Present Status and Legal Aspects of Geothermal Development in Guatemala, Central America

Abstract

The Republic of Guatemala, as part of Central American isthmus is a little portion oj-the volcanic ring belt that surrounds the Pacific Ocean. This volcanic ring is a zone of intense volcanic activity and a high geothermal potential associated with it. Nowadays in Guatemala had been studied jive high enthalpy geothermal areas, all of them in different development stages, from preliminary prefeasibility to the development of a power plant that will be installed within the next months. Furthermore, according to an inventory of geothermal resources carried out in 1981, it had been identified at least 8 different areas that have the appropriated characteristics to be geothermal areas that are worth to be studied in detail. The geothermal exploration in Guatemala began in the 70's by the government agency Instituto National de Electrification (National Institute of Electrification -INDE-) through the Unidad de Desarrolio Geotermico (Department of Geothermal Development - UDG-). Nevertheless, Guatemala is one of the lower electric service countries in Latin America, world, has made the Government to take the decision of Zunil by a private companies to participate in electrical generation projects. So, in the last few years private companies had begun to operate mainly in thermal and hydroelectric generation. The geothermal main activities include the building of the first geothermal power plant in Zunil by a private company. The Amatitlan
geothermal field actually has two productive wells and the reservoir engineering confirm economic feasibility of this project. Recently, the Parliament discussed and approved a new electrical law that changed dramatically the roll of private inversion on the electrical subsector in Guatemala. This article presents a broad description of the five main geothermal areas and a general perspective of the effects that this law will produce specially in the geothermal electric generation and the participation of private companies inside this new law.