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Organic Law on Geothermal Resources (1997) The Organic Law on Geothermal Resources (Ley Orgánica deRecursosGeotérmicos)wasenactedinJuly1997. The document specifies the regulations on the exploration and developmentofPerú’sgeothermalresources. Regulations have yet to be written. The Law will allow any properly qualified person, individual, or company, Peruvian or foreign, title to geothermalrights. Geothermalconcessions,requiredfor exploration beyond reconnaissance work (surface), will be granted in 25-hectare units up to 1000 hectares for a 30- year period which can be extended. Equipment and supplies required for geothermal explorationaretaxexempt. Inaddition,theconcession holder will have the right of way to carry out exploration anddevelopmentofgeothermalenergy. Ifgeothermal energy is used to generate electricity, the concession contract for development will be automatically extended for electrical generation (governed by the Law of Electrical Concession). The principal characteristics of the Geothermal Law are: 1. Defining the differentiation between exploration permits and exploitation concessions, 2. Identifying the MEM as the “one-stop shop” for geothermal activities, 3. Providing royalties to the State and rates for theareaexploited, 4. Defining a program of exoneration of certain import duties, and 5. Permittingamortizationofexplorationcosts over five years. Geothermal Sites / Projects Perú has an estimated 2,990 MWe of geothermal power potential. ThedevelopmentofPerú’sgeothermalresourceswould offset the country’s over-dependence on hydropower which is affected by periodic droughts. With at least 1,000 MWe of geothermal potential, Perú could easily double or triple its energy supply, and replace all diesel generators and hydrocarbon use by using geothermalasbaseload. Todate,hundredsofmegawattsof geothermal energy are being produced by mining companies and industrial facilities for private use. Geothermal Resources in Latin America & the Caribbean 170PDF Image | Geothermal Resources in the Caribbean and Latin America
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