Wedoany.com Report-Jun 13, Mexico’s Ministry of Energy (Sener) is advancing plans to drill four geothermal wells in Baja California as part of its strategy to promote renewable energy. This initiative follows the outcome of a 2024 tender process, with drilling operations expected to begin in 2026.

Cerro Prieto geothermal plant

The drilling contract was awarded to GSM Bronco. It covers three wells at the Cerro Prieto geothermal field in Baja California and one at Las Tres Vírgenes in Baja California Sur. The project is supported by the Geothermal Financing and Risk Transfer Program, which aims to mitigate exploration risks and promote investment in geothermal energy. The federal government has committed $51.5 million to fund the development.

Jorge Islas, Undersecretary of Planning and Energy Transition at Sener, emphasized the significance of this effort: “One of the things we want to do in this Administration is promote geothermal energy. We were champions in geothermal energy some 20 or 30 years ago; we were one of the countries that used this resource the most.”

Cerro Prieto, once a leading global geothermal site, currently operates at approximately 400 MW due to long-standing maintenance challenges. Despite having an installed capacity of 960 MW, its current performance highlights the need for revitalization. This new drilling effort is seen as a step toward enhancing the output and efficiency of the site.

The project aligns with Mexico’s broader efforts to strengthen its renewable energy sector. As part of this, the country recently enacted a new Geothermal Law intended to simplify regulatory procedures for electricity generation from geothermal sources. The law also introduces structural changes to the relevant regulatory institutions, streamlining oversight and approval processes to facilitate project development.

In addition to enhancing power generation capacity, the planned drilling activity is expected to support local economic development through job creation and infrastructure improvements. The Las Tres Vírgenes field in Baja California Sur, although smaller in scale, plays a role in regional energy security and benefits from favorable geological conditions for geothermal extraction.

This initiative reflects a renewed focus on tapping into Mexico’s geothermal potential, reinforcing the country's goal of diversifying its energy portfolio. With decades of experience in geothermal operations and substantial untapped resources, Mexico aims to reclaim its position as a global leader in geothermal energy utilization.

The drilling and development activities scheduled to begin next year are positioned to contribute to Mexico’s energy transition goals and expand the country’s clean energy footprint. Through improved regulatory frameworks and targeted public investment, the government seeks to accelerate geothermal energy deployment and enhance long-term energy resilience.