Strategies and Economics of Geothermal Power Development in Mexico

Abstract

This paper presents a summary of the geothermal energy costs in Mexico. The values range between 3.29 and 3.46 cents US per kilowatt-hour (kWh) for plants already in operation. The cost of the new Cerro Prieto IV project is 2.81 cents US per kWh, value comparable with the cost of highly efficient gas fired plants. The Las Tres VÌrgenes project, made up of two 5 MW condensing plants will have a higher cost, of the order of 4.11 cents US per kWh, due to the size of the turbines and the rather isolated situation of the site. The Comision Federal de Electricidad (CFE) will issue an international bid for an EPC (Engineering, Procurement and Construction) contract to build four units of 25 MW each at the Los Azufres geothermal field. The estimated cost of production is 3.18 cents US per KWh. Mexico is currently engaged in the operation of competitive geothermal facilities and in the expansion of the installed capacity in old fields as well as in the new Las Tres VÌrgenes field.