Investment Opportunities in Europe’s Geothermal Energy Market: Country-by-Country Resources, Companies, Challenges, and Growth Prospects Europe is developing one of the world’s most diverse geothermal investment markets. The continent combines mature geothermal electricity industries in Italy, Iceland, and Türkiye with rapidly expanding district-heating markets in France, Germany, the Netherlands, Poland, Hungary, Denmark, and Switzerland. The most attractive European opportunities are not limited to power generation. Investors can participate in geothermal district heating and cooling, industrial heat, geothermal heat pumps, enhanced geothermal systems, closed-loop systems, thermal storage, lithium extraction, drilling services, equipment manufacturing, and integrated energy networks. The European Geothermal Energy Council reported that ten new geothermal district-heating and cooling systems began operation during 2025, adding approximately 70 MWth of capacity. New systems were report...
Borinquen I: Costa Rica’s Geothermal Revival Takes Concrete Form
By : Robert Buluma
ICE Awards $100 Million Electromechanical Contract as Project Exceeds 55% Completion
On June 4, 2026, the Instituto Costarricense de Electricidad (ICE) awarded a contract for the design, supply, supervision, testing, and commissioning of electromechanical generation equipment for the Borinquen I Geothermal Project. The transaction is valued at approximately $100 million.
The award marks a definitive turning point for a project that spent years in institutional limbo.
The Contract Scope
The electromechanical equipment package encompasses three core components:
The generating unit – driven by volcanic steam
Associated systems and equipment
The cooling tower
ICE will formalize the contract in the second half of 2026. Construction of the machine house is scheduled to begin in July 2027.
This is not a speculative timeline. The contract award is complete. The sequencing is now fixed.
Project Status: Beyond Halfway
Borinquen I currently stands at over 55 percent total works completion. The plant employs more than 500 people. Located in Liberia, Guanacaste, it will become Costa Rica’s eighth geothermal facility upon commissioning.
The projected completion date is early 2030.
Fifty-five percent completion with four years remaining suggests the remaining work is disproportionately electromechanical – the phase now being contracted. Civil works are substantially advanced. The critical path has shifted to equipment fabrication, delivery, installation, and commissioning.
Capacity and System Role
Borinquen I will contribute 55 megawatts of firm capacity to Costa Rica’s national electrical system.
The term “firm capacity” is material. Unlike wind or solar generation, which depend on weather conditions, geothermal provides baseload power – continuous, predictable, and dispatchable on demand. For a country that has operated on over 98 percent renewable electricity for years, the marginal value of each additional firm megawatt increases as intermittent sources grow.
Fifty-five megawatts is not marginal. It represents meaningful baseload reinforcement.
The Delay: What Happened and When
Marco Acuña, president of Grupo ICE, stated publicly that Borinquen suffered postponements under past administrations, specifically noting that its entry into operation was shifted in 2018.
The statement is precise: the delay occurred in 2018, not as a result of technical failure but of administrative decision. The project was effectively displaced.
The current government (2022–2026) revived the project. Acuña’s framing is unambiguous: Borinquen is “essential to meet the country’s electricity demand and its future energy needs.”
This is not promotional language. It is a statement of necessity. Costa Rica’s demand trajectory has not paused. The postponement created a gap that must now be closed.
Costa Rica’s Geothermal Standing
Costa Rica is a continental power in geothermal energy production, surpassed only by Mexico and the United States.
The country has accumulated more than 50 years of resource study. This is not recent enthusiasm. Systematic investigation began decades before the first plant came online.
Miravalles I – Costa Rica’s first geothermal plant – entered operation in 1994. That is 32 years before this contract award. The learning curve has been long, incremental, and institutionalized within ICE.
What the Electromechanical Award Signals
Three signals are embedded in this announcement:
First, ICE has moved from planning to procurement. The project is no longer awaiting approvals or financing. The $100 million commitment is execution capital.
Second, the 2030 completion target is credible. The contract signing in late 2026, machine house construction beginning July 2027, and early 2030 operation suggest a 42-month electromechanical phase. For a 55 MW geothermal plant, that is realistic.
Third, the project has survived political transition. The 2022–2026 government revived it. The contract signature will occur after that government leaves office – in the second half of 2026 – meaning the incoming administration will inherit an executed contract, not a proposal.
Employment and Local Impact
More than 500 people currently work on Borinquen I. That figure reflects civil works and early site preparation.
Electromechanical installation typically requires specialized labor – turbine and generator technicians, control systems engineers, high-voltage electricians. The workforce composition will shift. But total employment may not decline; peak construction employment often occurs during equipment installation and commissioning.
The plant is in Liberia. That geography matters. Guanacaste has been a wind and solar corridor. Geothermal adds a different profile: higher capacity factor, smaller physical footprint per megawatt, and continuous operation.
Comparative Context
Mexico and the United States lead the continent in geothermal generation. Costa Rica holds third place – not by accident but by sustained policy and state investment.
Unlike El Salvador (another geothermal user with a smaller economy) or Nicaragua (which has development potential but less installed capacity), Costa Rica has integrated geothermal into a near-total renewable matrix. This is unusual globally. Most countries with high renewable penetration rely heavily on hydroelectric storage or natural gas backup. Costa Rica uses geothermal as firm, carbon-free baseload.
The country has studied the resource for over five decades. That timescale exceeds commercial operations of most renewable technologies. Geothermal exploration is expensive and risky. State absorption of that risk – through ICE – enabled the learning curve.
Operational Timeline Realities
The statement projects conclusion “at the beginning of 2030.” That is approximately 42 months from the July 2027 machine house start date.
Geothermal electromechanical installation follows a known sequence:
1. Turbine and generator foundation setting
2. Steam gathering system connection
3. Turbine installation and alignment
4. Generator installation
5. Cooling tower construction
6. Control system integration
7. Individual component testing
8. System integration testing
9. Steam admission and synchronization
10. Commercial operation
The 2030 target assumes no major supply chain disruptions. The $100 million contract size suggests a single supplier or consortium – typical for geothermal turbogenerators. Procurement is now complete. Fabrication lead times for large turbines range from 18 to 30 months. A late 2026 contract signing puts delivery in 2028–2029, aligning with the July 2027 civil start.
What Is Not in the Announcement
The press release does not specify:
· The winning contractor or consortium
· Whether the turbine is back-pressure or condensing
· The geothermal fluid chemistry and its implications for materials selection
· Reinjection well status
· Steam field development progress
· Grid connection point and transmission upgrades required
These are not omissions of secrecy but of scope. The announcement is a procurement update, not a technical datasheet.
The absence of contractor name is notable. Adjudication occurred June 4, 2026. The announcement was published June 10, 2026. Contract signing is scheduled for second half of 2026. That gap may reflect final commercial negotiations or conditional approvals.
Institutional Continuity
ICE is executing this project as a state institution. The announcement carries the institutional seal, not a political party’s branding. The press contact emails use the @ice.go.cr domain. The authorization note permits reproduction citing the original source.
This is worth noting because geothermal development requires long-term institutional memory. Costa Rica’s 50-plus years of study reside within ICE. Miravalles I’s 1994 commissioning was an ICE achievement. The utility has operated multiple geothermal plants continuously for three decades. The operational competence is proven.
The 2018 Delay Revisited
Acuña’s reference to the 2018 postponement is precise political language. He does not name administrations. He says “past administrations” and notes the entry was “shifted” from 2018.
The implication: the project was ready or nearing readiness in 2018. It did not proceed. The current government reversed that decision.
For context, 2018 was the first year of the Carlos Alvarado administration. The previous administration (Luis Guillermo Solís, 2014–2018) would have overseen planning that targeted 2018 operation. The delay occurred at the transition or shortly after.
Acuña’s statement attributes revival to the 2022–2026 government. That places the political responsibility clearly. The project is now beyond reversal without contract breach.
Why Firm Capacity Matters Now
Costa Rica’s electrical demand has grown. Electric vehicle adoption is accelerating. The transportation sector is progressively electrifying. Industrial demand does not pause.
Intermittent renewables – wind and solar – produce when resources are available. Geothermal produces when needed. The 55 MW from Borinquen I replaces the need for thermal backup (imported or fossil-based) during periods of low hydro reservoir levels or low wind.
The phrase “firm capacity” in the announcement is technical. It means the 55 MW can be counted on for system planning. That is different from nameplate capacity of solar or wind, which requires derating for availability.
2030: The Completion Year
Early 2030 is the target. That is four years from the contract award. The timeline is not aggressive by geothermal standards. Typical development cycles from exploration to operation range 6–10 years. Borinquen I has already completed exploration, drilling, resource confirmation, and substantial civil works.
The remaining work is industrial, not geological. No resource uncertainty remains. The steam is there. The question is only engineering and construction execution.
Conclusion
The Borinquen I electromechanical contract award is not a milestone. It is a decision. ICE has committed $100 million to a specific supplier for a specific scope. The project is 55 percent complete. The machine house will start in July 2027. Commercial operation is scheduled for early 2030.
Costa Rica’s geothermal history – 50 years of study, third place on the continent, Miravalles I online since 1994 – provides the institutional substrate. The 2018 postponement was a political choice. The 2022–2026 revival was also a political choice. The contract signature in late 2026 will be an institutional execution.
Fifty-five megawatts of firm capacity. Eight geothermal plants. Five hundred current jobs. One hundred million dollars committed. Four years to completion.
Borinquen I is no longer a project under consideration. It is a project under construction.
Source : Groupo ICE
Connect with us:LinkedIn, X
Comments
Post a Comment