Tuesday, August 30, 2016

Latin America: The Case for Regional Geothermal Energy Development

Geothermal energy: an expensive but attractive option for Latin America (The World Bank)

The region could benefit from the new financing models available for the sector, according to a recent study.

In a world with an increasing need for clean energy alternatives, geothermal power is attracting attention thanks to the benefits it offers when adequately developed.  It can generate electricity with less environmental impact and at a lower cost than fossil fuels such as oil and coal. And since it is a renewable energy source, it can help ensure the security of the electric power supply.

Despite these benefits, the difficulties and costs of launching operations are considerable. These can cause delayed or interrupted projects, as have occurred in some parts of Latin America and the Caribbean, according to the study Comparative Analysis of Approaches to Geothermal Resource Risk Mitigation: A Global Survey, by ESMAP, a global fund administered by the World Bank to assist countries in developing clean energy projects.