Sunday, May 22, 2022

Logo Central America Link

Honduras: renewable energy

Monday, March 10, 2014

The Honduran government is considering incentives, which are intended to attract some $750 million in investment in renewable energy sources over the next decade.

At the same time, critics of the plan object to subisides, which they say would cost more than thermal power.

The two sides – for the most part members of the same administration – expect to decide within the next few months, as to which way to proceed.

Under a recently-proposed plan, foreign and local companies would be offered a subsidy of $0.03 per kilowatt hour, for new renewable-energy projects.

The subsidy would be added to the average price of thermal energy, currently $0.13.

Honduras wants to double its existent capacity within the next decade, at a cost of around $3.5 billion.

Current average capacity utilization is 1,300 megawatts, 55% of which comes from diesel and bunker plants.

As part of the expansion, Honduras wants to reverse the proportion which it generates from sustainable sources, compared to thermal combustion.

Renewable energy currently represents 45% of total output.

Depending on the project, a company interested in Honduran power generation can operate on its own or in partnership with the state energy company, Enel.

Nearly two thirds of eligible voters cast their ballots in last November’s national election, the highest levels in this century.

At 45, new President Juan Orlando Hernandez is the youngest leader in Honduran history.