Enel: New geothermal regulation needed to spur investment - Mexico
Published: Thursday, October 16, 2008 14:03 (GMT -0400)
Geothermal is currently treated as a water extraction activity and thus concessions are granted on the basis of a single well rather than an area.
This creates "enormous risk" because a company could invest millions in exploration and once development begins find other companies scrambling for adjacent concessions.
"As long as the concession is given per well and not per area as in other countries, the level of risk for private development is too high," Zorzoli said.
When asked whether Mexico's government was evaluating this regulatory modification, Zorzoli said, "I'm not sure it's a priority."
Enel is interested in geothermal investment in the country, but is waiting for regulations that permit acceptable risk, he said.
"We're doing geothermal in Chile, Nicaragua and El Salvador so why not in Mexico?" he added.
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