|
Guatemala power project
|
Guatemala: Low-Cost Geothermal Power
Guatemala�s Zunil field has shown geothermal potential since the early 1970s. In 1993, the national electricity utility company, Instituto Nacional de Electrificaci�n (INDE), signed a 25-year power supply agreement with a private sponsor to develop a power plant on Zunil field, 7 km south of Quetzaltenango, Guatemala�s second-largest city. In a country suffering from energy shortages because of insufficient generation capacity, heavy dependence on hydro-facilities, and inefficient thermal plants, this project allows exploitation of an indigenous and renewable fuel and will provide power in a least-cost manner.
The 24 MW geothermal plant will be built on a Build-Own-Operate basis by Orzunil, a limited liability company established under Guatemalan law, which is related to Ormat Industries Ltd., an Israeli power equipment vendor and project developer. Its $66.7 million in financing needs will be subscribed by IFC, the Scudder Latin American Fund, Ormat Inc., the Commonwealth Development Corp., and a group of local investors. IFC will provide a $14.4 million A-loan for its own account, a $12.8 million B-loan, and equity of up to $2.2 million.
The plant�s environmental management plan addresses the key issues of land compensation, control of soil erosion during construction, and reinjection of geothermal fluid. The energy-generating equipment uses a closed system to handle steam and brine and full reinjection into the geothermal formation, for a regenerating power source without discharge into the environment. Hydrogen sulfide warning devices will be installed even though tests indicate a low risk for this noxious gas. Those who occupy land needed for the project will be reimbursed for crops in place at the time of purchase.
|
|
|
|
