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Geothermal Resources in the Caribbean and Latin America

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Geothermal Resources in the Caribbean and Latin America ( geothermal-resources-the-caribbean-and-latin-america )

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billion (plus $4 billion in investment pledges). Recently, privatization has continued at a somewhat slower pace. The GOP expects to collect between US$800 million and US$1billion from privatizations in 1999, mostly in the oil, mining,agricultureandelectricitysectors. Privatizationis expected to be completed by 2000. The GOP received a hard blow in July 1998 when Shell announced its decision to pull out of the huge Camisea projectgivingthefollowingreasons: theunderlying economics of the project had been weakened by the discovery of difficult fractures in the rock which would have made production more problematic and costly; and low oilpricesmadeithardertofindfinancing. Domestic issues, e.g., an inability to reach agreement over gas distribution, disagreements over tariff structure, and the GOP ruling out gas exports, appear to have tipped the balance against the project (Latin America Monitor, August 1998). According to Jorge Camet, former economy minister and head of the commission for Camisea (formed after the Shell-Mobil pullout), Camisea will be tendered in the first quarter of 1999. Camet acknowledged that no market for gas currently exists in Perú and would have to be developed. Rural electrification is a high priority for the GOP which will invest more than US$100mn annually over the next few years to generate 270 MWe for supply to rural zones. The target is overall electrification of 75% by 2000. Each 1% increment demands US$70-80 million. Government / Legislation Ministerio de Energía y Minería (MEM) The Energy Ministry is responsible for enforcing compliance with laws regarding electricity, and implementing the Organic Law on Geothermal Resources. Organismo Supervisor de la Inversión en Energía (OSINERG) OSINERG has oversight authority over energy investments and enforcement responsibility for the Geothermal Law. Geothermal Resources in Latin America & the Caribbean 168

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