Unlocking Latin America’s Hidden Potential: Geothermal Energy
Latin America is home to a vast, untapped source of clean and sustainable energy: geothermal power. With a potential capacity of 33 gigawatts of electricity, this region is poised to become a leader in the global energy landscape.
The Power of Geothermal Energy
Geothermal energy harnesses the Earth’s heat to generate electricity and provide warmth. Unlike solar and wind power, geothermal energy operates 24 hours a day, 365 days a year, making it a reliable and constant source of energy.
This type of energy not only provides stability to electrical grids but can also be integrated into industrial processes, heating, and lithium extraction. Mexico is currently the leader in geothermal energy in Latin America, with over 1,000 MW installed and notable projects such as Cerro Prieto and The Sulfurs.
Andean Region: A Hub for Geothermal Energy
The Andean region, comprising Chile, Argentina, and Bolivia, has significant geothermal potential. Although these countries are still in the early stages of development, projects like Pavilion Hill in Chile and Laguna Colorada in Bolivia are laying the groundwork for future expansion.
The proximity of these nations to the Lithium Triangle, one of the largest lithium reserves globally, presents a unique opportunity for integrating geothermal energy into lithium extraction. This combination could revolutionize the way lithium is obtained, making it more sustainable and efficient.
Investments and Growth
According to Rystad Energy, geothermal investments in Latin America are expected to increase from $570 million in 2024 to $1.3 billion in 2027. This growth is driven by the need to diversify clean energy sources and achieve decarbonization objectives in the region.
Challenges and Opportunities
Despite its potential, geothermal energy faces challenges such as high initial costs, limited access to sites, and lack of priority in public policies. However, the integration of geothermal energy with lithium extraction presents a unique opportunity for sustainable development.
Geothermal brine, a byproduct of geothermal plants, contains rare metals like lithium. This approach offers a cleaner and more sustainable alternative to traditional extraction practices, promoting health and environmental well-being.
To realize the potential of geothermal energy in Latin America, increased investments, strong public policies, and a long-term strategic vision are necessary. The challenge is significant, but the rewards for the region and the planet are even greater.