– Latin America has abundant geothermal energy resources
– Investment in geothermal energy in Latin America is expected to increase significantly
– Geothermal energy could also revolutionize lithium production in the region
Latin America has a substantial geothermal energy potential that can contribute to clean energy production and industrial decarbonization. However, only a fraction of this potential has been harnessed so far, with Mexico, Costa Rica, and El Salvador leading the way in existing capacity. Despite the positive outlook, geothermal projects in the region face challenges due to infrastructure development and the high initial investment required for exploration.
Rystad Energy forecasts a significant increase in geothermal investments in Latin America, with investments expected to rise from US$570 million to US$1.3 billion by 2027. Government targets and announced projects are driving this growth, with existing projects set to fulfill most of the capacity expansion goals by 2030. Additionally, geothermal energy presents an opportunity for enhancing lithium production in the region, potentially revolutionizing the industry.
Mexico currently leads Latin America in geothermal energy development, with successful projects like Cerro Prieto and Los Azufres contributing to its capacity. Other countries like Costa Rica and El Salvador also have significant geothermal installations. Beyond power generation, geothermal projects in regions with abundant lithium reserves could facilitate cleaner lithium extraction methods, advancing sustainability goals and boosting economic growth in countries like Chile, Argentina, and Bolivia. Despite the potential, realizing these benefits will require technological advancements and supportive regulatory frameworks.