Mexico has Great Geothermal Potential: UNAM

Mexico has abundant geothermal resources, which can contribute to the energy transition by diversifying energy sources and giving flexibility to the electricity system. In early March 2023, the Federal Government announced a tender for the drilling of six geothermal wells as part of exploratory activities to boost the development of this industry. 

Fernando Guerrero, Member of the Geoenergy Research Group of the Renewable Energy Institute (IER), UNAM, stressed that Mexico is a country with abundant geothermal resources and is among the six countries with the greatest capacity to produce this type of energy. Guerrero explained that Mexico is located in a region of plate interaction, with volcanism activity in a great part of the country. One of the areas with outstanding potential for geothermal energy is the Transmexican Volcanic Belt, which crosses from west to east through Nayarit, Jalisco, Puebla and Veracruz.

There are five geothermal plants in Mexico: Cerro Prieto, Baja California, which has been qualified as the second most important plant of its kind in the world; Los Azufres, Michoacan; Los Humeros, Puebla; Las Tres Virgenes, Baja California Sur; and Domo San Pedro, Nayarit. The last one is operated by a private company and the rest are being managed by CFE.

Geothermal energy accounts for 1.5% to 2% of the total amount of electricity generated in Mexico. However, different studies point that this capacity can be doubled up to 2GW. "The National Strategy for Energy Transition and Sustainable Energy Use, projects a moderate growth towards 1,464MW by 2050,” Guerrero says. 

According to Guerrero, geothermal energy can contribute to Mexico’s path towards the energy transition by diversifying its energy sources and giving flexibility to the electrical system. "Our country and the whole world are in a process of energy transition, through which they gradually seek to reduce the dependency on fossil fuels and increase clean energy participation. Mexico must take advantage of resources such as the sun, wind, geothermal energy and hydropower, and use oil rationally to promote this transition. If the energy basket is varied, flexible and does not rely on a single technology, it will be easier to achieve energy sovereignty," says Guerrero. 

On March 7, 2023, the National Institute of Electricity and Clean Energy (INEEL) of Mexico announced a tender for the drilling of six geothermal wells in four areas with geothermal potential, as part of a new exploratory drive by public company CFE. The tender involves the exploration of areas such as Los Negritos, San Marcos, Cerro Prieto and Las Tres Vírgenes, and will be financed by the Inter-American Development Bank (IDB) with a total budget of US$51 million.  If the exploration is successful, the IDB will finance CFE for the construction of a geothermal plant through a credit line.