Development of geothermal energy in México and its energetic potential for the future

The current contribution of 3.1 % of geothermal energy to México’s electricity supply is relatively elevated in comparison to a global offer of primary geothermal energy of 0.442 % (ISES 2002), or 0.8 % by renewable technologies, including geothermal, solar, wind and tide/wave/ocean technology (IEA 2006), but potential favorable national resources are still underexploited. Feasibility studies proved a potential for national reserves of 3,650 MW, whose generation (20,460 GWh) could provide more than 12 % (20,460 GWh) of the total electricity generation. The exploitation of middle- and high-enthalpy geothermal reservoirs could represent a major contribution towards a more environmental friendly electricity production in México, as the combustion of more than 40 million barrels of fossil fuels per year and the emission of approximately 16.5 million tons of CO

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into the atmosphere could be avoided by geothermal expansion strategies. On an economic point of view, the average generation costs of 3.98 USD cents per kWh for geothermal electricity are currently lower than for any other renewable energy type, and competitive with most conventional energy types. Low- to middle temperature sites (< 170°C) are still undeveloped in México, although an estimated heat potential of several thousands of megawatt could be used for private and industrial consumption, such as district and greenhouse heating, spas, and aquaculture. The implantation of decentralized small-scale plants (< 5 MW) with binary-cycle or heat pump technology could be fundamental for the energetic development of remote rural areas. As a basic condition to expand the national geothermal energy market, the legal and regulatory frame has to appropriate in order to fortify the renewable energy sector, as well as market incentives and innovative financing schemes have to be established to promote private inversions.