediate energy needs, focusing

on projects with short completion dates. The state utility,

Empresa Nicaragüense de Electricidad’s (ENEL), ability to

attract investment will be affected by its weak financial

position and losses, estimated as high as 6% of GDP, which

are further undercut by the GON’s large balance of

Nicaragua
Geothermal Resources in Latin America & the Caribbean 73

payments deficit. Debt relief following Hurricane Mitch,

plus ENEL’s efforts to cut losses and increase tariffs, may

promote additional foreign investment.

Nicaragua’s long-term plans focus on developing its

significant geothermal resources. Also in the long-term,

Nicaragua anticipates being a net exporter of energy to

SIEPAC, the Central American interconnected grid. 

Although not to the extent in Honduras, Hurricane Mitch

caused substantial damage in Nicaragua. The country

estimates its economic damage from the hurricane at $1

billion, 47% of its annual GDP. Mud slides caused by

excessive rain killed more than 1,500 people near the

Casita Volcano and completely destroyed the towns of El

Porvenir and Rolando Rodríguez.

In the power sector, Hurricane Mitch brought down more

than 500 electricity poles, 150 transformers, and 37,000

meters of transmission lines mainly in the Matagalpa,

Jinotega, Madriz and Somotillo Departments. The damage

caused ENEL’s generation capacity in Managua to drop

from 57.4MWe to 37.4MWe at the Santa Barbara

Hydropower Plant (50 MWe) where some of the reservoirs

were filled. The IDB estimates that $6m will be needed to

repair the electricity sector in Nicaragua. 

The GON launched an economic reform, pro-business and

pro-trade program in 1990 following elections held after

the Sandinista’s 12-year dictatorship. The Chamorro

Administration privatized 351 state enterprises, lowered

inflation from 13,500% to 12%, and cut foreign debt in

half. President Aleman was elected in 1994.

Government / Legislation

Empresa Nicaragüense de Electricidad (ENEL)

ENEL, the state utility, handles the exploitation, transport,

and distribution of the electricity produced by any type of

plant. The GON plans to sell-off the generation and

distribution assets of ENEL in 1999 but retain the

company’s transmission divisions in state hands. 

Pricewaterhouse Coopers is conducting a study of ENEL in

the lead-up to privatization.

Instituto Nicaragüense de Energía (INE)

The energy sector of Nicaragua was nationalized by the

Sandanistas in 1979 and all municipal power companies and

rural electric cooperatives were absorbed by INE. In early

1995, INE’s business functions of supplying electricity to

the public were transferred to ENEL. 

INE is responsible for regulating, supervising, and

controlling Nicaragua’s energy sector and for applying the

energy policies set by the Comisión Nacional de Energía
Geothermal Resources in Latin America & the Caribbean 74

(CNE). It is expected that INE will be privatized within the

next few years.

El Deparamento de Recursos Geotérmicos of INE is

responsible for geothermal development in Nicaragua. 

Law No. 272 - Electrical Industry Law (April 1998)

The new Electrical Industry Law establishes that the

privatization of the country’s generation, distribution, and

commercialization activities will occur two years after the

Law’s enactment. The Law also establishes the legal

regulations for the generation, distribution, 

commercialization, and import and export of electricity.

The Law gives the GON the authority to privatize generation

and distribution, including the privatization of ENEL within

two years of passage of the Law. Transmission will remain

with the State. (BOO and BOT contracts were allowed for

private generation companies prior to the passage of the

Law.)

Electrical industrial activities must adhere to the following

objectives:

• Quality, continuity and security in electrical

service, 

• Minimization of the cost of electrical

service, based on the efficient use of energy

resources,

• Promotion of an effective competition and

attract private capital, 

• Promotion of the efficient use of electricity,

and

• Provide electrical service following rules for

environmental protection and industrial and

personal safety.

In addition, the Law establishes a spot and forward market

for electricity, allows for the free import and export of

electricity, provides a three-year tax moratorium on

imported machinery and equipment used in energy

generation and distribution, and guarantees an indefinite tax

break on all kinds of fuel used in electricity generation.

Finally, the Law created the Comisión Nacional de Energía

(CNE). CNE is in charge of forming the objectives,

policies, strategies, and general guidelines for the country’s

energy sector.
Geothermal Resources in Latin America & the Caribbean 75

Ante-proyecto de Ley de la Industria Geotérmica (Draft

Geothermal Law)

The Draft Geothermal Law provides a legal framework

which is designed to protect the country’s interests while

encouraging the

development of

geothermal

resources and

establishing a

regime for the

private-sector

development of

those resources.

The Draft Law

defines two types

of concession: 

exploration and

exploitation. It

outlines three steps

for developing a

project: acquiring

an exploration

concession, acquiring a PPA, and acquiring a foreign

permission document. Additionally, the project developer

must post a bond equal to 25% of the total project cost. 

The core concepts of the Draft Law are:

• Geothermal resources are the property of the

State.

• All activities related to exploring and

exploiting geothermal resources are of

national interest.

• For all legal purposes, geothermal

resources are declared for public use and

rational exploitation.

• The granting of an exploitation

concession is given on the approval of

INE that: 

1. the soliciting company presents a

Development Plan for the project,

and 

2. first draft of a contract for buying

and selling the steam between the

concession and ENEL or its

successor. 

• Incentives to private investment.

The U.S. geothermal industry, through the Geothermal

Energy Association (GEA) and DOE, has commented on the

Draft Law. The area limitations on concession size was
Geothermal Resources in Latin America & the Caribbean 76

identified as one of the more problematic provisions in the

Draft Law which were limited to 100 km2 for exploration

and 20 km2 for exploitation. GEA also recommended that

the requirement that steam be sold to the State at an

established price be eliminated. The complex and

restrictive regulations may put Nicaragua in a less

competitive position vis-à-vis other countries and dissuade

foreign investment.

To date, Nicaragua’s approach to geothermal development

has been to grant exploitation permits to private companies

on a negotiated basis. Once the resource has been

identified, the GON will put the project out to bid, offering

a preference to the company that conducted the initial

resource assessment.

The GON cannot offer any pricing incentives; geothermal

prices must be competitive with those of thermal and other

power projects. It is estimated that geothermal can be

priced at 6.5¢/kWh at El Hoyo-Monte Galán while Enron is

offering to sell residual oil to offshore barge plants for

power generation at 5.5¢/kWh.

The Tax Law (Ley de Justicia Tributaria)

The Tax Law exempts all equipment and machinery

earmarked for electricity generation for public use. 

Companies are also exempt from taxes until they recover

their investments. 

General Law of Environmental and Natural Resources No.

217-96

The Law assigns geothermal concession under the

framework of laws which regulate natural resources,

fundamentally, handles geothermal as a mining resource.

Geothermal Sites / Projects

Nicaragua has an estimated 2,000-4,000 MWe of

geothermal power potential.

The GON has as a priority the development of geothermal

power and sees its role as facilitator rather than developer

or operator. The GON’s goal is to have 200-300 MWe of

geothermal installed capacity by 2001.

On October 11, 1994, the GON presented a plan to the U.S.

to develop 500 MWe of geothermal capacity over the next

12 years; the plan was discussed at the Summit of the

Americas (Lawrence, 1998).

Nicaragua annually spends US$44 million to import oil for

electric generation. The installation of geothermal power

plants for base load could rapidly displace thermal plants

and help the country’s trade balance. The development of

Nicaragua’s geothermal resources would not only solve the

energy crisis of the country, but would make it an exporter

of energy to the rest of Central America through SIEPAC. 
Geothermal Resources in Latin America & the Caribbean 77

With SIEPAC, Nicaragua could develop more of its

geothermal resources to sell as baseload to the region

while importing peak load capacity. Without SIEPAC,

Nicaragua would develop only those geothermal resources

it can use domestically or export as baseload to its

immediate neighbors. 

Nicaragua is endowed with large geothermal potential due

to the presence of volcanoes of the Marrabios range along

the Pacific Coast. Geothermal investigations began in

1966 with a study by the Italian company, Electroconsult. 

In June 1969, the GON signed a contract with Texas

Instruments Inc. to carry out a geothermal research program

in western Nicaragua. Completed in 1971, the studies

identified two sites with high enthalpy potential: 

Momotombo and San Jacinto-Tizate. Following the

catastrophic earthquake of December 1972 which leveled

Managua, the GON cut the program. 

The commercial exploitation of Momotombo started in

1983, when the first unit of 35 MWe was put in operation.

The second unit of 35 MWe was installed in 1989. 

Geothermal energy accounted for 11.55% of Nicaragua’s

electricity generation in 1997. Due to poor maintenance of

its steam wells and over-development of the reservoir,

Momotombo was only producing 12 MWe as of Summer

1998. The GON has issued two bids for field reclamation. 

Geothermal investigations identified ten areas of greatest

interest: Cosigüina Volcano, Casita-San Cristóbal Volcano,

Telica-El Ñajo Volcano, San Jacinto-Tizate Volcano, El

Hoyo-Monte Galán Volcano, Momotombo Volcano,

Managua-Chiltepe, Tipitapa, Masaya-Granada-Nandaime,

and Isla de Ometepe. With the exception of Ometepe, all

of the zones are high enthalpy. 

Currently, one project is in development (San Jacinto-El

Tizate), one in the study stage (Masaya-Granada-Nandaime),

and three with concessions (El Hoyo-Monte Galán, El

Ñajo-Santa Isabel, and Triton Mining Corporation). In

addition, Nicaraguan authorities are undertaking a study to

identify 60 rural, small-scale geothermal sites. Twelve

have been identified to date (Germain, 1998).

1. Casita-San Cristóbal

2. Cosigüina

3. El Hoyo-Monte Galán

4. El Ñajo-Santa Isabel

5. Geothermal Energy Master Plan

6. Isla de Ometepe

7. Managua-Chiltepe

8. Masaya-Granada-Nandaime

9. Momotombo

10. Nagrote-La Paz Centro

11. San Jacinto-El Tizate

12. Tipitapa
Geothermal Resources in Latin America & the Caribbean 78

13. Triton Mining Corporation

Casita-San Cristóbal

LOCATION

Volcán Casita is located within the Cordillera Los

Marrabios, a 70 km long volcanic chain that extends from

the northern shore of Lake Managua to Chinandega, 1405

masl.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

October 1998 - Hurricane Mitch triggered a deadly

avalanche and breakout flow of Volcán Casita. 

The mud slides killed more than 1500 people, displaced

hundreds more, destroyed several towns and settlements,

and disrupted the Pan American Highway at numerous

bridges.

The towns of El Porvenir and Rolando Rodriguez,

combined population of approximately 2000, were

completely destroyed. 

The disaster was produced by the coincidence of two

discrete events: an avalanche on the southern flank of

Volcán Casita, and extraordinarily heavy rains. Normal

October rainfall is 328 mm. October 1998 rainfall

totaled 1984 mm, more than six times normal.

NOTES

Cosigüina

LOCATION

Located in the extreme north of the Cordillera Los

Marrabios near the Gulf of Fonseca in Chinandega, close

to the Pacific Coast.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

Volcán Cosigüina has been selected to be a pilot project
Geothermal Resources in Latin America & the Caribbean 79

for rural electrification and direct use of a low enthalpy

geothermal resource. The area is predominantly an

agriculture zone, and low-enthalpy geothermal fluids

could be used intensively to dry grains, in fish farming,

and in greenhouses. The project site would be located

off-grid and power generated by the plant would serve the

local rural population.

This site is in the very beginning stages of development. 

Geothermal potential is not known.

El Hoyo-Monte Galán

LOCATION

Within the Cordillera Los Marrabios in western

Nicaragua, 50 km north of Managua.

STATUS

Exploration concession

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 150-200

TEMPERATURE (EC) 200-250

CHRONOLOGY

1980 - OLADE with funding from the Italian

Government, conducted a prefeasibility study. 

1985 - French company, SPEG, made a magneto-telluric

study of area. 

1994 - Agreement in Principle signed by the GON and

Trans-Pacific Geothermal Corporation (TGC). 

December 1995 - INE granted a geothermal exploration

concession to TGC to determine the possibility of

generating 50-150 MWe using geothermal fluids.

January 1996 to February 1997 - TGC performed several

geologic and geophysical investigations including

analyses of satellite and aerial photo imagery,

microearthquake studies, ground magnetic (GM) survey,

self potential (SP) survey, MT/CSAMT survey, onemeter temperature survey, geologic mapping and gas

geochemistry. The GM, SP, MT/CSAMT, and one-meter

temperature surveys, data integration, and final report

were funded in part by the U.S. Department of Energy. 

The studies identified various anomalies indicating a

large geothermal resource characterized by shallow

seismicity, fumarole activity, surface fractures, and high

subsurface temperatures.

Eight preliminary slimhole drill sites were chosen to test

the following four areas: upper regions of the El Royo

and Picacho Volcanoes, east-northeast base of the El

Hoyo Volcano, Cerro Colorado, and the ring fracture
Geothermal Resources in Latin America & the Caribbean 80

system of Monte Galán Caldera. 

Based on volumetric calculations and an integrated

analysis of geoscientific data, the potential of the TGC

concession is estimated at 120-150 MWe for 30 years at

El Hoyo, and 40-50 MWe for 30 years at Cerro

Colorado. 

TGC signed a Joint Venture Agreement with Calpine

Corporation.

Present - TGC-Calpine negotiating a PPA with ENEL;

arranging a drilling permit for eight slimhole wells. 

Drilling will begin upon signature of a PPA with ENEL.

NOTES

The objective is to install 105 MWe in three 35 MWe

modules. The estimated price is 6.5¢/kWh. 

The cost of a 50 MWe plant, including all capital costs,

interest during construction, insurance, start-up costs,

and contingencies is estimated at $135 million; for the

total 105 MWe, $260 million.

El Hoyo-Monte Galán has been approved under the U.S.

Initiative for Joint Implementation (USIJI). USIJI gives

certificates to projects which reduce or avoid CO2

emissions. Yet to be resolved is the worth of these

certificates; how they can be “commercialized.” 

Assuming 105 MWe at 95% availability, the project

would prevent the emission of 527,7890 metric tons per

year or 18.5 million metric tons total of CO2 over 35

years. Using a value of $15/ton (the Nevada Public

Service Commission value in 1992 dollars), the CO2

offset would equal $8 million per year.

E&Co. provided investment support to assist TGC during

the final negotiations of the three agreements necessary

to advance to financing: the PPA with ENEL, the

exploration concession, and the investment contract with

the GON.

El Ñajo-Santa Isabel

LOCATION

Located adjacent to San Jacinto-El Tizate, east of León.

STATUS

Exploration concession

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 60

TEMPERATURE (EC) 235-265

CHRONOLOGY

August 1997 - Unocal Geotérmica Nicaragua S.A., a

subsidiary of Unocal Geothermal International, received
Geothermal Resources in Latin America & the Caribbean 81

an exploration concession for 100 km2 in August with a

proposal to install a 60 MWe plant.

Unocal carried out the following activities in the last

quarter of 1997: geological mapping, geochemistry

studies, geophysical surveys, and satellite image

interpretation. Gas geochemistry data indicate

temperatures of 235oC and 265oC. 

Present - Unocal is negotiating a PPA with ENEL.

NOTES

Geothermal Energy Master Plan

LOCATION

Countrywide

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) NA

POTENTIAL (MWE) NA

TEMPERATURE (EC) NA

CHRONOLOGY

1982 to 1983 - Reconnaissance funded by IECO and

OLADE. 

1998 - Geothermal Energy Master Plan funded by the

IDB. GeothermEx selected by international bid.

NOTES

The Master Geothermal Energy Plan’s main objective is

to reevaluate and classify Nicaragua’s geothermal

resources in terms of electrical generation potential, and

to plan for the exploration and development activities

that will follow.

Funded by the IDB, the Master Plan will also help

establish limits and concession conditions for private or

state companies, serving at the same time as a document

to present and promote the geothermal areas of the

country. For each area identified, the Plan will include

the following information:

(1) General description and geographic limits,

(2) Description of available scientific data,

(3) Additional geoscientific investigations,

(4) Data synthesis and reinterpretation,

(5) Development of a preliminary geothermal model,

(6) Preliminary evaluation of the resource, in terms of

electrical power,

(7) Evaluation of environmental aspects,

(8) Specification of studies needed to reach the

feasibility stage, and.

(9) Estimation of the costs to reach the feasibility stage.
Geothermal Resources in Latin America & the Caribbean 82

Isla de Ometepe

LOCATION

An island located in Lake Nicaragua, approximately 120

km from Managua and 17 km from the nearest mainland.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1980 to 1981 - Identified during reconnaissance.

1998 - $100 million IDB program to include

interconnection via an underwater cable to the island

under consideration.

NOTES

Ometepe has been selected to be a pilot project for rural

electrification and direct use of a low enthalpy

geothermal resource. A barge loaded with diesel fuel

makes a weekly run across Lake Cocibolca, which hosts

unique species, to the island generating station. The risk

of an accident is high. The plan is to construct an

underwater cable from the mainland to the island. 

Development of geothermal power on the island could

replace this expensive investment. 

The GON has targeted the island of Ometepe for tourism

development. In 1997, less than 20,000 tourists visited

the island which presently has 90 hotel rooms. The

German aid agency, GTZ, is assisting in the development

of a tourism plan for Ometepe.

Managua-Chiltepe

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

Masaya-Granada-Nandaime

LOCATION
Geothermal Resources in Latin America & the Caribbean 83

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1980 - OLADE conducted a prefeasibility study with

Italian cooperation; identified area as having great

prospects for geothermal development.

NOTES

The GON has asked the European Union to fund a

feasibility study.

This project is not included in the Geothermal Energy

Master Plan due to its early development stage.

Momotombo

LOCATION

On the southern slope of the Momotombo Volcano,

1200 masl, in the Cordillera Los Marrabios.

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 70

POTENTIAL (MWE) -

TEMPERATURE (EC) 220-300

CHRONOLOGY

1966 - First information from the government related to

geothermal activity in Nicaragua.

1969 - First systematic investigations were begun with

support from the United Nations; objective was to

identify installing a 30 MWe plant in either Momotombo

or San Jacinto. 

1971 - Report identified Momotombo as an area which

had characteristics appropriate for exploitation. 

1974 - GON contracted Electroconsult and other

companies to drill four exploratory wells and conduct a

feasibility study; showed the feasibility of a 35 MWe

plant.

1975 to 1978 - GON hired Energéticos and CalEnergy to

complete the first phase of drilling; 28 wells drilled to

depths between 320 and 2250 m. 

1982 to 1984 - Second phase of drilling carried out; six

wells drilled.

October 1983 - First Ansaldo 35 MWe unit came online.
Geothermal Resources in Latin America & the Caribbean 84

1989 - Second Ansaldo 35 MWe came online.

1998 - Two units’ combined production was 12 MWe

from six wells as of June.

1998 - ENEL issued a request for a public bid for field

reclamation and plant rehabilitation; pre-qualified four

international geothermal development companies

(Oxbow, Bufete Industrial, Caithness, and Ormat). Of the

four companies, only Ormat submitted a bid and, due to

Nicaraguan law, the bidding process was voided and a

second request for bids issued. 

The program proposed is a 15-year development,

operation, and maintenance concession and PPA. ENEL

will keep title to the plant, well field, etc.

NOTES

Formally known as the Central Geothermal “Patricio

Argüello R.” Plant, Momotombo has two 35 MWe

single-flash units which have been online since 1983 and

1989 respectively. The field, including 43 wells, was

developed and is operated by ENEL. 

Momotombo has an installed capacity of 70 MWe but,

due to reinjection and over-development problems, is

currently producing only 12 MWe. Of its 43 wells, only

6 are operating.

The field principally is producing from a shallow

reservoir of less than 1000 m. All geothermal fluids

have been discharged into Lago Managua; there is no

reinjection. 

Due to the overexploitation of the field and a total lack

of reinjection during the 1980s, the power output at

Momotombo has declined significantly. As of June

1998, the plants’ combined production was 12 MWe.

Geological studies indicate that both intermediate

(1000±m) and deep (2500m) geothermal reservoirs exist

at Momotombo. There is sufficient evidence to verify

the existence of at least 35+ MWe of geothermal steam

and a very strong possibility of bringing the field back to

the full 70 MWe or more (Dick, 1998). 

Under the Stabilization Project implemented with funds

from the Investment Fund of Venezuela (FIV), ENEL

directed the drilling of three production replacement

wells (MO-41, MO-42, and MO-43) of which only MO42 was successful, producing 3 MWe in stable

production ENEL has issued two bids in 1998 for field

reclamation and plant rehabilitation. 

The price for electricity produced at the Momotombo

Power Plant is very high, 4.8-5.3¢/kWh compared to 3.5-

4.0¢/kWh for hydro-power. Plants on the fields under

development will have prices comparable to those found
Geothermal Resources in Latin America & the Caribbean 85

in other Central American countries, 5.0- 5.5¢/kWh.

Nagrote-La Paz Centro

LOCATION

Located on the banks of Lake Managua immediately to

the south of the Momotombo field.

STATUS

Concession

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

Caithness was awarded an exploration concession.

San Jacinto-El Tizate

LOCATION

STATUS

Concession

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 25-120

TEMPERATURE (EC) 200-289

CHRONOLOGY

1971 - Report identified San Jacinto-El Tizate as an area

which had characteristics appropriate for exploitation. 

1980 - OLADE, with funding from the Italian

Government, conducted a prefeasibility study. 

May 1993 - Intergeoterm, a consortium composed of

ENEL and the Russian company, Burgazgeoterm (22.2%

and 77.8% ownership respectively), received an

exploration concession from INE; initial plan to install

115 MWe.

1993 to 1995 - Intergeoterm drilled seven explorationproduction wells at depths between 724 and 2335 m; last

well (SJ-7) was not finished due to financial problems;

encountered temperatures of 264oC to 289oC; well tests

indicated cumulative capacity of wells SJ-4, SJ-5, and SJ6 is 25 MWe.

Present - In order to continue the development activities

at San Jacinto-Tizate, Intergeoterm is searching for a

financially strong partner.

NOTES

The plan is to construct seven power units with a total
Geothermal Resources in Latin America & the Caribbean 86

capacity of 120 MWe and a total cost of $250 million,

beginning with two 2.5 MWe units.

The basic equipment, e.g., turbines, generators,

separators, and fittings for the first stage of the 51 MWe

facility (2 x 2.5 + 2 x 23) has been manufactured in

Russia. The advanced civil works on the steam field are

completed (Povarov, 1998). 

SC Kaluga Turbine Plant (KTZ) has manufactured two

geothermal power plants of unit container type which will

be shipped assembled. The prototypes for these turbines

were units manufactured by KTZ that have been used for a

long time for driving feed pumps at nuclear power

stations with VVER reactors of 1000 MWe capacity. 

These turbines have an exceptionally efficient flow path

and are very reliable. During the last 20 years of

operation, no blades or rotors have failed and there were

no other accidents (Povarov, 1998).

The project is stalled due to lack of financing. 

Intergeoterm is currently talking to several potential

partners, including Daimler-Benz, in order to obtain the

financial capability to continue the field’s development. 

Once a partner is found, ENEL will cease its involvement

in the project.

Tipitapa

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

Triton Mining Corporation

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 5

TEMPERATURE (EC) -

CHRONOLOGY

Triton is arranging permits with the Ministerio del

Ambiente y Recursos Naturales (MARENA) and INE for
Geothermal Resources in Latin America & the Caribbean 87

its proposal.

NOTES

Due to the high cost of energy in the area which Triton is

exploring, the private Canadian company has proposed a

concession of an area with geothermal potential for the

installation of a small 5 MWe unit. 
Geothermal Resources in Latin America & the Caribbean 88

Population (millions) - July 1998 2.73

Overall Electrification (% of population) 67%

GDP (billion US$) - 1997 est. $18.0

Real GDP Growth Rate - 1997 est. 3.6%

Inflation Rate (CPI) - 1997 1.2%

Total Installed Capacity (MWe) - 1995 985

Electricity Consumption per Capita (kWh) - 1997 1213

Energy Demand Growth Rate 6.0%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

12.05

11.86

9.96

Estimated Geothermal Potential (MWe) 450

Power Summary

Panamá has considerable potential for hydroelectric

generation which currently accounts for 61% of the

country’s total installed capacity. Thermal makes up the

remaining 39%. 

Investment in new electrical generation projects has been

low over the last few years with IRHE devoting significant

resources to the maintenance of existing plants which were

not properly maintained during the final years of the

Noriega regime. This policy, along with the upgrading of

the Fortuna hydroelectric plant, has enabled the country to

meet its current demand. New investment is needed,

however, to meet future anticipated demand which is

growing by approximately 45 MWe per year.

Because the state power company. Instituto de Recursos

Hidraulicos y Electrificación (IRHE) does not have the

financial resources to undertake the investment required to

meet future demand, the Government of Panamá (GOP)

decided on privatization. IRHE’s generation costs are

among the highest in the region—10-12¢/kWh.

IRHE is awaiting bids for the 130 MWe Esti hydroelectric

project; another tender is open to purchase energy from a

100 MWe thermal plant to be installed and operated by the

private sector. Additionally, the 120 MWe Gualaca

hydroelectric project is scheduled for completion in 2005. 

The IDB approved a $79 million loan to further Panamá’s

electricity reforms, help overcome bottlenecks in

infrastructure, and advance SIEPAC. 

Panamá
Geothermal Resources in Latin America & the Caribbean 89

The Panamá Canal is important to world energy markets as

a major transit center for oil shipments and a potential

choke point . Control of the canal will revert from the

United States to Panamá at noon on December 31, 1999.

Government / Legislation

Instituto de Recursos

Hidraulicos y

Electrificación (IRHE)

Panamá is restructuring

its electricity sector. 

IRHE, the state power

company which was

created in 1961, has

been divided into four

generation companies, three distribution companies, and

one transmission company for sale.

Fifty-one percent of the shares of the distribution

companies have already been sold; 39% will be retained by

the government, and 10% will be sold to the unionized

IRHE workers. The GOP will retain 49% of the shares in

the four generation companies, 49% will be sold, and the

remaining 2% will be transferred to the workers. 

The GOP will retain control of the transmission company

which will act as the main buyer, acquiring power from the

private generators for delivery to the distributors, with the

exception of large buyers who can purchase directly from

the generators.

The IFC is guiding IRHE in the privatization process,

including preparation of tender documents.

Law No. 6 (February 1997)

The new electricity law promotes

competition, allows private investment in

generation, and provides for service

improvements in the electricity sector by

splitting IRHE into eight new companies. 

All but the transmission companies will be

privatized.

The Law establishes a maximum of 20% of the national

installed capacity for any individual private project or

company. Additionally, the total participation of private

generation is limited to 45% of the country’s total installed

capacity.

Panamá imposes no restrictions on the import of electric

power equipment. 
Geothermal Resources in Latin America & the Caribbean 90

No Specific Law for Geothermal

Geothermal Sites / Projects

Panamá has an estimated 450 MWe of geothermal power 

potential.

Panamá has low enthalpy geothermal resources suitable for

the construction of binary power plants. The two main

fields currently under development are Cerro Pando and El

Valle de Antón.

As part of the “Central American Energy Resource

Project,” funded by USAID, LANL worked with IRHE to

evaluate four thermal sites: Chitré-Calobre, Pueblo Nuevo,

El Valle de Antón, and Olá. The study concluded that the

only area in Panamá that may possess significant

geothermal potential and warrants additional studies is El

Valle de Antón (Shevenell, 1989). 

The IDB is currently funding a $1.1 million program to

conduct a feasibility study of El Valle de Antón.

1. Cerro Pando

2. El Valle de Antón

Cerro Pando

LOCATION

South of the continental divide in western Panamá, 800

to 3000 masl (Chiriqui Province).

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 7

TEMPERATURE (EC) 27-67

CHRONOLOGY

1976 to 1980 - Supported by the Overseas Development

Administration of the U.K., 11 boreholes drilled and

sampled; measured temperatures of 27oC to 67oC; found

strong evidence that the springs are diluted by cold

ground water before discharging at the surface;

concluded that there is a uniform reservoir of thermal

solution at depth (Bath, 1983).

NOTES

Spring temperatures reach maximum values of 66oC at

Los Pozos on the Colorado River, 67oC at Cotito, and

41oC at Catalina. Flow rates are low, ranging up to 1.5

l/s. Total heat output is estimated at 7 MWe from

calculations incorporating measured spring discharges

with river bed discharges inferred from stream
Geothermal Resources in Latin America & the Caribbean 91

conductivity anomalies. Some seasonal variation of

temperature and flow rate has been observed, indicating

the probable mixing of thermal discharge with shallow

cool ground water (Bath, 1983).

El Valle de Antón

LOCATION

502o Latitude, 949o Longitude.

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 150-160

CHRONOLOGY

1989 - Funded by USAID, LANL worked with IRHE to

conduct hydrogeochemical investigation of the site;

geothermometer temperatures range from 150oC to

160oC; concluded that site was the only area in the

country that may possess significant geothermal

potential.

1998 - IRHE has a $1.1 million IDB project to finance

basic studies and pre- investment activities for the Valle

de Antón geothermal field; deep exploration well planned

for late 1998.

NOTES

IDB loan approved in 1996 to contract for consultancy

and drilling services to conduct advanced prefeasibility

studies in this field. 

To accomplish this objective, some 3000 m of

exploratory geothermal wells will be drilled. The first

2000 m will seek to penetrate the permeable resistive

layers. Once a depth of 800-1000 m is reached, the

electrically conductive layer, which is inferred to be the

formation sealing the reservoir, will be entered and

thermal-gradient and heat-flow measurements will be

taken. The remaining 1000 m of drilling will deepen the

first two wells with a view to intercepting the geothermal

deposit. Rock samples will be taken during the drilling

operations for geoscientific studies. 

When drilling is completed the wells will be tested; if

they are capable of maintaining production for a

reasonable length of time, studies will then be conducted

on the geothermal reservoir. The findings from the

various disciplines will be analyzed and interpreted in

order to prepare the prefeasibility report. 

A consulting firm will be hired to conduct a national

geothermal reconnaissance survey and a prefeasibility

study in the geothermal field, in addition to contracting

and supervising the drilling of the wells. This same firm,
Geothermal Resources in Latin America & the Caribbean 92

together with an expert advisory group, will assess the

environmental impact of the program. Individual

consultants will be hired for updating of specifications

and bidding documents for well drilling, consolidating

reports on Chitre-Calobré and El Valle de Antón, and

forming an expert advisory group. 

A drilling contractor will be hired (by the consulting

firm) to drill the wells.
Geothermal Resources in Latin America & the Caribbean 94
Geothermal Resources in Latin America & the Caribbean 95
Geothermal Resources in Latin America & the Caribbean 96
Geothermal Resources in Latin America & the Caribbean 95

The islands of Saba and Saint Eustatius (Statia) of the

Netherlands Antilles, Saint Kitts5 and Nevis, Montserrat,

Dominica, Saint Lucia, Saint Vincent and the Grenadines,

and the French territories, Guadeloupe and Martinique,

form part of the of the active volcanic arc of the Caribe

Oriental and the Lesser Antilles. 

From Saba in the north to St. Vincent in the south, active

volcanoes and surface hydrothermal manifestations exist on

each of the islands. In the cases of Dominica and St. Lucia,

intense surface hydrothermal activity marks the presence of

high enthalpy geothermal systems—230EC at Wotten

Waven in Dominica, and 300EC at La Soufrière-Qualibou in

St. Lucia.

The thermal energy available in these volcanic islands

makes them of interest for geothermal exploration. The

majority of electricity on the islands is produced with

diesel generators, and, as a result, costs for electricity are

relatively high. Electrical needs are growing on the islands

as light industry and tourism grow, and use of an indigenous

resource would decrease the cost of importing diesel fuel

(Huttrer, 1998). 

Since 1982, Republic Geothermal Inc. staff, U.S.

Geothermal Industries Corporation (USGIC), Dr. D. E.

Michels and J. Renner, have conducted prefeasibility

studies on Dominica, Grenada, Saba, Statia, St. Kitts and

Nevis, and St. Vincent.

As part of the ongoing efforts of the U.S. Department of

Energy (DOE) to determine the potential of developing

small geothermal production facilities, the Idaho National

Engineering & Environmental Laboratory (INEEL) with

Geothermal Management Company, Inc. (GMC) prepared

preliminary assessments of the potential for the

development of geothermal resources of Saba and Statia,

St. Kitts and Nevis, and St. Vincent.

The geologic work was limited to a general geologic

reconnaissance, collection of samples from hot springs,

and analysis of available literature, and aerial photography. 

The DOE-sponsored team also visited with the island

governments to determine the interest in developing

geothermal energy and the status of the electrical system

5 on each island. Also known as Saint Christopher.

The Caribbean
Geothermal Resources in Latin America & the Caribbean 96

Although geothermal resources are abundant on several of

the islands, apart from Guadeloupe which has a 4.5 MWe

binary plant, geothermal development is still in the early

stages for several reasons:

1. Geothermal development is not a priority in

the energy policies of the island

governments. 

Traditionally, the islands have depended on

diesel generation, with the exception of

Dominica which has hydroelectric power. 

2. None of the countries have geothermal laws;

many do not have laws for the regulation of

the electricity sector in particular. 

3. Limited financing and the high cost of

geothermal exploration has held back the

projects in the feasibility stage. 

4. There are no economic incentives for

geothermal development.

5. The population, and consequently the

markets, of the islands, are small.

While none of the utility companies have an accurate

accounting of their real costs, it seems very likely that

geothermally generated power could be provided for a

lower cost than the utilities now pay in-house. In many

countries, O&M- caused brownouts or power outages are

all too common and are reportedly on the increase (Huttrer,

1998). For example, Dominica reported 50 outages in

1997; Grenada, 11 to 50; Jamaica, 10 to 50; St. Kitts &

Nevis, 10; St. Lucia, 10 to 50; and St. Vincent & the

Grenadines, 11 to 25 (Vimmerstedt, 1998).

Some negative aspects or obstacles regarding initiation of

Caribbean small geothermal power projects are:

1. The difficulty in financing small (<$50

million) projects.

2. The relatively low rate of return likely on

small Caribbean geothermal power projects

and the associated need to minimize

exploration expenditures which unavoidably

will increase the risk level perceived by

potential investors.

3. The speckled history of fiscal responsibility

on the part of the governments of several of

these islands and their consequent low

international credit ratings.

4. The marginal solvency of many of the

national utility companies and the inability or
Geothermal Resources in Latin America & the Caribbean 97

unwillingness of the national

governments to guarantee payments by

their utilities for power purchased.

5. The common occurrence of destructive

hurricanes in the region and the recent

experiences with damage due to the volcanic

eruptions on Montserrat (Huttrer, 1998).

Huttrer ranks the islands, in order of development potential,

as follows:

1. Guadeloupe

2. St. Lucia

3. Dominica

4. St. Vincent

5. Nevis

6. Saba

7. St. Kitts

8. Grenada

9. Martinique

10. Montserrat

11. Statia

Geothermal power could almost surely be sold to the

utilities for less than the 12-15¢/kWh cost of generation

now estimated by the various utility companies, and the

prospect of initiating significant savings is appealing to

government officials as well as the citizens-on-the-streets

(Huttrer, 1998).
Geothermal Resources in Latin America & the Caribbean 98

Population (millions) - July 1998 0.07

Overall Electrification (% of population) 95%

GDP (billion US$) - 1997 est. $0.2

Real GDP Growth Rate - 1997 est. 3.7%

Inflation Rate (CPI) - 1997 1.7%

Total Installed Capacity (MWe) - 1995 15

Electricity Consumption per Capita (kWh) - 1997 8000

Energy Demand Growth Rate NA%

Prices (US¢/kWh) - 1997

Residential

Commercial

Industrial

20

22

NA

Estimated Geothermal Potential (MWe) 1,390

Power Summary

Dominica’s total installed capacity in 1995 was 14.796

MWe, which was almost evenly divided between

hydroelectric and thermal power. The transmission system,

11 kV, is predominately situated in the coastal area where

the population is concentrated. DOMLEC has serious

problems with losses in the transmission system and

guaranteeing potential. 

In 1989, the Dominican Government launched a plan to

achieve energy independence. Since then, Dominica

Electricity Services, Ltd. (DOMLEC) has expanded its grid

and now services 95% of the population, up from 55% in

1989 (Lawrence, 1998).

Government / Legislation

Dominica Electricity Services, Ltd. (DOMLEC)

DOMLEC is responsible for the generation of electricity

and was privatized at the end of March 1997. The private

English company, U.K. Commonwealth Development Co.

(CDC), owns approximately 40% of DOMLEC with the

balance owned by the state. 

Ministry of Civil Works, Communications, and Housing

(MCWH)

The MCWH is responsible for Dominica’s energy sector.

Dominica
Geothermal Resources in Latin America & the Caribbean 99

Geothermal Sites / Projects

Dominica has an estimated 1,390 MWe of geothermal

power potential.

Geothermal development is important as a substitute for

diesel generation and to supply Dominica’s increasing base

load demand. 

The French institute of

geological

investigations and

mines, Bureau de

Recherches

Géologiques et

Minières (BRGM),

began the first

integrated exploration

of Dominica’s

geothermal resources

in 1977, identifying

three areas of interest: 

Wotten Waven, Boiling

Lake, and Soufrière. 

Morne Diablotin and Morne au Diable, two active volcanic

complexes, are located in the northern part of the island but

are considered of lower priority. BRGM began an

expanded exploration program in 1982 with a focus on

Boiling Lake and Wotten Waven. 

INEEL, GMC, and USGIC prepared a preliminary

assessment of the potential for the development of

geothermal resources of Dominica under a DOE-sponsored

program.

1. Boiling Lake

2. Morne au Diable

3. Morne Diablotin

4. Soufrière

5. Wotten Waven

Boiling Lake

LOCATION

Located in Desolation Valley.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY
Geothermal Resources in Latin America & the Caribbean 100

1977 - BRGM identified as an area of interest.

NOTES

Despite spectacular surface activity, Boiling Lake was

ruled out for further study due to difficulties in accessing

the site.

Morne au Diable

LOCATION

In the north of the island. Active volcano.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1977 - BRGM identified as an area of interest.

NOTES

Considered lower priority area.

Morne Diablotin

LOCATION

In the north of the island. Active volcano.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1977 - BRGM identified as an area of interest.

NOTES

Considered lower priority area.

Soufrière

LOCATION

In the south of the island.

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -
Geothermal Resources in Latin America & the Caribbean 101

TEMPERATURE (EC) -

CHRONOLOGY

1977 - BRGM identified as an area of interest.

NOTES

Wotten Waven

LOCATION

Located in Roseau Valley.

STATUS

Concession

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 10

TEMPERATURE (EC) 230

CHRONOLOGY

1977 - BRGM identified as an area of interest.

1982 - BRGM expanded exploration program,

considering the site the area of highest priority due to its

proximity to the capital, Roseau. Exploration indicated

the probable existence of a geothermal system with

temperatures on the order of 230oC at an estimated depth

of 800-1500 m. Identified the location of exploratory

wells. 

1991 to 1992 - BRGM in conjunction with the UN

Department of Technical Cooperation for Development

(UN/DTCD) confirmed the site’s priority; proposed a

feasibility study to the local government which was not

pursued. 

1994 - Negotiations between Caribbean Power

Enterprise, Ltd. and the Government of Dominica began.

1995 - Concession assigned to a private joint venture

company, Dominica Geothermal Power Co. (DGPC),

composed of 51% ownership by Caribbean Power Ltd.

and 49% Dominican ownership. 

DGPC obtained the complete concession for geothermal

resources and all their possible applications.

1998 to 2004 - Development planned.

NOTES

Project, to develop four modules of 2.5 MWe each, is

stalled apparently due to financial problems. 
Geothermal Resources in Latin America & the Caribbean 102

Population (millions) - July 1998 0.01

Overall Electrification (% of population) 90%

GDP (billion US$) - 1997 est. $0.3

Real GDP Growth Rate - 1997 est. 3.1%

Inflation Rate (CPI) - 1997 3.2%

Total Installed Capacity (MWe) - 1995 17

Electricity Consumption per Capita (kWh) - 1997 946

Energy Demand Growth Rate NA%

Prices (US¢/kWh) - 1997

Residential

Commercial

Industrial

19.26

20.37

16.30

Estimated Geothermal Potential (MWe) 1,110

Power Summary

Grenada is dependent upon imports for the bulk of its

domestic energy needs. 

Government / Legislation

Grenada Electricity Services, Ltd. (Grenlec)

(GRENLEC) is owned and operated by the Government of

Grenada (GOG) and is the sole provider of electricity on

the island.

Geothermal Sites / Projects

Grenada has an estimated 1,110 MWe of geothermal power 

potential.

OLADE observed a possible resource of high enthalpy in

the area of Mount Saint Catherine in 1981 which was later

confirmed in 1992 as part of the UN/DTCD program.

Prefeasibility studies have revealed one small solfatara on

Mount Saint Catherine, several small thermal springs in

ravines radial to the central volcano, and numerous

relatively young phreatic explosion craters. Additionally,

the sub-sea volcano “Kick-em-Jenny” lies only five miles

off Grenada’s north coast suggesting that the zone between

it and central northeastern Grenada may be geothermally

prospective (Huttrer, 1998).

INEEL, GMC, and USGIC prepared a preliminary

assessment of the potential for the development of

Grenada
Geothermal Resources in Latin America & the Caribbean 103

geothermal resources of Grenada under a DOE-sponsored

program.

1. Adelphi-Saint Cyr

2. Castly Hill

3. Chambord

4. Clabony-Mount Hope

5. Hermitage-Peggy’s Whim

6. Mount Saint Catherine

7. Plaisance-Red River

8. St. Georges

All eight sites in Grenada are in the preliminary /

identification report stage. 

Population (millions) - July 1998 0.42 

Overall Electrification (% of population) NA%

GDP (billion US$) - 1995 est. $3.7

Real GDP Growth Rate - 1997 est. NA%

Inflation Rate (CPI) - 1997 3.7%

Total Installed Capacity (MWe) - 1995 39

Electricity Consumption per Capita (kWh) - 1995 2483

Energy Demand Growth Rate NA%

Prices (US¢/kWh) - 1997

Price range 10-12

Estimated Geothermal Potential (MWe) 3,500

Power Summary

Guadeloupe’s target for 2000 is to generate 25% of its

energy consumption from renewable energy sources

(Lawrence, 1998).

Guadeloupe

(overseas department of France)
Geothermal Resources in Latin America & the Caribbean 104

Geothermal Sites / Projects

Guadeloupe has an estimated 3,500 MWe of geothermal

power potential.

Guadeloupe has the

only geothermal power

plant in the Caribbean,

a 4.5 MWe double

flash power plant at

Bouillante which came

online in 1984 and

supplies the leeward

coast of Basse-Terre

with electricity. The

plant has been

generating at an average

rate of 4.7 MWe.

The Bouillante plant had intermittent problems caused by

relatively high amounts of noncondensable gases and

associated H2S04, which seem to have been mitigated by

Compagnie Française de Géothermie (CFG) (Huttrer,

1998). 

There are plans to expand the Bouillante plant and set up

another in Martinique. 

1. Bouillante

Bouillante

LOCATION

STATUS

Power plant(s) on site

INSTALLED CAPACITY (MWE) 4.5

POTENTIAL (MWE) 4.5-25

TEMPERATURE (EC) 220-245

CHRONOLOGY

1969 and 1970 - Three wells drilled. Bouillante 1

reached 800 m and 220oC; not capable of great

production. Bouillante 2 encountered a highly productive

drain at 338 m with pressure higher by 14 bars than

hydrostatic pressure and with a temperature of 242oC. 

Bouillante 3 drilled to 445 m, crossed a sandy layer at

410-440 m with temperature close to 240oC; layer

subsequently proved capable of producing only a few

tons/hour of steam and water.

1971 - Bouillante 2 subjected to a long-duration

production test. During six months, the well produced a

flow of steam-water mixture tending to become

stabilized at 30 t/h of steam and 120 t/h of water. The
Geothermal Resources in Latin America & the Caribbean 105

surface separation at 5 bars provides 20% steam and 80%

water. The steam contains 0.4% by weight of

noncondensable gases consisting basically of carbonic

gas (90%) with traces of H2S (1%). 

1972 and 1973 - Metallurgical campaign MT-5 EX

started. 

1974 - Bouillante 2 retested. Drilling restarted: 

Bouillante 3 deepened to 850 m. No evidence of

considerable production between 450 and 850 m. 

Bouillante 4 drilled to 1200 m. No marked productivity

at any level. 

Seismic reflection profile shot at sea along the western

coast of the island to determine the thickness of the tuff

formation in which the drill holes have stopped. The

propagation speed of the seismic waves in these tuffs

seems to be between 3200 and 3500 m/sec

(D’Archimbaud, 1975).

1984 - 4.5 MWe double flash condensing plant

commissioned at a cost of 110 million French francs. 

1994 -The company Géothermie Bouillante was created;

aims for a progressive increase in the energy exploited

(Jaudin, 1994).

2003 - 20 MWe proposed to be online.

NOTES

Guadeloupe is a French colony. The site was explored

and developed by EURAFREP S.A. and Electricité de

France. 

For a proposed 25 MWe, projected annual capital

charges and operational costs are about 4,000 and 700

French francs per kW respectively (Lawrence, 1998).
Geothermal Resources in Latin America & the Caribbean 106

Population (millions) - July 1998 2.63

Overall Electrification (% of population) 64%

GDP (billion US$) - 1996 est. $9.5

Real GDP Growth Rate - 1996 est. -1.4%

Inflation Rate (CPI) - 1996 17%

Total Installed Capacity (MWe) - 1995 1182

Electricity Consumption per Capita (kWh) - 1995 1503

Energy Demand Growth Rate NA%

Prices (US¢/kWh) - 1997

Residential

Commercial

Industrial

11.8

10.8

9.1

Estimated Geothermal Potential (MWe) 100

Power Summary

Jamaica’s domestic energy sources include biomass

(firewood and bagasse) which accounted for 98.3% of

 non-fossil fuel energy in 1992, and hydropower, which

accounted for the remaining 1.7% (Lawrence, 1998).

Geothermal Sites / Projects

Jamaica has an estimated 100 MWe of geothermal power 

potential.

Jamaica’s geothermal resources are comparable to that of

the other Caribbean islands—300 billion tons of oil

equivalent (BTOE) of both thermal and electric quality

resources combined.

No specific geothermal site data has been found for

Jamaica. 

Jamaica
Geothermal Resources in Latin America & the Caribbean 107

population (millions) - July 1998 0.41

Overall Electrification (% of population) NA%

GDP (billion US$) - 1997 est. $4.0

Real GDP Growth Rate - 1997 est. NA%

Inflation Rate (CPI) - 1997 3.9%

Total Installed Capacity (MWe) - 1995 115

Electricity Consumption per Capita (kWh) - 1995 2280

Energy Demand Growth Rate NA%

Prices (US¢/kWh) - 1997

Price range 10-12

Estimated Geothermal Potential (MWe) 3,500

The very active Mt. Pele comprises an obvious locus for 

geothermal resources. There are solfataras, hot springs,

earthquake epicenters nearby and well developed fracture

systems (Huttrer, 1998).

Martinique has an estimated 3,500 MWe of geothermal

power potential.

There are plans to set up a geothermal plant in Martinique

(Lawrence, 1998).

Martinique

(overseas department of France)
Geothermal Resources in Latin America & the Caribbean 108

Population (millions) - July 1998 0.01

Overall Electrification (% of population) NA%

GDP (billion US$) - 1996 est. $0.043

Real GDP Growth Rate - 1996 est. -20.2%

Inflation Rate (CPI) - 1996 6.2%

Total Installed Capacity (MWe) - 1995 5

Electricity Consumption per Capita (kWh) - 1995 1178

Energy Demand Growth Rate NA%

Prices (US¢/kWh) - 1997

Resident

Commercial

Industrial

18

20

17

Estimated Geothermal Potential (MWe) 940

Geothermal Sites /

Projects

Montserrat has an

estimated 940 MWe of

geothermal power 

potential.

Even before the 1995

eruptions, the

southwestern flank of

the Soufrière Hills

volcano was the site of

solfataric activity and

of numerous thermal springs. There was also significant

seismic activity and several well developed fracture

systems transecting the volcano (Huttrer, 1998).

1. Soufrière Hill

Soufrière Hill

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

Montserrat

(dependent territory of the UK)
Geothermal Resources in Latin America & the Caribbean 109

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1992 - Possible high enthalpy resource observed at area

west of Soufrière Hill under UN/DTCD program.

NOTES

Population (millions) - July 1998 0.21

Overall Electrification (% of population) NA%

GDP (billion US$) - 1997 est. $2.4

Real GDP Growth Rate - 1997 est. 1.3%

Inflation Rate (CPI) - 1997 3.6%

Total Installed Capacity (MWe) - 1995 20

Electricity Consumption per Capita (kWh) - 1997 4128

Energy Demand Growth Rate NA%

Prices (US¢/kWh) - 1997

Price range (St. Martin) 17-20

Estimated Geothermal Potential (MWe) 3,000

The Netherlands Antilles is made up of the three Windward

Islands of the Dutch Caribbean—Saba, St. Eustatius (Statia),

and St. Maarten. 

Netherlands Antilles

(part of the Netherlands Kingdom)
Geothermal Resources in Latin America & the Caribbean 110

Geothermal Sites / Projects

The Netherlands Antilles have an estimated 3,000 MWe of

geothermal power potential.

Saba is a small island comprising a central volcano with at

least 15 andesitic domes on its flanks. There is a record of

volcanic eruption(s) less than 1000 years ago and there are

numerous hot springs along the shoreline and just off shore. 

The island is highly fractured, some hot springs

temperatures have risen in the last 40 years. 

INEEL, GMC, and USGIC prepared a preliminary

assessment of the potential for the development of

geothermal resources of Saba and Statia under a DOEsponsored program.

While some heat probably remains beneath The Quill on

Statia as evidenced by

reported occurrences of

thermal waters in two wells

drilled for drinking water,

there are no known hot springs

or paleo-thermal areas on the

island (Huttrer, 1998).

No specific geothermal sites

have been identified for Saba

and Statia.

Population (millions) - July 1998 0.04

Overall Electrification (% of population) 100%

GDP (billion US$) - 1997 est. $0.2

Real GDP Growth Rate - 1997 est. 5.8%

Inflation Rate (CPI) - 1997 3.1%

Total Installed Capacity (MWe) - 1995 16

Electricity Consumption per Capita (kWh) - 1997 1976

Energy Demand Growth Rate NA%

Prices (US¢/kWh) - 1997

Residential

Commercial

Industrial

11.8

12.6

12.6

Estimated Geothermal Potential (MWe) 1,280

Power Summary

An expansion project to increase electricity capacity is

underway with assistance from the Caribbean Development

Bank (CDB). 

Saint Kitts & Nevis
Geothermal Resources in Latin America & the Caribbean 111

Government / Legislation

Department of Electric and Light

Utility was privatized in 1995.

No Specific Laws for Electricity or Geothermal

St. Kitts and Nevis do not have laws which regulate the use

of geothermal resources or the electric sector.

Geothermal Sites / Projects

St. Kitts and Nevis have an estimated 50 MWe of

geothermal power potential.

INEEL, GMC, and USGIC prepared a preliminary

assessment of the potential for the development of

geothermal resources of St. Kitts and Nevis under a DOEsponsored program.

There are encouraging geothermal indicia at five places on

Nevis. On Nevis’s western and southern sides, there are

two solfataras, numerous thermal wells, and a large area of

hydrothermal alteration. Also, strong earthquakes with

hypocenters very near Nevis occurred in 1951 and 1961.

On St. Kitts, though there are moderately large areas of

steaming ground in the crater of Mount Liamuiga, as well as

thermal springs along the western shoreline, the geothermal

indicia are less well-defined than on the other islands

(Huttrer, 1998). 

1. Basseterre

2. Brimstone Hill

3. Nevis Peak

Basseterre

LOCATION

St. Kitts.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1992 - Possible high enthalpy geothermal resource

identified under UN/DTCD program.

NOTES
Geothermal Resources in Latin America & the Caribbean 112

Brimstone Hill

LOCATION

St. Kitts.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1992 - Possible high enthalpy geothermal resource

identified under UN/DTCD program.

NOTES

Nevis Peak

LOCATION

Nevis.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1992 - Possible high enthalpy geothermal resource

identified on western flank of Nevis Peak under

UN/DTCD program.

NOTES
Geothermal Resources in Latin America & the Caribbean 113

Population (millions) - July 1998 0.15

Overall Electrification (% of population) 87%

GDP (billion US$) - 1997 est. $0.6

Real GDP Growth Rate - 1997 est. 0.8%

Inflation Rate (CPI) - 1997 -2.3%

Total Installed Capacity (MWe) - 1995 45

Electricity Consumption per Capita (kWh) - 1997 705

Energy Demand Growth Rate 9.0%

Prices (US¢/kWh) - 1997

Price range 22-28

Estimated Geothermal Potential (MWe) 680

Power Summary

Saint Lucia’s total installed capacity in 1995, 44.5 MWe,

consisted of thermal power generated by imported diesel

fuel. Although the size of St Lucia’s petroleum import bill 

is not yet critical, the total dependence on imported

petroleum fuels to satisfy commercial energy requirements

is a matter of concern (Barthelmy, 1990). Of the total 44.5

MWe, 25 MWe are plants that are more than 30 years old. 

The island’s energy demand is growing 8-10% per year,

largely as the result of the creation of the tourist industry. 

Prospects for economic growth will depend on

diversification of the productive base of the economy and

the continued expansion of the physical infrastructure. In

particular, the development of the geothermal resource

shall provide a secure indigenous source of energy that is

likely to stimulate investment, economic growth, and

employment (Barthelmy, 1990).

Government / Legislation

St. Lucia Electricity Services, Ltd. (LUCELEC)

LUCELEC, the institution responsible for the generation of

electricity, is actually a company of mixed economic

control: 43% by the British company, U.K. Commonwealth

Development Co. (CDC), 18.7% by the Mayoralty of

Castries, 12.4% by the Government, 12% by Social

Insurance, and the remaining 13% by the private sector. 

The process of privatizing the electric company is identical

to that which occurred in Dominica and the private majority

is the same British company.

Saint Lucia
Geothermal Resources in Latin America & the Caribbean 114

Like Dominica,

privatization was

realized in St. Lucia

without a legal or

regulatory framework

for the electric sector

in place.

Ministry of Planning,

Development, and

Environment

The energy sector and

environment are under

the purview of the Ministry of Planning, Development, and

Environment.

No Specific Laws for Electricity or Geothermal

St. Lucia does not have laws which regulate the use of

geothermal resources or the electric sector.

Geothermal Sites / Projects

St. Lucia has an estimated 680 MWe of geothermal power 

potential.

A least cost power development program for St. Lucia must

incorporate geothermal energy (Barthelmy, 1990). 

Evaluation of St. Lucia’s geothermal potential began in

1951 with a field study mission by the late Gunnar

Bodvarsson of the Sulphur Springs area. An initial

comprehensive geothermal resource exploration program

was started 20 years later by the United Kingdom’s

Ministry of Overseas Development in the early 1970s

followed by engineering testing in the late 1970s. 

In the 1980s, Aquater (Italy), Los Alamos National

Laboratory (funded by USAID), and the UN Revolving Fund

for Natural Resources Exploration (UN/RFNR) and USAID

conducted prefeasibility studies which included drilling

production-size exploratory wells. 

The second of two wells drilled by a team led by Italian

geothermists found what appeared to be an economically

exploitable resource. Unfortunately, this well suffered

mechanical failures and the produced steam was never

harnessed to generate power.

More recently, INEEL, GMC, and USGIC prepared a

preliminary assessment of the potential for the

development of geothermal resources of St. Lucia under a

DOE-sponsored program.

Geothermal indicia on St. Lucia comprise a very large

solfatara near the village of Soufrière, thermal springs

nearby and very recent volcanic activity including both

phreatic and pyroclastic eruptions (Huttrer, 1998).
Geothermal Resources in Latin America & the Caribbean 115

1. La Soufrière-Qualibou Caldera

La Soufrière-Qualibou Caldera

LOCATION

In the southwestern part of the island. St. Lucia belongs

to the Windward Islands in the Lesser Antilles (West

Indies); within 13o43' and 14o07' N and 61o05' W; island

is 25 miles long and up to 12 miles wide; made up almost

entirely of products of volcanic origin.

Geothermal site is the Qualibou Caldera, the Belfond

area, and Sulphur Springs Valley, in the southwestern part

of the island. The Qualibou Caldera lies on a NE-SW

regional tectonic alignment.

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 10-30

TEMPERATURE (EC) 200-350

CHRONOLOGY

1951 - Investigation began with a field study mission by

the late Gunnar Bodvarsson of the Sulphur Springs area.

1974 to 1976 - First systematic investigations by the UK

Ministry of Overseas Development when the island was a

British territory. Merz and McLellan drilled seven wells

to depths of 116 to 725 m; four wells were productive.

1982 - Aquater S.p.A. of Italy began extensive geological,

geophysical, and geochemical surveys after St. Lucia

became independent with funding from the European

Investment Bank (EIB). Identified five sites for

exploratory drilling to verify the nature of the fluid and

reservoir. 

1983 to 1984 - Los Alamos National Laboratory

conducted geological, geophysical, hydrochemical, and

engineering investigations with funding from USAID. 

Postulated the existence of a three-layer geothermal

system: an upper condensing zone, an intermediate

vapor-dominated or two-phase zone, and a lower boiling

brine zone. Put preliminary estimate of field’s potential

at 30 MWe. 

1987 to 1988 - UN/RFNR and USAID jointly funded

prefeasibility study which included drilling productionsize exploratory wells. 

Two deep wells drilled (SL-1 at Belford, SL-2 at Sulphur

Springs); only SL-2 (1413 m) was productive with a

flowing enthalpy of 2900 kJ/kg and a flow rate of 9.3-

17.5 kg/s. Fluids from SL-2 had a high gas/steam ratio
Geothermal Resources in Latin America & the Caribbean 116

(up to about 25% in weight), high H2/H2S ratio, HCl in

the condensed steam, and high acidity (pH of 2.8). 

Estimated electrical output potential of SL-2 is 3 MWe. 

The most significant geological information obtained

from the drilling cores and cuttings is that the formations

crossed by the wells SL-1 and SL-2 indicate an almost

complete lack of juvenile pyroclastic products. This

leads to the consideration that the area under exploration

may not be the center of a strong pyroclastic activity

(Barthelmy, 1990). 

Results were not judged satisfactory due to high cost of

drilling and lack of supervision. Total investment: $5.5

million.

1988 - Oxbow Geothermal Corporation submitted

proposal to develop a 10 MWe geothermal facility.

1990 - Feasibility study begun with support from

UN/RFNR and USAID for a 10 MWe plant.

1992 - UN/DTCD integrated the evaluation of existing

geothermal activities in St. Lucia in the context of a

regional project which would comprise other islands with

geothermal potential. 

The Government completed an economic evaluation of

installing two units of 5.2 MWe each in Soufrière. Due

to lack of production in the existing wells, however, the

project has stalled.

NOTES

The Belfond area, located 1.5 km southeast of Sulphur

Springs, is the primary target for additional exploration. 

The main geothermal reservoir at 250oC is thought to be

located at a depth of 1000 m.

Due to the environment of mistrust created as a

consequence of the lack of concrete results obtained in

this project, LUCELEC has not considered the offers of

the private companies that are involved in Dominica and

Grenada. 

Development of plant will be through an international bid

or concession.
Geothermal Resources in Latin America & the Caribbean 117

Population (millions) - July 1998 0.12

Overall Electrification (% of population) 95%

GDP (billion US$) - 1997 est. $0.3

Real GDP Growth Rate - 1997 est. 1.0%

Inflation Rate (CPI) - 1997 3.6%

Total Installed Capacity (MWe) - 1995 14

Electricity Consumption per Capita (kWh) - 1997 545

Energy Demand Growth Rate 5.0%

Prices (US¢/kWh) - 1997 

Residential

Commercial

Industrial

22.0

25.2

20.0

Estimated Geothermal Potential (MWe) 890

Power Summary

St Vincent’s electricity needs are met with diesel and

hydropower. Oil imports are needed to meet 90% of the

islands’ primary energy needs. In 1995, St. Vincent

imported 940 barrels/day of oil to satisfy its energy needs.

Cane Hall, a diesel plant located about three miles outside

the capital, Kingstown has triggered complaints of noise

pollution.

St. Vincent Electricity Services, Ltd. (VINLEC), currently

has seven generating plants—three diesel sets which were

commissioned from 1972 to 1993, and four small

hydropower stations. Power sales are reportedly increasing

at 5% per year.

The country requires another 3.6 MWe of electricity in

1999 into Cane Hall and a new generating site developed at

Lowmans Bay by the year 2003. This will bring St

Vincent’s capacity to 17.5 MWe.

In an effort to diversify its economy from heavy

dependence on banana exports, St. Vincent is improving its

electricity sector to attract a range of new businesses,

mainly financial services and information processing.

Supported by an $8.8m loan from the European Investment

Bank (EIB), the Government of St. Vincent (GOSV) is

expanding and improving its power sector to become

competitive in attracting new investments. The EIB loan

will provide partial funding, with the government securing

the rest.

Saint Vincent & the

Grenadines
Geothermal Resources in Latin America & the Caribbean 118

Using the island’s indigenous geothermal power would

decrease the country’s reliance on imported fuel and

increase the output of salable goods, thereby improving the

country’s balance of payments and decreasing its national

deficit. 

Government / Legislation

Ministry of Communications and

Works

The Ministry of Communications and

Works is responsible for the country’s

energy including geothermal. The

Ministry, in consultation with Central

Planning, the Prime Minister, and the

Cabinet, can issue concessions for

energy-related projects deemed

beneficial to the national interest. 

Drilling permits come from this Ministry and may be

included in the Concession Agreement. If not included in

the agreement, they could take 3-6 months to be issued.

St. Vincent Electricity Services, Ltd. (VINLEC)

VINLEC is a quasi-state utility company. Assuming

VINLEC remains unprivatized, a private geothermal

developer would have to execute a power sales agreement

with VINLEC as a precondition to the acquisition of a

 loan. In this case, there would have to be assurances that

VINLEC could and would be able to pay for power received.

No legislative changes are necessary for the

development of private power (Lawrence, 1998).

No Specific Laws for Electricity or Geothermal

St. Vincent and the Grenadines do not have laws

regulating the use of geothermal resources or the

electric sector. 

The GOSV supports the concept of private

development of its indigenous geothermal

resources. There are no insurmountable legal,

regulatory, or institutional barriers to the

development of St. Vincent’s geothermal

resources

 once their economical production is confirmed (Huttrer,

1995).

The Central Water and Sewerage Authority (CWSA)

The CWSA controls all aspects of water-related matters on

St. Vincent.

Geothermal Sites / Projects
Geothermal Resources in Latin America & the Caribbean 119

St. Vincent and the Grenadines have an estimated 890 MWe

of geothermal power potential.

St. Vincent’s geothermal potential has not been formally

studied. 

INEEL, GMC, and USGIC prepared a preliminary

assessment of the potential for the development of

geothermal resources of St. Vincent under a DOEsponsored program.

La Soufrière volcano has erupted three times since 1902,

there is a steaming resurgent dome in the crater and there

are numerous hot springs in river valleys on the western

side of the volcano (Huttrer, 1998).

Of additional interest are three N25E striking features near

Wallibou Beach, in an area locally known as “Hot Waters,”

and a circular feature near Morgans Wood near 

Trinity Falls (Huttrer, 1995).

Capital Growth Holdings, a U.S. firm is currently exploring

on St. Vincent and intends to drill an exploration well in

1999.

1. Soufrière Volcano

Soufrière Volcano

LOCATION

Soufrière Volcano is located in the northern part of St.

Vincent; 60o56' W, 13o15' N.

STATUS

Feasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 8-10

TEMPERATURE (EC) 155-190

CHRONOLOGY

1995 and 1996 - Prefeasibility studies conducted by

Geothermal Management Corporation with support from

DOE and USAID. Geothermometer analysis of fluid

samples show temperatures of 155-190oC. Study

confirmed that the northwestern quadrant of St. Vincent

on the flanks of the Soufrière Volcano may be favorable

for the discovery of commercially exploitable

geothermal resources.

1997 and 1998 - Growth Capital Holdings (GCH),

project developer, signed MOU with Government of St.

Vincent; conducted geologic studies and selected drilling

target. Hired drilling engineer, ThermaSource, Inc.
Geothermal Resources in Latin America & the Caribbean 120

1999 - Exploration well to be drilled. Unconfirmed

reports that the project was suspended due to financing

problems. 

NOTES

The Soufrière Volcano is the youngest on St. Vincent and

one of the most active in the entire Caribbean island arc,

having erupted in 1902, 1971, and, most recently, 1979. 

Numerous fumaroles are visible, primarily on the

southeastern and western sides of the dome and also near

its summit.
Geothermal Resources in Latin America & the Caribbean 121
Geothermal Resources in Latin America & the Caribbean 122

Population (millions) - July 1998 36.26

Overall Electrification (% of population) 92%

GDP (billion US$) - 1997 est. $348.2

Real GDP Growth Rate - 1997 est. 8.4%

Inflation Rate (CPI) - 1997 0.3%

Total Installed Capacity (MWe) - 1995 20207

Electricity Consumption per Capita (kWh) - 1997 1670

Energy Demand Growth Rate 7.7%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

14.2

14.6

8.2

Estimated Geothermal Potential (MWe) 2,010

Power Summary

Argentina’s electric power sector has been privatized and

deregulated, with separate markets created for generation,

transmission, and distribution. A decade ago the country’s

power sector was characterized by shortages, breakdowns,

and high costs. Since 1992 and economic reforms,

however, total generating capacity in the country has

increased more than 40% and more than $7 billion has been

invested in the sector. Since 1996 alone, the price of

energy in the country ́s spot market has declined 18%

according to analysts at the Banco General de Negocios

(BGN) in Buenos Aires.

Both demand and supply are expected to continue growing.

Recent additions to capacity have been mainly

hydroelectric plants. The Government of Argentina (GOA)

plans to issue an international call to tender for the contract

to complete, operate, and maintain Yacyreta—the 3200

MWe joint Argentine-Paraguayan hydroelectric dam and

station located on the banks of the Parana River—in the

first quarter of 1999.

In its annual Energy Prospective completed at the end of

1997, Argentina’s Secretary of Energy predicted that even

Argentina

South America
Geothermal Resources in Latin America & the Caribbean 123

under relatively modest assumptions for economic growth,

demand will increase 60% by the year 2010. Under more

optimistic assumptions, demand would more than double. 

In addition to domestic

growth, possibly the most

important recent event in the

electricity sector is the

August 1997 agreement

between Argentina and Brazil

to integrate the two

countries’ electricity

markets with guaranteed free

competition among

generators, the banning of all

state subsidies, and the

requirement that pricing be

based solely on costs. 

Exports to Brazil could reach

5,000 MW in the medium

term.

Rich in natural gas, Argentina

can transport gas to Brazil

and Chile where the fuel can

be used to generate

electricity or it can turn gas into electricity at home using

highly efficient combined cycle generating technologies

and export the electricity produced.

Argentina requested $46.5 million financing from the

World Bank and $14 million from the Global Environment

Fund (GEF) for a program to supply energy to rural areas

using renewable resources where feasible. It will support

the transfer of the operation of the rural power sector from

the government to the private sector, and strengthen the

regulatory function of provinces. The commercial delivery

mechanism is based on a unique concession system where

rights to a whole province are awarded in open bidding to

the company that asks for the lowest subsidy. Negotiations

have been postponed at the request of the GOA

(Development Business, February 1999).

Government / Legislation

Public Law No. 24.065 — Electric Law (January 1992)

The Electric Law enacted in January 1992, established a

legal structure for restructuring and privatizing the

electricity industry. The federal government intended for

the Electric Law to reduce electricity rates and improve

service. The restructuring that preceded privatization was

designed to lead to competition between the soon-to-beprivatized electricity companies and was modeled after

earlier restructuring by Chile and the price-cap regulation

of the United Kingdom. 

Two further legal changes occurred during 1993. A 1993

amendment to the Foreign Investment Law more explicitly
Geothermal Resources in Latin America & the Caribbean 124

addressed the question of foreign investment. This

amendment removed restrictions that applied only to

foreign investors, freeing them of the need to receive prior

approval for most investment. 

Later in 1993, the measures of the 1989 Economic

Emergency Law, the 1989 Reform Law, and the 1993

amendment to the Foreign Investment Law were combined

in an act called Decree 1853, which removed most of the

remaining restrictions on foreign investment.

No Specific Law for Geothermal

Provincial Governments are responsible for geothermal

exploration and direct uses. Increasing numbers of foreign

companies are investing in Argentina’s provinces. For the

past six years, the IDB has financed provincial reforms to

reduce the size of the public sector, privatize public

services, and allow the provinces to use their competitive

advantages.

At the National level, there are no specific legislation or

initiatives for geothermal power generation. The legal

framework differs depending on whether the geothermal

resource to be exploited is steam or hot water.

There is no National code for the use of hot water

geothermal resources. Their use is subject to the

Provincial laws which regulate the use of water. 

Legislation varies from province to province.

Law No. 22.259 (July 30, 1980)

Governs use of “indigenous vapors” and modifies the old

Mining Code. Steam is considered the property of the

State—National or Provincial—depending on in which

political jurisdiction it is found. It is granted in concession

to whomever proves sufficient technical and economic

solvency.

Geothermal Sites / Projects

Argentina has an estimated 2,010 MWe of geothermal

power potential.

Since the early 1990s, due to low fossil fuel prices, the

emphasis of Argentina’s geothermal program has shifted

from exploration and development of high temperature

resources for electricity generation to the use of lower

temperature resources in direct applications (Pesce, 1998). 

The generation of electricity from geothermal power is not

currently economical. The price of electricity is

$0.09/kWh; the cost of generation just $0.02/kWh and

falling (NRECA; March 1998). 
Geothermal Resources in Latin America & the Caribbean 125

Prefeasibility studies have been completed in 19

geothermal areas; 90% of the high-enthalpy areas and 75%

of the low-enthalpy areas. 

High-enthalpy areas include Copahue-Caviahue, Domuyo,

Tuzgle, and Valle del Cura. Low-enthalpy areas are Cerri,

Médanos, Carrindanga, Caimancito, La Quinta and El

Palmar, Río Valdez, Santa Teresita, Suriyaco, Colón, Villa

Elisa, Larroude, Telsen, and Gan Gan.

Two provinces are actively promoting geothermal

development, Neuquén and Jujuy, but primarily for

balneotherapy and heating related to tourism. No potential

is seen in Neuquén Province for the installation of small

electric plants because the province has an extensive

electric grid and adequate capacity.

1. Copahue-Caviahue

2. Domuyo

3. Tuzgle

4. Valle del Cura

Copahue-Caviahue

LOCATION

On the eastern slopes of the Andes, near the border with

Chile, at 37°50'S, 71°05'W; 1170 km WSW from

Buenos Aires, and 360 km NW of Neuquén, the

provincial capital. Located on the western edge of a 15-

to 20-km diameter megacaldera near the 2977-m high

Quatemary Copahue Volcano (Neuquén Province).

STATUS

Power plant on site; currently offline.

INSTALLED CAPACITY (MWE) 0.67

POTENTIAL (MWE) 30

TEMPERATURE (EC) 171-270

CHRONOLOGY

1974 - Geothermal survey and drilling in the field begun

by the Comisión Nacional de Estudios Geotérmicos.

1976 - COP 1 exploratory well drilled to 954 m.

1979 - Study begun by the Consejo de Planificación para

el Desarollo (COPADE). 

1980 - Japan International Cooperation Agency (JICA)

continued study of Copahue and Domuyo. Objective was

to evaluate the sites for power generation.

1981 - Prefeasibility study conducted by the Secretary of

State of Copahue and Latinconsult, Electroconsult

(Italy). 
Geothermal Resources in Latin America & the Caribbean 126

1981 - COP 1 deepened to 1451 m; maximum

temperature 250oC; between 850 and 1000 m found a

productive zone with an initial flow of 17 tons/hr of dry

steam; supplies 670kWe ORMAT binary pilot plant

which is currently off-line. A 33kV-line now connects

Copahue with the provincial grid. 

1986 - COP 2 drilled to 1241 m deep; maximum

temperature 235oC; 2876 kJ/kg; well showed inferior

conditions of permeability with initial flow less than that

of COP 1.

1988 - 670kWe ORMAT binary pilot plant using COP 1

came online in April. The plant has been off-line since

1996.

1991 - COP 3 drilled to 1065 m deep; maximum

temperature 240oC; JICA drilled and studied.

1997 - Provincial government hired the Empresa

Neuquina de Servicios de Ingeniería (ENSI) to design a

snow melting pilot project to keep streets to Villa

Copahue clear during the winter; test project used COP 2.

1997 - COP 4 drilled to 1256 m for the Villa Thermal

Copahue Heating Project; static pressure 40 bar at

wellhead; 235oC reservoir temperature. 

1998 - 45 km of piping laid for snow melting system; 1.5

m of snow can be melted in 2.5 hours.

NOTES

Includes five geothermal manifestations of importance

(fumaroles and hot springs) covering an area of

approximately 1.2 km2, four of which are located in

Argentina. They are TERMAS DE COPAHUE, LAS

MAQUINAS, LAS MAQUINTAS, and ANFITEATRO. 

(The fifth, CHANCHO-CO, is located in Chile.)

The Copahue Volcano corresponds to the last episode of

the Copahue-Caviahue Effusive Complex whose activity

began during the Pilocene and continued into the

Quaternary. The volcanic materials are mainly lavas;

pyroclastics are less abundant. They are predominantly

calc-alkalic basalts, andesitic-basalts and andesites and,

in smaller proportion, latites (Pesce, 1995).

Copahue means “sulfur place” in the local language,

Araucara.

According to the geothermal model, Copahue is a vapordominated geothermal field to a depth of 1300 m. The

existence of a main reservoir at an estimated depth of

1800 m has yet to be confirmed.

Villa Thermal Copahue Heating Project - Melts snow to

keep resort town accessible year round.
Geothermal Resources in Latin America & the Caribbean 127

Other current uses: balneotherapy.

Domuyo

LOCATION

In the northern part of the province at 36°40'S, 70°40'W

(Neuquén Province).

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 186-230

CHRONOLOGY

1982 - Prefeasibility studies begun by the Group of

Volcanology Work of the Secretary of Mining with

support from the Japanese International Cooperation

Agency (JICA).

1984 - Thermal gradient well drilled to depth of 1000 m

and a multi-purpose exploratory well to 376 m. 

The resulting model indicates the presence of a reservoir

at 650 to 750 m. The geothermal fluids originate in a

system that changes gradually from vapor-dominated

(218-226 oC) to liquid-dominated (186-190 oC).

A zone of low resistivity has been detected at 800 to

1200 m.

NOTES

At present, Domuyo’s geothermal resources are being

exploited for space heating and for supplying hot water to

a small tourist complex, Villa Aguas Calientes.

Prefeasibility studies have been completed and the

location for a deep exploratory well has been selected.

Also, elaboration of a model for the geothermal systems

which establishes the main geothermal field

characteristics has been concluded.

Field displays fumaroles, hot springs, and gas

emanations. Associated with Quatemary shoshonitic

volcanism. Detailed surveys covered about 600 km2

around Cerro Domo Volcano, the largest manifestation

of Quatemary volcanism in the area. The studies

delimited a thermal anomaly probably related to magma

bodies in the upper levels of the crust that are related to

tensional structures (Pesce, 1995).

Tuzgle

LOCATION

In the Altiplano of Salta and Jujuy at 23°55'S; 66°30'W

(Jujuy and Salta Provinces). An area of about 900 km2
Geothermal Resources in Latin America & the Caribbean 128

has been studied in detail.

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 132-142

CHRONOLOGY

1977 - Reconnaissance studies began.

1980 - Prefeasibility study began covering an area of 900

km2; seventeen (17) thermal gradient wells planned;

eleven (11) drilled. 

The wells have found a superficial reservoir whose base

is located at a depth of 400-500 m, and which indicates

in some points the presence of a second reservoir. 

The preliminary geothermal model postulates the

existence of a shallow reservoir which may be fed from

deeper levels where two hydrothermal cells are

interconnected by fractures. The geothermal fluids would

be located in old fractured extrusive rocks and their

upward flow controlled by vertical structures (Pesce,

1995).

NOTES

Due to its distance from electrical distribution centers,

the potential for development of Tuzgle will likely

increase with a growing energy demand. It is reported

that this resource is used for mining.

Valle del Cura

LOCATION

San Juan Province

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 130-200

CHRONOLOGY

1986 - First phase of prefeasibility studies conducted by

Hydro projects S.A.-Setec S.R.L.-Cepic S.C..

Observed geochemical and isotopic anomalies suggest

the existence, at drillable depths, of a boiling reservoir

with temperatures above 200 oC, as well as 130-150 oC

secondary shallower reservoirs.

NOTES

Thermal anomaly is related to subvolcanic bodies
Geothermal Resources in Latin America & the Caribbean 129

associated with the neighboring Tórtolas volcano
Geothermal Resources in Latin America & the Caribbean 130

Population (millions) - July 1998 7.83

Overall Electrification (% of population) 64%

GDP (billion US$) - 1997 est. $23.1

Real GDP Growth Rate - 1997 est. 4.4%

Inflation Rate (CPI) - 1997 7.0%

Total Installed Capacity (MWe) - 1995 805

Electricity Consumption per Capita (kWh) - 1998 370

Energy Demand Growth Rate 8.0%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

6.58

13.17

7.36

Estimated Geothermal Potential (MWe) 2,490

Power Summary

Bolivia’s electricity sector is made up of a National

Interconnected System (NIS) and three main isolated

systems. NIS accounts for nearly 90% of the country’s

consumption and approximately 77% of its installed

capacity. Of the electricity generated in the NIS, 60% is

thermoelectric and 40% is hydroelectric. 

In June 1995, the government of Bolivia announced the

capitalization of Empresa Nacional de Electricidad’s

(ENDE) three main electricity generation companies to

three U.S. power companies, Dominion Energy, Energy

Initiatives, and Constellation Energy, for $140 million. The

Bolivia Power Company (COBEE) was purchased by

another U.S. company, NRG Energy. (Capitalization differs

from traditional privatization in that money paid by the new

partner(s), who also assumes management of the company,

goes not to the national treasury but into the company as

direct investment.) The four generating companies are

working to increase Bolivia’s generating capacity for both

domestic consumption as well as to export, primarily to

Brazil. 

Bolivia’s per capita electricity consumption, 370 kWh in

1998, is the fourth lowest in the region, higher only than

Haiti, Guatemala, and Guyana. Increasing demands for fuel,

which has grown 8% per year rather than the estimated 4-

5%, caused serious shortages in the capital La Paz in late

1998. Bolivia’s state oil company YPFB will take

measures to deal with the fuel scarcity, including the

expansion of the Cochabamba-La Paz multi-purpose

pipeline, which should come on-stream by the end of 1999.

Bolivia
Geothermal Resources in Latin America & the Caribbean 131

Government / Legislation

The Bolivian Government has completely overhauled the

structure of the electric industry. While the Government

previously held direct control of the State enterprises

involved, the State’s role now is limited to that of a

regulatory agency.

Superintendency of Electricity

The Superintendency of Electricity, the entity with national

jurisdiction, is responsible for regulating the activities of

the electric industry. The Superintendency of Electricity,

on behalf of the Bolivian State, grants concessions to a

legal entity to generate, distribute, or transmit electricity.

The maximum term of a concession is forty (40) years.

Law No. 1604 (December 21, 1994)

The Electricity Law stipulates that “The activities related to

the Electric Industry shall be governed by principles of

efficiency, transparency, quality, continuity, adaptability

and neutrality.”

The Electricity Law removed day to day operation of the

electric industry from the Government bureaucracies and

instituted a framework for private initiative to fill the

expected needs of the sector. The Government retained

regulatory control of the sector.

In addition, the Electricity Law fundamentally overhauled

the tariff structure. The new structure allows generators to

use a marginal cost pricing system. Tariffs will directly

reflect costs related to location and peak/off-peak periods. 

Subsidies to low income consumers will be eliminated over

a five year period.

Article 5 of the law stipulates that the exploitation of

renewable resources for the production of electricity are

regulated by this law.

Article 10 states that to engage in the activities of the

electric industry, foreign companies must form Bolivian

subsidiaries.

No Specific Law for Geothermal

The Electricity Law has not been enough to bring in private

investment. A geothermal law is needed to outline the rules

of the game, and to increase private investment in

developing Bolivia’s geothermal resources.

Geothermal Sites / Projects

Bolivia has an estimated 2,490 MWe of geothermal power 

potential.

The objectives of the Bolivian Government vis-à-vis

geothermal development, are to encourage private

investment, promote regional development, expand and
Geothermal Resources in Latin America & the Caribbean 132

diversify energy exports, and increase the use of the

country’s renewable resources.

Bolivia’s geothermal resources are primarily located in the

Cordillera Occidental of the Western Andes Mountains that

constitutes the border with Chile, and in the Altiplano. The

area is arid and dry with an altitude of 4000-5000 masl. 

The area is sparsely populated and poor and the principal

economic activity is small-scale mining. 

Since the 1970s, Bolivia has identified geothermal energy

as an important and complementary source of energy, from

a geographic point of view, to strengthen the southern part

of the NIS. Looking at local energy supply, geothermal

sources are the most economical for the southwestern

corner of Bolivia. Additionally, Bolivia’s resources are

well situated to supply the ever-increasing market in

northern Chile. Forty-two (42) principal thermal

manifestations have been identified. 

In 1976, ENDE and the Ministries of Energy and

Hydrocarbons and of Mining and Metallurgy, with funds

from the UNDP and assistance from the ENI Group of Italy,

began evaluating Bolivia’s geothermal potential. Seven

primary areas of geothermal interest were identified: 

Volcán Sajama,

Empexa, Salar

de la Laguna, Volcán

Ollague-Cachi

Laguna, Laguna

Colorada,

Laguna Verde,

and Quetana. Of

the seven, three

are considered

most important: 

Laguna

Colorada,

Sajama, and

Valle de Río

Empexa. These

are located along the Occidental Cordillera of the Andes

which runs north-south along the border with Chile. 

The area of primary geothermal interest coincides with the

shortage of primary energy alternatives. Due to the

distance to transport and distribution systems of

commercial energy, geothermal energy is greatly

appreciated to be competitive and complementary with

other primary resources.

To date, $16.5 million has been spent on evaluating the

country’s geothermal resources primarily on the Laguna

Colorada project.
Geothermal Resources in Latin America & the Caribbean 133

1. Capachos

2. Castilla-Huma

3. Laguna Colorada

4. Pazña

5. Poopo

6. Sajama

7. Sorocachi

8. Urimiri

9. Valle de Río Empexa

10. Vichas-Lupe

Capachos

LOCATION

STATUS

Reconnaissance

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 80-135

CHRONOLOGY

1997 and 1998 - Sample collected by NRECA; analysis

done by Fraser Goff, Los Alamos National Laboratory.

There are chemical indications of thermal character (As,

B, Cs, Li, Rb) but low silica. These waters also have

relatively high Ca + Mg suggesting a mixing of reservoir

water with cooler groundwater. "Best estimate" (BE)

temperature is #135oC, probably closer to 80oC (Goff,

1998).

NOTES

The site does not have obvious electrical geothermal

potential unless there is an obvious nearby volcanic heat

source and some geologic/hydrologic evidence for

mixing of a deep reservoir component and cooler

near-surface groundwaters. On the other hand, direct use

applications may be excellent depending on flow rate and

chemical scaling/corrosion considerations (Goff, 1998).

Castilla-Huma

LOCATION

STATUS

Reconnaissance

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 75-160

CHRONOLOGY

1997 and 1998 - Sample collected by NRECA; analysis
Geothermal Resources in Latin America & the Caribbean 134

done by Fraser Goff, Los Alamos National Laboratory.

Some chemical indications of thermal character but high

Ca + Mg and low silica. Mixing of reservoir and

near-surface waters is indicated. BE temperature is

#160oC, probably closer to 75oC (Goff, 1998).

NOTES

The site does not have obvious electrical geothermal

potential unless there is an obvious nearby volcanic heat

source and some geologic/hydrologic evidence for

mixing of a deep reservoir component and cooler

near-surface groundwaters. On the other hand, direct use

applications may be excellent depending on flow rate and

chemical scaling/corrosion considerations (Goff, 1998).

Laguna Colorada

LOCATION

In the Cordillera Occidental in the southwestern corner

of the Potosí department near the border with Chile; 340

km south of the city of Uyuni; 200 km south of Empexa;

and east of the Tatio geothermal field located in Chile. 

At 67o40'W, 22o30'S; altitude ranges from 4300 to over

5000 masl. 

Site composed of three fields: SOL DE MAÑANA,

APACHETA-AGÜITA BRAVA, and HUAYLLAJARA.

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 150-400

TEMPERATURE (EC) 250-260

CHRONOLOGY

1970s - Site identified under the UNDP Energy

Resources Evaluation Program.

1976 to 1977 - Reconnaissance studies begun with

assistance from the Italian Government and ENI of Italy. 

Work done by the company, Aquater. 

1978 to 1980 - Prefeasibility study done by ENDE with

the Italian Government and the Andean Development

Corporation (CAF). 

1982 - Technical-economic evaluation done of the

installation of a 30 MWe plant in Laguna as part of the

NIS.

1985 - Feasibility study begun.

1987 to 1989 - Five wells drilled to depths of 1180 to

1601 m. Two stages of developed were defined: (1) the

installation of a backpressure plant of 4-10-MWe for the
Geothermal Resources in Latin America & the Caribbean 135

local markets (mining, mineral processing plants, and

rural electrification), and (2) the drilling of additional

wells with the objective being to ascertain the potential

necessary for plants of greater capacity for the supply of

electricity to NIS and export to Chile.

1990 - ENDE obtained US$8.5 million from the Italian

Government to install a pilot plant in Sol de Mañana

composed of two 4 MWe units and a transmission line

for the local market.

1991 to 1992 - ENDE deepened reinjection well SM-4

from 1474 to 1726 m, and drilled SM-5 (1705 m). 

Six wells have been drilled to an average depth of 1500 m

in the Apacheta and Sol de Mañana fields. Five are

production, one is reinjection. Two production wells,

SM-2 and SM-5, have potentials of 6.5 MWe and 6 MWe

respectively.

The wells’ production fluctuates between 350 and 370 t/h

of geothermal fluid (vapor and water), with pressures of

30-48 bar, and reservoir temperatures of 250-260 oC.

1993 - Due to domestic corruption, the Italian

Government canceled its promised financing and the

project was halted.

Following an invitation to international experts, ENDE

contracted with the Engineering Services of CFE of

México to define exactly the geothermal resources and

the potential for their technical and economic

development. 

CFE’s study confirmed the minimum potential of the

field at 100 MWe, outlining the following as a plan for

its development:

(1) Immediately utilize the vapor of the present wells by

installing one or two 5 MWe backpressure units whose

construction would take 1 to 1.5 years,

(2) Install two condensing plants of 60 MWe each for a

total of 120 MWe, for connection to the NIS and export

to northern Chile, which would take 2.5 to 3 years.

CFE certified that the potential of Laguna Colorada is

120 MWe (2 x 60 MWe) for 25 years. Under this

scheme, 20 production wells are required to provide

steam to the power plants, and 7 reinjection wells to

dispose of approximately 4400 t/h of residual water

(Delgadillo, 1998).

Possible markets are mining centers, SIN, and SING. The

total investment necessary for SIN (connecting to the

Telamayu substation) is US $159 million; for SING

(connecting to the Calama substation) is US $145

million. The price to sell the energy is for SIN, US
Geothermal Resources in Latin America & the Caribbean 136

$35.1/MWh; for SING, US $33.4/MWh. Estimated price

is 3.5¢/kWh (Amez, July 1998).

NOTES

Energy Initiatives purchased the Laguna Colorada

geothermal rights for $50,140.

The potential of the Sol de Mañana field is estimated as

follows. Minimum potential: 20-30 MWe; probable

potential: 150-180 MWe; possible potential: 350-400

MWe.

To date, $16.5 million has been invested in the Laguna

Colorada project.

Pazña

LOCATION

STATUS

Reconnaissance

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 90-180

CHRONOLOGY

1997 and 1998 - Sample collected by NRECA; analysis

done by Fraser Goff, Los Alamos National Laboratory.

These fluids have some thermal characteristics but high

Ca + Mg and low silica. Mixing of reservoir and

near-surface waters is indicated. BE temperature is

#180oC, probably closer to 90oC (Goff, 1998).

NOTES

The site does not have obvious electrical geothermal

potential unless there is an obvious nearby volcanic heat

source and some geologic/hydrologic evidence for

mixing of a deep reservoir component and cooler

near-surface groundwaters. On the other hand, direct use

applications may be excellent depending on flow rate and

chemical scaling/corrosion considerations (Goff, 1998).

Poopo

LOCATION

STATUS

Reconnaissance

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 75-170

CHRONOLOGY
Geothermal Resources in Latin America & the Caribbean 137

1997 and 1998 - Sample collected by NRECA; analysis

done by Fraser Goff, Los Alamos National Laboratory.

Some chemical indications of thermal character but high

Ca + Mg and high SO4 (nearly 400 ppm). Mixing of

reservoir and near-surface waters is indicated. BE

temperature is #170oC, probably closer to 75oC (Goff,

1998).

NOTES

The site does not have obvious electrical geothermal

potential unless there is an obvious nearby volcanic heat

source and some geologic/hydrologic evidence for

mixing of a deep reservoir component and cooler

near-surface groundwaters. On the other hand, direct use

applications may be excellent depending on flow rate and

chemical scaling/corrosion considerations (Goff, 1998).

Sajama

LOCATION

To the west of the Sajama Volcano, approximately 250

km from La Paz.

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 240-250

CHRONOLOGY

1970s - Site identified under the UNDP Energy

Resources Evaluation Program.

1976, 1988, and 1990 - Evaluations of site by ENDE

with support from the UNDP, the Italian Government, and

the IAEA. Studies indicated the existence of a high

enthalpy resource.

1992 and 1993 - Additional studies done by CORDEOR

and GEOBOL. (national institutions).

NOTES

Proposed uses: rural electrification, to supply the

National Interconnected System (NIS), and for other

direct uses with a social character.

Reservoir temperatures estimated at 240-250oC at a

depth of 800-1200 m.

The next stage should be the drilling of deep exploratory

and production wells. 

The existence of a paved road, which is the international

route running to Arica, Chile, will facilitate the

development of the Sajama project.
Geothermal Resources in Latin America & the Caribbean 138

Sorocachi

LOCATION

STATUS

Reconnaissance

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 90-140

CHRONOLOGY

1997 and 1998 - Sample collected by NRECA; analysis

done by Fraser Goff, Los Alamos National Laboratory.

There are chemical indications of elevated reservoir

temperature (a little As, Cs, Rb; good B and Li) but

relatively low SiO2. Either the deep reservoir water has

re-equilibrated during flow to the surface or the deep

fluid has mixed with cool near-surface groundwater. BE

temperature is #140oC, probably now closer to 90oC

(Goff, 1998).

NOTES

The site does not have obvious electrical geothermal

potential unless there is an obvious nearby volcanic heat

source and some geologic/hydrologic evidence for

mixing of a deep reservoir component and cooler

near-surface groundwaters. On the other hand, direct use

applications may be excellent depending on flow rate and

chemical scaling/corrosion considerations (Goff, 1998).

Urimiri

LOCATION

STATUS

Reconnaissance

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 75-180

CHRONOLOGY

1997 and 1998 - Sample collected by NRECA; analysis

done by Fraser Goff, Los Alamos National Laboratory.

Some chemical indications of thermal character but high

Ca + Mg and low silica. Mixing of reservoir and

near-surface waters is indicated. BE temperature is

#180oC, probably closer to 75oC (Goff, 1998).

NOTES

The site does not have obvious electrical geothermal

potential unless there is an obvious nearby volcanic heat

source and some geologic/hydrologic evidence for

mixing of a deep reservoir component and cooler
Geothermal Resources in Latin America & the Caribbean 139

near-surface groundwaters. On the other hand, direct use

applications may be excellent depending on flow rate and

chemical scaling/corrosion considerations (Goff, 1998).

Valle de Río Empexa

LOCATION

In the Cordillera Occidental west of the Salar de Uyuni

River; covers an area of more than 10,000 km2. 

Site includes two fields: EL DESIERTO and FUNETE

DE TOWA.

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 230-340

CHRONOLOGY

1970s - Site identified under the UNDP Energy

Resources Evaluation Program.

1976 to 1977 - Reconnaissance studies begun with

assistance from the Italian Government and ENI of Italy. 

Work done by the company, Aquater.

1977 to 1980 - Prefeasibility study conducted by ENDE

with the cooperation of the UNDP, CAF, and the Italian

Government. The study included the drilling of six

thermal gradient wells to depths of 150-165 m.

The study estimated that the reservoir has temperatures

of 230-240oC at depths of 800-1000 m.

NOTES

Resource estimated to have reservoir temperatures of

230-240oC at depths of 800-1000 m and produce 30 t/h

of vapor with an enthalpy of 1400 kJ/kg at 7 bars of

pressure. Chemical geothermometers indicate 230-

340oC reservoir temperatures. 

Despite the favorable characteristics of the Río Empexa

field, development was not pursued because Laguna

Colorada was evaluated to be more economically

feasible. 

Proposed industrial uses: mineral extraction of sulfur,

borox, and other minerals. Also local rural

electrification. Río Empexa is adjacent to Salar de Uyuni

where geothermal power could be used in the

exploitation and transformation of salts (lithium,

potassium, borox, and magnesium) and other minerals. 

In order to develop this site, it is important to ascertain

that financial resources are available. Moreover

governmental support in promotional work is needed as
Geothermal Resources in Latin America & the Caribbean 140

well as methods to attract private participation through

contracts which divide risk.

Vichas-Lupe

LOCATION

STATUS

Reconnaissance

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 100-160

CHRONOLOGY

1997 and 1998 - Sample collected by NRECA; analysis

done by Fraser Goff, Los Alamos National Laboratory.

Water from this site has some species of thermal

character but low silica, fairly high Ca + Mg and high

HCO (> 1000 ppm). It is probably a mixed water and

may have a close association with carbonate-bearing

rocks. BE temperature is #160oC, probably closer to

100oC (Goff, 1998).

NOTES

The site does not have obvious electrical geothermal

potential unless there is an obvious nearby volcanic heat

source and some geologic/hydrologic evidence for

mixing of a deep reservoir component and cooler

near-surface groundwaters. On the other hand, direct use

applications may be excellent depending on flow rate and

chemical scaling/corrosion considerations (Goff, 1998).
Geothermal Resources in Latin America & the Caribbean 141

Population (millions) - July 1998 14.79

Overall Electrification (% of population) 97%

GDP (billion US$) - 1997 est. $168.5

Real GDP Growth Rate - 1997 est. 7.1%

Inflation Rate (CPI) - 1997 6.0%

Total Installed Capacity (MWe) - 1995 5946

Electricity Consumption per Capita (kWh) - 1997 1996

Energy Demand Growth Rate 8.0%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

10.3

9.2

5.91

Estimated Geothermal Potential (MWe) 2,350

Power Summary

Chile has limited indigenous energy resources, and looks to

international partners and imports to help it meet the

country’s rapidly increasing domestic energy demand. 

Hydroelectric power supplies about 60% of the country’s

electricity needs with the balance coming from coal (which

is being phased out due to environmental concerns) and

natural gas. Chile’s historic dependence on imported

energy has prompted the Government of Chile (GOC) to

substitute hydro, coal, geothermal, and other renewable

technologies for imported petroleum.

A significant portion of Chile’s increased energy needs

goes to powering the country’s mining sector in the

northern part of the country, and to the large urban areas,

such as Santiago (which alone accounts for 40% of the

country’s total energy demand).

Chile’s energy demand has been doubling every six or seven

years; new cross-border trade agreements between Chile

and Argentina will facilitate more imports of oil, gas and

eventually electrical power.

Chile’s energy consumption is projected to rise 15% in the

north and 8.5% in the south-central zone. Empresa

Nacional de Electricidad (ENDESA), the leading private

power generator in Chile, forecasts that between the year

2002 and 2012, an additional supply of 21,000

MWe—equivalent to $8 billion—is needed just to meet the

foreseen demand.

Power generation in Chile is organized around 4 grid

systems: 1) the Northern Grid, which accounts for around

Chile
Geothermal Resources in Latin America & the Caribbean 142

19% of national generation; 2) the Central Grid, accounting

for 68.5% of national generation and serving 93% of

Chile’s population; 3) the Aysen Grid (0.3% of total

generation); and 4) the Magallanes Grid (0.8% of total

generation). Approximately 1 million people in rural areas

do not have access to the grid. By 2005, however,

President Frei is committed to extending electric supply to

the entire rural population. 

In addition to the 4 grids, “self producers” account for

11.6% of national generation. Electricity transmission and

distribution takes place through the 4 grids, as well as 36

electricity distribution companies.

In late September 1998, Chile switched to summer time

three weeks early in an effort to conserve energy following

a long drought which affected the Central Grid. The

drought cut hydroelectric output significantly, and in

particular affected utilities such as ENDESA which rely

heavily on hydroelectricity (80% of the energy used in the

central grid). The drought, coupled with the untimely

failure of two thermal plants, forced most of the country to

ration for two weeks in mid-November 1998.

Chile was the first country in Latin America to liberalize

and privatize the power sector in the 1980s. Its power

sector is highly competitive. Two companies, however,

ENDESA and CHILGENER, dominate the sector.

Fifty percent of Chile’s energy is supplied by private

producers. Electricity costs range between 5¢/kWh and

8¢/kWh in the north where thermal sources are

predominant, and 3¢/kWh in the south where hydropower

resources dominate. 

Government / Legislation

Comisión Nacional de Energía (CNE)

CNE was established in 1978 with a law decree in the

Ministry of Mines. It is charged with coordinating the

plans, policies and standards of the energy sector and in

particular the electricity subsector. CNE has created three

committees: Electrification of Rural Zones, Energy

Efficiency, and Energy Alternatives.

CNE regulates electricity prices by setting the “node” price

of electricity in various parts of the country every six

months. This is the price that distribution companies pay

for electricity and is based on the marginal cost of energy

and capacity. Node prices have varied widely over the past

ten years. 

The only government subsidy that exists in Chile is for

investments in rural electrification, primarily for small

solar and wind projects. The GOC subsidizes part of the

investment that the private sector must make in rural
Geothermal Resources in Latin America & the Caribbean 143

electrification with the understanding that the private sector

would not be interested in the business without a subsidy.

Companies engaged in the generation of electricity must

coordinate their operations for the country’s Central

Interconnected Power

System (SIN) and the

Northern Interconnected

Power System (SING) with

the Economic Load Dispatch

Center (CDEC). 

The CDEC as an independent

operator, plans and

coordinates the operation of

the plants to ensure secure

and economic efficiency in

the electricity sector

irrespective of ownership. 

Demand is met by

dispatching the available

plants according to their

variable production costs,

from lowest to highest, and

is thus always done at the

minimum attainable cost. 

Generation companies sell

to three markets: the spot

market, the unregulated market, and the regulated market.

Draft “Law for the Development of Geothermal Resources”

Sent to National Congress (1991)

A draft “Law for the Development of Geothermal

Resources “ was sent to the National Congress for

consideration in 1991 and is presently nearing passage. 

Approval, and the process needed to develop the regulations

needed to transform the Law into operation, should take

less than a year.

The Draft Geothermal Law attempts to regulate the

exploitation of geothermal energy and the terms of

concessions and licenses, to establish the procedures

necessary for the development of the resource, to lay out

the conditions for the environmental development of the

resource, and finally to establish how the proprietor or

owner of a geothermal concession is related as much to the

State as to the private sector. 

The Draft Geothermal Law defines geothermal energy as “a

bodyless property, unappropriable in ownership, but useable

and enjoyable in the way assigned by authority.” It notes

that a franchise implies property rights and that it can be

established over other franchises or rights. It is granted

through a Supreme Resolution of the Mining Ministry with

a previous application or public bid and a report by the

CNE.
Geothermal Resources in Latin America & the Caribbean 144

The franchise conditions included the use of a legal

contract. The franchisee is obliged to make the investments

that were agreed to in the contract, including those

regarding the exploration period and the ones concerning

the installation project for the geothermal area

exploitation. The payment of an annual patent fee to the

State is established after the exploitation project is

finished. An exploration period with a maximum of five

years (that may he extended two years more) is established.

Three months before its end, plans for an installation

project must be presented and they must include a working

schedule and minimum annual investments.

The Mining Ministry can cancel a franchise if the

investment plan is not followed (González, 1995). A

relevant issue for Chile is where geothermal fields are

located and the possibility that a geothermal and mining

concession could be located in the same area. 

Chile’s mining sector, the single biggest industry in the

country, remains in government hands. At least a partial

privatization of state oil (ENAP) and mining (ENAMI) is

under consideration. CODELCO, the state copper

corporation, is by far Chile’s largest company, as well as

the world’s largest copper company.

An issue which is still largely debated is how to guarantee

the right to have or explore a geothermal concession

without granting a right which has a speculative character. 

There are several reasons why a private entity that has a

geothermal concession could not make an investment. The

Law establishes that the owners of a concession have

certain developmental benchmarks to reach in certain

periods of time. If these benchmarks are not attained, the

developer could lose the concession. 

Geothermal Sites / Projects

Chile has an estimated 2,350 MWe of geothermal power 

potential.

There are currently no geothermal power projects in Chile. 

Any future projects would have to compete equally with

existing generation on the interconnected grid. The average

cost of generation in Chile is 2.1-3.5 ¢/kWh (Germain,

1998). 

Chile began identifying its geothermal resources in the late

1960s with assistance from the UNDP. Exploration has

primarily occurred in the northern part of the country, in

Tarapacá (Region I) and Antofagasta (Region II). The most

in-depth studies have been done at El Tatio. Geothermal

exploration has been concentrated in this part of the

country because it has few alternative energy sources. 

Investigations have shown the existence of at least 200

geothermal features scattered throughout the country. Low

enthalpy resources (less than 100oC) have been identified
Geothermal Resources in Latin America & the Caribbean 145

and are abundant along the eastern side of the Central

Valley. Medium and high enthalpy resources are located all

along the volcanic mountain chain of Los Andes Cordillera,

in the Quaternary volcanic zones, often in isolated areas. 

Limited hydroelectric resources have been developed and

oil exploration has been unsuccessful in the northern

mining areas. As a result, the Chilean Government

considers geothermal energy to be a good alternative in

these areas. 

While in the northern part of the country the electricity

systems work on the basis of fossil fuels (oil and coal), in

southern-most Chile the electric power derives both from

hydroelectric energy and fossil fuels. In many remote areas

diesel electric power is used. Although the portability and

relatively low cost of diesel electric plants has brought

electricity to many rural communities and industries, the

high price of the fuel and system maintenance have

increased the cost of electricity, particularly in remote

areas.

The above factors suggest that highest priority should be

assigned to the development of geothermal resources for

electricity generation in rural areas. The use of geothermal

energy could reduce the dependence on expensive imported

oil and encourage the establishment of local industries

(Gonzalez, 1995).

Both in northern and central-south Chile there are various

areas with high-temperature (200-250oC) geothermal

resources that could be used for electricity generation. In

the northern zone, the existence of fluids with temperature

of up to 260oC would permit not only the generation of

electricity but also the production of fresh water, the

recovery of chemical elements contained in the geothermal

fluids, and the exploitation of important non-metallic

mineral resources.

In central-south Chile, generally more inhabited than the

northern zone, small electric schemes based on geothermal

energy, could be developed in conjunction with agriculture

and aquaculture projects.

Considering the available geothermal resources’ potential

as well as the geographic and social-economic conditions

which exist in the different regions of the country:

1. In northern Chile, the most important

utilization of geothermal energy must be the

production of electric energy. This would

allow the development of important industrial

processes such as fresh water production.

recovery of chemicals from evaporite

deposits and from the brines of salars, sulfur

refining, and others. 
Geothermal Resources in Latin America & the Caribbean 146

2. In central-south Chile, in addition to power

generation for rural communities and

industries, the most suitable applications of

geothermal energy are in agriculture,

aquaculture, and animal husbandry (Lahsen,

1988).

1. Alitar

2. Catillo Hot Springs

3. Chanchocó-Copahue

4. Chillán Hot Springs

5. El Tatio

6. Jurase

7. Laguna Tujacto

8. Pampa de Lirima

9. Panimávida Hot Springs

10. Puchuldiza

11. Salar de Aguas Calientes

12. San Pedro

13. Suriri

Alitar

LOCATION

Region II

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1980 - Identified in Antofagasta (Region II) Geothermal

Resources Register.

NOTES

Catillo Hot Springs

LOCATION

Region X

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -
Geothermal Resources in Latin America & the Caribbean 147

TEMPERATURE (EC) -

CHRONOLOGY

1993 - Prefeasibility study done.

NOTES

Cascaded exploitation of the resource would allow an

return on investment in 4.3 to 8.5 years (Gonzalez,

1995).

Chanchocó-Copahue

LOCATION

In the high mountains of the southern part of Region VIII. 

Across the border from the Argentine site at CopahueCaviahue.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1979 - Preliminary report completed as part of 

Geothermal Resources Register program. Report

concluded that this remote area is a vapor-dominated

field.

NOTES

Chillán Hot Springs

LOCATION

Region X at 36o57'S, 71o33'W.

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 2

TEMPERATURE (EC) 210

CHRONOLOGY

1993 to 1995 - Prefeasibility study done by state-owned

Ente Nacional de Petrolio (ENAP) and Compagnie

Francaise Geotmique de Francia (CFG); included

geological study, water quality analysis, and limited

drilling program; 270 m deep slimhole well; found

thermal waters with 200oC and pressure of 22 kg/cm2.

Investigators concluded that area could be developed for

both power generation and direct use (tourism). 

ENAP has officially requested support for the project
Geothermal Resources in Latin America & the Caribbean 148

from UN/ECLAC for:

(1) Identifying potential joint venture partners for ENAP,

and

(2) Identifying possible co-financing sources for

continued study.

NOTES

Geothermometers show temperatures that would allow

the installation of a small Rankine cycle plant generating

2 MWe. Na-K-Ca geothermometer temperature

(Truesdell, 1975). 

The cost of kW generated would compete with the

average cost of kW generated by traditional methods in

Chile (Gonzalez, 1995).

El Tatio

LOCATION

In the Andes Mountains Range in northern Chile, 100 km

east of the town of Calama and the Chuquicamata copper

mine; at 22.3oS, 68oW; 4300 masl (Region II).

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 100

TEMPERATURE (EC) 160-285

CHRONOLOGY

1917 - Exploration begun by government agencies and

private companies. 

1967 - The Corporation for the Promotion of

Development (CORFO), with UNDP support, began

investigation of field. 

1969 to 1971 - Six exploration wells drilled with an

average depth of 600 m. Verified the existence of

permeable zones (reservoirs) with a temperature range of

212oC to 254oC.

1973 to 1974 - Seven production wells drilled which

discovered three permeable layers, from top down: 150-

250 m deep with temperature of 160oC; 460-600 m deep

and 225-230oC; and 700-1600 m deep and 200-260oC. 

At present, of the seven wells, only two are useable with a

flow rate of 240 t/h and the ability to each generate 8.5

MWe.

1975 - Electroconsult conducted a feasibility study for

the installation of a 35 MWe plant. 

1975 and 1976 - A pilot plant for geothermal fluid

desalination was put into operation to investigate the
Geothermal Resources in Latin America & the Caribbean 149

feasibility of obtaining fresh water from electricity

generation. The plant showed that ten liters of fresh

water could be recovered per second per MW of power

potential.

1977 - ENDESA, which was then part of the State,

conducted a feasibility study of constructing a 30 MWe

plant. 

1988 - Freeport-McMoran offered CORFO an agreement

to complete at its own cost the exploration of the field

on the condition that it would be granted preferential

option, for a period of five years, and to buy the rights

related to the project for a sum of $3.7 million.

1990 - Trans-Pacific Geothermal Corporation offered an

agreement with similar conditions as FreeportMcMoran’s, for $4 million. 

These two agreements did not become concrete due to a

lack of the promulgation of a geothermal law whose

approval was yet to come. 

1996 - Chilean consultants on account of CORFO,

carried out a study with the objective of defining the base

for licensing the property for private initiative. In effect,

the project is the property of the Geothermal Society of

Tatio, S.A., which was constructed in 1962 and in which

CORFO has a 58% share, leaving the 42% remainder to

private property.

NOTES

With the recent construction of the Atacama Gas Line

and distribution of approximately 5 million m3 of gas per

day in the north of Chile at very low cost, it would be

difficult to generate electricity by geothermal at

competitive costs.

Electric power production potential estimated at a

minimum of 100 MWe. Plant could be made a part of

the existing interconnected electrical system.

The geothermal fluid is a mixture of salty water, steam,

and a small gas fraction.

Jurase

LOCATION

Near the city of Putre at 18o12'S, 69o32'W.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 131
Geothermal Resources in Latin America & the Caribbean 150

CHRONOLOGY

NOTES

Waters belong to the acid-sulphate type. 

Na-K-Ca geothermometer temperature (Truesdell,

1975).

Laguna Tujacto

LOCATION

Region II

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1980 - Identified in Antofagasta (Region II) Geothermal

Resources Register.

NOTES

Interesting due to its proximity to the iron mine of El

Laco.

Pampa de Lirima

LOCATION

Location of Quiguata; 3900 masl at 19o53'S, 68o56'W

(Region I).

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 169-211

CHRONOLOGY

1969 - UN geophysicist found a 10 ohm/m anomaly. 

Studies began which indicated underground temperatures

of between 169oC and 211oC.

1980 - Included in a group of promising areas for further

study.

NOTES
Geothermal Resources in Latin America & the Caribbean 151

Panimávida Hot Springs

LOCATION

Region X

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1993 - Prefeasibility study.

NOTES

Cascaded exploitation of the resource would allow an

investment return-time of 4.3 to 8.5 years (Gonzalez,

1995).

Puchuldiza

LOCATION

19.3oS; 69oW; 4250 masl (Region I).

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 190

TEMPERATURE (EC) 175-200

CHRONOLOGY

1967 - CORFO, with UNDP support, began investigation

of field. 

1976 - Agreement of Cooperation with JICA signed. 

Five wells were drilled, the deepest to 1013 m, with a

maximum temperature of 175oC. A superficial thermal

aquifer, detected between 200 and 550 meters, was

interpreted to have a temperature of over 200oC.

Well 6 was drilled to 1200 m.

NOTES

Salar de Aguas Calientes

LOCATION

Region II near the Lastarria Volcano.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0
Geothermal Resources in Latin America & the Caribbean 152

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1980 - Identified in Antofagasta (Region II) Geothermal

Resources Register.

NOTES

San Pedro

LOCATION

35.1oS; 70.5oW

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 195-245

CHRONOLOGY

NOTES

Suriri

LOCATION

A salt lake at 19oS; 69oW (Region I), along the Arica-La

Paz highway.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 50-60

TEMPERATURE (EC) 110-234

CHRONOLOGY

1972 - Study began. 

1979 - Geological and geochemical studies conducted. 

1980 - Study abandoned due to lack of funding.

NOTES

Superheated steam at the Polloquere fumaroles with a

surface temperature of 110oC considered to be a

promising area. Na-K-Ca geothermometer temperature

of 234oC (Truesdell, 1975).
Geothermal Resources in Latin America & the Caribbean 153

Columbia

Population (millions) - July 1998 38.58

Overall Electrification (% of population) NA%

GDP (billion US$) - 1997 est. $231.1

Real GDP Growth Rate - 1997 est. 3.1%

Inflation Rate (CPI) - 1997 17.7%

Total Installed Capacity (MWe) - 1995 10584

Electricity Consumption per Capita (kWh) - 1997 972

Energy Demand Growth Rate 6.6%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

3.33

8.00

6.69

Estimated Geothermal Potential (MWe) 2,210

Power Summary

Colombia is a major exporter of coal and petroleum. 

Hydropower currently provides most of the country’s

electricity. Colombia is investing in the expansion of its

electric generating capacity with plans to add over 3

gigawatts (GW) by 2000 and an additional 6 GW by 2010. 

Colombia’s plans for the power sector favor investment in

thermoelectric generating capacity (primarily natural gas)

at the expense of hydroelectricity. Coal-fired capacity

(currently about 7% of the total) could also increase. The

diversification of electric generating capacity reflects

concern over the impact of droughts on hydroelectric

generation, which has periodically forced the country to

ration electricity. In 1992 and 1993, Columbia was

virtually shut down for eight hours a day due to power

shortages resulting from the drought produced by El Niño. 

In addition to domestic supply, Colombia also imports

electricity from Venezuela. A new interconnection

established in July 1998 will allow Colombia to export

electricity to neighboring Ecuador, which is experiencing

electricity shortages. 

Analysts describe Colombia’s electricity markets as highly

competitive—most power is simply sold into a grid system

that favors low cost producers. About 20% of the power

generated in Colombia is traded on the country’s Electricity

Exchange, with the rest sold under term contracts. As of

February 1998, 120 energy companies (including

generators, transporters, distributors, and marketers) were

listed on the Exchange.
Geothermal Resources in Latin America & the Caribbean 154

The spot market is so well developed that future contracts

have been structured around it. Nevertheless, electricity

prices have fluctuated over the past few years primarily as a

result of the country’s over reliance on hydroelectricity and

the changes in water levels caused by El Niño. It is hoped

that the addition of efficient thermal power will stabilize

Colombia’s prices.

Privatization of Colombia’s

electricity sector began in 1994

after it became clear that the

government could not keep up

with the increasing energy

demand. By the end of 1997,

foreign investors owned over

40% of the country’s generating

capacity, worth about $4 billion. 

Approximately 55% of power

generation is now in private

hands; by 2010, public utilities

are expected to own only 32.7%

of the country’s electricity

generation capacity (compared to

75.5% in 1996).

Privatization of Columbia’s power sector began slowly with

the construction of several electric power generation plants

under Build-Operate-Maintain-Transfer (BOMT)

agreements. 

Colombia’s privatization process will enter its final phase

in 1999 with the sale of 76.8% of state-owned ISAGEN,

the country’s largest power producer and transmission

company. Interconexión Electríca (ISA), the transmission

company, will be offered to private bidders later in the year. 

The Colombian government is also prepared to

capitalize in the first semester of 1999 several

electricity companies including Cedelca,

Cedenar, Quindino, Choco and Tolima, which

are currently weighing down the national budget. 

The Government of Columbia (GOC) hopes to

raise as much as $3.5 billion from electricity

privatization in 1999.

The all-encompassing issue of narcotics will

continue to affect nearly all aspects of

Colombia’s political and economic

environment. In addition to narcotraffickers, the

country’s high crime rate and guerrilla terrorism

have hurt the business climate.

The IDB has approved a $350 million loan to

help modernize Colombia’s electricity sector. Part of the

loan will be used to help the GOC develop policies based

on competition and involvement of the private sector and

strengthen the independence of the sector’s regulatory

agency. The promotion of private participation will be done
Geothermal Resources in Latin America & the Caribbean 155

mainly in distribution including the privatization of seven

state distribution companies.

Government / Legislation

MINISTERIO DE MINAS Y ENERGÍA

According to Minister Luis Carlos Valenzuela, the State’s

role in the power sector is to regulate markets to prevent

monopolies. 

Instituto de Investigacion en Geosciencias Mineria y 

Quimca (INGEOMINAS) is part of the Ministry of Mines

and Energy.

Laws 142 and 143 (1994)

Laws 142 and 143 developed private competitiveness in

power generation, transmission, and distribution, as well as

free access to the transmission and distribution networks.

No Specific Law for Geothermal

Geothermal Sites / Projects

Columbia has an estimated 2,210 MWe of geothermal

power potential.

Following the severe 1992-93 energy crisis, the GOC

began working to decrease the country’s reliance on

hydroelectric power and diversify power generation

resources. The goal is to reduce hydroelectric’s share of

total installed capacity from 75% to at least 60% by 2010.

The first geothermal reconnaissance studies were

conducted in the late 1960s; 1500 km2 were evaluated in

the Antioquia Department. A series of additional studies

were then carried out in the 1970s and early 1980s. More

recently, Colombia has not manifested official interest in

developing its geothermal resources.

Potential for small-scale geothermal plants is large

considering that 70% of the municipal governments have

less than 10,000 inhabitants whose current level of energy

consumption could be met through geothermal (Lawrence,

1998). 

1. Azufral Volcano

2. Laguna del Otún

3. Las Nereidas-Botero Londoño

4. Tufiño “Binational”

5. Volcán Machín-Río Toche
Geothermal Resources in Latin America & the Caribbean 156

Azufral Volcano

LOCATION

In southern Colombia near the border with Ecuador; 12

km northwest of Túquerres, a city with a population of

40,000 (Nariño Province). 

The Azufral Volcano summit is at 4020 masl where a

caldera structure is found with a diameter of about 3 km. 

Inside the caldera is a green acid lake, “La Laguna Verde.”

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 200-250

CHRONOLOGY

1996 and 1997 - INGEOMINAS began sampling and

prefeasibility study of field; included interpretation of

satellite imagery and geological and volcanological

studies.

1998 and 1999 - Two-year exploration program to locate

and characterize the geothermal system(s) and to identify

possible drilling targets for a feasibility study to be

carried out. Program will include geochemical,

hydrogeological, and geophysical studies, volcanic hazard

study, and assessment of environmental impacts planned. 

Estimated total cost is $1.3 million—$1 million as a

Japan Special Fund Grant, the balance of the loan from

the Inter-American Development Bank.

NOTES

Field currently being studied.

Although there are several volcanoes with associated

geothermal systems in the area, Azufral is the most

promising prospect because of its location as well as

from geothermal exploration and volcanological points

of view (Bernal, 1998). 

Six springs are associated with Azufral: MALAVERES,

LAGUNA VERDE, QUEBRADA BLANCA, LA

CABAÑA, SAN RAMON, and RÍO VERDE. Na-K

geothermometer temperatures range from 200oC to

230oC; pH from 2.5 at Laguna Verde, to 9 at Malaveres

(Bernal, 1998).

Laguna del Otún

LOCATION

Probably associated with the Nevado de Santa Isabel

volcano; part of the Macizo Volcánico del Ruiz.
Geothermal Resources in Latin America & the Caribbean 157

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1983 - Prefeasibility studies done by Central

Hidroeléctrica de Caldas (CHEC); selected three areas of

priority for the drilling of deep exploratory wells: Las

Nereidas, Laguna del Otún, and the Machín Volcano. 

Wells were drilled at Las Nereidas first.

NOTES

Las Nereidas-Botero Londoño

LOCATION

An area of 130 km2 located in the Central Range of

Colombia on the western slope of the Nevado del Ruiz

Volcano at 3450 masl; part of the Central Colombian

Ridge, the northern part of the Andes; part of the Macizo

Volcánico del Ruiz.

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 50

TEMPERATURE (EC) 200-260

CHRONOLOGY

1968 and 1969 - First geothermal study was done in an

area covering 1500 km2 near the Macizio Volcano by

ENEL of Italy and CHEC. 

1970s - Intense regional geothermal exploration by

Instituto Colombiano de Energía Eléctrica (ICEL).

1983 - Prefeasibility studies done by CHEC; selected

three areas of priority for the drilling of deep exploratory

wells: Las Nereidas, Laguna del Otún, and the Machín

Volcano. 

November 1985 - Nevado del Ruiz Volcano erupted

killing 25,000.

1992 - CHEC and EPN of México decided to reevaluate

the existing data and sample additional thermal fluids. 

The result of the study indicated a deep temperature

(geothermometer) of 220-260oC and recommended

drilling two wells of 1500 m in a zone located between

Las Nereidas and the thermal springs of Botero Lodoño.

The cost of the first well is estimated at $4.2 million. 
Geothermal Resources in Latin America & the Caribbean 158

The total project cost of constructing a 50 MWe plant is

estimated to be $85 million.

1997 - First exploratory well (Nereidas I) drilled JulyAugust. The well was programmed to reach 2000 m but

suffered a strong deviation, up to 42o, to reach a total

depth of 1466 m (Monsalve et al, 1998). Temperature

measured on the bottom was 200oC. Waters from

Las Nereidas are bicarbonate-sulfate with composition

(Giggenbach et al, 1990, in % mol): 94.9 CO2, 3.2 H2S,

0.59 N2, 0.47 CH4, and 0.34 H2.

NOTES

Waters from Botero Londoño belong to the neutral

sodium chloride geochemical type. Gases from the hot

springs have the following composition (Giggenbach et

al, 1990, in % mol): 93.3 CO2, 4.0 H2 S, 2.57 N2, 0.089

CH4, and 0.06 H2.

Tufiño “Binational”

LOCATION

Located on the border with Ecuador.

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1983 to 1985 - Prefeasibility study done by OLADE

with Italian financing; located best site for deep

exploratory wells in the Aguas Hediondas area. The

geothermal potential of the area appears high although

the results of the study are inconclusive.

NOTES

Area includes various slopes of medium temperature of

which the most important are: Aguas Hediondas (53oC)

and Aguas Verdes (26oC) in Ecuador and Baños del Indio

(45oC) in Colombia.

The geothermal resource is currently used in small

thermal complexes in Ecuador and Colombia.

Volcán Machín-Río Toche

LOCATION

Part of the Macizo Volcánico del Ruiz.; related to the

Machín volcano.

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0
Geothermal Resources in Latin America & the Caribbean 159

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1983 - Prefeasibility studies done by CHEC; selected

three areas of priority for the drilling of deep exploratory

wells: Las Nereidas, Laguna del Otún, and the Machín

Volcano. Wells drilled at Las Nereidas first.

NOTES

A deep exploratory well could be drilled inside the

caldera at the volcano’s summit, between the caldera

trace and the western dacitic intra-calderic dome. The

possible geothermal system in this area would probably

be smaller than the one at Las Nereidas-Botero Londoño

(Gutíerrez-Negrín, 1995).
Geothermal Resources in Latin America & the Caribbean 160

Population (millions) - July 1998 12.34

Overall Electrification (% of population) NA%

GDP (billion US$) - 1997 est. $53.4

Real GDP Growth Rate - 1997 est. 3.4%

Inflation Rate (CPI) - 1997 31.0%

Total Installed Capacity (MWe) - 1998 3000

Electricity Consumption per Capita (kWh) - 1997 612

Energy Demand Growth Rate 8 0%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

4.55

4.46

4.17

Estimated Geothermal Potential (MWe) 1,700

Power Summary

Ecuador is an important player in world energy markets,

being Latin America’s sixth largest crude oil producer and

its fourth largest exporter. Although the country’s political

situation stabilized in 1998, with the democratic election

of President Jamil Mahuad, who took office in August

19986, its economic prospects have become somewhat

more difficult as a result of the fallout from the global

economic and financial crisis as well as low commodity

(including oil) prices. 

Ecuador has an installed electric power capacity of 3,000

MWe and an annual electricity deficit of 10%. Overall, the

country faces an electricity deficit of up to 1.4 terrawatt

hours, with demand growing at 7% to8% annually. 

Ecuador is a significant regional crude oil producer and

exporter. The largely state-operated petroleum sector

remains extremely important, accounting for one-third of

both public sector revenue and export earnings. With

expansion of the Transecuadorean pipeline, the country

hopes to boost its oil output significantly. 

6 Mahuad’s election ended a year and a half-long

political crisis and stalemate which began when

Abdala Bucaram was removed from the presidency

and replaced by Fabian Alarcon, leader of the

Congress. Although Alarcon later won a popular

referendum allowing him to maintain office until

August of 1998, he was unable to undertake the

necessary political and economic reform.

Ecuador
Geothermal Resources in Latin America & the Caribbean 161

Due to an over-reliance on hydroelectric power—the 1,600

MWe Paute plant alone produces more than 60% of

Ecuador’s electricity—and seasonal droughts, rationing has

been needed yearly since 1992. It is estimated that these

yearly shortages cost Ecuadorean businesses roughly $500

million per year. The seasonal generating shortages,

coupled with the nation's already

existing electricity deficit, result in a

national deficit which can reach over

30% of demand. 

Subsidies for electricity were cut,

raising the price by 25% in

September 1998. Also in 1998, a

peace treaty with Perú was signed,

ending a long-standing border

conflict which had existed between

the two countries for more than half a

century. In November 1998, Ecuador

and Colombia signed an electricity

interconnection agreement. Under

the agreement, Colombia will export

15 MW of electricity to Ecuador’s

power grid. 

Ecuador was slow to embrace the market-oriented

economic reforms taking place elsewhere in Latin America

and the electricity sector is only beginning to be privatized. 

The Government of Ecuador (GOE) expects that the

privatization and capitalization program, which will include

the partial privatization of electricity and oil assets, will

generate US$1 billion by the end of 1999. 

It has been estimated that this demand will require

investments of $3.5 billion to install 2.2 GWe at nine

power plants through 2010, all on a BOT

basis. Energy Corp won a contract in June

1998 to supply Ecuador with 105 MWe of

electricity. The energy will be supplied over

two years at an average price of $.0758 per

kilowatt hour. 

By September 1998, 20 permits for power

generation projects had been awarded to

private firms, including the Daule Peripa

hydroelectric facility (213 MWe) scheduled

to come online in 1999; the Toachi-Pilaton

thermoelectric project (190 MWe) to come

online in 2002; and the 30-year BOT San

Francisco hydroelectric project (230

MWe). 

A $15-million World Bank project is being identified for

Ecuador. The project will support structural and regulatory

reform and privatization of the hydrocarbon, electricity, and

telecommunications sectors (Development Business, 16

February 1999).
Geothermal Resources in Latin America & the Caribbean 162

Government / Legislation

Subsecretaria de Electrificación

The Subsecretaria de Electrificación assumes the duties

formerly held by the State utility monopoly, the Instituto

Ecuatoriano de Electrificación (INECEL). As a result of

the 1996 Electric Law, INECEL will divest itself of all its

assets and cease to exist. The utility will be privatized by

July 1, 1999.

Consejo Nacional de Electrificación (CONELEC)

CONELEC replaced INECEL to become the agency

responsible for the development of a national electric plan

as well as the regulation and control of the electric sector. 

CONELEC will have final approval of all electric power

rates. 

Power generation activities will be developed either

through concessions or capitalization granted by

CONELEC. Concession of transmission services will be

granted exclusively to one company owned by the GOE;

concession of distribution and commercialization will be

granted by CONELEC to several corporations with

exclusivity in their assigned areas.

Companies granted concessions must carry out activities in

accordance to Ecuadorian environmental regulations,

establishing an environmental impact study and an

environmental management plan.

Law for the Electric Sector (September 18, 1996)

The Electrification Law ends the GOE’s monopoly in the

generation, transmission, and distribution of electric power

and encourages free market competition, transparency, and

efficiency. 

It allows for the transfer of INECEL’s assets to public

corporations that can then sell up to 39% of their stock to

private investors and an additional 10% to employees. The

newly created companies will operate existing electric

generation projects or will build new plants under

concession agreements. 

The Solidarity Fund was created to manage resources

resulting from the privatization process. Shares will be

offered to qualified operators, either national or

international.

No Specific Law for Geothermal

The new Electricity Law promotes the use of

non-conventional energy generation sources. Companies

that install and operate electricity plants using

non-conventional energy sources are exempt from paying

income tax for a period of five years.
Geothermal Resources in Latin America & the Caribbean 163

Under Ecuador’s constitution, all subsurface resources are

property of the State.

Water Law (1972)

Ecuador’s surface and subsurface water resources were

nationalized by the Water Law of 1972.

Geothermal Sites / Projects

Ecuador has an estimated 1,700 MWe of geothermal power 

potential.

INECEL began the first assessment of the country’s

geothermal potential in 1978, and in conjunction with

OLADE, conducted a nationwide reconnaissance. 

Ecuador’s geothermal resources are located in the Andes

Mountains and along the border with Colombia. 

From these initial studies, which were completed in 1980,

high-enthalpy geothermal areas were selected and

prioritized based on the results of hydraulic and water

chemistry analyses. The three areas with the highest

priority are Tufiño-Chiles (located on the Colombian

border), Chalupas, and Chachimbiro in Imbabura Province. 

Additional studies of these areas were done in the early to

mid 1980s by INECEL, OLADE, and the Italian

Government. 

Other areas classified as promising are the Iguan Volcano

and Chalpatan Caldera area and Valle de los Chillos. 

USAID funded a prefeasibility study for a direct use project

at the latter site from 1982 to 1985.

1. Chachimbiro

2. Chalupas

3. Cuenca

4. Iguan Volcano-Chalpatan Caldera

5. Tufiño “Binational” 2

Chachimbiro

LOCATION

In the West Andes Range (Cordillera Occidental) about

70 km north-northwest of Quito and 17 kn northwest of

Ibarra; at 0o25'N, 78o17'W in the Cayapas-Cotacachi

National Park; at 2560 masl (Imbabura Province).

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 60-240

CHRONOLOGY
Geothermal Resources in Latin America & the Caribbean 164

1983 to 1986 - Geothermal exploration studies funded

and carried out by INECEL.

Found most frequent thermal manifestations are of the

alkali chloride type with medium to high thermality and

flows of 70 liters/minute. The total dissolved solids

increase as heavy isotopes in solution increase (Aquilera,

1998).

The inferred depth of the reservoir is between 1000 and

2000 m in volcanic fractured rocks at the base of the pile

of Pilocenic lavas.

1987 to 1990 - Superficial geological and geochemical

studies undertaken by INCEL interrupted.

NOTES

Temperature at depth based on geothermometry is 240oC

(Aquilera, 1998). 

From Ibarra, a 20 km paved road goes to Ureuqui. From

Ureuqui, an 18 km gravel road goes to the site. The 130

kV Quito-Ibarra transmission line of the National

Interconnected System is about 25 km from the center of

the area.

Chalupas

LOCATION

In the Cordillera Real about 60 km southeast of Quito

and 35 km northeast of Latacunga; in an isolated, not

easily accessible area (Pichincha Province). The

Cotopaxi National Park, site of the Cotopaxi Volcano, is

the closest neighbor to the Chalupas field.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 180

CHRONOLOGY

1983 to 1986 - Geothermal exploration studies funded

and carried out by INECEL.

Geochemical studies conducted, including 45 surface and

subsurface water sampling points both inside and outside

the caldera. Of the 45, 26 are thermal with temperatures

ranging from 26oC to 37oC. The most frequent chemical

types found were alkaline-earth and alkaline bicarbonate,

within which subgroups based on their salinity and

temperature have been defined. Values are pH are

between 6.1 and 6.8. 
Geothermal Resources in Latin America & the Caribbean 165

North of the caldera sulfate water with ammonia and

boron anomalies have been found; deep temperatures

should exceed 180oC.

The heat source is inferred to be a large magma chamber

at a depth of about 10 km (Aguiera, 1998).

NOTES

The evidence of a geothermal area is a large caldera

structure of recent age which are associated with igneous

eruptions and hot springs of medium temperature.

The field can be reached by an about 50 km-long gravel

road which runs along the northern and eastern flanks of

the Cotopaxi Volcano, and is connected to the Pan

American highway near the town of Lasso. 

The 130 kV Pisayambo-Santa Rosa transmission line of

the National Interconnected System is about 25 km from

the center of the field.

Cuenca

LOCATION

In Azuay Province, location of some of the most wellknown hot springs in Latin America.

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

No specific data is known about the high enthalpy

potential of this resource. There are various possibilities

for its direct use in addition to its current tourist and

therapeutic uses.

Iguan Volcano-Chalpatan Caldera

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES
Geothermal Resources in Latin America & the Caribbean 166

Tufiño “Binational” 2

LOCATION

On the border with Colombia.

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE)0

POTENTIAL (MWE)-

TEMPERATURE (EC)-

CHRONOLOGY

1983 to 1985 - Prefeasibility study done by OLADE

with Italian financing; located best site for deep

exploratory wells in the Aguas Hediondas area. The

geothermal potential of the area appears high although

the results of the study are inconclusive.

NOTES

Area includes various slopes of medium temperature of

which the most important are: Aguas Hediondas (53oC)

and Aguas Verdes (26oC) in Ecuador and Banos del Indio

(45oC) in Colombia.

The geothermal resource is currently used in small

thermal complexes in Ecuador and Colombia.
Geothermal Resources in Latin America & the Caribbean 167

Population (millions) - July 1998 26.11

Overall Electrification (% of population) 72%

GDP (billion US$) - 1997 est. $110.2

Real GDP Growth Rate - 1997 est. 7.3%

Inflation Rate (CPI) - 1997 6.7%

Total Installed Capacity (MWe) - 1995 4520

Electricity Consumption per Capita (kWh) - 1997 502

Energy Demand Growth Rate 10.0%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

12.56

10.22

4.75

Estimated Geothermal Potential (MWe) 2,990

Power Summary

Perú’s electric power demand is growing rapidly, and is

expected to require $300-$350 million annually in

investment through 2000. Power demand increases are

being driven by population and economic growth, along with

expansion of the country’s copper mining sector, which is

highly energy-intensive. 

Peruvian energy production increased 4.6% in the first 11

months of 1998, according to the Ministry of Energy and

Mines. Hydro energy accounted for just under 77% of all

generation, up 6.4% from 1997. State-owned ElectroPerú

still accounted for 35.9% of all generation followed by

privatized EDEGEL and EGENOR. Electricity coverage

increased to 72%.

Perú’s over reliance on hydropower has led to sporadic

power outages in times of drought and during severe El

Niño occurrences (1992-1993). The Government of Perú

(GOP) estimates that the most recent El Niño (1997-1998)

caused at least $1 billion damage. 

Perú’s power sector was nationalized in 1972 with

ElectroPerú serving as the main holding company of ten

smaller regional electricity companies. The legal

framework governing Perú’s electricity sector since late

1992 represents a radical change with respect to prior

legislation. It is modeled after the Argentinean, Chilean,

and British frameworks. 

The GOP is continuing privatization of power utilities and

encouraging foreign investment in new generation plants. 

Between 1992 and 1995, this program raised about $5

Perú
Geothermal Resources in Latin America & the Caribbean 168

billion (plus $4 billion in investment pledges). Recently,

privatization has continued at a somewhat slower pace. 

The GOP expects to collect between US$800 million and

US$1billion from privatizations in 1999, mostly in the oil,

mining, agriculture and electricity sectors. Privatization is

expected to be completed by 2000.

The GOP received a hard blow in July 1998 when Shell

announced its decision to pull out of the huge Camisea

project giving the following reasons: the underlying

economics of the project had been weakened by the

discovery of difficult fractures in the rock which would

have made production more problematic and costly; and low

oil prices made it harder to find financing. Domestic

issues, e.g., an inability to reach agreement over gas

distribution, disagreements over tariff structure, and the

GOP ruling out gas exports, appear to have tipped the

balance against the project (Latin America Monitor, August

1998).

According to Jorge Camet, former economy minister and

head of the commission for Camisea (formed after the

Shell-Mobil pullout), Camisea will be tendered in the first

quarter of 1999. Camet acknowledged that no market for

gas currently exists in Perú and would have to be developed.

Rural electrification is a high priority for the GOP which

will invest more than US$100mn annually over the next few

years to generate 270 MWe for supply to rural zones. The

target is overall electrification of 75% by 2000. Each 1%

increment demands US$70-80 million. 

Government /

Legislation

Ministerio de

Energía y

Minería (MEM)

The Energy

Ministry is

responsible for

enforcing

compliance with

laws regarding

electricity, and

implementing

the Organic Law

on Geothermal Resources. 

Organismo Supervisor de la Inversión en Energía

(OSINERG)

OSINERG has oversight authority over energy investments

and enforcement responsibility for the Geothermal Law.
Geothermal Resources in Latin America & the Caribbean 169

Centro de Conservación de Energía y del Ambiente

(CENERGIA) 

With the privatization of ElectroPerú in 1993, CENERGIA

assumed the country’s renewable energy programs

including geothermal. 

CENERGIA’s principal objective vis-á-vis geothermal, is to

promote the development of geothermal through private

initiative and technical assistance and international

financing.

Decree Law No. 25844, Law of Electrical Concessions

(1992)

The Law of Electrical Concessions established a freemarket legal framework for Perú’s electricity sector. The

comprehensive privatization plan will transfer all public

power enterprises to the private sector by 2000. 

The Law and its regulations encourage the flow of private

capital into the sector through the creation of a competitive

environment, implemented by dividing the sector into

separate business lines and establishing regulated and nonregulated markets. 

The Law also establishes regulatory bodies, which are

responsible for the functioning of the reformed sector. 

These regulatory bodies are: 

1. the General Bureau of Electricity, a division

of the MEM which is responsible for 

enforcing the laws and regulations for the

electric sector; 

2. the Electric Tariff Commission (CTE), an

autonomous organization of the MEM

responsible for determining electric tariffs in

the regulated segment of the market; and

3. The Committee for Economic Operation of

the System (COES) composed of the owners

of generation plants and the primary

transmission systems whose facilities are

interconnected which operates with the aim

of coordinating member operations at the

minimum cost, guaranteeing the reliability of

supply, and ensuring the efficient use of

power resources.

On November 6, 1997, the Peruvian Congress approved 

legislation which limited firms to a 15% market share in

electricity generation, transmission, or distribution. The

law also allows the GOP to block any acquisition which

would give a private company more than a 5% market share

in more than one electric power sector. Finally, the

legislation gives the GOP the right to veto any acquisitions

deemed contrary to the “national interest.”
Geothermal Resources in Latin America & the Caribbean 170

Organic Law on Geothermal Resources (1997)

The Organic Law on Geothermal Resources (Ley Orgánica

de Recursos Geotérmicos) was enacted in July 1997. The

document specifies the regulations on the exploration and

development of Perú’s geothermal resources. Regulations

have yet to be written.

The Law will allow any properly qualified person,

individual, or company, Peruvian or foreign, title to

geothermal rights. Geothermal concessions, required for

exploration beyond reconnaissance work (surface), will be

granted in 25-hectare units up to 1000 hectares for a 30-

year period which can be extended. 

Equipment and supplies required for geothermal

exploration are tax exempt. In addition, the concession

holder will have the right of way to carry out exploration

and development of geothermal energy. If geothermal

energy is used to generate electricity, the concession

contract for development will be automatically extended

for electrical generation (governed by the Law of Electrical

Concession). 

The principal characteristics of the Geothermal Law are:

1. Defining the differentiation between

exploration permits and exploitation

concessions,

2. Identifying the MEM as the “one-stop shop”

for geothermal activities,

3. Providing royalties to the State and rates for

the area exploited,

4. Defining a program of exoneration of certain

import duties, and

5. Permitting amortization of exploration costs

over five years.

Geothermal Sites / Projects

Perú has an estimated 2,990 MWe of geothermal power 

potential.

The development of Perú’s geothermal resources would

offset the country’s over-dependence on hydropower which

is affected by periodic droughts.

With at least 1,000 MWe of geothermal potential, Perú

could easily double or triple its energy supply, and replace

all diesel generators and hydrocarbon use by using

geothermal as baseload. To date, hundreds of megawatts of

geothermal energy are being produced by mining

companies and industrial facilities for private use. 
Geothermal Resources in Latin America & the Caribbean 171

Geothermal resources have been evaluated in over 100,000

km2 of southern Perú. The most promising six areas

identified by ElectroPerú are: Cajamarca and La Libertad,

Callejon de Huaylas, Churen, the central highlands, the

volcanic cordillera in the south (Aarequipa, Moquega, and

Tacna), and Cuzco and Puno (Lawrence, 1998).

Perú has several active volcanoes, e.g., Corpuna (6425 m),

Sabancaya (6000 m), Misti (5825 m), Ubinas (5672 m),

Tutpaca (5806 m), Ticsani (5450 m), Yucamani (5500 m),

and Calientes (5200 m); hundreds of inactive volcanoes of

all sizes; thermal springs rich in minerals in many regions

of the country; and several geysers with temperatures close

to 100oC. 

Perú’s geothermal resources are primarily located on the

western slopes of the Andes Mountains and in the high

plateau in the southern part of the country. The zones which

represent the best conditions for the exploitation of

geothermal resources are aligned in an axis approximately

parallel to the western cordillera of the Andes and near the

active and inactive volcanoes located in this zone. 

Reconnaissance and prefeasibility studies of the country’s

geothermal potential have been conducted by several

Peruvian institutions including ElectroPerú, INGEMMET,

CENERGÍA, the Proyecto Especial Tacna (PET), and the

Instituto Peruano de Energía Nuclear (IPEN), with the

cooperation of various international organizations, e.g.,

OLADE, IIE, Aquater, and IAEA. Feasibility studies to

determine specific areas’ potential are yet to be done. 

The areas that have been evaluated are: Chivay, Borateras,

Calacoa, Calientes, and Callazas. Using OLADE’s

evaluation criteria, Colca-Chivay was selected as the site

with the greatest short-term potential for development.

Perú began exploring the country’s geothermal resources in

1978 when INGEMMET conducted a national inventory and

identified six areas of geothermal interest—1 - Cajamarca,

2 - Huaraz, 3 - Churin, 4 - Central, 5 - Cadena de Conos

Volcanicos, and 6 - Puno-Cuzco. 

The inventory was followed up in 1979 to 1980 by

geothermal surveys of three departments in southern Perú: 

Arequipa, Moquegua, and Tacna. The most promising areas

in these departments, in order of importance, were Group

A: Calacoa, Maure, Salinas, Chachani, and Chivay; Group

B: Puquio, Painacochas and Orcopampa; and Group C: 

Cotahuasi, Coropuna, Cailloma, and Mazo Cruz (Diaz,

1988).

ElectroPerú continued geothermal development in 1980

with a prefeasibility study of region 5 with assistance from

the Italian Government. Challapaca and Arequipa were

slated for prefeasibility studies followed by drilling, field

development, and the installation of power plants beginning
Geothermal Resources in Latin America & the Caribbean 172

in 1988. In 1983, work began on assessing the potential of

regions 1-4. 

In 1997, international experts from the European

Commission under a joint program with the United

Nations-Economic Commission for Latin America and the

Caribbean (UN/ECLAC) identified a pilot project in the

Colca Valley in southern Perú.

A USGIC field survey team funded by Sandia National

Laboratories, traveled to southern Perú in September 1998. 

The trip confirmed the existence of at least three high

temperature geothermal areas—Borateras, Calientes, and

Hualca-Hualca—that could be developed to produce

significant (10 to over 100) MWe of electric power. The

andesitic and rhytolitic terrain in these areas is similar to

that found in California, Nevada, Idaho, Oregon,

Washington, and Alaska. 

U.S. geothermal companies can contact Project Especial

Tacna (PET) to become involved in the Borateras project. 

When geothermal regulations have been written, and power

prices rise to 6-7¢/kWh, Calientes and Hualca-Hualca may

become economically viable. 

It is unlikely that Perú will buy power much above 4¢/kWh

or from facilities that cost more than $1000-1500/kW

installed. Accordingly, geothermal power will be purchased

when and if it can meet these criteria (Huttrer, 1998).

1. Borateras (Maure River Project)

2. Calachaca

3. Calacoa

4. Calientes

5. Callazas

6. Callejón de Huaylas

7. Chivay

8. Hualca-Hualca

9. La Grama

10. Otuzco

11. Tacalaya

12. Tutupaca-Calaoca

Borateras (Maure River Project)

LOCATION

In southern Perú; within the Barroso volcanic region;

near the mining centers of Toquepala, Cuajone, and

Quellaveco; near the Río Maure; 4500 masl (Challapalca

Lot, Tacna Department).

STATUS

Well(s) or hole(s) drilled

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 5

TEMPERATURE (EC) 204-240
Geothermal Resources in Latin America & the Caribbean 173

CHRONOLOGY

1979 to 1980 - Survey conducted by INGEMMET.

Geologic and chemical studies have been done by

INGEMMET, PET, and IAEA-IPEN. Na/Li

geothermometer temperatures = 204-240oC; Na/K/Ca =

184-212oC.

1998 - USGIC field survey group traveled to site in

September; took measurements and obtained data;

concluded that Borateras appear to be a locus of the

boron and arsenic which PET observes is polluting the

Maure River.

Borateras has about the same geothermal power potential

as Calientes, and a project developed here could help

PET with its boron and arsenic problems and sell power

to PET (Huttrer, 1998).

NOTES

Borateras is comprised of upper and lower springs, a

travertine mound, and fault-controlled springs. Within

the volcanic arc of Barroso caldera structures and domes

in Challapalca evidence the existence of a geothermal

source at shallow depth. Project Especial Tacna (PET)

has sampled these waters and drilled some slimhole test

holes so preliminary chemical analyses and cores are

available.

Boron and arsenic rich thermal springs are contaminating

water destined for consumption in Tacna. The project is

to set up a 5 MWe power plant to supply power to the

local population and power pumps in the Callapuma and

El Ayro aquifers. The Aricota-Tarata transmission line is

25 km away.

Calachaca

LOCATION

Tacna Department

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1979 to 1980 - Survey conducted by INGEMMET. 

1998 - USGIC field survey group traveled to site in

September; took measurements and obtained data;

concluded that Calachaca appears to be a locus of the

boron and arsenic which PET observes is polluting the

Maure River (Huttrer, 1998).
Geothermal Resources in Latin America & the Caribbean 174

NOTES

Calacoa

LOCATION

In southern Perú; within the Barroso volcanic arc near the

Ticsani Volcano (extinct) and the Ubinas Volcano

(active); in the high plateau in the basin of the Carumas

and Tambo Rivers; 3500 masl (Tutupaca Lot, Moquegua

Department).

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 180-190

CHRONOLOGY

1979 to 1980 - Survey conducted by INGEMMET.

1994 - Geovolcanologic study and inventory of the

Tutupaca area conducted by ElectroPerú and

INGEMMET. Na/K geothermometer temperatures =

180-190oC; SiO2 = 110-160oC.

1997 - IIE conducted a prefeasibility study of area.

NOTES

The electricity generated could satisfy the domestic

demand of the surrounding towns, and could be

connected with the Aricota-Cuajone transmission line

which is 25 km away. A geothermal plant could replace

the existing thermal plants.

Calientes

LOCATION

In southern Perú in Locumba Province; within the

Barroso volcanic arc between the Tutupaca and Yucamane

Volcanoes (extinct); in the high plateau of the Calientes

River basin; connected to the Toquepala and Cuajone

Mines; thermal area is 2-3 km long, 200-300 m wide, has

abundant boiling springs, some small (1 m high) geysers,

siliceous sinters; 4500 masl (Tutupaca Lot, Tacna

Department).

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 5

TEMPERATURE (EC) 180-240

CHRONOLOGY

1979 to 1980 - Survey conducted by INGEMMET.
Geothermal Resources in Latin America & the Caribbean 175

1994 - Prefeasibilty study done by IIE. Geovolcanologic

study and inventory of the Tutupaca area conducted by

ElectroPerú and INGEMMET. Na/K geothermometer

temperature = 240oC; SiO2 = 180oC.

The existence of dacitic domes and fumaroles in relation

to the recent magmatic activity indicates the existence of

a shallow active magma chamber. 

1997 - IIE conducted a prefeasibility study of area.

1998 - USGIC field survey group traveled to site in

September; took measurements and obtained data;

concluded that Calientes appears to have significant

potential for electric power generation and possible

cascaded crop-drying applications (Huttrer, 1998).

NOTES

The electricity generated could satisfy the domestic

demand of surrounding towns and could also supply

energy to the southern part of the country through the

Aricota-Cuajone transmission line. It would also

diminish contamination by arsenic to the waters which

are actually used in Ilo, Item and the Locumba Valley.

Callazas

LOCATION

In southern Perú in the high plateau of the Río Callazas

basin in the Locumba Province; within the Barroso

volcanic arc near the Tutupaca Volcano (extinct);

connected to the Toquepala and Cuajone Mines; 4500

masl (Tutupaca Lot, Tacna Department).

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 180-240

CHRONOLOGY

1979 to 1980 - Survey conducted by INGEMMET.

1994 - Geovolcanologic study and inventory of the

Tutupaca area conducted by ElectroPerú and

INGEMMET. Prefeasibility study done by IIE. Na/K

geothermometer temperature = 240oC; SiO2 = 180oC. 

1997 - IIE conducted a prefeasibility study of area.

NOTES

The electricity generated could satisfy the domestic

demand of surrounding towns and could also supply

energy to the southern part of the country through the

Aricota-Cuajone transmission line.
Geothermal Resources in Latin America & the Caribbean 176

Callejón de Huaylas

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

Chivay

LOCATION

In southern Perú;; within the volcanic arc of Barroso near

the extinct Ampato and Hualca-Hualca and the active

Sabancaya volcanoes; in the 60 km long Colca River

Valley, the second deepest valley in the world known for

its agriculture and tourism; 2800 masl (Arequipa Lot,

Arequipa Department).

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) 2-4

TEMPERATURE (EC) 170-190

CHRONOLOGY

1979 to 1980 - Survey conducted by INGEMMET.

Studies conducted by OLADE, IAEA, AQUATER,

INGEMMET, and the European Community. Si/O2

geothermometer temperatures of 170-190oC. 

1997 - Identified by UN/ECLAC as part of the

“Development of Geothermal Resources in Latin

America and the Caribbean” Project. There is a good

possibility that the EU and a private company may co-
Geothermal Resources in Latin America & the Caribbean 177

finance the project (Morey, 1998).

NOTES

Colca-Chivay is an isolated area with good tourist

potential due to its thermal hot springs in a remote,

mountain setting. The project concept is to install 2-4

MWe for the local population (10 surrounding towns) as

well as to serve the tourist resort.

The existence of small active domes indicate the

presence of magmatic chambers at shallow depths. It is

estimated that volcanic activity (lava) ended 100,000

years ago. 

This zone is not yet connected to the national grid of the

Southern Interconnected System of Perú but plans are

underway to do so in the near future. The TintayaCharcani transmission line is 20 km away. 

There are no exploration studies of the geothermal

resources along the Valle del Río Colca, but there is

evidence of the great potential of the area. Volcanic

activity is recent and of a different kind with domes,

igneous rocks, and outflows, and at the end of the 1980s,

the Sabancaya Volcano became active again with the

emission of ashes and causing a lava flow in 1993 which

reached Río Colca.

In addition, there are recent fractures of the neotectonic

type which indicate that not only Sabancaya but the whole

valley is active. A test of this is the gushing forth of a

new geyser along the Shihuihayco. This evidence and the

presence of thermal baths in La Calera and along the Río

Colca point to the Chivay zone as the highest priority in

the country.

Hualca-Hualca

LOCATION

In southern Perú; in the 60 km long Colca River Valley,

the second deepest valley in the world known for its

agriculture and tourism; area is 1-2 km2 with superheated

dry steam vents, boiling mud pots, hot springs, and

paleosolfataras; 4450 masl; (Arequipa Department).

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

1979 to 1980 - Survey conducted by INGEMMET.

1998 - USGIC field survey group traveled to site in

September; took measurements and obtained data;
Geothermal Resources in Latin America & the Caribbean 178

concluded that Hualca-Hualca has world-class potential

for power generation. Drawbacks include that

transmission lines are now only being built in the Coca

Valley and danger to a power plant from the eruption of

the Hualca-Hualca Volcano is very real (Huttrer, 1998).

NOTES

La Grama

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

Otuzco

LOCATION

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -

CHRONOLOGY

NOTES

Tacalaya

LOCATION

Tacna Department

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) -
Geothermal Resources in Latin America & the Caribbean 179

CHRONOLOGY

1979 to 1980 - Survey conducted by INGEMMET,

NOTES

Tutupaca-Calaoca

LOCATION

In southern Perú; in the provinces of Canderave and

Sanchez Cerro, near the headquarters of the mining

centers of Toquepala, Cuajone, and Quellaveco

(Moquegua Department).

STATUS

Prefeasibility study

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 200

CHRONOLOGY

1979 to 1980 - Survey conducted by INGEMMET.

1987 to 1994 - Prefeasibility studies indicated a

possible temperature in the deep aquifer of

approximately 200oC,

1995 - CENERGIA developed a program to invite private

entities and international cooperation to continue

investigation of the area.

NOTES

The existence of volcanic explosions and domes of

recent age and the abundance of hot springs and

fumaroles of high temperature indicate the presence of a

high enthalpy resource.
Geothermal Resources in Latin America & the Caribbean 180

Population (millions) - July 1998 22.80

Overall Electrification (% of population) NA%

GDP (billion US$) - 1997 est. $185.0

Real GDP Growth Rate - 1997 est. 5.0%

Inflation Rate (CPI) - 1997 38.0%

Total Installed Capacity (MWe) - 1995 18980

Electricity Consumption per Capita (kWh) - 1997 2578

Energy Demand Growth Rate 4.5%

Prices (US¢/kWh) - June 1998

Residential

Commercial

Industrial

1.11

3.40

2.88

Estimated Geothermal Potential (MWe) 910

Power Summary

Venezuela has the highest per capita rate of power

consumption in Latin America and abundant sources of

generation: vast rivers systems for hydroelectricity and a

plentiful supply of fossil fuels for thermoelectricity. Power

outages are relatively rare, and normally limited to small

sectors, usually caused by distribution transformer

breakdowns. 

About 75% of Venezuela’s total installed capacity is

hydropower. During early 1998, low rainfall caused at least

in part by the El Niño weather phenomenon, cut

Venezuela’s hydroelectric output and raised the possibility

of rationing. In August 1997, a transformer failed at the

huge Guri hydroelectric complex, causing a power outage

throughout 80% of Venezuela.

Venezuela’s electricity sector is a hybrid of five stateowned and seven private companies; the former accounting

for 87% of national capacity and 100% of hydroelectric

capacity. The largest state company is Electrificación del

Caroní (EDELCA), with 63% of operating capacity and

79.4% of the power generated by the public sector. 

Venezuela has the world’s sixth largest oil reserves. In

1998, oil accounted for 70% of the country’s GDP. Driven

by weak oil prices, Venezuela slipped into recession in late

1998, losing $1 billion for every $1 per barrel drop in oil

prices. Business confidence fell to a 21⁄2 year low. 

Interest rates are up sharply (to 70% or more), while

inflation and unemployment remain high. New investments

and privatizations have been delayed. 

Venezuela
Geothermal Resources in Latin America & the Caribbean 181

Venezuela faces rapid electricity demand growth, combined

with serious under-investment in its power sector, which

has resulted in shortages and a need for private investment

(an estimated $5.7 billion over the next five years in

transmission and distribution alone). Hydroelectric’s share

of power generation is expected to grow as Venezuela adds

about 8 GWe over the next five to ten years. With

hydropower potential estimated at 70 to 80 GWe or more,

Venezuela has plans for several additional plants.

Venezuela has taken initial steps toward privatizing and 

reorganizing its state-owned power sector companies but

the process has been delayed several times. The

Government of Venezuela (GOV) will privatize thermal

generation facilities, electricity distribution companies,

and small-scale transmission (115 kV or lower voltage).

The GOV has begun the privatization of several large

electric utilities to modernize and improve the reliability of

its electric system. To attract private sector investment,

the government has taken steps towards reforming the legal

framework which governs its sector. According to a recent

Duff & Phelps report, many large industrial customers are

facing high electricity costs with poor quality and

reliability due to the lack of capital investment and

maintenance.

The Electric Power Management and Development

Company (CADAFE) has undertaken several renewable

rural electrification programs, focusing on potential

markets in large rural areas that are not attractive to the

private power industry. Providing electric services to

100% of towns having more than 1,000 inhabitants,

CADAFE has been able to extend service to 90% of the

national territory (Lawrence, 1998).

Hugo Chávez, a populist who was imprisoned for an

unsuccessful military coup attempt in 1992, was elected

president in December 1998 and sworn in on February 2,

1999. He has proposed to redraft the country’s 1961

constitution through a popular convention or constituent

assembly. This may allow him to undertake long overdue

economic reforms. 

Government / Legislation

Ministry of Energy And Mines

The GOV will retain responsibility for the major

hydroelectric generation facilities of the Caroni, the

national transmission grid, and all regulatory activities,

including the design of guidelines and regulations for the

industry and the monitoring of the performance of the

electric utilities.
Geothermal Resources in Latin America & the Caribbean 182

Lacking an

umbrella law for

the electrical

sector, the

Electrical

Energy

Regulatory

Commission

(CREE) is

administratively

and financially

linked to the

Ministry of

Energy and

Mines, and is

funded from

resources allocated through the annual budget and special

funds authorized by the Executive Branch. A proposed bill

for the electrical sector contains a provision that would

strengthen the regulatory framework.

A new bill introduced to the Congress of Venezuela in

March 1998 established a definite regulatory framework

for the electricity sector and created a national electricity

board. The new law would provide the basis for determining

tariff adjustments based on costs, and requires the

accounting separation of generation, transmission, and

distribution for all market participants. In the meantime,

buyers must participate in the absence of clear rules and

rate mechanisms. 

Decree No. 1558, Normas Para La Regulación Del Sector

Electrico (November 1996)

The Electric Sector Regulatory Framework came into force

at the end of 1996, and allows for the participation of

private and independent power producers in the Venezuelan

market. This legal measure is seen as the first step to the

eventual enactment of an Electric Power Law. 

Organic Law of Concessions (April 1994)

The Organic Law of Concessions opened up investment

opportunities for infrastructure and other public works

projects. Under the law, the State guaranteed up to 75% of

the investment and under certain circumstances may raise

this guarantee to 90%. The president may also authorize

100% income tax waiver and exoneration of all import

duties and taxes on equipment and services needed. 

The State will guarantee the economic/financial health of

the project if for reasons not attributable to the

concessionaire the conditions of the project change. Such

conditions could be social, war, uprising, natural disasters,

and other force majeure. 
Geothermal Resources in Latin America & the Caribbean 183

Analysts have widely observed that the new law is a vast

improvement over the previous law, but so far little

concrete has been accomplished through it.

No Specific Law for Geothermal

Geothermal Sites / Projects

Venezuela has an estimated 910 MWe of geothermal power 

potential.

About 60% of Venezuela has been covered by

reconnaissance geothermal surveys including geologic and

water geochemical studies.

The German naturalist, Alexander von Humboldt, was the

first to make a scientific description of a Venezuelan hot

spring in 1800. Systematic study of the hot springs of

central Venezuela began in 1969 and was continued in the

northeastern part of the country in 1975 where geological

and geochemical studies showed that some areas have

potential for electricity generation. 

In 1981, the Universidad Central de Venezuela (UCV)

started a detailed “National Geothermal Inventory” covering

the central, eastern, and southern regions. The geothermal

systems of Táchira and Mérida were investigated by

Burguera et al. The states of Zulia, Trujillo, Lara, Barinas,

and Portuguesa have not been covered to date. The data

from the inventory and from previous published and

unpublished reports has been stored in a computerized data

bank that contains geographical, geological, and

geochemical information from 361 geothermal sites. No

drilling has taken place.

Geothermal manifestations and related features in

northeastern Venezuela , particularly in the state of Sucre,

e.g., sulfur deposits, acid-sulfate alteration zones, and mud

volcanoes, have been investigated in detail. The most

promising system for possible electrical generation is Las

Minas, near El Pilar, in Sucre. The El Pilar fault system is

seismically active with foci of up to 15 km depth. Other

major faults in northeastern Venezuela are the San

Francisco and Urica right-lateral strike-slip faults. 

Other medium and low temperature systems appear useful

for direct use applications.

In 1975, a systematic study began to identify Venezuela’s

geothermal potential, and in 1979 a geothermal resources

assessment was published. In 1980, a basic plan for

evaluating the country’s geothermal resources was

prepared, and a reconnaissance study begun in 50,000 km2

in the northeastern part of the country. As a result, in 1981,

El Pilar-Casanay and Barcelona-Cumana were selected as

priority areas for more detailed geothermal studies. 
Geothermal Resources in Latin America & the Caribbean 184

From 1983 to 1988, a prefeasibility study began in the El

Pilar-Casanay geothermal zone. The results of the

prefeasibility effort, although still incomplete, indicate the

possible existence of a geothermal reservoir with

temperatures of 200-300oC at inferred depths of 1,200-

2,500 m. Based on these results, technical experts from

the Ministry of Energy and Mines have recommended that

the investigation continue with the drilling of deep

boreholes. OLADE’s Energy-Economic Information

System (SIEE) estimates Venezuela’s geothermal potential

at 0.065 million BOE/day (Lawrence, 1998).

1. El Pilar-Casanay (Las Minas)

2. Los Baños

3. San Diego

El Pilar-Casanay (Las Minas)

LOCATION

Southwest of El Pilar; in the northeastern part of the

country along the El Pilar fault; springs are located on the

northern slope of the west-east trending valley of the Río

Chaguaramas; 230-280 masl; 63o12'28" longitude,

10o31'52" latitude (state of Sucre).

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 200-300

CHRONOLOGY

Mid 19th century - Sulfur mining began in area. 

1981 - Identified system in national inventory.

1984 - Geothermal inventory conducted by Hevia and Di

Gianni.

1985 to 1986 - Thermal manifestations, several boiling

springs of the sodium chloride type, sampled and

analyzed during a regional geochemical survey from the

Gulf of Cariaco to the Gulf of Paria and the San Juan

Valley. 

Work conducted by the Ministry of Energy and Mines in

cooperation with the International Institute for

Geothermal Research (Italy).

NOTES

El Pilar-Casanay is the most promising area for

geothermal exploitation in Venezuela (D’Amore, 1994).

The area investigated seems capable of producing highenthalpy geothermal fluids; a deep reservoir is inferred,
Geothermal Resources in Latin America & the Caribbean 185

composed of a medium salinity (< 5000 ppm) and neutral

brine, with computed temperatures between 250 and

300oC, and with a high CO2 partial pressure. A second

shallower reservoir is assumed to exist, with a

temperature on the order of 200-220oC. The deep

reservoir is shown to be liquid-dominated, while water

and steam occupy the shallow one (D’Amore, 1994).

Los Baños

LOCATION

South the of the San Diego fault near the town of El

Pinto; at the southern and southeastern ends of the

Eastern Mountains Massif (state of Monagas).

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 61-150

CHRONOLOGY

1981 - Identified system in national inventory; measured

temperatures of 24-36oC; Na-K-Ca geothermometer

temperatures of 61-79oC and 97-127oC. Several plots of

t vs SiO2 and Cl suggest mixing, allowing for an

estimated temperature of 150oC (Urbani, 1989).

NOTES

Los Baños has the highest temperature and salinity in the

state of Monagas. It seems plausible that these springs

are a mixture of deep Na-Cl hot water (plus

hydrocarbons) coming from the marine Tertiary oilbearing basin to the south, with colder Ca-HCO3 water

(Urbani, 1989).

San Diego

LOCATION

Along the valleys of the Río Neverí in the eastern part of

the state; at the western end of the Eastern Mountains

Massif, north of the Urica fault system; 90 masl;

64o31'33" longitude, 10o9'40" latitude (state of

Anzoátegui).

STATUS

Preliminary identification/report

INSTALLED CAPACITY (MWE) 0

POTENTIAL (MWE) -

TEMPERATURE (EC) 29-108

CHRONOLOGY

1981 - Identified system in national inventory; measured

temperatures of 29-53oC; Na-K-Ca geothermometer

temperatures of 50-70oC. A t vs SiO2 plot indicated a
Geothermal Resources in Latin America & the Caribbean 186

temperature of 108oC for the possible deep hot aquifer

(Urbani, 1989).

NOTES

San Diego has 10 warm to hot springs which issue mainly

from strongly faulted and folded shales and sandstones of

Early and Late Cretaceous age. This area has the highest

temperature springs in the state of Anzoátegui (53oC).
Geothermal Resources in Latin America & the Caribbean 187

According to Victor Bolano, Vice President for Latin

America for ABB Energy Ventures, Latin America will add

283.4 GWe of installed capacity by 2020, up from the

region’s current capacity of 168.1 GWe , and bringing total

installed capacity to 451.5 GWe (see table on the following

page).7

With over 50 GWe of estimated power potential,

geothermal energy can and should supply a portion of the

additional capacity required. To date, however, geothermal

development by U.S. companies is recent across the region

and primarily in Central America where geothermal power

generation has a comparative advantage. 

Hurricane Mitch; the U.S. and multilateral assistance effort

which has followed based on the premise to “Build back

better;” and SIEPAC, the proposed regional electric grid,

may provide additional impetus to development of the

region’s substantial geothermal resources. 

 Region Geothermal

Potential (MWe)

Caribbean 16,390

Central America 19,720

South America 14,660

Total 50,770

Geothermal power, in addition to easing Central America’s

debt problems, will also offset global gas emissions. A

Carbon Dioxide (CO2) Market could make geothermal

power competitive with thermal power, reducing its price

from 6-7¢/kWh to 4.5-5.0¢/kWh. 

Elsewhere in Latin America, the news is less optimistic. In

the Caribbean, there are unconfirmed reports that the St.

Vincent project has been put on hold due to financing

difficulties. And, further south in South America, low

electricity prices make geothermal power generally

uncompetitive in free market-based power sectors. The

sole geothermal plant located in Argentina has been shut

down. 

7 Power in Latin America, December 1998, pp. 7-8.

Conclusion
Geothermal Resources in Latin America & the Caribbean 188

Opportunities for geothermal power development do exist,

however, in those countries across Latin America and the

Caribbean where a resource is close to a market, its price

can be competitive with other forms of electricity, and

financing can be found. Additional data can be incorporated

into the Database to construct these juxtapositions.

LATIN AMERICAN POWER DEMAND TO 2020

(GWe)

Country 1996 2000 2020

Argentina 20.2 23.1 60

Bolivia 0.8 1 2

Brazil 60.7 70 180

Chile 7.4 8.8 18

Colombia 10.6 14 21.5

Ecuador 2.7 3.2 5

México 34.8 37.3 86

Perú 4.8 4.4 10

Venezuela 20.7 21.1 53

Central

America 5.4 7 16

Total 168.1 189.4 451.5

Source: ABB
Geothermal Resources in Latin America & the Caribbean 189

Acoculco Caldera .................................. 57

Adelphi-Saint Cyr ................................. 103

Ahuachapán ....................................... 22

Alitar ........................................... 146

Amatitlán ......................................... 32

Amatitlán (Geoteca) ................................. 34

Araró ............................................ 57

Atitlán ........................................... 35

Ayarza ........................................... 35

Azacualpa ........................................ 46

Azufral Volcano ................................... 156

Bahía Concepción .................................. 58

Barva ............................................. 8

Basseterre ....................................... 111

Berlín Boca Pozo I .................................. 23

Berlín II .......................................... 24

Boiling Lake ....................................... 99

Borateras (Maure River Project) ...................... 172

Bouillante ........................................ 104

Brimstone Hill .................................... 112

Calachaca ....................................... 173

Calacoa ......................................... 174

Calientes ........................................ 174

Callazas ......................................... 175

Callejón de Huaylas ................................ 176

Capachos ....................................... 133

Casita-San Cristóbal ................................78

Castilla-Huma .................................... 133

Castly Hill ....................................... 103

Catillo Hot Springs ................................. 146

Cerro Prieto ....................................... 58

Cerro Prieto Biphase Turbine Project ....................61

Cerro Pando ...................................... 90

Chachimbiro ..................................... 163

Chalupas ........................................ 164

Chambord ....................................... 103

Chanchocó-Copahue ............................... 147

Chillán Hot Springs ................................ 147

Chinameca ........................................ 25

Chipilapa ......................................... 26

Chivay .......................................... 176

Clabony-Mount Hope .............................. 103

Coatepeque ....................................... 27

Copahue-Caviahue ................................ 125

Cordon and Medida, La Laguna ........................ 36

Cosigüina ......................................... 78

Cuenca ......................................... 165

Domos de Zitácuaro ................................. 62

Index of Sites
Geothermal Resources in Latin America & the Caribbean 190

Domuyo ......................................... 127

El Tatio ......................................... 148

El Olivar ......................................... 47

El Ñajo-Santa Isabel ................................ 80

El Valle de Antón ................................... 91

El Ceboruco-San Pedro .............................. 62

El Centavito ....................................... 63

El Hoyo-Monte Galán ............................... 79

El Pilar-Casanay (Las Minas) ......................... 184

Fortuna-Poco Sol Caldera ............................. 9

Geothermal Energy Master Plan ........................ 81

Hermitage-Peggy's Whim ............................ 103

Hualca-Hualca .................................... 177

Iguan Volcano-Chalpatan Caldera ..................... 165

Irazú-Turrialba ...................................... 9

Isla del Tigre ...................................... 48

Isla de Ometepe .................................... 82

Ixtepeque-Ipala .................................... 36

Jurase .......................................... 149

La Primavera ...................................... 63

La Grama ....................................... 178

La Soledad ....................................... 64

La Soufrière-Qualibou Caldera ........................ 115

Laguna Salada ..................................... 64

Laguna del Otún ................................... 156

Laguna Colorada .................................. 134

Laguna Tujacto ................................... 150

Las Nereidas-Botero Londoño ........................ 157

Las Derrumbadas................................... 64

Las Tres Vírgenes .................................. 65

Los Azufres ....................................... 66

Los Humeros ...................................... 68

Los Baños ....................................... 185

Los Achiotes ...................................... 36

Maguarichic ....................................... 69

Managua-Chiltepe .................................. 82

Masaya-Granada-Nandaime .......................... 83

Miravalles II ....................................... 11

Miravalles III ...................................... 12

Miravalles IV ...................................... 13

Miravalles Boca Pozo II .............................. 10

Miravalles Boca Pozo I .............................. 10

Miravalles I ....................................... 11

Miravalles V ...................................... 13

Momotombo ...................................... 83

Morne au Diable .................................. 100

Morne Diablotin ................................... 100

Motagua ......................................... 37

Mount Saint Catherine .............................. 103

Moyuta .......................................... 37

Nagrote-La Paz Centro .............................. 85

Nevis Peak ...................................... 112

Ojinaga .......................................... 69

Orosí-Cacao ...................................... 14

Otuzco .......................................... 178

Palencia .......................................... 38

Pampa de Lirima .................................. 150

Panimávida Hot Springs ............................. 151
Geothermal Resources in Latin America & the Caribbean 191

Pathé ............................................ 70

Pavana ........................................... 48

Pazña ........................................... 136

Plaisance-Red River ................................ 103

Platanares ........................................ 49

Poás ............................................ 14

Poopo .......................................... 136

Porvenir-Platanar ................................... 14

Puchuldiza ....................................... 151

Puertecitos ........................................ 70

Retana ........................................... 38

Rincón de la Vieja .................................. 15

Sajama ......................................... 137

Salar de Aguas Calientes ............................ 151

Sambo Creek ..................................... 50

San Pedro ....................................... 152

San Vicente ....................................... 27

San Ignacio ....................................... 51

San Marcos ....................................... 39

San Jacinto-El Tizate ................................ 85

San Diego ....................................... 185

Santa Rita ........................................ 71

Sorocachi ....................................... 138

Soufrière ........................................ 100

Soufrière Hill ..................................... 108

Soufrière Volcano ................................. 119

St. Georges ...................................... 103

Suriri ........................................... 152

Tacalaya ........................................ 178

Tecuamburro ...................................... 39

Tenorio .......................................... 15

Tipitapa .......................................... 86

Totonicapán ....................................... 40

Triton Mining Corporation ............................ 87

Tufiño “Binational” 2 ............................... 166

Tufiño “Binational” ................................. 158

Tutupaca-Calaoca ................................. 179

Tuzgle .......................................... 128

Urimiri .......................................... 138

Valle del Cura .................................... 128

Valle de Río Empexa ............................... 139

Vichas-Lupe ..................................... 140

Volcán Machín-Río Toche ........................... 158

Wotten Waven .................................... 101

Zúnil I (Orzúnil) .................................... 40

Zúnil II ........................................... 41
Geothermal Resources in Latin America & the Caribbean 192

GENERAL SOURCES

Central Intelligence Agency (1999). “World Factbook

1998,”

http://www.odci.gov/cia/publications/factbook/index.html

Energy Information Administration, U.S. Department of

Energy,

http://www.eia.doe.gov/emeu/international/contents.html.

———— (1998). “Regional Indicators: Central America” 

 U.S. Department of Energy, June.

“Evaluation of the Renewable Energy Environment in

USAID-Assisted Countries” Draft Report (1998). 

Prepared for the U.S. Agency for International

Development for Advanced Engineering Associates

International and Princeton Economic Research, Inc.,

November 30, 1998.

Financial Times: Power in Latin America (1998-1999). 

Financial Times Business, Ltd., London, United Kingdom,

Issue Nos. 34 to 43, April 1998 to January 1999. 

Geothermal Energy Association (1999). Preliminary

Report: Geothermal Energy, The Potential for Clean

Power from the Earth. Prepared by Karl Gawell, Dr.

Marshall Reed, and Dr. P. Michael Wright; Washington,

D.C.; April 7, 1999. 

Geothermal Resources Council,

http://www.geothermal.org/index.html.

Germain, Richard (1998). Geothermal Investigation in

Latin America conducted for E&Co. 

International Geothermal Association,

http://www.demon.co.uk/geosci/igahome.html.

Ishikura, Yoko, Jim Miwa, and Brenda Sturdivant (1999). 

Geothermal: International Market Opportunities,

California Energy Commission, Energy Technology Export

Program, Sacramento, CA.

La Comisión Económica para América Latina (CEPAL) and

Comisión Europea Dirección General para la Energía

(1998). Proyecto: Desarollo de los Recursos

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ARGENTINA

Coira, Beatriz (1995). “Cerro Tuzgle Geothermal

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———— (1998). “Argentina, Direct Use Projects,” IGA

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———— and Graciela Pedro (1995). “Thermal Models of

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BOLIVIA

Arnez, Sergio (1998). “Aprovechamiento de Recursos

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———— (1997). “Situación Actual de Los Proyetcos

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CARIBBEAN

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CHILE

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COLOMBIA

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COSTA RICA

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ECUADOR

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EL SALVADOR

Campos, Tomas (1995). “Wellhead Units and Geothermal

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GUATEMALA

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HONDURAS

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MÉXICO

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Lopez-Hernandez, Aida et al. (1997). “Exploratory drilling

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————. (1995). “Geothermal Exploration at Las Tres

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