Central America - Identification of geothermal resources in Central America

Country / Region: Region Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua)
Focal Point: Renewable Energy

Begin of project: June 1, 2016

End of project: May 31, 2020

Status of project: June 3, 2020

Surface manifestations Source: BGR

The Central American energy market is experiencing a steady (though in recent years slowing) increase in electricity consumption and parts of the region are not electrified. About 4.2 million people are not connected to the electricity grid (44% in Honduras, 27% in Guatemala, 10% in Nicaragua). Power generation in Central America largely constitutes of hydropower (2017: 52%) and fossil fuels (2017: 26%). The latter have to be imported nearly entirely and are subject to strong price fluctuations. In addition, fossil-fired power plants release climate-damaging CO₂ emissions. Due to the effects that climate change is already having in Central America (e.g. increasing numbers of droughts), it is crucial that the region relies less on hydropower generation and makes greater efforts to develop other sustainable energy sources.

Due to its location in a volcanic belt, Central America has a high amount of geothermal resources. By using these, the whole region could be supplied with baseload and environmentally friendly energy. The governments of Central America are aware of this wealth of resources. Their energy expansion plans are focusing on further development of geothermal energy in order to diversify the region’s energy mix.

Despite this basis, the expansion of geothermal power has not substantially progressed in recent years. In addition to high exploration risks and inadequate regulatory frameworks, the lack of generation, management and provision of geothermal data as an information base for concessions, project developers and investors are structural problems.

As part of the German Development programme to promote geothermal energy in Central America, the BGR project focussed on advising energy ministries and geological surveys on the exploration of geothermal resources as well as on the interpretation, management and provision of the data generated.

The project built local capacity by developing needs-based training modules and cooperating with local educational institutions. By initiating regional expert committees, it promoted the exchange of learnings and the formation of networks between ministries, geological services and geothermal companies of Central American countries.

Together with its local partners, the project conducted explorations of selected geothermal resources, provided practice-oriented training for specialist staff and prepared feasibility studies for new geothermal projects.

Achieved outcomes:

• A regional geoscientific technical working group focusing on geothermal energy was established within SICA. This leads to an improved exchange of technical expertise. The action plan of the working group was developed with the support of the project.
• The project has contributed to improving the exploration capacities of the partners. The use of remote sensing and other new technologies was supported. A number of training courses were held with the partners and various guidelines and checklists were created, including supporting the teaching concept for the newly in 2018 accredited Masters course of geology at the UNAH Honduras.
• The UNFC Geothermal Specifications were translated into Spanish and promoted in coordination with IGA and UNECE. In a training course, partners’ expertise in applying the standard which allows the comparability of geothermal resources with others was strengthened.
• The partners participated in the development of tools for standardised preparation of exploration studies. The partners in Costa Rica founded an international working group (with German, Russian and Chilean participation) to develop a guideline for the application of geophysical methods.

A follow-on project will build on the outcomes achieved and will continue regional cooperation and the qualification of the partner organisations with regard to the exploration of geothermal energy resources in Central America. Pilot activities will also be carried out to analyse geothermal utilisation potentials at the level of municipalities.

Project contributions:

• Technical Cooperation Geothermal Energy Central America
• Technical Cooperation geothermal resources in Central America: Contribution of remote sensing unit
• Technische Zusammenarbeit Geothermie Zentralamerika
• Technische Zusammenarbeit Geothermie Zentralamerika: Beitrag der Fernerkundung

Literature:

Fact sheet: Exploration of Geothermal Energy Deposits for Municipal Development in Central America (PDF, 1 MB)

Partner:

Regional Partner: Sistema de Integración Centroamericana - SICA

Implementing Partner: National Ministries for Energy and Environment