Inter-American Development Bank (IDB) has give approval for a USD 40 million loan to Nicaragua for financing the second phase of the San Jacinto-Tizate geothermal power plant, being developed by Polaris Energy Nicaragua.

Upon completion of the expansions on the first and second phase of the power plant, the plant will be able to output 72 MW of clean electricity. This will increase the country's overall power generation from renewable sources by 7 percent. The San Jacinto-Tizate location is considered to be one of highest quality in terms of geothermal energy potential in the world. The power plant will be the second commercially operational geothermal power plant in Nicaragua. Completion of the second phase of the power plant is scheduled for the end of 2011, and will represent a USD 177 million investment.

Nicaragua has set one of the highest goals for renewable energy in the world. The country plans to reach 86% renewable energy sources in its power portfolio by 2014.

[source: IADB]