To bolster Mexico’s geothermal sector, the Mexican Geothermal Association (AGM) is advocating for new financial incentives. Heber Díez León, AGM's President, proposes utilizing revenue from the oil industry to fund these initiatives through a “decarbonization bond.” This approach aims to alleviate the substantial costs associated with geothermal exploration and drilling.
Díez León pointed out the significant disparity in drilling efforts between the oil and geothermal sectors. In contrast to PEMEX, which drilled 199 wells in 2022 and 358 in 2023, the geothermal industry requires only a fraction of that number for effective exploration and deployment. He emphasized that geothermal power plants have higher capacity factors than gas plants and offer consistent output, unaffected by time of day or weather conditions. Yet, geothermal energy accounts for just 1.12% of Mexico's total energy production.
Despite its small share in the energy mix, Mexico is the world's 8th largest in terms of installed geothermal capacity, boasting 976MWe. To further explore the potential and discuss future opportunities in the sector, AGM will host its 30th Annual Geothermal Congress in Michoacan on May 23 and 24, 2024.
