Geothermal energy originates far below the Earth's crust in a layer called the mantle. The mantle is made of molten rock called magma hot. In recent years, water seeps into the earth's crust to form pools and underground rivers. In parts where the magma wells up in the top, it warms the water. This hot water then the wells of the land, whether in the form of steam or hot plain water. Geothermal energy in this hot water can be utilized directly for heating or harnessed to produce electricity.

The Ministry of Chile announced a new agreement exploitation of 20 geothermal power areas through 2012. The tender regards 170 places, with the objective associated with increasing to 1,000 MW associated with geothermal power in the country.

Chile is securely accelerating the development of geothermal power, offering the concession of the massive amount places for its exploitation. Particularly, Energy Minister Ricardo Raineri introduced the results from the proposals which were posted in a sensitive for that honor of 20 areas with regard to exploration within the regions of Tarapacos and Shedd Ríos.