Rural Uses of the Geothermal Resources in Guatemala since Old Times and Present Law of Incentives to Promote the Geothermal Energy as a Renewable Resource

Abstract

The country posseses low enthalpy geothermal resources that have been used since ancient time by the maya civilization that actually represents the rural Guatemalan population. They are still using the geothermal resources as the pioneers did, for bathing, dying, cooking and some as religious ritual, according to their culture.

The geothermal rural use is located in the western part of the country (Totonicap·n, Quetzaltenango) which is an area identified with geothermal springs and with maya heritage (Quiches) and in the central and eastern part of the country. The western have also developed the high enthalpy geothermal resource constructing a geothermal power plant, actually in operation (ORZUNIL GEOTHERMAL POWER PLANT) by Ormat Limited.

Due to the existence of the geothermal resources in the country estimated in 1000 MW, and in order to promote the exploitation of it, an incentive law has been promulgated to improve the foreign investment. This law takes into account exemptions to the investors consisting in tax exemptions related to the project under construction.