What's Happening?
The International Renewable Energy Agency (IRENA), in collaboration with the Global Geothermal Alliance and the Government of El Salvador, conducted a webinar series to explore the potential of geothermal energy in Latin America. The series focused on geothermal power
generation and direct-use applications, emphasizing geothermal energy's capacity to enhance energy security, accelerate the clean energy transition, and foster sustainable economic development. El Salvador, a key participant, showcased its success in integrating geothermal energy, which supplies 21% of its electricity. The discussions underscored the need to transform geothermal resources into commercially viable projects, with international financial institutions advocating for concessional funding and risk-sharing mechanisms to attract private sector investment.
Why It's Important?
Geothermal energy presents a strategic opportunity for Latin America to reduce reliance on imported fuels and enhance energy security amid global geopolitical uncertainties. The region's vast geothermal potential, estimated at 70 gigawatts, remains largely untapped, with only 6% developed. By leveraging geothermal resources, countries can achieve energy sovereignty, promote sustainable development, and build resilience against market volatility. The initiative aligns with global efforts to transition to renewable energy, offering economic opportunities and long-term development benefits. Successful deployment could serve as a model for other regions seeking to diversify energy sources and achieve climate goals.
What's Next?
The next steps involve creating favorable conditions for geothermal projects to become bankable, which includes securing financial support and fostering public-private partnerships. Governments, financial institutions, and industry stakeholders must collaborate to reduce exploration risks and enhance private sector participation. The focus will be on scaling up geothermal deployment across Latin America, with El Salvador's experience serving as a blueprint. Continued dialogue and cooperation are essential to overcoming challenges and realizing the full potential of geothermal energy in the region.
