BAKU, Azerbaijan, April 10. Investments in geothermal energy in Latin America are expected to surge in the coming years, Rystad Energy, an independent energy research and business intelligence company from Norway, said, Trend reports.
According to forecasts by Rystad Energy, the investments are projected to increase from approximately $570 million this year to $1.3 billion in 2027.
This growth will be driven by the expansion of operational capacity from about 950 megawatts electrical (MWe) to over 1.4 GWe.
Latin America is rich in geothermal energy resources, offering a promising path for clean energy production, reducing carbon emissions in industries, and enhancing energy security, the research says. However, despite these favorable conditions, only a small fraction of this potential has been tapped into. Currently, only 2 gigawatts electrical (GWe) of geothermal energy are being utilized out of a total potential of 33 GWe, the report noted. Most of this utilization comes from countries like Mexico, Costa Rica, and El Salvador, which contribute about 75 percent of the existing capacity.
The growth of Latin America's geothermal capacity by 2030 heavily relies on government targets, with existing projects expected to fulfill around two-thirds (67 percent) of these goals, Rystad Energy added. The remaining third (33 percent) will require new projects, which are yet to be announced. However, beyond 2030, growth is anticipated to slow down as government plans currently do not prioritize geothermal energy strongly.