The Latin American and Caribbean Energy Organization (OLACDE) held the webinar “Principles of Geothermal Energy: Fundamentals and Applications in Latin America and the Caribbean,” a technical training session aimed at strengthening regional knowledge on harnessing geothermal energy as a key renewable source in the energy transition. The session addressed essential concepts on geothermal resources, generation technologies and direct uses, as well as the challenges and opportunities for their development in the region.
OLACDE’s Executive Secretary, Andrés Rebolledo, opened the event by highlighting the importance of diversifying the energy matrix through clean, safe and continuously available solutions. He emphasized that geothermal energy provides security to the electrical system and low emissions, attributes that are essential for advancing toward a deeper energy transition in Latin America and the Caribbean. Rebolledo noted that, although this technology faces challenges associated with its high initial costs—particularly during exploration and drilling stages—countries such as Mexico, Ecuador and the Central American subregion are driving projects that demonstrate the geothermal potential our region offers, particularly due to its location within the Pacific Ring of Fire.
Subsequently, Gloria Alvarenga, OLACDE’s Director of Integration, Access and Energy Security, welcomed the participants and highlighted that geothermal energy is one of the most renewable, stable and reliable sources for electricity generation and thermal applications. She stressed that, in order to advance its implementation effectively, it is essential to have a solid understanding of the basic principles, associated technologies, geological conditions and the technical, environmental and economic challenges that characterize this type of project.
During the webinar, various aspects influencing geothermal development in the region were analyzed. It was explained that the high initial cost continues to be the main barrier to the deployment of this technology, given that the levelized cost of energy for geothermal (around 60 USD/MWh) exceeds that of other renewable sources such as solar and wind. It was also clarified that the apparently low thermal efficiency—between 20% and 28%—reflects physical limits inherent to the resource rather than technological shortcomings, making it necessary to communicate this characteristic properly to avoid misperceptions. It was also noted that geothermal energy constitutes a stable source of energy available 24/7, with capacity factors exceeding 85%, making it a strategic complement to variable renewable sources. However, gaps in geological information and unstable regulatory frameworks persist, increasing risk for investors and highlighting the need to develop regional studies, geothermal maps and open databases, as well as to establish clear regulations that encourage investment.
Finally, it was emphasized that, despite the vast geothermal potential of Latin America and the Caribbean, its current contribution to the regional electricity matrix is below 1%, underscoring the urgency of promoting pilot projects and regional cooperation mechanisms that enable the sharing of knowledge, technology and best practices. The webinar is part of OLACDE’s ongoing efforts to strengthen technical capacities, promote regional cooperation and accelerate the energy transition toward cleaner, more resilient and sustainable systems throughout the region.
Watch the full webinar at the following link: https://youtu.be/oZUx-L1GUgg
