But the Central American country that is home to nearly six-million people has ambitious plans, and is being helped out by a small Canadian company.
RAM Power (TSX:RPG) today announced it has started commercial operation of the phase two expansion of the San Jacinto-Tizate project. The project, which was plagued by delays and cost overuns, is an essential part of of Nicaragua’s infrastructure development, and will sell power 37% below current wholesale prices, says the company.
Nicaragua’s national development plan calls for 94% of the country’s electricity needs to be sourced from renewables by 2017.
RAM CEO Shuman Moore said the company improved from the experience.
“The company and its capable San Jacinto team have greatly benefited from the collective experience acquired during phase one construction, commissioning and sustained operation, making the phase two construction and commissioning program a much more efficient and effective experience,” he said.
San Jacinto, which is located in the northwest of Nicaragua, approximately 90 km northwest of Managua, is a geothermal energy plant project that is expected to generate 72 megawatts, enough to power more than 7000 homes.
Earlier this month, RAM Power announced it had synchronized the phase two expansion of San Jacinto with the Nicaraguan national integrated electrical grid, and had received its final $18-million draw under a previously agreed upon credit facility.
Shares of RAM Power closed today down a penny to $.245.