News Article

Case Study: Iceland’s Geothermal Development

Wed, 02/25/2015 - 17:06

Presentation: Brad Donovan, Honorary Consul General of Iceland
Brad Donovan began by emphasizing Iceland's efforts in mitigating climate change and pushing clean energies. In doing so, it has turned to renewables, mainly hydro and geothermal energy, and these now comprise 80% of Iceland's energy matrix. The rest comes from imported fuels. All households in Reykjavik use heating systems powered by geothermal resources. Mexico can therefore learn significantly from Iceland’s example, albeit while applying said lessons on a far larger scale. One of Mexico's goals in Mexico, he said, is to achieve economic community development through the use of resources. “Increasing the income of people at the bottom of the pyramid leads to more education,” he stated.

While making this comparison, Donovan acknowledged that geothermal energy is hard to compare to other energy sources. “The advantages of geothermal energy are reducing pollution while reducing tariffs as stated in the Energy Reform. To achieve this, an important risk mitigation scheme that has been used in other locales will be implemented in Mexico too, particularly to reduce financial risks in the exploration stages of geothermal projects,” he continued. Mexico is currently the fourth country in geothermal energy, and it has the potential to become the first in terms of capacity, according to Donovan. Beyond this staggering potential, geothermal will help diversify Mexico's energy matrix, while remaining stable and profitable in the long-term. Proving its belief in geothermal potential, the federal government has already created the Mexican Center for Innovation in Geothermal Energy (CEMIE). Alongside this, training programs are being dedicated to training human capital specialized in this sector, including significant exchanges between universities. In Donovan's eyes, the future of geothermal energy in Mexico is safe.