Mexico, once expected to be a global leader in geothermal production, has faced challenges developing the sector. While there is no shortage of potential development locations, the high costs of accessing these resources continue to be a barrier for development.
In 2014, experts anticipated Mexico would be the fourth largest producer of geothermal energy, however, by 2018 the country was surpassed by Turkey and New Zealand, dropping to eighth place. Slow growth is mainly due to the high costs and the lack of information that still exists in the country.
The New Zealand company, Seequent, is assisting Mexico as it seeks to develop its geothermal resource, as they understand the challenges of the market. Shaun Maloney, CEO of Seequent explains, “You have (under the ground) a source of energy that continues to flow at a constant rate. But to drill a hole for thermal energy costs around ten million dollars and if you dig on the wrong side, you lose everything.”
Mexico’s government is working with national and international developers to make changes and provide high quality information, which in turn is expected to attract future investment.