Mexico’s Ministry of Energy awards GSM Bronco contract to drill four geothermal wells in Baja California and Baja California Sur under a $51.5 million federal investment, aiming to revive Cerro Prieto and expand clean power.
Mexico’s Ministry of Energy (Sener) has awarded GSM Bronco the contract to drill four new geothermal wells in Baja California and Baja California Sur, aiming to revive one of the world’s oldest geothermal fields and bolster the country’s clean-energy capacity.
The public tender, launched in 2024, called for three wells at the Cerro Prieto field in Baja California and one at Las Tres Vírgenes in Baja California Sur. Under the Geothermal Financing and Risk Transfer Program, the federal government will invest US $51.5 million to cover exploration risks and support construction, which is slated to begin next year.
Jorge Islas, Undersecretary of Planning and Energy Transition at Sener, said the project reflects a broader push to re-establish Mexico as a geothermal leader. “We were pioneers in geothermal energy 20 or 30 years ago, and we want to reclaim that position,” he said, noting that decades of underinvestment have left the 960 MW Cerro Prieto plant operating at just 400 MW.
Cerro Prieto, located about 30 kilometers southeast of Mexicali, ranks among the largest geothermal facilities worldwide. Its output has declined due to aging infrastructure and maintenance shortfalls. By drilling three fresh wells, Sener aims to tap deeper reservoirs and restore capacity, which could translate into more reliable baseload power for northern Mexico.
Meanwhile, the single well at Las Tres Vírgenes—near the border of Baja California Sur and Baja California—will support exploratory efforts in a field with unproven potential. If successful, it could unlock a second geothermal hub in the peninsula, diversifying regional energy sources and reducing reliance on fossil-fuel imports.
Earlier this year, Mexico enacted a new Geothermal Law to streamline permitting and reorganize regulatory bodies, making it easier for developers to secure concessions and grid connection. The law reduces red tape for electricity-generation projects and clarifies royalty frameworks, a move designed to attract private capital into the sector.
Analysts say the timing aligns with global clean-energy trends and Mexico’s own climate commitments. Geothermal power delivers stable, low-carbon electricity and can operate 24/7, unlike some solar and wind installations. By reactivating Cerro Prieto and testing Las Tres Vírgenes, Mexico can expand its renewable mix while supporting local industry and job growth.
GSM Bronco, the awardee, has drilled geothermal wells in Latin America and maintains a partnership network for drilling technology. The company will deploy directional drilling rigs and advanced well-logging tools to assess reservoir characteristics and optimize production. Officials expect drilling to last six to eight months, after which testing will determine reservoir temperature, pressure, and sustainability.
Local stakeholders welcome the project but caution that community engagement must keep pace. Indigenous and farming communities in Baja California have previously protested energy developments without clear benefits or environmental safeguards. Sener has pledged to conduct environmental impact studies and hold public consultations before site work begins.
With construction set for early 2026, industry observers will watch closely to see if Mexico’s geothermal revival meets its promise. Success at Cerro Prieto could signal a new era for renewable baseload power in Latin America, while breakthroughs at Las Tres Vírgenes might kickstart exploration across the peninsula’s volcanic corridor.
