This document provides information about geothermal development in Guatemala. It discusses Guatemala's economy, energy sector, existing and potential geothermal projects. Guatemala has significant untapped geothermal potential estimated between 800-4000 MW. Several areas have been identified as promising for geothermal development based on studies. Currently there are two geothermal power plants in operation totaling 245 MW with several other projects in feasibility and pre-feasibility stages. The Guatemalan government aims to promote sustainable geothermal energy through policies like tax incentives and training to help realize its renewable energy goals.

1. GEOTHERMAL
DEVELOPMENT IN
GUATEMALA
Carlos Alberto Avalos Ortíz

2. GENERAL INFORMATION
Size: 108,889 square kilometers (Km2)
Guatemala
Climate: Tropical
Inhabitants: 14.4 million
PIB/ head: 7400 USD
Economic data:One of the largest regional economies
Growth outlook is further driven by remittance
inflows
and export revenues from the U.S.
Currency: Quetzal (Q7.80/US$1.00)
Capital: Guatemala City
Borders: Mexico, El Salvador, Honduras and Belize

3. ENERGY SECTOR
Net generation (CNEE 2012):
• Water: 4434.92 Gwh
• Geothermal: 245.63 Gwh
• Biomass: 1003.02 Gwh
• Coal: 1237.92 Gwh
• Bunker: 1772.46 Gwh
• Diesel 9.61 Gwh
Annual consumption: 8703.57 Gwh
Increase of consumption: 3.44%
Electrification rate: 85.60%

4. ENERGY SECTOR
Important stakeholders:
MEM Energy and Mines Ministry, policy maker
CNEE Electric Energy National Commission, regulator
INDE Instituto Nacional de Electrificacion, former utility
EEGSA/EPM and Energuate/Actis, distribution companies
AMM Wholesale Market Administrator, market and system operator

5. HIGHLIGHTS OF ACTUAL ENERGY
POLICY:
The main objective of the 2013-2027 Energy Policy is to contribute to
the sustainable energy development of Guatemala, with social equity
and responsibility to the environment. The strategic actions to
achieve such objective include:
1. To secure the energy supply at competitive prices
2. To secure the fuel supply at competitive prices
3. To pursue exploration and exploitation of the oil reserves
towards achieving self sufficiency
4. To promote energy efficiency
5. To reduce firewood consumption

6. ELECTRIC ENERGY GENERATION

7. CURRENT GEOTHERMAL
DEVELOPMENT
Stakeholders:
MEM Energy and Mines Ministry, policy maker
CNEE Electric Energy National Commission, regulator
INDE Instituto Nacional de Electrificacion, former utility
Ormat, Orzunil and Ortitlan Projects
Geothermal projects in operation:
Orzunil
Ortitlan

9. IDENTIFIED RENEWABLE ENERGY
POTENTIAL
TECHNOLOGY
POTENTIAL
MW
USED %
HYDROPOWER 6,000 15.00%
GEOTHERMAL 1,000 4.90%
Geothermal projects at feasibility and pre-feasibility stages in
Guatemala
• Studies were initiated in 1972 in the Moyuta area
• The most promising areas were identified
• In 1981 l INDE and BRGM of Francia, with local resources and a
grant from OLADE, carried out exploration studies in 13 sites

10. STUDIES AREAS

11. AREAS WITH STUDIES

12. AREAS WITH GEOTERMICAL SIGNS
An study of the International Geothermal Development Agency in
2003, indicated that the geothermal resources in country can be
estimated to be between 800 and 4000 megawats of capacity.

13. GEOTHERMAL POTENTIAL
CLASSIFICATION

14. TEMPORARY AUTORIZATIONS > 5
MW
No.Project Entity Autorization date
1 Geotec-Sur Geotec, S.A. 4/ 04/ 2000
2 Valorsa Valores y Servicios, S.A. 3/ 16/ 2004
3 Cerro Blanco Geotermia Oriental de Guatemala, S.A. 12/ 11/ 2008
4 San Marcos Brightstar Renewable Energy Guatemala, S.A. 12/ 16/ 2009
5 Zunil II Brightstar Renewable Energy Guatemala, S.A. 1/ 30/ 2009
6 Ambar Recursos del Golfo, S.A.
7 La Chinita Recursos del Golfo, S.A.
8 Clare Recursos del Golfo, S.A.
9 Gloria Recursos del Golfo, S.A.
10 Proyecto Geotèrmico Joaquina Centrales Geoeléctricas, S.A.
11 Proyecto Geotérmico Atitlán Centrales Geoeléctricas, S.A.
12 San Michkael San Michkael, S.A.
13 La Fumarola Recursos del Golfo, S.A.
In process
year 2009
year 2008
year 2000
year 2004

15. INTERESTED PLAYERS-NEAST
STUDIES
Project Localization Capacity (MW) Res. CNEE Op. Date
Geotermica El Ceibillo Amatitlan, Guatemala 25 133-2009 2014
Geotermica Moyuta Moyuta, Jutiapa 44 175-2009 2018
Tecuamburro Ortemala 1 San Vicente Pacaya, Escuintla 50 200-2009 2014
Geotermico Tecuamburro Pueblo Nuevo Vinas, Santa Rosa 44 35-2008 2017
Central Geotermica Cerro Blanco Asuncion Mita, Jutiapa 50 134-2011 2013
Geotermico Tecuamburro INDE Pueblo Nuevo Vinas, Santa Rosa 50 271-2011 2016
Geotermico San Marcos INDE San Cristobal Cucho, San Marcos 24 270-2011 2016
Geotermico Moyuta INDE Moyuta, Jutiapa 20 2569-2011 2015
TOTAL CAPACITY TO INSTALL 307

16. FISCAL INCENTIVES RENEWABLE
ENERGY LAW
 Decree number 52-2003
Incentives Law for the Development of RE projects
 Government Decree No. 211-2005
RE Incentives Law Bylaws
 Fiscal Incentives
a) Preoperative and Construction phases
• Import Duties
• VAT
b) Commercial-Operational Phase
• Income Revenue Tax (ISR)

17. CURRENT REGULATIONS
Article 16. (RLGE) Geothermal Plants
 Require Authorization (Over 5 MW)
Authorizations
 Temporary:
 For Studies
 Max surface 10,000 square kilometers (Km2 )
 Definitive:
 For exploration and commercial explotation
 Max surface 100 square kilometers (Km2).
 Only one geothermal reservoir
Several interested parties can request authorization over the same
area.

18. CURRENT REGULATIONS
Use of Geothermal Resources The definitive authorization in a specific
area must
 Have a signed Authorization contract;
 Exploration plan and programs;
 Development and explotation plan;
 Areas granted through definitve authorization shall not overlap.
When the player is no longer interested in the resource, MEM cancell
the authorization.
The lack of activity is equivalent to given up on the authorization and
quitting on rights over the area.

19. DEFINITIVE AUTHORIZATION
REQUIREMENTS
Definitive Authorization (Art. 4 RLGE)
 Project description
 Project plans (prefeasibility and investment profiles)
 Environmental Impact Study (EIA) approved by MARN
 Electrical studies prepared according to NEAST norms
 Detail of the property to be used
 Authorized permits and rights of way (in contracts)
 Work Schedule
 Project Budget

20. ACTIONS TO INCENTIVIZE
GEOTHERMAL INVESTMENTS
High quality Medium quality
small size (<5 MW)
Exploration: 400 - 800
Geothermal field: 100 - 200
Geothermal power plant: 1,100 - 1,300
Total: 1,600 - 2,300
Exploration: 400 - 1,000
Geothermal field: 300 - 600
Geothermal power plant: 1,100 - 1,400
Total: 1,800 - 3,000
medium size (5-30 MW)
Exploration: 250 - 400
Geothermal field: 200 - 500
Geothermal power plant: 850 - 1,200
Total: 1,300 - 2,100
Exploration: 250 - 600
Geothermal field: 400 - 700
Geothermal power plant: 950 - 1,200
Total: 1,600 - 2,500
large size (>30 MW)
Exploration: 100 - 200
Geothermal field: 300 - 450
Geothermal power plant: 750 - 1,100
Total: 1,150 - 1,750
Exploration: 100 - 400
Geothermal field: 400 - 700
Geothermal power plant: 850 - 1,100
Total: 1,350 - 2,200
Investment US$/ Kw
Steam resource
Geothermal power
plant size

21. EXPLORATION COST
Parameter Data
In-Depht average 1,500 meters
Bottom temperature 280° C
Average power 5 Mwe
Average cost 4 millons US$
Orientation vertical o derivated
Valves similar to an oil well
Diameter telescopic 26" - 8 "

22. GOG POLICY ACTIONS
INDE to fulfill its obligations:
 Rational use of natural resources
 Support to the Exploration of Geothermal Resources
Energy and Mines Ministry:
 Geothermal Master Plan with Japan´s Support
 Financial cooperation from Japan for well drilling
 Human Resources Training at the “Instituto Regional de Geotermia” (El Salvador)
 Launch in 2014 a bidding process for a geothermal power generation project
Use of PPP Framework
Potential JV with INDE

23. CONTACT
Carlos Alberto Avalos Ortíz
avaloso@gmail.com