Nicaragua announced reform to geothermal law

Nicaragua wants to promote greater investments in the geothermal sector.

President Daniel Ortega introduced a draft amendment to the “Exploration and Use of Geothermal Energy Resources Law” (Act 443) to the National Assembly this week. The initiative is part of the state policy to promote greater use of renewable energy. The bill also seeks to increase the term for energy generation concessions to 30 years in order to encourage investment and strengthen the legal framework for the geothermal sector. Between 2002 and 2012, Nicaragua increased its geothermal energy generation from 77.5 MW to 164.5 MW.

Nicaragua has the highest geothermal potential in Central America (2000MW) and there are twelve potential sites suitable for geothermal power generation. With World Bank support, progress is being made in the feasibility studies to reduce the risk levels for investors interested in developing the geothermal potential in the country. In 2013, geothermal energy was the main renewable generating source, representing 16.7% of the energy consumed nationally.