IADB supports Mexico bid to increase geothermal energy generation

The Inter-American Development Bank (IADB) has approved a modification of a loan totaling $108.6 million that aims to increase private investment in electricity generation projects in Mexico from geothermal sources. It includes a number of financial mechanisms tailored to meet the specific needs of each project at every step of their development.

This includes exploration, drilling, field preparation, construction and operation of private geothermal projects, as well as reducing the value at risk for developers, which is the main barrier to investment. The program's goal is to finance up to 300MW of geothermal capacity over a ten-year period. It also hopes to leverage other public and private funds to contribute to Mexico's geothermal sector with estimated investment levels of around $4.2 billion for proven geothermal reserves.