Latin America holds an estimated geothermal potential of up to 70 gigawatts (GW), yet less than 6% of that potential has been developed. The region currently has only over 1.8 GW of installed geothermal power capacity, representing approximately 11% of global geothermal capacity.

As countries seek to strengthen energy security and reduce dependence on imported fuels, today's geopolitical uncertainty shows the volatility of energy markets. Against this backdrop, geothermal energy is increasingly being recognised as a strategic resource to provide reliable, round-the-clock renewable power.

To identify gaps and opportunities in deploying geothermal energy at scale in the region, the International Renewable Energy Agency (IRENA), the Global Geothermal Alliance (GGA), and the Government of El Salvador convened a two-part webinar series in July.

Designed around two complementary themes - geothermal power generation and direct-use of geothermal applications -the series highlighted how geothermal energy can achieve three goals:

Strengthen energy security,

Accelerate clean energy transition,

Create new opportunities for sustainable economic development across Latin America.

El Salvador's experience already demonstrates how geothermal energy is contributing to both energy security and economic resilience. Geothermal already supplies around 21% of the country's electricity generation and remains a central pillar of its strategy to diversify energy sources and drive economic growth.

In El Salvador, experiences have shown how geothermal development can benefit local communities beyond electricity generation: it powers food processing; agricultural applications; and community-based enterprises.

Opening the webinar and representing the government of El Salvador, H.E. Vanessa Interiano, Coordinator for International Energy Affairs and Permanent Representative of El Salvador to IRENA, said: "We are convinced that geothermal energy represents much more than a source of power. It represents an opportunity to strengthen the energy sovereignty of our countries, promote sustainable development, and build a more resilient future for the next generations."

During discussions, participants acknowledged that the challenge is no longer identifying geothermal resources, but creating the conditions needed to transform those resources into commercially viable projects. As underscored by Gurbuz Gonul, Director for Country Engagement and Partnerships at IRENA, "The challenge is no longer whether geothermal resources exist; it is how to transform those resources into bankable projects that deliver energy security, economic opportunity, and long-term development benefits."

International financial institutions present in the webinar highlighted how concessional funding, risk-sharing mechanisms, and public-private partnerships can help countries reduce exploration risks and attract greater private sector's participation in geothermal development.

Participants widely agreed that Latin America's pathway to stronger energy security powered by geothermal requires coordinated action by governments, financial institutions, industry, and local communities. The webinar concluded with key priorities to accelerate geothermal deployment in the region:

• Reducing exploration risk through innovative mechanisms and risk-sharing facilities to unlock private investment.
• Building stronger regulatory and institutional frameworks that provide clarity and confidence for investors and project developers.
• Integrating direct-use applications into geothermal planning from the outset, ensuring resources deliver benefits beyond electricity generation. 
• Investing in technical capacity, knowledge exchange and regional cooperation to accelerate project development and share lessons across countries.
• Engaging communities early so geothermal development supports local priorities and delivers lasting social and economic benefits.