Central America Taps Volcanoes for Electricity. By Sarah Grainger, Reuters, September 21, 2010. "Dotted with active volcanoes, Central America is seeking to tap its unique geography to produce green energy and cut dependence on oil imports as demand for electricity outstrips supply. Sitting above shifting tectonic plates in the Pacific basin known to cause earthquakes and volcanic eruptions, the region has huge potential for geothermal power generated by heat stored deep in the earth. Guatemala, Central America's biggest country, aims to produces 60% of its energy from geothermal and hydroelectric power by 2022. The government is offering tax breaks on equipment to set up geothermal plants and electricity regulators are requiring distributors buy greater proportions of clean energy.
"Run by Israeli-owned Ormat Technologies, the plant harnesses energy from water heated by chambers filled with molten rock deep beneath the ground. The company has been operating two plants in Guatemala for three years and wants to expand but is weighing the risks of drilling more costly exploratory wells… More than a fifth of El Salvador's energy needs come from two geothermal plants with installed capacity of 160 MW and investigations are being carried out to build a third. Costa Rica, which has 152 megawatts of capacity in four geothermal plants, is due to bring a fifth plant online in January 2011 and is looking into building two more. Nicaragua generates 66 MW from geothermal energy and in the next five years plans an increase to 166 MW."
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