Top 10 Geothermal Problems: Why a 24/7 Resource Still Struggles to Scale Image credit : Fida, C.E.O Geosilica... This is what scaling looks like downhole in geothermal pipes Intelligence; Strategy for the Geothermal Decade Geothermal energy is often presented as the clean firm resource that can support a renewable electricity system around the clock. It does not depend on sunshine, it can operate through calm weather, and it can provide heat and power for decades. Kenya already relies heavily on geothermal generation , Iceland uses geothermal heat across its economy, and next generation developers are now signing large power contracts with technology companies seeking reliable carbon free electricity. Yet the global geothermal sector remains small compared with solar and wind, with installed electricity capacity still near 16 GW. That gap is not caused by one obstacle. It is produced by a chain of interlocking problems involving geology, drilling, finance, permitting, public acce...
Colombia and Iceland Forge Strategic Partnership to Unlock Geothermal Energy Potential
By: Robert Buluma
On June 17, 2026, Colombia took a decisive step toward transforming its energy landscape. In Bogotá, the Ministry of Environment and Sustainable Development and the Ministry of Mines and Energy of Colombia signed a landmark Memorandum of Understanding with Iceland's Ministry of Environment, Energy and Climate. This strategic agreement establishes a comprehensive framework for bilateral cooperation in the geothermal energy sector, marking a pivotal moment in Colombia's journey toward a diversified, sustainable, and resilient energy future.
The Memorandum lays the foundation for a cooperative relationship centered on knowledge exchange, capacity building, research, and the development of joint initiatives that contribute to the sustainable use of geothermal potential. It reflects the shared commitment of both nations to advance renewable energy solutions that strengthen energy security, foster innovation, and contribute to a just, orderly, and sustainable energy transition.
For Colombia, this agreement represents far more than a diplomatic formality. It is a strategic bridge to one of the world's most experienced geothermal nations—a country that has transformed its volcanic geology into a cornerstone of national prosperity. For Iceland, it is an opportunity to share decades of hard-won expertise while learning from Colombia's unique perspectives and priorities.
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Colombia's Geothermal Promise: A Nation Built on Fire
Colombia's geothermal potential is nothing short of extraordinary. According to studies by the Colombian Geological Survey, the country possesses a geothermal potential exceeding 1,170 megawatts. This places Colombia on the cusp of becoming a significant player in global geothermal energy production—if it can successfully develop the resources lying beneath its volcanic terrain.
The nation's privileged location along the Pacific Ring of Fire, one of the most geologically active regions on Earth, provides the fundamental conditions for geothermal energy development. The same tectonic forces that have shaped Colombia's dramatic landscapes and, at times, posed risks to its communities, now present an extraordinary opportunity to generate clean, reliable, and continuous energy.
The regions with the greatest geothermal potential are concentrated in the volcanic belt running through the Andes. Departments including Nariño, Cauca, Caldas, Risaralda, Tolima, and Huila have been identified as prime locations for geothermal development. Among these, the Nevado del Ruiz volcanic massif in Caldas has emerged as the focal point of Colombia's geothermal ambitions.
The Nereidas Project: A Pioneer Takes Shape
The most tangible evidence of Colombia's geothermal progress is the Nereidas project, located in the Nevado del Ruiz volcanic massif. On May 20, 2026—just weeks before the Iceland agreement—the Colombian government granted environmental viability for the exploratory phase of this pioneering initiative.
Nereidas is considered the first large-scale geothermal exploration project in the country. Led by Ecopetrol in partnership with Baker Hughes and the utility CHEC, the project could eventually generate between 50 and 100 megawatts of renewable power—enough to serve more than 250,000 families. This would represent a significant contribution to Colombia's energy mix and a proof of concept for future geothermal developments.
To enable the Nereidas exploration, the Ministry of Environment authorized a partial and conditional subtraction of a forest reserve area under Law 2, specifically for exploration activities. Importantly, the government emphasized that this subtraction applies outside National Natural Parks boundaries and is subject to strict environmental protection conditions, including water resource management, ecological restoration, and risk management.
New Environmental Regulations: Building the Framework
The Nereidas approval was accompanied by a broader regulatory milestone. The Ministry of Environment issued Resolutions 0418 and 0419 of 2026, establishing for the first time comprehensive environmental terms of reference for geothermal exploration and extraction projects in Colombia.
These instruments define the technical, environmental, and social rules that geothermal projects must follow. They represent a fundamental shift from ad-hoc approvals to a systematic, transparent framework that provides clarity for investors while ensuring robust environmental protection.
The government has been explicit that geothermal development will not come at the expense of environmental integrity. The new regulations mandate rigorous baseline studies, continuous monitoring of water quality and seismic activity, and comprehensive community engagement protocols. This balanced approach seeks to build public trust while unlocking the country's geothermal potential.
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Why Iceland? The World's Geothermal Laboratory
Iceland's selection as Colombia's strategic partner is no coincidence. With nearly 90 percent of its housing heated by geothermal energy and approximately 30 percent of its electricity generated from geothermal sources, Iceland has achieved what many nations only dream of: a virtually fossil-free energy system built on volcanic heat.
The Nordic island nation's journey began in the 1930s, but it was the oil crises of the 1970s that accelerated its transition. Today, Iceland is home to some of the world's most advanced geothermal technologies, including deep drilling techniques that can access supercritical fluids at temperatures exceeding 400 degrees Celsius. This technological frontier—known as the Iceland Deep Drilling Project—has opened new possibilities for vastly increasing energy output from individual wells.
Beyond electricity generation, Iceland has pioneered direct-use applications that demonstrate geothermal's versatility. These include district heating networks, greenhouse agriculture, fish farming, swimming pools, and even industrial drying processes. By cascading geothermal heat through multiple applications, Iceland achieves utilization efficiencies that far exceed most other renewable technologies.
This comprehensive approach—combining power generation with direct heat applications and cascading uses—represents a model that Colombia could adapt to its own socioeconomic context. In rural areas, for example, geothermal heat could support agricultural drying, coffee processing, or aquaculture, creating economic development alongside clean energy generation.
The Icelandic Geothermal Cluster
Iceland's success is not solely a matter of natural endowment. It has built a complete ecosystem of public institutions, private enterprises, and research centers that work in concert. Reykjavik Energy (Orkuveita Reykjavíkur), the National Power Company (Landsvirkjun), and the Iceland GeoSurvey (ÍSOR) have collectively developed world-class capabilities in exploration, drilling, reservoir engineering, and environmental management.
This cluster approach ensures that knowledge flows freely between government, industry, and academia. It has also created a global consulting industry, with Icelandic firms contributing to geothermal projects in East Africa, the Philippines, Central America, and beyond. For Colombia, accessing this network of expertise is perhaps as valuable as the technology itself.
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The Memorandum of Understanding: A Roadmap for Cooperation
The Memorandum signed in Bogotá is not a vague expression of goodwill. It is a concrete roadmap that identifies specific areas of cooperation and establishes mechanisms for implementation. The agreement covers several interconnected pillars that together create a holistic framework for geothermal development.
Knowledge Exchange and Capacity Building
At the heart of the Memorandum is a commitment to knowledge transfer. Iceland's experience in exploring, developing, and managing geothermal resources is unparalleled, and Colombia is eager to learn. The cooperation will take multiple forms, including technical training programs, study visits to Icelandic geothermal facilities, specialized workshops, and the exchange of technical personnel.
Colombian geologists, engineers, and policy makers will have the opportunity to learn from Iceland's successes and, equally importantly, from its failures. The history of geothermal development is marked by costly drilling failures and reservoir management challenges. Understanding these lessons is essential for Colombia to avoid repeating mistakes and to optimize its investment in the sector.
The capacity building component also addresses institutional strengthening. Colombia's public institutions, including the Ministry of Environment, the Ministry of Mines and Energy, and the Colombian Geological Survey, will benefit from exposure to Iceland's regulatory frameworks, environmental management practices, and community engagement strategies.
Research, Innovation, and Technological Development
The Memorandum recognizes that geothermal technology continues to evolve. Advanced exploration techniques, enhanced geothermal systems, and new drilling technologies are opening possibilities that were unimaginable a decade ago. Joint research and development initiatives between Colombian and Icelandic institutions will accelerate the adoption of these innovations.
Specific areas of collaboration include exploration methodologies, reservoir characterization, drilling technologies, and environmental impact assessment. The agreement also provides for the establishment of collaborative networks between universities, research centers, and private sector actors in both countries.
This research dimension is particularly important for Colombia, where the geology is more complex than Iceland's relatively young volcanic systems. Adapting Icelandic techniques to Colombia's specific conditions will require significant research investment and collaboration.
Pilot Projects and Demonstration Initiatives
Beyond training and research, the Memorandum envisions concrete pilot projects that can demonstrate geothermal's viability in the Colombian context. These pilots will serve as learning laboratories, generating data on local geology, drilling performance, energy output, and environmental impact.
The Nereidas project in Nevado del Ruiz will likely become a focal point of cooperation. Icelandic experts can contribute to exploration planning, drilling supervision, reservoir modeling, and environmental monitoring. Success at Nereidas would provide a powerful demonstration that accelerates investment in other geothermal prospects.
Other pilot opportunities may emerge in direct heat applications. Colombian rural communities that depend on firewood for cooking and heating could benefit from geothermal district heating systems. Similarly, greenhouses and agricultural processing facilities could use geothermal heat to increase productivity and reduce costs. These demonstration projects would showcase geothermal's versatility and build support for broader deployment.
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The Climate Imperative: Geothermal's Role in Decarbonization
The urgency of the climate crisis provides the overarching context for this bilateral cooperation. As the acting Minister of Environment emphasized during the signing ceremony, the science is unequivocal: the world must transform its energy matrix and economic model with unprecedented speed. For Colombia, this means leaving fossil fuels in the ground and embracing underground energies that are cleaner, more reliable, and longer-lasting.
Geothermal energy offers several characteristics that make it particularly attractive in the decarbonization context. Unlike solar and wind, geothermal provides baseload power—continuous, reliable, and not dependent on weather conditions. This means it can complement intermittent renewables, providing stability to the electricity grid and reducing the need for fossil fuel backup.
Furthermore, geothermal has a remarkably small land footprint compared to other renewable technologies. A geothermal power plant requires significantly less land area per megawatt than solar or wind farms, reducing the impact on ecosystems and agricultural land. This is especially important in Colombia, where land use conflicts are common and biodiversity conservation is a priority.
The greenhouse gas emissions from geothermal energy are also minimal. Even when accounting for drilling and construction, the lifecycle emissions of geothermal power are a fraction of those from natural gas or coal. In some cases, geothermal plants can even capture and reinject gases, achieving near-zero emissions.
Energy Security and Economic Resilience
Beyond climate benefits, geothermal development enhances Colombia's energy security. The country is currently heavily dependent on hydroelectric power, which provides approximately 70 percent of its electricity. While hydropower is renewable, it is vulnerable to climate variability—as the 2023-2024 El Niño event demonstrated, when drought conditions reduced reservoir levels and forced thermal generation.
Geothermal provides a hedge against this vulnerability. Because geothermal resources are not affected by weather patterns, they can continue generating electricity during dry periods. Diversifying Colombia's energy mix thus reduces risk and enhances system resilience.
The economic benefits extend beyond energy generation. Geothermal development creates high-quality jobs in drilling, engineering, construction, and operations. It stimulates local economies in rural areas, often in communities that have few alternative sources of employment. The supply chain for geothermal equipment and services also creates business opportunities for Colombian companies.
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A Just and Orderly Energy Transition
Colombia's government has repeatedly emphasized that the energy transition must be just, orderly, and sustainable. This framing recognizes that decarbonization cannot come at the expense of vulnerable communities or workers. The transition must create new opportunities while managing the social impacts of reducing fossil fuel dependence.
Geothermal aligns with this vision in several ways. The development of geothermal resources can create employment in regions that have historically relied on extractive industries. For example, communities in volcanic regions that have experienced economic hardship could benefit from geothermal development. This provides a positive narrative about the transition, showing that climate action can bring tangible local benefits.
Community engagement is a central component of the cooperation framework. Colombian and Icelandic experts will collaborate on developing participatory approaches that ensure local communities have a voice in project planning and benefit sharing. This includes free, prior, and informed consent processes, environmental monitoring involving community participation, and mechanisms for distributing economic benefits.
Learning from Iceland's Social Contract
Iceland's geothermal development has been accompanied by a strong social contract that ensures communities share in the benefits. Local governments receive tax revenue from geothermal plants, community funds support social programs, and developers maintain active communication with residents. This has helped maintain public acceptance despite the disruption of construction and operation.
For Colombia, adapting this social contract to local conditions will be essential. The country's diverse cultural contexts, with indigenous, Afro-Colombian, and mestizo communities, require flexible approaches that respect different governance systems and worldviews. The cooperation with Iceland can facilitate this adaptation by sharing experiences while supporting Colombia's own community engagement framework.
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The Technology Transfer and Innovation Pipeline
The Memorandum provides for a comprehensive technology transfer framework. This includes not only equipment and software but, more importantly, the know-how to operate and maintain geothermal facilities. Building Colombian capacity to independently manage geothermal projects is a long-term objective.
The technology transfer pipeline encompasses multiple stages. Initially, Icelandic experts will provide training and on-site support for exploration and pilot projects. As Colombian capabilities develop, the relationship will evolve toward joint research, co-development of technologies, and eventually Colombian leadership in project implementation.
Innovation is particularly important for adapting Icelandic technology to Colombian conditions. Iceland's volcanic systems are relatively young and well-characterized, while Colombia's geology includes older systems with more complex reservoir conditions. Research into reservoir stimulation, well design, and resource assessment tailored to Colombian conditions will require collaborative innovation.
Digital Technologies and Artificial Intelligence
The cooperation also explores the application of digital technologies and artificial intelligence to geothermal development. Machine learning algorithms can improve exploration success rates by analyzing geological, geophysical, and geochemical data. Digital twins—virtual models of geothermal reservoirs—can simulate production scenarios and optimize resource management.
Iceland has made significant advances in these areas, with research institutions developing sophisticated modeling tools. Transferring these capabilities to Colombia will accelerate exploration and reduce development risks. Colombian researchers and engineers will have opportunities to collaborate on these advanced applications, building expertise that supports the broader deployment of geothermal energy.
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Financing the Geothermal Transition
Geothermal projects require significant upfront capital investment. Exploration wells, drilling, and plant construction typically cost millions of dollars per megawatt of capacity. The Memorandum recognizes that financing is a critical challenge and envisions cooperation on mobilizing investment.
The cooperation includes exploring financing mechanisms such as development finance institution loans, multilateral development bank programs, and green bonds. Iceland's experience with innovative financing structures, including public-private partnerships and risk mitigation mechanisms, can inform Colombia's approach.
The Memorandum also contemplates technical assistance on project preparation. Well-designed projects with robust feasibility studies and environmental assessments are more likely to attract investment. Colombian institutions will receive support on developing bankable geothermal projects that meet international environmental, social, and governance standards.
International Collaboration and Climate Finance
Geothermal development can access international climate finance sources, including the Green Climate Fund, the Global Environment Facility, and bilateral climate programs. Colombian and Icelandic officials will collaborate on identifying and accessing these resources, ensuring that geothermal projects receive appropriate support.
The agreement reinforces the broader commitment to multilateralism and international cooperation on climate action. Both countries have expressed their dedication to the Paris Agreement objectives and the Sustainable Development Goals. This cooperation demonstrates how bilateral partnerships can advance shared climate objectives while building national capabilities.
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Looking Forward: A Decade of Geothermal Growth
The Memorandum of Understanding is not a one-time event but the beginning of a long-term relationship. Both countries have committed to regular monitoring and evaluation of cooperation activities, ensuring that the partnership delivers tangible results. Annual meetings will review progress, adjust priorities, and identify new opportunities for collaboration.
The immediate priorities for the next phase include launching training programs, planning study visits, and initiating joint research projects. The Nereidas project will be closely watched as a test case for Icelandic-Colombian cooperation, with experts from both countries working together on exploration activities.
In the medium term, Colombia expects to bring its first commercial geothermal power plants online. The successful development of Nereidas could be followed by additional projects at other prospective sites, gradually increasing geothermal's contribution to the national energy mix. Direct use applications, including district heating and agricultural processes, are also expected to grow as technical and regulatory barriers are addressed.
By 2030, Colombia aims to have several hundred megawatts of geothermal capacity in operation, with a growing domestic industry capable of independently developing and operating projects. This would represent a significant contribution to the country's climate commitments and energy security objectives.
Challenges and Opportunities Ahead
Despite the enthusiasm surrounding this agreement, significant challenges remain. The high upfront costs of geothermal development require sustained political support and investment. Technical risks, including drilling failures and reservoir uncertainty, must be managed through careful exploration and adaptive management.
Community engagement will be essential to maintaining social acceptance. Geothermal projects require land use, water resources, and environmental management that must be negotiated with local communities. Building trust through transparency and benefit-sharing is a long-term process that cannot be rushed.
However, the opportunities are equally compelling. Geothermal offers a unique combination of baseload reliability, low emissions, small land footprint, and economic development potential. Colombia's position along the Pacific Ring of Fire, combined with Icelandic expertise and international climate finance, creates a powerful convergence of factors that could accelerate geothermal deployment.
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Conclusion: A New Chapter in Colombian Energy History
The signing of the Memorandum of Understanding with Iceland marks a new chapter in Colombia's energy history. It signals the government's commitment to diversifying the energy matrix and embracing renewable technologies that have been underutilized in the country. It recognizes that climate action and economic development are not incompatible but mutually reinforcing.
For Iceland, the agreement extends its tradition of international cooperation on geothermal energy. The country has long viewed knowledge sharing as a form of climate leadership, supporting developing countries to leapfrog fossil fuels and build clean energy systems. Colombia's importance as a regional leader and its significant geothermal potential make it a particularly valuable partner.
The success of this collaboration ultimately depends on implementation. The energy transition will not be easy, and geothermal development faces real technical, financial, and social challenges. However, the commitment demonstrated through this agreement, combined with Colombia's natural advantages and Iceland's deep expertise, provides a solid foundation for progress.
In the coming years, Colombians may look back on June 17, 2026, as a turning point—the day when the nation truly began to harness the fire beneath its feet. The partnership with Iceland opens possibilities that extend well beyond energy generation, offering a model for international cooperation that advances climate objectives while building national capabilities and creating local benefits.
As the global community faces the urgent imperative of decarbonization, partnerships like this one demonstrate that solutions are available. With political will, technical expertise, and international cooperation, the transformation is possible. Colombia is taking its place among nations that are leading the way toward a clean, secure, and sustainable energy future.
Source: minambiente.gov.col
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