Thursday 25 May 2017

Mexico grants geothermal licenses to French, Icelandic firms

The Energy Ministry in Mexico has issued three exploration permits for geothermal energy.

The permits allow French utility ENGIE and Icelandic firm Reykjavik Geothermal to spend three years exploring resources located in three zones – Sangangüey, Cerro Pinto and Las Derrumbadas.

Geothermal energy is a sustainable source that uses heat from deep underground for heating, power generation and air conditioning systems.

According to ENGIE, the Mexican Energy Reform has opened up the electricity market in the country and is encouraging private investors to participate in power generation, including geothermal energy.

The Mexican Ministry of Energy (SENER), the Mexican Development Bank Nacional Financiera (NAFIN) and the Inter-American Development Bank (IDB) have jointly backed the development of a programme designed to curb the risks of exploration.

Efrain Villanueva Acros, General Director of Clean Energies of SENER said: “Granting these exploration permits to a partnership between France and Iceland marks a major step in the implementation of the geothermal energy reform since they are the first 100% foreign capital companies to invest in the Mexican geothermal industry.”