IDB to support geothermal energy in Mexico

Mar 13, 2014 - Mexico's energy ministry, local development bank Nacional Financiera (Nafinsa), German reinsurer Munich Re (ETR:MUV2) and the Inter-American Development Bank (IDB) have signed a memorandum of understanding to support the development of geothermal energy in Mexico, IDB said.

The institutions will seek tools to overcome financial barriers for geothermal projects of the private sector through new solutions in risk management.

The partners will consider support for the creation of an insurance fund on geothermal exploration that could be the base of their cooperation for the development of financial solutions for this sector in the country.

The agreement could help develop up to 2 GW in additional capacity by 2020, according to the government. In the long term, Mexico's potential is estimated at 9 GW.

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