Mexico's geothermal development has been slow in the past because it is a capital intensive energy source and the CFE has not been able to allocate funds to the sector, but this will change with the energy reform, strategy and project financing director Chris McCormick said at an energy forum in Mexico City.
The high cost of geothermal development will continue to slow the sector's growth, but public-private partnerships (PPPs) will inject the much needed capital, he said.
The reform gives priority to the PPP over the independent power producer (IPP) model, even though IPPs can mean a more efficient deployment of capital, McCormick said.
Sener will launch the geothermal 'round zero' during the current quarter to determine which projects will be developed by the CFE and which ones will be tendered to the private sector.
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