The Inter-American Development Bank (IDB) has approved a modification of a loan totaling US$108.6 million that aims to increase private investment in electricity generation projects from geothermal sources, putting at the developers’ disposal a number of financial mechanisms tailored to meet the specific needs of each project at every step of their development.
This includes the following phases: exploration, drilling, field preparation, construction and operation of private geothermal projects, as well as reducing the value at risk for developers, which is the main barrier to investment.
The program’s goal is to finance up to 300 MW of geothermal capacity over a 10-year period. It also hopes to leverage other public and private funds to contribute to Mexico’s geothermal sector with estimated investment levels to the tune of US$4.2 billion for proven geothermal reserves.
There are currently two processes underway: first an International Public Tender to pick the companies that will be in charge of performing the drilling work during the exploration phase; and second, a Call for the Selection of the Eligible Developers who will participate in this program.
There are currently two processes underway: first an International Public Tender to pick the companies that will be in charge of performing the drilling work during the exploration phase; and second, a Call for the Selection of the Eligible Developers who will participate in this program.