Mexican Geothermal Sector Heating Up with New Competition and Market Rules (U.S. State Department)
A Clear Regulatory Framework Aims to Boost Competition and Innovation
State-owned CFE was the only company allowed to develop geothermal resources prior to Mexico’s broad energy reform, but the market is now open to private sector competition and new investments. The 2014 Geothermal Energy Law allows the government to award private companies three-year exploration permits and 30-year production concessions. Since July 2015, the Energy Ministry (SENER) has awarded 13 exploration permits and five concession contracts to CFE, covering areas with a combined generation potential of 448 MW. SENER also awarded eight exploration permits to private Mexican companies and the first concession for geothermal development to a private Mexican company, which plans to invest approximately $240 million in a geothermal power generation project in Nayarit.
The U.S. Department of Energy (DOE) and the U.S. Foreign Commercial Service will host a bilateral U.S.-Mexico Geothermal Market Opportunities Workshop on April 4 to bring together public and private sector stakeholders from the United States and Mexico to discuss new opportunities for investment and potential collaboration in the development of Mexico’s geothermal energy resources.