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This plant is the largest project in Nicaragua in over 25 years in this sector. This initiative will foster the generation of renewable energy, expand electrification and help reduce the country's dependence on imported fuels.
The funds will be invested in Polaris Energy Nicaragua SA, a company responsible for building the 72-megawatt power plant in San Jacinto, northwestern Nicaragua. This is the first time that IFC invests in a project which combines exploration of geothermal resources for power generation.
Central San Jacinto is expected to cost nearly $ 370 million; it will cover almost 20% of Nicaragua's energy needs and support the government's strategy of creating renewable energy sources in the country.
Currently, 70% of Nicaragua's energy is generated from fossil fuels, which are expensive and pollute the environment. The new plant will decrease to 50% the country's dependence on power generation from imported fuels, cut high energy costs and encourage the expansion of electrification.
Hezy Ram, President of Ram Power Corporation, which will develop and operate the project, said the investment "represents another milestone in the goal of Ram Power to provide clean geothermal energy to Nicaragua."
"The proposed San Jacinto project is the first IFC investment in a geothermal energy project including exploration and exploitation of the resource and strengthens our strategy of sustainable regional development," said Bernie Sheahan, Director of IFC Infrastructure Department for Latin America. "The success of this project is extremely important for Central America, since the region could increase renewable energy generation significantly from the development of geothermal resources, which are cleaner and less expensive than existing alternatives."
Geothermal energy is one of the few sources of renewable energy capable of providing continuous and reliable basis at competitive costs. As such, geothermal energy has the potential to play an important role in many regions of the world searching for cleaner and sustainable energy. Geothermal resources are abundant in Central America and could satisfy a large percentage of the needs of the region's electricity.
Source: International Finance Corporation
More on this topic
March 2012
The volcanic mountain range of los Maribios could potentially generate more than 1,500 megawatts for the country.
Studies by the Ministry of Energy and Mines (MEM) estimate that the volcanoes of the Los Maribios range, along the Pacific area, could give the country a generation potential of more than the 1,500 megawatts in 12 areas or geothermal fields, a capability that could liberate Nicaragua from dependence on oil as a source of electricity.
March 2011
The loan to Polaris Energy Nicaragua, builder and operator of the San Jacinto-Tizate geothermal plant, will allow increased electricity generation.
The initiative aims to expand the existing generating unit of 10 MW to a total of 72 MW by leveraging additional resources and the installation of two new turbines of higher capacity.
April 2010
Ram Power, developer of Geothermal Power Plant San Jacinto Tizate, asked the IDB for $40 million in funding.
The Inter-American Development Bank would loan $40 million for constructing the second phase of the plant, that would take the project’s total generation capacity to 72 MW.
March 2010
San Jacinto Tizate Geothermal power plant today received $18 million dollars from a total $77 available through a credit facility with various financial institutions.
These resources will be invested by Polaris Energy Nicaragua, a subsidiary of Ram Power Corp, in Phase II of geothermal power plant San Jacinto Tizate. This expansion will add 36MW, taking the plant to 72MW.
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